Replace or Repair Gas Furnace?

Question

I have a gas furnace which was installed in the mid 1990's. The furnace needs repair or replacement. I have a quote to repair it for $800. I'm not sure how much it will cost to replace it, but I believe from doing some research that it will probably be at least twice the cost of repairing the old one.

Does it make sense to spend the money on the repairs, or would I be better off purchasing a new one?

The tax credit available this year for purchasing and installing a new high-efficiency gas furnace is tempting, but the up front costs will be difficult to handle. Any ideas or recommendations?

Would it be possible to perhaps save some money by purchasing a new furnace myself and then finding someone to install it? It seems like most companies want to sell me the furnace if they are going to install it, but their price mark-ups are insane!

Answer 1

Best Answer - Chosen by Asker

To get the tax credits you will need a 95% efficient gas furnace, the lower efficiency units do not qualify for tax credits. Then you only get 30% of the total price in tax credits, max $1500.00.
A new 95% will cost you a lot more than $1600.00! Then there's the labor on top of that. $5000.00 is more realistic.
Buy it yourself? Warranty it yourself!
Most companies will take off about half the price of the furnace from what they would charge for the job complete with them furnishing the furnace to install one you have. And then there will not be a warranty.
And what you would have access to buy yourself would be some off brand or freight salvage equipment. Manufacturers do not sell to the public, only to dealers.
Yes, replacement will be your better bet, but it will be pricey.

Source(s):

36 years HVAC tech, NATE certified

Asker's Rating:

Asker's Comment:

Good information. I appreciate knowing what a realistic cost might be. Will help in getting estimates for a replacement.

Answer 2

the newer ones are 99% efficient, the vent is a plastic tube,
if your old furnace works good and did not cost you an arm and leg on gas prices , fix it, but if the cost for heating was high then replace it,
yes you can buy one then have a qualified TEC install it,
shop around, get at least 3 different quoits

Source(s):

maint man /old timer

Answer 3

What is wrong with the unit to cause it to be replaced. Short of a cracked combustion chamber just about anything can be replaced. Even a crack can be welded (but will crack again). What type of furnace is it. Forced air, wall, frestanding room? For a heater to be installed in the 90's and need replacement so soon seems a little strange.. I would at least get a second opinion.

Source(s):

Pacific Gas & Electric Field service rep 35 years

Answer 4

800 $$ is allot for most GAS boiler repairs. Do you know what is wrong? Did you get a 2nd Tech to diagnose ? 2nd estimate? With out telling them anything about the first tech? Most Companies have a mark up..that is ok.. if its way more then other est don't use them or if you like the or trust them ..pay it! Or ask them to meet the other comp. price. This 800$ is not normal. Plz tell me what is broken . And no matter what get a 2nd est ! Brian

Source(s):

18 ys as a plumber and heating Tech .

Answer 5

I would go with the folks that say replace. With the tax credit, and the savings on a more efficient heater, your return on investment won't take long at all. After that you will be saving money.

Source(s):

I'm in the building maintenance business, and I get payed to figure these things out for the people who hired me!

Answer 6

OK if its going to cost $800 to repair and then months later it totally calfs well then you still have the expense. I didn't want to replace my boiler, but I did and it was only 84% eff. which means its not high eff. at 85%, but guess what my gas bill went from $190 to $132 a month and now I have a credit of about $500 and usually I would be having a balance owing of about $800 which means that the cost is almost 1/2 paid for in one year.

Answer 7

I agree that the situation puts you in a bad spot, but most installers will not cover any warranty on a unit they did not supply. I would suggest getting the repairs done now, and start figuring on a new unit next season.

Answer 8

800 is a lot

Sounds like they are almost replacing it anyway

most furnaces are 700 to 1200 plus labor