Cost for new AC? What would you do? (2014, homeowners insurance)

[JoeJude]

Hi everyone,

My AC is 21 years old, it works fine, although my electrical bills have been noticeably about $100 higher in the last 5 years, anyway broke last summer due to a motor and some other issue I can't remember spent $800 to fix it. So this year the HVAC company that fixed it came by and recommended I get a new AC altogether. My current AC is covered under my home warranty ($550 annually). Cost will be $6,800 to get a new one!

Option A: Has anyone got their HVAC changed lately? Cost and recommendation for contractor if I choose this?

Option B, should I just run my current HVAC into the ground until I have to buy a new one?

Option C: Consider a split/ductless system and getting rid of central AC altogether? My living room/kitchen is 70% of the electrical bill and no one sleeps in their.

Option D: Continue to pay for repairs until I have no choice but to buy a new one?

Anyway, sorry for the long post, thank you to anyone who replies.

[cruitr]

You pay over $500 a year for a home warranty and the same company wants to charge you almost $7000 for a new AC system?

Here's my advice:
1. Cancel your home warranty. Ask for a refund. Check your contract for refund terms.
2. Get a new AC system. At 21 years old, your current AC system is old enough to drink.
3. Find a good AC company on your own. Try a referral from a neighbor, a referral from a trusted friend, a referral from your insurance agent, or maybe even Yelp.

A reputable AC company will charge you less than $7000, install a solid AC system, and give you a great warranty on the system.

A home warranty is a complete ripoff. You need homeowners insurance but you don't need or want a home warranty.

[Bummer]

Interesting question, JoeJude . . .

A little over a year ago, ChasRoberts installed a new Carrier 4 Ton Heat Pump on my roof. The total cost was about $6,000 which even included a new thermostat.

The new unit is not only more efficient . . . much quieter and runs considerably less than the previous unit but much easier on my Electric Bill.

Repairs on a 21 year old unit are nothing but a Band-Aid.

[DougStark]

I agree with previous post that said dump your home warranty if you can.

I replaced my heat pump (outdoor and indoor pieces) about 2 yrs ago. I seem to remember just under 5K for the lowest SEER unit (SEER ratings are misleading in our climate, but that's for another thread.)

I personally would keep with your current one then get bids this late fall/winter and replace it then (AC tech's slow season.)

If I had the chance to re-do mine, I would go with a two-stage heat pump. Reason is, when my AC kicks on, I can feel the cold air, which is annoying/uncomfortable in late evening when I'm in bed. A two-stage unit wouldn't have these "cold-draft" characteristics, although it would run much longer but only at half speed. They definitely cost more, though.

I wouldn't go with mini-split as your only system. Resale of your home would be harmed IMO, although they're great as supplemental units to the central one.

[AZ Manager]

21 year old isn't a problem in itself but going from that to a higher efficiency unit will save you money. If you ever have to refill coolant it is going to cost an arm and a leg on an old unit like that. If it we're me I'd go with option B. I'd also ignore any company that sought me out to give me a bid/advice that wasn't asked for.

[KO Stradivarius]

Question: Isn't the AC separate from the heat pump? I really don't know the answer, as I'm not familiar with heat pumps, so just asking. Back east with a forced air furnace, this is the case, there is a separate coil (heat exchanger) in the plenum above the furnace. So the furnace blower motor is used in the summer to blow air across the cold coil. Of course the compressor is outside to cool the refrigerant and exhaust the heat given off.

If you were to replace the AC system, you'd just replace the coil and compressor but not necessarily the furnace. I assumed this would be the same for a heat pump, but that's my question... and if that's the case then would it be less costly to replace only the AC system? Or put another way, would it cost more to replace everything? $6,800 seems high to replace just the AC components.

[gentlearts]

Are you getting a couple of other estimates, OP? We are in the same boat, but we finally decided to just wait and see who gives out first, us or the AC. If it ain’t broke, don’t fix it.

We noticed that the salesmen all presented the same way. A basic, bare bones system ($5000), a middle ($8000) and a Cadillac version. Our first reaction was always to go with door #2, but as I’ve thought about it, if I do have to have it replaced it will be the cheapest version.
What do you suppose the builders putting up housing developments pay? I bet they all go with the most basic system there is, and it cools your house just fine.

[AZJoeD]

Without knowing what type of system you have, heat pump, package system, split gas, etc. And without knowing where the unit is located Roof, attic, etc. it is hard to estimate replacement cost. I just had a 3.5 ton, 14.5 SEER gas furnace split installed for $4800. But in fairness, it was on the ground and in a closet, so install was easy.

Chances are any system you install today is going to be light years better than the 21-year-old system you have now. So I would definitely consider replacement.

Just call several companies. But, I would wait until fall when the HVAC guys are not working 18 hour days.

[AZ Manager]

Originally Posted by KO Stradivarius

Question: Isn't the AC separate from the heat pump? I really don't know the answer, as I'm not familiar with heat pumps, so just asking. Back east with a forced air furnace, this is the case, there is a separate coil (heat exchanger) in the plenum above the furnace. So the furnace blower motor is used in the summer to blow air across the cold coil. Of course the compressor is outside to cool the refrigerant and exhaust the heat given off.

If you were to replace the AC system, you'd just replace the coil and compressor but not necessarily the furnace. I assumed this would be the same for a heat pump, but that's my question... and if that's the case then would it be less costly to replace only the AC system? Or put another way, would it cost more to replace everything? $6,800 seems high to replace just the AC components.

No, central AC and heat pumps are two different things that generally do the same tasks. Heat pumps can be more efficient, especially here where we don't get freezing temps, but cost more to install. Central AC still has a heat option. We don't use furnaces out here like back east even in a gas heat system, mostly because we don't see freezing temps so we don't need the extra heating power.

[Pink Jazz]

Originally Posted by AZ Manager

No, central AC and heat pumps are two different things that generally do the same tasks. Heat pumps can be more efficient, especially here where we don't get freezing temps, but cost more to install. Central AC still has a heat option. We don't use furnaces out here like back east even in a gas heat system, mostly because we don't see freezing temps so we don't need the extra heating power.

Our past two homes (built in 2011 and 2014) have gas furnaces, so they are not as rare as you think. Many tract home builders continue to install them to this day. Back during the housing market boom there was a trend to install heat pumps in 100% of communities, but some builders have backtracked on that since the bubble since some people prefer the comfort of a gas furnace. The Energy Star Homes program is fuel neutral, not recommending one heating fuel over another. Since we are a cooling dominated climate, much of the local energy efficiency requirements are focused on cooling rather than heating. I think the current Energy Star requirement for air conditioning is 15 SEER or higher (14 SEER and 12.2 EER is the current minimum DOE requirement for our region).