Be careful of furnace leases

Last April 1, the Ontario government passed a law to protect consumers from door-to-door sales agents trying to switch their hot water heaters to another rental supplier.

Sales agents are still knocking on doors. But many have found a more lucrative pursuit than replacing water heaters.

Now they’re pushing you to replace your furnace and air conditioner under a 10-year lease. While a water heater costs $25 a month to rent, a heating and cooling system can be $150 to $175 a month (plus HST).

Moreover, you won’t own the equipment when the contract ends. You’ll have to pay a buyout fee to take ownership or a removal fee to get it out of your house.

I’ve heard from many readers about rental sales pitches. Some said they were taken in by deceptive claims at the door and wish they had investigated before signing up.

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