Keep all your posts in one thread. Easier for everyone to follow.

I gave you my opinion earlier on both HP version, ductwork, and warranty.

What did you decide?

What is cost of ext warranty?

---------

"Here is a fuel comparison between HP and nat gas.
Cost per 100,000 btu of useable heat

Electric baseboard: $2.48
Heat pump: $1.00
Natural gas: $1.18

As you can see, there is an advantage to a HP. Where you get hurt is the 80% eff on package units. Any opportunity to go to split system rather than package unit? You could then get a condensing furnace with 95%+ efficiency. My advice is to stay away from the heat pump because you live in an older home.

Who is J B and Associates? Third party warranties are problematic and i am generally opposed to them. I would forget the ext warranty and put that money toward a new ductwork system. Nothing wrong with flex as far your individual runs both supply and returns. But I would want metal for your supply and return trunk lines. R8 insulation minimum. Floor is insulated? Keep individual returns. You do want a box filter cabinet installed whether you replace ductwork or not.

I see nothing wrong with DF Trane model as far as reliability versus the straight 16c gas/electric model. I just don't think it's worth it taking into consideration your rates and location. Savings with HP when in use would be around 15%. You will have to be judge. If your home has poor to average insulation qualities, I don't think you would be happy with the HP."

IMO

This post was edited by tigerdunes on Mon, Nov 10, 14 at 6:38

In response to Tigerdunes:

I decided on the Trane 16c and the new duct work.

However, I've gotten conflicting advice on the extended warranty -- hence my new post. The cost of $610 to up the warranty to 10 years parts and labor.

I agree with tigerdunes about 3rd party warranties. Best to stay away from them. I would personally only buy an extended warranty if it were backed by the manufacturer. The manufacturer is much less likely to go out of business than the extended warranty co's.

You get the 10 yr parts warranty already from Trane. The ext warranty concerns the labor to 10 yrs. don't like third party warranties. Price not bad though. You need to understand any exclusions as well as your responsibility as far as routine PMs. Trane use to offer a warranty but apparently has discontinued this program. Too bad. You could depend on it.

TD

You will need a true two stage thermostat with that package system. Anything less will cripple a very nice unit.

Otherwise you will always go to high stage heat whether needed or not.

Recommend HW Prestige 2.0 control.

IMO

I'd turn the table on the contractor. I'd buy the system (maybe) if he includes the 10 yr labor warranty. Extended warranties are cash cows for the manuf and installers.

I have known of two extended warranty HVAC companies, Triad and Equigard. Both sold mountains of warranties, made piles of dough, and promptly went under when the liabilities became to great...but not before they made out like champs. They were both AM Best, AAA rated companies.

The extended warranty business is all third party driven because manufacturers would have to carry the warranty liability on their books and that could seriously dampen investor enthusiasm.

Thanks for the advice. I will see if they will offer the 10 years labor at no cost.

New Question - Current Trane offer is either an instant rebate (mine would be $1,200 or $75 per seer) or 60 months no interest. This offer expires on November 30. Will Trane follow this with a new equally as good offer, or is this as good as it gets? My contractor said this is the best he's seen.

Take the $1200. Trane offers rebates/incentives in the Spring and Fall. These offers have a specific qualifying and installation period for specific upper end HVAC. It is never certain what if anything they will offer in the Spring.

TD

Its pretty clear that the posters that are posting AGAINST extended warranties dont know their A holes from the elbows. I am an HVAC contractor. I am also the guy that gets to tell countless customers that yes, their parts are under warranty, but the labor is still $XXX! and let me just say this... labor is in 100% of the cases the lions share of the cost of a repair.

Some people look for the absolute lowest cost. A warranty whether extended labor or just base part warranty may never be used. An Extended Labor warranty costs money and some manufacturer's and or third party Warranty Providers require annual maintenance contracts to remain valid which further increase your cost of ownership. So if you spend up to $1200 (complete system extended warranty coverage) + more annual maintenance money. Maintenance is always a wild card, some AC's will require more maintenance than some. It varies widely.

So people say 'look at all that money you threw away.'

If who you are using for HVAC service & install know what not to do, often times the warranty is not needed. The risk, from my own experience is in the realm of 2% to 3% annually. (I can't prevent all failures, but I can cut your risk.)

I can't tell you how many AC units that I've installed over the years that I haven't been to since the install. Not even for a maintenance check. I've repaired far more, including those not installed by me.

But the ploy most companies find themselves in is to hire the unskilled or low skilled to do the service work and or installation work. Then dangle an extended warranty carrot in front of someone. It's nothing new.

In my experience the money you spend on a extended warranty is often times best used on your terms, rather than a third party insurer.

Read the fine print. These kinds of policies vary in what they require and what they will pay for.

3rd party HVAC warranties are generally worthless for several reasons...using less than the best companies/techs in their network and the exclusions found in the fine print....