Best way to pay for this?

**Jluke** · 12-31-2016, 05:42 PM

I got 0% when I replaced my furnace/AC in 2015. Trane system for 8k or so.

Guess you don't really have time to shop around.

is the 10k furnace only?

**kork13** · 12-31-2016, 06:02 PM

Originally posted by frugal saver View Post

Option #2
$4000 from savings
$5000 from IRA (I have a mandatory distribution from an inherited IRA)
$1000 on my Visa
I can start re-paying the money back to savings, but I can't repay anything to the IRA, plus it would be taxable income next year.

I'm leaning towards Option #2 right now, and making a new goal to have at least $20,000 somewhere I can get to it for the next time something like this happens.

Agreed, with one possible change -- are you able to pay off the Visa this month? I would avoid paying any interest, especially on a credit card. If you're able to take a little more out of either savings or the inherited IRA, I'd do that. But this is exactly the sort of thing an emergency fund is there for -- definitely build that up.

**TexasHusker** · 12-31-2016, 06:06 PM

It's got to be paid for one way or the other. Don't know that it matters from which bucket it comes.

**frugal saver** · 12-31-2016, 06:09 PM

Originally posted by Jluke View Post

I got 0% when I replaced my furnace/AC in 2015. Trane system for 8k or so.

Guess you don't really have time to shop around.

is the 10k furnace only?

This is a heating/air conditioning system that's on top my roof. It's Trane. Part of the problem is the original people that put it in did various things wrong so a bit more will have to be done to re-do this and that.

Who did you get the 0% through? My service company only offers utility financing, which is what most people here use.

Edit: I shopped around and got the best price last time--and ended up having to hire someone else to finish what they didn't. I'm going with a company that I know does excellent work this time.

**TexasHusker** · 12-31-2016, 06:19 PM

Originally posted by frugal saver View Post

This is a heating/air conditioning system that's on top my roof. It's Trane. Part of the problem is the original people that put it in did various things wrong so a bit more will have to be done to re-do this and that.

Who did you get the 0% through? My service company only offers utility financing, which is what most people here use.

Edit: I shopped around and got the best price last time--and ended up having to hire someone else to finish what they didn't. I'm going with a company that I know does excellent work this time.

How many square feet? It sounds like you might be getting hosed.

**Jluke** · 12-31-2016, 06:21 PM

Originally posted by frugal saver View Post

Who did you get the 0% through? My service company only offers utility financing, which is what most people here use

I just went to the trane website. They had a 15-month 0% through home projects/Wells Fargo. Ends today. Mine was 0% for 60 months but I hate monthly payments so I paid it off in about 12 months.

Can't hurt to look to see if the installer shows up on the list.

The hvac experience was not what I expected. Very shady and disappointed with the sales tactics. System runs well though.

Option 2 appears to be the best for you if you can't get the 0%.

ETA. Other idea: HELOC?

**Nutria** · 12-31-2016, 07:18 PM

Originally posted by frugal saver View Post

Option #2
$4000 from savings
$5000 from IRA (I have a mandatory distribution from an inherited IRA)
$1000 on my Visa
I can start re-paying the money back to savings, but I can't repay anything to the IRA, plus it would be taxable income next year.

I think that answers your question...

If I'm totally broke until August, I can pay it down at about $800 a month.

No one likes to be broke. $333.33 until March!

**Nutria** · 12-31-2016, 07:22 PM

Originally posted by frugal saver View Post

Option #1
$4000 from savings (loss of 1% interest until repaid)
$6000 financed thru utility company at 7%. $60 a month for 15 years, they take a full lien against my house and if I want to re-finance they are a pain to deal with.

If you didn't have a mandatory IRA disbursement, I'd go this route and pay it off in 10-12 months.

**TexasHusker** · 12-31-2016, 07:35 PM

I might also get a second or third opinion on whether you need a new furnace. This is the go-to line for many so-called technicians. It's much easier and more profitable to sell you a new system than repair the one you've got. My gosh, a furnace can last three decades or more, and I don't know of any part of a furnace that can't be repaired.

**msomnipotent** · 12-31-2016, 08:04 PM

My furnace broke on the coldest day of the year. I specifically said that we needed our furnace repaired, and they sent a salesman instead. Of course, he said it couldn't be repaired and needed to be replaced. I didn't find out that he was just a salesman until I called a year later about our A/C and he let that juicy bit slip. I would get several opinions before I did anything.

As for paying for it, do you have 2 credit cards? Pay for it with one to earn points, do a balance transfer for however many months, and then use the mandatory distribution to pay for it monthly? You could put the distribution in a bank account to earn a tiny bit of interest, at least.

**Nutria** · 12-31-2016, 08:15 PM

Originally posted by msomnipotent View Post

My furnace broke on the coldest day of the year. I specifically said that we needed our furnace repaired, and they sent a salesman instead. Of course, he said it couldn't be repaired and needed to be replaced. I didn't find out that he was just a salesman until I called a year later about our A/C and he let that juicy bit slip. I would get several opinions before I did anything.

Sweaters and electric space heaters FTW!

**kork13** · 12-31-2016, 08:47 PM

Our furnace's blower motor went out last month, and the repair guy did say that if ever the heat exchanger went bad, that part is typically non-replaceable, and definitely non-repairable. They're supposed to last 10-20 years or more, but you never know. If that's the problem, then yeah, replacing the furnace is likely your best (only?) option.

But agreed, you should definitely get a cost quote from another company or two.

**97guns** · 01-01-2017, 06:31 AM

10K seems high unless your in a McMansion, i got a quote last month from my regular HVAC guy for $3k to repair and $6K to replace a furnace on one of my units and thought it was way overpriced. he also told me that if he does the repair it will not last, i immediatly seeked a second opinion via Craigslist and had it fixed for $115, it was in this guys words "a simple electrical issue"

**greenskeeper** · 01-01-2017, 06:35 AM

Originally posted by frugal saver View Post

Of course my heating went out on New Year's Eve. On my last service they hoped it would last a few more years.

What type of HVAC system do you have? There may be ways around replacing the entire system to get you through the colder months, and in the meantime you can save like crazy to replace it later this year.

Best way to pay for this?