Why Leasing Commercial HVAC
Equipment Makes Sense
By Matthew Bent, Account Manager
Let’s face it, the idea of replacing commercial HVAC equipment for your business is a daunting and expensive commitment – especially as the cost of commercial HVAC equipment continues to increase.
Grand HVAC Leasing’s (GHL) Commercial Leasing Program alleviates some of the hurdles associated with replacing your equipment and is structured differently than financing options. Our program differentiates itself by including the appropriate maintenance and all service calls and expenses in your monthly lease rate.
Below, I elaborate on three of the reasons leasing commercial HVAC equipment makes sense from a net-cost perspective. These are service and maintenance costs, efficiency savings, and taxable benefits and rebates.
1. Unexpected service and maintenance costs
As HVAC equipment ages and nears the end of its useful lifespan, the costs associated to maintain and keep the equipment running become increasingly more expensive. This is largely due to parts for older equipment becoming more obsolete or expensive. Additionally, if owners forget or fail to appropriately maintain the equipment, this window for unexpected failures and service calls increases substantially.
Through GHL’s Lease Program, the maintenance (yearly, pre-season/end-of-season, etc.) is included so your equipment is always maintained thoroughly. This in turn extends the equipment’s lifespan, reduces the risk of failure, and retains efficiency.
Gone are the days that you have to foot an expensive and unexpected service bill! Our leases include all service, parts, and labor for maintenance and service calls so you can reduce downtimes and accurately forecast your budget by eliminating unexpected service costs.
2. Efficiency savings by replacing aging equipment
If your equipment is near the end of its optimal lifespan, it is very likely that new high-efficiency equipment will provide significant energy savings. As mentioned above, if your equipment is not maintained properly, it is likely losing efficiency year-over-year which inevitably leads to growing utility bills.
When replacing your equipment through the lease program, our certified contractors install high-efficiency equipment that will be the best fit for your property! By increasing efficiency, savings can be quite substantial.
For example, a customer of GHL inquired about upgrading their boiler to a Lochinvar Crest Condensing Boiler and by doing so he saved roughly 30% (over $2000 annually) in gas consumption alone!
3. Taxable benefits and rebates
Instead of putting out the upfront capital to replace your equipment, you can easily overcome the capital restraints by leasing. As the leased equipment becomes a commercial operating lease, there are taxable benefits that will offset your net cost substantially.
The exact amount of taxes deducted varies for every business and is dependent on a few factors such as cash flow, cost of monthly payments, and other tax deductions your business is taking advantage of. However, as a rule of thumb, you can expect roughly 27% of the capital cost to be offset by the tax benefits.
With respect to rebates, we work directly with local utilities to determine how much of a rebate you will receive by retrofitting your equipment and upgrading to high efficiency. This way you know ahead of time how much you will receive, and the rebate will provide another avenue for offsetting your costs.
The best part is that we do the math for you in a cost-comparison breakdown so you can see which is the best option for your company. In most cases, you will end up being net-positive by going through a lease as opposed to purchasing outright!
Instead of waiting for your equipment to fail or continue to have unexpected service costs, take advantage of a leasing program. Call Grand HVAC Leasing today at 1-425-403-7294 or email us at info@grandhvacleasing.com.