When winter’s bitter chill sets in and your old furnace starts acting up, you may find yourself facing the inevitable question: Is it time to install a new furnace?
There are many driving forces behind this decision, whether it’s due to your existing furnace finally breaking down, the increasing expenses associated with frequent repairs, or your desire to enjoy the benefits of a newer model with modern features.
No matter the reason, you’re still probably wondering how you’re going to pay for it. Help is available; you just have to know where to look!
In this blog from Novak Heating and Cooling, we’ll explore some of your payment options and remind you why a new furnace installation in your Cedar Rapids, Iowa, home is worth every penny.
How Much Does a New Furnace Cost?
Furnace prices can vary widely depending on the type of furnace you choose.
Natural gas furnaces are a popular choice for their energy efficiency and consistent heating capabilities. The typical gas furnace cost is anywhere from $2,500 to $7,500. Additional expenses may include the installation of a gas line and ductwork.
Electric furnaces are generally more affordable upfront compared to gas furnaces. The installation cost for an electric furnace can vary from $1,000 to $6,000. Keep in mind that electric furnaces tend to have higher operating costs over time due to electricity rates.
Oil furnaces are another option, especially in areas without access to natural gas. The cost of purchasing and installing a new oil furnace typically falls between $5,000 and $10,000. Additionally, you’ll need to consider the cost of oil deliveries and maintenance.
Propane furnaces are an alternative in areas where natural gas is unavailable. The cost of a propane furnace, including installation, can range from $2,500 to $7,500. Similar to oil furnaces, propane furnaces require propane deliveries, and maintenance costs should be factored in.
It’s important to note that these cost ranges are approximate and can vary based on factors such as furnace efficiency, brand, labor costs, and any additional features or upgrades. To get an accurate estimate for your specific situation, consult with an HVAC contractor who can assess your needs and provide detailed pricing information.
How to Pay for a New Furnace Installation
Now that you have a general idea of your potential furnace installation cost, let’s explore your options for financing a new electric or natural gas furnace installation.
Personal Savings
Using your personal savings is often the most cost-effective way to pay for installing a new furnace. If you have enough funds set aside for this home improvement, it can help you save money by avoiding interest charges and monthly payments associated with loans or financing plans.
Home Equity Loan or Line of Credit
If you own your home and have built up equity, you may consider a home equity loan or line of credit to finance your new furnace. These options typically offer lower interest rates than personal loans or credit cards. However, keep in mind that using your home as collateral means you’re risking your home if you can’t repay the loan.
Manufacturer or Retailer Financing
Many furnace manufacturers and retailers offer financing options to help you spread your furnace installation cost out over time. These financing plans often come with competitive interest rates and flexible terms. Be sure to inquire about any special offers or financing deals that may be available.
Government Rebates and Incentives
Some government programs and utility companies offer rebates and incentives to encourage homeowners to upgrade to energy-efficient heating systems. These incentives can significantly reduce your furnace installation costs. It’s important to check for available programs in your area.
HVAC Company Rebates
HVAC company rebates can help you offset the upfront cost of purchasing and installing energy-efficient HVAC systems. They not only promote energy conservation but also provide financial incentives for you to make more environmentally friendly choices. To take advantage of these rebates, you should check with your HVAC contractor or the manufacturer of the equipment.
5 Benefits of Buying a New Furnace
Upgrading your home’s equipment and appliances is an inevitable part of homeownership. While it may not be the most exciting task, the benefits are certainly worth the effort. Here are some of the biggest benefits of a new furnace installation:
- Improved Energy Efficiency: New high-efficiency furnace models utilize advanced technologies and boast higher AFUE (Annual Fuel Utilization Efficiency) ratings, ensuring that you get more heat from the same amount of fuel, resulting in lower energy bills and reduced environmental impact.
- Consistent Heating: Older furnaces often struggle to provide even heating throughout your home, leading to hot and cold spots. A new furnace unit distributes heat more evenly, ensuring every room stays comfortable.
- Enhanced Indoor Comfort: Modern furnaces feature advanced components like variable-speed blowers, allowing precise control over temperature and humidity levels. This creates a more comfortable living environment and improves indoor air quality.
- Reduced Maintenance Costs: Older furnaces often require frequent repairs and maintenance to operate efficiently. Newer models come with longer warranties and are built to last, reducing the need for constant repairs and lowering maintenance costs.
- Advanced Features: Many modern furnaces are equipped with advanced features such as programmable thermostats, zone heating, and humidity control, allowing you to customize your comfort and maximize energy savings.
Novak Has Your Back for All Your Furnace Needs
When it’s time for a new furnace installation or replacement, you can count on Novak Heating and Cooling for top-notch service.
We understand that furnace installation is a significant investment, and that’s why we offer various rebates and special offers to benefit our customers. These promotions change with the season and span everything from a furnace to a heat pump or an air conditioner, so be sure to check back regularly!
Novak Heating and Cooling also takes pride in being the exclusive Carrier factory dealer in Cedar Rapids. With this distinction, you can have complete confidence that you’re receiving high-quality products from a reputable service provider.
When it’s time to replace your heating system, don’t hesitate to reach out to our knowledgeable heating and air conditioning team. We’re here to provide furnace installation, furnace maintenance, and furnace repair services to ensure your home stays warm and comfortable, even on the coldest days.
Contact your friends at Novak Heating and Cooling today for a free estimate or to schedule an appointment.