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I've decided that the C.O.D. method is not an option for me at this point as I need to ensure my system works should it fail at some point. Not being able to diagnose it or fix it puts me in this position. The piece of mind approach best suits my situation at this time so I've decided I need a service contract.
So.... I made a few phone calls today and here is what I got. All include auto delivery, inspection, yearly tune up, and X amount of parts covered (one was 64 parts covered, another was 66; somewhat of a moot point): Petro - $2.899 variable rate, Service contract: $129.95/yr
$3.229 variable cap- if delivered within 2 weeks, I could get $2.899 and a cap of $3.129. All includes a $100 credit towards service or 1st delivery which would bring down the the price per gallon approx 10 cents Meenan - owned by Petro and roughly the same prices
$2.899 if i took delivery within 2 weeks with a cap of $3.07, Service contract: $139/yr. $100 credit towards service or 1st delivery Slomans - $2.649 variable based on the Slomans Posted Price minus 40 cent discount. Basically you pay the same as employees. No obligation and you can lock into price at any time without penalty. Rep told me posted price is $3.049 and has been there for a year. Sweezy - previous homeowner had contract with them as I just learned. $2.89 fixed until June 1, 2011. After June 1, I can re-negotiate a lock. I would guess that its typically cheaper for fuel oil in the summer months? Service contract - $0, yes, free for up to 5 years if I stay with them. They offer a variable cap but according to the rep, not worth it. Variable cap price of $2.899 + $100 credit off 1st delivery which in turn, will drop the price 10 cents.
The Slomans cost per gallon seems the best as long as it doesnt sky rocket. Of course, there is no guarantee that it will stay put. There is no cap and the cheaper cost per gallon, could save up $40-$50 per delivery. At 4-5 deliveries per year, that is around $200 in savings. They do have the cheapest cost for a service contract outside of Sweezy. I would probably save more money in fuel savings going with Slomans than with a free contract with Sweezy. Being that Sweezy serviced the burner here before, they know the system and have a history of on the system, which I do not have.
Anyone care to shed some light on what you would do in my position? I am a little skeptical of the Slomans only because there is no cap available. Granted, its 40 cents cheaper than the posted price, who is to say that the price wont take off? Decisions, decisions.
Last edited by LI BraveOne; 10-14-2010 at 03:32 PM..
Anyone care to shed some light on what you would do in my position? I am a little skeptical of the Slomans only because there is no cap available. Granted, its 40 cents cheaper than the posted price, who is to say that the price has wont take off? Decisions, decisions.
Maybe this will be of some guide to you in anticipating potential price moves ...
Gas would be my preference. I am unsure if it's on the block or not and I will certainly not pay a dime to have any pipes installed. My skepticism lies with the fact that National Grid is the only gas provider and keeps the prices where they want it b/c they have no other companies to compete with. Yes, you never have an issue with supply but if you experience any financial hardship and cannot make your gas payment, guess what? You are up the creek without a paddle and without gas or heat. At least with oil, if you experience the same issues, you can buck up a hundred bucks and put some oil in the tank and keep the house heated. That's part of my concern with gas.
It's the same w/ oil. If you can't pay your oil bill, they will charge you 16.5% interest until it's paid. If it's not paid in a timely matter, they cancel your service and charge anywhere from $350-$650 contract cancellation fee. You could go the route of balanced billing with either gas or oil (but you pay in the summer when you're not using much oil). Also find out from Grid if it's on your block, or ask your neighbors.
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Not to say that there aren't equivalent concerns with oil such as pricing, scams, etc. As mentioned a while back, I am not handy so if something went wrong at any time with the burner, I would not be able to fix it. I would prefer COD but since I'm all thumbs, I must have a contract. That would be piece of mind for me.
Be careful with feeling too safe just because you have a contract. Usually only minor stuff is covered. If something major occurs with your system, most likely it won't be covered under the contract. You should read over exactly what is covered and where your system's weak points may be.
They call 3-4 companies when they need oil and get the cheapest price and go with that. They pay to get their oil burner serviced in August(cheaper). And then if they have a emergency service they pay like $200 for the service. Which rarely happens if you maintain your system.
