Tag Archives: system

Should You Buy A Private Label Air Conditioning and Heating System?

If you are getting bids on having a new AC and heating system installed, you might be offered a private label system. Like other private label products you may be familiar with, instead of having the manufacturer’s name on the equipment, it is branded with the company that is selling and installing it.

The main reasons HVAC contractors will offer a private label system are straightforward:

  1. Because the quality of the installation matters considerably more than which brand of equipment is being installed,  independent HVAC contractors are now putting more emphasis on “selling themselves” rather than the brand of equipment.
  2. Customers are less likely to compare it to the equipment in competing bids
  3. Since there is less brand advertising and perhaps less markup between them and the factory, the contractor who installs the equipment likely has room to make more profit margin in their cost on the equipment than on branded units. Or they can lower the price to you and make the same profit as on branded units.
  4. You (or the next owner) are more likely to call them for maintenance, repairs or replacement.

HVAC Industry insiders often refer to the equipment as “boxes”

The inference here, of course, is that the ac and heating equipment, heat pumps, etc.  are a commodity. To the extent that they are made from mechanical parts built by factories (some of them the same ones…) from all over the world, I agree with this assessment.

In some of the industry forums, I often read about confusion over who currently makes the equipment for certain well-known HVAC brands vs. who used to make them or whose parts they used.  Brands and factories get relocated overseas, change ownership, or get split up to the point that some industry insiders are not sure who even currently owns some brands.

A private label air conditioner and heater system can be a good buy if:

  1. You are convinced that the company and their technicians who will install it offer an acceptable overall value. Among other things, this includes: accuracy in sizing the equipment and quality of its installation, efficiency, features, benefits, customer service and more.  You can read more about that here on how to buy.
  2. You get documentation on what company or companies the warranty is through, and are comfortable that they will be around for the life of the equipment, and will make good on any defects or mistakes.
  3. If a third party is involved in the warranty (someone other than the actual manufacturer, such as Goodman, or the local company who is installing the equipment, then read this blog post before buying.
  4. You get written verification that your private label equipment qualifies for federal or other rebates. Note: the model number on private label equipment is often the same as for other models made by the factory that builds it.

Let us know if you have any experiences in this area so others can learn.

Same As Cash SAC Financing For Air Conditioning Systems

If you are considering buying a new air conditioning and heating system or heat pump, and are not able to pay for it with cash, check or credit card, then you will likely run across a financing offer called “same as cash financing”.  It is usually preceded by a number of days or months (example: “90 days Same As Cash”) and is also abbreviated SAC.

Having had an eye-opening experience myself with a computer purchase and this topic, research for this blog reinforced my beliefs in this area.  I’ll also include a list of questions to ask about SAC offers, along with a financing alternative you may not have thought of or been told about.

Read the “same as cash” SAC documents and ask questions

The first thing to know about SAC: there are usually strict requirements to avoid changes in the “no interest”. For some offers, if you are late on any payments or fail to pay the entire balance on or before the due date,  the whole loan can be recalculated back to the first day it began, and at some unbelievably high interest rates or with fees. If that happens, what started out seeming like “interest free money” for your AC purchase can turn on you to become something you would regret.  Now…on to the checklist….

As a checklist while you are reading SAC financing details, look for the following:

  1. How many payments must you miss or be late on before the SAC offer turns to a loan with interest?
  2. If interest were to get added, what would the interest rate be in APR?
  3. If the rate escalates, is it recalculated back to the first or the day your loan became late?
  4. What date or system determines when your payment was received? (In other words, how many days could pass between the date your payment is delivered at one part of their payment center and the date your payment is actually credited to your account?)
  5. Is there any credit insurance /debt cancellation insurance required or automatically included?
  6. If present in the contract, can you opt out of it? (This type of insurance usually costs a lot, relative to the size of the loan).

While reading in some HVAC industry publications, I found references to credit unions, and this is a topic we have written about before. If you project into the future and believe you may not be able to pay off the entire SAC loan, you should consider a fixed rate home improvement loan from your local credit union.  You can search online or look up credit unions in your area at NCUA – Credit Union Directory

In the past few years, there are more credit unions that have membership criteria other than employment for a specific company or entity.  One way to describe these is “community chartered credit unions”.   Practically speaking, it is probably easier to just ask what the membership requirements for your credit unions are.

If you have related experiences, please send them so other readers can benefit.

Compare Bids for a New Heating AC System AND Anticipate Contractor Add-On Costs

Comparing Equipment Features
Attempting to compare heating and AC brands, or shopping for features get the most attention from buyers. We wrote about this in last month’s blog and in other place.  We provide a free grid to compare new equipment cost at a glance. From your research or bids, you can fill in the blanks on this printable chart to cut through the “noise” and understand the equipment efficiency and other objective features. However, this equipment must be installed as a system in the structural environment of your home or building, which has variables. So, on to our main topic.

