reluctant to spend

[LivingAlmostLarge]

Here's the deal. We budget about $5k/year for home repairs or 1% of home value. We also budgeted out our car repairs for the year. We spent about $3k in car repairs this year and have another $300 left on my DH's ford focus.

The cars are running well and we're pretty happy. I budgeted $200/month this year so we went over by about $1k. Reason being they are 1999 and 2000 and about 90k miles and I figured we'd have to some to get done.

The budget buster and my reluctance to spend money is on our house. We have a ductless dual split Samsung heat pump put in 2002. Never used except by us. The compressor has a leak. It will cost about $4k to replace the system, and because it uses refrigerant 410A we have to replace it because they don't make it anymore.

Now we're reluctant to spend the money because we've spent our home repairs for the year on our retaining wall and exterior work necessary on the house. That was planned. Last year we put in a gas fireplace. So we sort of have projects in mind and the heat pumps were working when we had them checked in May.

So completely unplanned expense. Because of the economy, we're very hesitant to use our EF to pay for this repair. What should we do?

Should we do it? Suffer without it and use our gas fireplace and gas furnace? Or should we repair it? By the way we had to put in the gas fireplace last year because our pipes burst in January 2007 when it was too cold.

And our furnace is in our attic so it pumps heat 4 stories DOWN! Yes stupid I know, but the developer built it that way, and pumping hot air down isn't efficient. And these heat pumps we have only work to about 40 F. So we use the gas fireplace as the main source of heat in the winter. We also use space heaters and turn off the furnace and heat pump.

I am considering working with a company that does 0% financing for a year. I am very nervous about spending this much money right now.

Did I mention I broke my foot about 2 weeks ago? So we used a bit of cash flow this month up on extra expense as well and I'm not sure what my insurance will cover. I've gotten an MRI as well. Long story and it was my own stupidity.

So my DH doesn't want to spend the money. He said we should keep the cash and plan on repairs for next year. That is what we will fix next year and stick to our budget. Is it wrong to not repair it? What are the pros and cons of doing it?

I think I want to do it, but am unsure.

[disneysteve]

these heat pumps we have only work to about 40 F. So we use the gas fireplace as the main source of heat in the winter. We also use space heaters and turn off the furnace and heat pump.

So my DH doesn't want to spend the money.

Is it wrong to not repair it?

I'm no heating expert, but if your main source of heat is the fireplace, plus you have a furnace and can use space heaters, what do you need the heat pump for? What does it accomplish? What would happen if you never replaced it (other than saving yourself $4,000)?

[tripods68]

Sorry about your foot. I hope you heal soon.

If you and your hubby can live without it not being repaired, i would agree with your hubby. Restart your savings . There's always next year for repairs.

[Broken Arrow]

I wouldn't base your purchase decision on the economy in general.... That is, unless there is a clear connection somehow. Rather, I would just base it off of your personal finance and budget outlook. It sounds like you guys need it, and if you can afford it, then I don't see why this is a bad idea.

[LivingAlmostLarge]

DS, we use the heat pumps when it's warmer like fall and spring. It is cheaper to use than the natural gas fireplace. But they don't work in the winter, because it pumps heat, KWIM? So what happens is that we don't use it for most of the coldest periods, but like right now we would use it.

When we sell we likely have to have it repaired. Yep I will be in a cast for 8-12 weeks. Sadly this is the second time I've broken my right foot.

BA, my DH isn't sure where his job will be. He doesn't want to use our cash from our EF versus say our planned annual budget. He wants to wait and see. And the plan would be fix it next year.

I think we should do it now and be comfortable in the fall/spring. And it will be cheaper if we have a mild winter. No way of knowing. Warmer winter, cheaper to use heat pumps. Cold winter = gas fireplace.

[PrincessPerky]

Can you put on a few more sweaters?

Sorry bout the foot, but does it make it easier to cuddle under a blanket with the foot up rather than needing more mobile warmth?

Are you the one home all day who doesn't like cold and DH the one out who doesn't mind? if so, maybe he just doesn't see how uncomfortable you will be.

how much of your EF will 4K take out? How long till you can fix it by the budget of home repair? Can you move it to be more efficient? would it make more sense to wait and pay more for a better solution than the heat pump? (I don't know a thing about them, or any other source of heat sorry) Just a bunch of questions off the top of my head.

[jIM_Ohio]

If you have a broken foot, it will be tough to shove it up the repair person's rear end if they mess up... just saying...

I would consider this-
what is delta heating cost if you use the gas to heat (fireplace and furnace) if you don't fix the heat pump?

This is a cost you are considering incurring- have you put a number on it? $1000 over 4 months (meaning gas bill increases by $250 in Nov-Dec-Jan-Feb)?

Would this change the decision?

The bigger problem is the ford focus- we owned one of those once and focus was not the term we used to describe it. I remember a year around 110,000 miles where we put close to 5k into car before giving up (and car was only 7 years old).

Honda.

Back to the topic-
$200/month budgeted for cars
$400/month budgeted for home repairs

$325/month needed or 4k needed for heater repair.
If you finance this is paid off in 6 months- ($600/month over first 6 months of 2009). Just remind your cars they cannot have problems for 6 months, and that your one 2009 house repair has been done in 2008.