Will the emergency service come at 3am on a brutally cold winter night? I suspect they would not ignore someone paying cash for service but how reliable are they going to be if they don't work for your oil company.
It's the same w/ oil. If you can't pay your oil bill, they will charge you 16.5% interest until it's paid. If it's not paid in a timely matter, they cancel your service and charge anywhere from $350-$650 contract cancellation fee. You could go the route of balanced billing with either gas or oil (but you pay in the summer when you're not using much oil). Also find out from Grid if it's on your block, or ask your neighbors.
Be careful with feeling too safe just because you have a contract. Usually only minor stuff is covered. If something major occurs with your system, most likely it won't be covered under the contract. You should read over exactly what is covered and where your system's weak points may be.
Good info, thanks pequa. I was not aware of any interest charges. I did not make it that far yet, but don't know if I would have remembered to ask that. I don't expect any financial hardship but one never knows. At this point, I am unable to convert my system, if it was present on the street. After this winter, it is something I plan on looking into. If you don't mind me asking, what is a monthly cost for your gas?
I will certainly read over the contract with a fine tooth comb and ask where the weak points are. This is why I think I am leaning towards Lewisy. They have a record with our system.
Rocafeller, I presume you didn't read my original post but we just purchased the home a few months ago. The seller insisted that the system was well maintained. Do you think they would tell prospective homeowners otherwise? Even with a well and properly maintained system, issues can still arise. I've seen plenty of new BMW's or new cars that were just purchased have issues. You would expect that since it's new, it should work perfectly, correct? Point being, there is no guarantee whether its new or properly maintained that something won't go wrong. I am thinking that $200 is the tip of the ice burg should something go wrong with a burner. I could pay for a contract that is nearly half that price and have most of the parts covered. Not a good point, sorry.
C.O.D. is cheaper but the maintenance is what I'm concerned with. Most companies that offer contracts are pretty timely when an emergency exists, even at 3am. Lacking handy skills and the skill set to fix a problem with the burner puts me out of C.O.D. market, for now.
Any thoughts on who you would go with based on the information I posted from several posts ago?
Good info, thanks pequa. I was not aware of any interest charges. I did not make it that far yet, but don't know if I would have remembered to ask that. I don't expect any financial hardship but one never knows. At this point, I am unable to convert my system, if it was present on the street. After this winter, it is something I plan on looking into. If you don't mind me asking, what is a monthly cost for your gas?
I will certainly read over the contract with a fine tooth comb and ask where the weak points are. This is why I think I am leaning towards Lewisy. They have a record with our system.
Rocafeller, I presume you didn't read my original post but we just purchased the home a few months ago. The seller insisted that the system was well maintained. Do you think they would tell prospective homeowners otherwise? Even with a well and properly maintained system, issues can still arise. I've seen plenty of new BMW's or new cars that were just purchased have issues. You would expect that since it's new, it should work perfectly, correct? Point being, there is no guarantee whether its new or properly maintained that something won't go wrong. I am thinking that $200 is the tip of the ice burg should something go wrong with a burner. I could pay for a contract that is nearly half that price and have most of the parts covered. Not a good point, sorry.
C.O.D. is cheaper but the maintenance is what I'm concerned with. Most companies that offer contracts are pretty timely when an emergency exists, even at 3am. Lacking handy skills and the skill set to fix a problem with the burner puts me out of C.O.D. market, for now.
Any thoughts on who you would go with based on the information I posted from several posts ago?
The interest charge is not bad. It's the $600 cancellation fee that could be a stinger. I use oil as well with a fairly new/mid-age system. Like I said though, if it starts going, I am switching to gas. Never had a problem yet (except clogged filters) and it's one of the most efficient models available so it may not make sense for me to switch just yet. Gas (from a relative in Nassau) for a 1800 sq ft cape w/hot water heater/ steam / runs about $300/month from november to march. Then about $50 a month in the spring-fall. About $2100/year. Oil for the same house will use about 1,200 gallons x ~$3.00 gallon = $3,600 /yr (If oil stays put, BIG if).
As Pequaman posted...they use the emergancy service as posted on the cod website. They have had no issues with the service and the time they showed up.
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