Deciding between an AC replacement or an AC repair often requires careful thought. If an air conditioner doesn’t work like it once did, homeowners often hope for a quick and affordable fix. The AC replacement cost is notoriously high. However, frequent repairs can cost more. To help make the decision easier, here are questions to ask yourself or your local air conditioning services contractor.
How Much Is a Repair Going to Cost?
The cost of a minor AC repair is usually justified. Replacing a capacitor, fan motor, or thermostat isn’t as expensive as installing a new condenser coil or compressor. Major repairs can cost thousands of dollars and often justify replacing an aging system.
There are two ways HVAC professionals gauge whether a repair is worth it:
- A Repair Costs +/-50% of AC Replacement: If a repair quote exceeds 50% of the cost of replacement, it’s time for a new air conditioner. If the quote is less than 50%, the repair is worthwhile.
- The Repair Cost Exceeds the $5,000 Rule: Multiply the repair cost by the unit’s age. If the result exceeds $5,000, it’s better to replace rather than repair your AC.
How Many Repairs Has Your AC Had Recently?
Equipment, materials, labor, and other factors determine the cost of AC repairs. If your air conditioner needs two or more repairs per year, the costs can get out of hand. The thousands you’re spending can go toward installing a newer, more efficient system. Plus, you save on additional repairs and possibly lower monthly utility bills.
Is Your AC Near Its Maximum Life Expectancy?
An AC unit can be expected to last 10 to 15 years on average. If properly maintained, it may run even longer than that. Consider replacing the unit if it needs one repair after another and the repair quotes are high. The AC replacement cost will be worth it in the long run. But if you have an AC less than 10 years old facing its first major repair, consider keeping it a little longer.
Is the Warranty Still Valid?
Most AC manufacturers provide a limited warranty when you register the product with them. Limited warranties are valid for as long as the contract specifies. You can also purchase an extended option that increases the time and coverage of the warranty.
Once the warranty expires or is voided, it won’t cover the cost of replacing a broken part or addressing the effects of wear. Depending on the size and scope of the problem, you might be better off with an AC replacement. A new unit shouldn’t need repairs for a while and will come with a new warranty.
What Type of Refrigerant Does Your Air Conditioner Use?
If your AC is over a decade old, chances are it still requires R-22 refrigerant. Also known as Freon, the substance has been banned and supplies are limited. This has made recharging an older unit increasingly expensive. You can save by replacing your AC with a system that uses R-410 refrigerant; you’ll also help protect the environment and the ozone layer. Some AC systems are using even newer refrigerants, such as R-454B.
Are Your Energy Bills Becoming Unaffordable?
How do your utility bills compare to the same time last year? Seasonal variations aren’t uncommon, but power companies don’t usually change their rates suddenly or that drastically. If your energy bill keeps increasing, your aging AC is probably the reason.
An air conditioner with a high seasonal energy efficiency ratio (SEER) can save you over time. It may be just a few dollars a month. But this can offset part of the AC replacement cost throughout the system’s life. You could also justify upgrading to a higher-efficiency unit.
Have You Kept Up with Regular Maintenance?
Most HVAC companies endlessly promote annual maintenance. While having an AC tune-up each year can cost a few hundred dollars, it can save you thousands in major repairs and help your unit last longer. Changing filters, cleaning AC components, and more advanced tasks such as checking refrigerant levels, lubricating moving parts, and inspecting electrical components are all important for preserving your AC system.
If your AC hasn’t been properly maintained and needs a major repair, there are more likely to be multiple issues. Therefore, AC replacement is the better option. But if you’ve kept up with routine maintenance, a repair might make more sense.
Is Your AC Keeping Your Household Comfortable?
Replace your air conditioner if it’s taking longer to provide cool air. Other signs the unit is near the end of its life include fluctuating temperatures despite no changes in settings and hot and cold spots throughout your home. If the system can’t maintain a comfortable level and every room has a different temperature, it’s time to consider a replacement. These are signs of an aging AC or one that was incorrectly sized when installed; in either case, it won’t run efficiently.
Do All Your System’s Components Match?
Was one component replaced separately, such as the indoor or outdoor unit? Many people try to save money by replacing one faulty component when another is still working. A mismatched system is less energy efficient and may require more repairs. Also, the warranty on the new component will likely be voided. If you’re dealing with a major AC problem or breakdown, a repair in this case won’t make financial sense. It’s time for a complete AC replacement.
Are You Eligible for Financial Incentives?
Numerous financial incentives are available for energy-efficient AC units and other equipment. If you’re eligible, one or more of these can save you significantly. Therefore, replacing an outdated air conditioner can be more affordable. These incentives include:
- Federal Tax Credits: Available through 2032, the Central Air Conditioners Tax Credit allows you to claim up to 30% of the project cost, for an amount up to $600. The credit applies to all Energy Star-certified packaged systems and split systems rated over 16 SEER2.
- State and Local Rebates: Investing in an energy-efficient AC can also qualify you for a rebate from your state, city, or municipality. Contact a local authority or AC contractor to learn more.
- HVAC Discounts and Financing: Air conditioner installers often provide seasonal discounts that can reduce the AC replacement cost. Many also have financing options that enable you to pay for the system over time; low interest rates and flexible terms may be available if you qualify.
Are You Planning on Moving or Staying In Your Home?
If you have an older AC that’s still functional, investing in a new one may not be practical if you’re moving soon. Then again, an aging unit can reduce your home’s sale price. Installing a new system can make sense whether you’re planning on living there long-term or are looking for a good return on investment from a property sale.
Could New AC Technology Help You Benefit?
Numerous technologies have emerged that ACs installed 10+ years ago might not have. Two-stage and variable-speed systems are more adaptable to operating conditions and deliver more precise temperature control. Some ACs have performance monitoring and can communicate when an air filter is full or the system needs maintenance or repairs. Smart thermostats can learn your schedule and, depending on the model, be controlled from a smartphone and automatically adjust the temperature when you leave or return.
Is Your Air Conditioner Keeping You Up at Night?
Aside from leaving the air warm and sticky, an older AC can be loud. Noise is a common issue with aging systems. If you’re tired of waking up whenever the unit cycles on and off, consider AC replacement. Advancements in AC design have enabled manufacturers to engineer systems that operate more quietly.
Contact Trilogy AC
Our NATE-certified technicians service many types of air conditioners, including those from Carrier, Trane, Amana, Luxaire, and others. They can troubleshoot and repair any issue. When it’s time for a replacement, our AC installation team provides a full assessment of your home and focuses on quality from planning to precise placement and calibration of all AC components. Flexible financing options are available. To learn more or obtain a quote on your AC replacement cost, schedule service, or call (832) 841-4719 today.