And you have an EF in case things do go wrong.

You know costs will increase by $500 to $1000 over same period, so there will be costs associated with not fixing this. If you do replace, you can probably move the heat pump and save you some money come summer, so you might recover some of the $4000 spent and be able to save for that Honda I mentioned or restock the budget to fix the focus. It will need fixing, trust me.

[LivingAlmostLarge]

Trust me Jim, I've considered my broken foot. Maybe I can stomp on the guy's foot.

I'm not sure because it mostly depends on the temperature Jim. If it's a mild winter mostly 40-50, then the heat pumps would save us a lot of money. If it's cold again like last year, around 32 or lower, then we wouldn't use the heat pumps at all and it's a moot point. Realizing that the colder it is, the more money we spend anyway.

I can't move the heat pump. I can install a more energy efficient one though. I don't think we're replacing either car. We will be keeping them until the wheels fall off. This car we've sunk so much money into that it's like new! The thing is that when we had repairs this year it all happened once after another instead of at the same time. If it had been the same time I would have dumped the car! Instead we had to replace the thermometer, timing belt, brakes, replace water pump, shocks and struts, and leaking power steering pipe. Sigh, and my corolla had an oil changes these past year. Trust me I know. But remember it's a marriage with compromise and my DH loves his car more than mine. But he has admitted I have a better car.

PP, I am not at home during the day and neither is my DH. But we leave it at 55. When we're home it's 60. We wear sweaters and blankets when we're home. Costs are outrageous where we live so we really do conserve and use very little energy to heat. Our dogs are cold! I wrap the older one before we go to work and leave them on the 3rd floor.

[zetta]

Estimate your bills for the following, and the numbers may help you make a decision:

* Fall/Spring without heat pump
* Fall/Spring with new heat pump
* Mild winter without heat pump
* Mild winter with new heat pump
* Cold winter without heat pump
* Cold winter with new heat pump
* Cost of new heat pump

[jIM_Ohio]

Trust me Jim, I've considered my broken foot. Maybe I can stomp on the guy's foot.

I'm not sure because it mostly depends on the temperature Jim. If it's a mild winter mostly 40-50, then the heat pumps would save us a lot of money. If it's cold again like last year, around 32 or lower, then we wouldn't use the heat pumps at all and it's a moot point. Realizing that the colder it is, the more money we spend anyway.

I can't move the heat pump. I can install a more energy efficient one though. I don't think we're replacing either car. We will be keeping them until the wheels fall off. This car we've sunk so much money into that it's like new! The thing is that when we had repairs this year it all happened once after another instead of at the same time. If it had been the same time I would have dumped the car! Instead we had to replace the thermometer, timing belt, brakes, replace water pump, shocks and struts, and leaking power steering pipe. Sigh, and my corolla had an oil changes these past year. Trust me I know. But remember it's a marriage with compromise and my DH loves his car more than mine. But he has admitted I have a better car.

PP, I am not at home during the day and neither is my DH. But we leave it at 55. When we're home it's 60. We wear sweaters and blankets when we're home. Costs are outrageous where we live so we really do conserve and use very little energy to heat. Our dogs are cold! I wrap the older one before we go to work and leave them on the 3rd floor.

that nickel and diming on our focus is what made us rename the car to ford ##cked Us. We stopped the bleeding after 5k in one year and got a honda accord.

[LivingAlmostLarge]

Thanks, I have to go and run the numbers it looks like. The new heat pump is $4k. The rest I'll have to guess. Gas is expensive but so is electric, yuck.

But the stupid focus is now done and I'm not going to replace it hopefully for a few more years.

[jIM_Ohio]

I have only had the luxery of driving a paid for car for around 3 years. That is not the current 3 year period (I am in year 3 of my 4 year loan). I hope my gas guzzling ridgeline lasts for another 10 years so I can bank the payments.

My hope is that you bank a portion of your car budget for a down payment on another car. My experience with a Ford focus suggests you will need a new car real soon.

FYI- in many of the requirements failures demonstrations my company gives (see other post on US automakers), the Ford Focus is actually one of the projects we use to illustrate why companies need to track the validations of their requirements. Ford did not and you are paying for it now.

[Johansen8]

gas fireplace The unit is a mechanical device with hoses and valves. It can deteriorate after time and just like an old BBQ, will need to be replaced. It really depends on the condition of each component. If you are qualified to inspect it, you may notice something mechanical which would require service.If you are not qualified, check for normal operation.

source: www.innovatvechimneycorp.com

[LivingAlmostLarge]

Thank you for the notice Johansen! I appreciate it.

Jim we were actually discussing spending money this year with the car deals and buying a newer car. We were thinking about it seriously, selling the car for a down payment but we're not sure we really want to get stuck with car payments.

Glad we didn't because this heat pump issue came up. My DH is already feeling the pressure to keep up with the Joneses and buy a better car since everyone else does. But I don't want to.

Well see. If we have a kid I just want to upgrade to a four door car at least and dump the focus.