Furnaces remain the most common way for homeowners in North America to heat their homes. This furnace buying guide has all the research needed to understand your furnace purchase and make a buying decision you’ll be happy with in the next 15-20 years. The focus is on gas furnaces, since most furnaces are fueled by natural gas (NG) or, with a simple gas valve change, liquid propane (LP). However, we also briefly discuss oil furnaces.
New Furnace Cost
When efficiency, size and performance are factored into the equation, expect these cost ranges for:
- Basic furnaces: $750 to $1,475
- Better furnaces: $1,000 to $2,150
- Best furnaces: $1,850 to $2,800
Furnace installation costs are based on the complexity of the furnace, sheet metal work required to connect it to the ductwork and how difficult it is to access the installation location such as a crawlspace or attic. Expect estimates for installation in these ranges:
- Basic furnace installation: $1,400 to $1,900
- Better furnace installation: $1,750 to $2,200
- Best furnace installation: $2,000 to $2,400
Reasons to Get a New Furnacevia Holliday Heating
If you are in an exploratory mode and wondering if a new furnace is the right move, here are the top seven reasons to buy a new furnace:
- Repair costs on an existing furnace are 50% or more of the cost of a new furnace (33% for a furnace 12-15 years old; 25% of a furnace that is 15+)
- You’re staying put – the longer you plan to live in your current home, the more it makes sense to put the money into new equipment (and conversely, if moving soon, repairing the furnace might make more sense)
- It’s a preemptive move – your furnace is running, but you don’t know for how long due to age and/or past repair issues (worth considering where winters are harsh!)
- Your gas bills are rising because the furnace is losing efficiency due to age (though you might want to have it cleaned and maintained to see if it significantly improves efficiency before deciding whether to replace it)
- You want to improve efficiency
- You want to upgrade climate control
- You’ve built a home or addition that needs heating
Furnace repair vs. replace:
Some of you may have heard from an HVAC contractor that it is time for a new furnace, and perhaps you think the contractor is trying to sell you something you might not need. Well, skepticism is healthy in the repair vs. replace discussion when it is informed skepticism. Here’s a secret: HVAC contractors often make more money with a both/and approach. Repair it now; replace it later.
Charlie Greer is a seasoned HVAC contractor who owns a website called HVAC Profit Boosters with the motto, “Helping plumbing, HVAC, and electrical contractors become millionaires every day.” That tells you whose side he’s on. Speaking to HVAC contractors, Greer says:
Repair vs. Replace scenarios are tricky, because, once you bring up the topic of replacing the customer’s equipment, you stand the risk of the customer deciding to get bids, meaning that you could wind up getting neither the repair nor the replacement sale. In the long run, you make more money when they (homeowners) opt for the repair anyway. You get one repair now, possibly a few more down the road, then a higher price (due to inflation) when they ultimately replace it in the future.
Greer’s advice might be great for HVAC contractors, but not for homeowners. The bottom line is that if an HVAC contractor recommends replacing your furnace rather than repairing it, the person might be giving you sound advice, especially if the rationale involves some of the reasons from the above list.
Pro Tip: Make sure your HVAC contractor pulls a permit to install the new furnace, and that the job is properly inspected following the installation.