Preparing for What ELSE Might be Necessary to get a New HVAC System Installed
In situations where the new heating and cooling equipment is going into an existing structure (as contrasted with new construction) there are some major potential “gotchas” to prepare for.  I’ve experienced this personally, so hopefully you can benefit from my lessons, some of which were costly. Two good examples of this are electrical wiring and ductwork. They both have the potential to be significant “add ons” to the scope of the work in the project.

Electrical Wiring
If you are having central heating and AC installed into an existing structure for the first time, be sure to get info about wiring conditions.  This would be especially true for a older home or building with original wiring.  Essentially, you want to make sure that the wiring, connections, and circuit breakers, etc. can safely and efficiently handle the new load. If they cannot, you will experience circuit breakers tripping or perhaps much worse.  Because inadequate wiring will increase the cost of a job or might slow down the decision to buy a new system,  some equipment installers might be tempted to not bring it up at all. Or, they might focus the discussion on the new equipment first, get that signed, then bring up the wiring issue and cost.  This is also true for an older structure that already has central heat and air, but needs them replaced.

Ductwork
If your home or building already has ductwork, there are several parallels with electrical wiring to consider:

– The existing ductwork might be usable, OR it may need to replaced due to its structure, design or condition.

– Most potential issues can be seen ahead of time, but some could be discovered during installation of the new system.

– Project add-ons can be  awkward to negotiate or expensive to buy, because work has already begun.

The solution: Focus First on Getting High Quality Advice and Labor on the Installation
We rarely miss an opportunity to highlight the variable that matters most in heating and AC: the quality of the installation.  If you choose a dealer whose sales reps and technicians are trained, experienced and  ethical, dealing effectively with existing wiring or ductwork should be automatic. That way, you can be sure to get the right equipment for your situation and needs AND deal with potential variables in the original project scope.

If you and your contractor handle it well, getting a new system installed will be the start of a long-term relationship that includes preventative maintenance. There are also manufacturer and possibly installer warranties to consider, and those will be the topic of our next blog post.

If you find this useful, please share your thoughts and experiences with other reads. If not, let us know how we can improve.

Helpful Steps for Choosing a New Furnace or to Replace Your Central Heating System

What types of fuels or sources of heat are available to your home or building
Before spending too much time researching heating systems, you must determine which fuels or external heat sources are available to your home or building. This will provide the initial list of choices you have.  For example, if gas is not readily available, gas/electric dual fuel heat pumps are off the list.  Further, if surrounded by solid rock close to the earth’s surface, then you are much less likely to consider geothermal heating.

Your climate: number of days with high temperatures below freezing
If your location has many days of sub-freezing high temperatures, this will likely cause an all electric heat pump to be in auxiliary heat mode more than you would want. If the source of that auxiliary heat is strip heating (electricity) there may be better alternatives.

Type of construction of your home or building: basement, attic space and existing heating infrastructure
If your home or building has existing piping or ductwork already in a floor, basement or attic and it is in good condition, you will need to factor this in your decision.

We recently were told an account of a homeowner in Montana who had piping for radiant heating in their concrete slab.  The piping sprung a leak and, assuming it was all bad, the owner got bids to bypass the old piping and a new system.  A quick excavation revealed a nick in the old piping system that dated back to its installation, not degradation.  So, uncovering the cause saved an unnecessary expense.

If you are considering the re-use of existing ductwork, be sure that your price quotes or bids address the condition of the existing ducts.  Include interior condition as well as sealing against air leaks.

Forced air systems vs. radiant heat: personal comfort and preferences
Do you prefer warm or hot air blowing into your rooms from  a forced air system or gradual warming through radiant heat?  Within the blowing warm air category, if there is an all electric heat pump involved, the air that comes out of the vents into your rooms will not likely be as warm as the air from a gas furnace. If you are cold natured or have respiratory issues or allergies, these factors could also affect your decision.

Length of time you plan to own your home or building, if known
If you know you will be there many years, this could affect the type of system you select. Reason: a future owner might not place the same value on your type of new system as you do.  With fuel costs mostly going up,  a higher efficiency system is still recommended, though.

Training, experience and integrity of installation companies you are considering
As written elsewhere on our website, the quality of the installation of your furnace or heating system will likely prove to be a bigger variable to your indoor comfort and satisfaction than the brand of equipment  you select.  Go here to read a quick list of tips on how to select a heating and furnace contractor.

Four parts to the cost of ownership of the life of a system
Over the life of your new furnace or central heating system, there are four types of costs to consider. You can read our blog post in May 2008 to learn more details about these.

  • Initial cost of installed equipment
  • Energy efficiency: cost of fuel or energy to operate the system over the life of the system
  • Maintenance cost over the life of the system
  • Life span and replacement cost at end of life of system

We hope these tips will help you stay warm and enjoy lower energy usage and bills!  Please post your experiences.