The following is a list of misleading business practices that can be avoided by the careful selection of an air conditioning and heating system dealer:
If you do not wish extended warranties, ask all dealers to strip this cost from their proposals and re-bid.
2. The dealer adds a tax line as a way of adding as much as 9% additional cost to a system.
Air conditioning and heating dealers in Louisiana pay sales tax at wholesale and are prohibited by law from charging tax on sales to you, the consumer. If you have a bid that includes sales tax you should ask that this amount be removed and the proposal resubmitted. Other states vary, ask your dealer.
3. The dealer does not provide warranty service after the sale.
Factory equipment and parts warranties do not cover labor unless specifically stated in the contract. Therefore it is the dealers responsibility to honor labor warranties at no charge to you. If the company you are dealing with goes out of business or refuses service after the sale, you will be required to pay for labor to install warranty parts. This labor can amount to 50% of the total charge.
4. The dealer "in-boards" warranties.
Some dealers offer multi-year or lifetime warranties as a sales feature that are not factory warranties. This means that the warranties will only be honored by the dealer that sold the equipment. Should your dealer go out of business or refuse to honor these warranties you will face the cost of all parts and labor associated with the non-factory portion of the extended warranty.
5. The dealer mismatches the system with a "name brand" condenser outside and a generic brand heater and coil inside.
In order to make the price of a system more competitive, some dealers will match a premium ("name brand") condenser with a generic heater and coil. In addition to having a low quality heater and coil with a shorter expected useful life a mismatched system can invalidate some manufacturer's warrantees.
6. The dealer does not carry liability insurance.
If a dealer does not carry liability insurance the homeowner may become liable for any accidents and injuries to employees of the dealer and the homeowners and their families during the installation or damage to their homes. Some dealers forego the significant cost of this insurance as a way of keeping prices lower, passing this risk to you.
7. The dealer agrees to run a new electrical line or new gas line to the system.
In order to run new gas or electrical service to your system, your dealer is required by the local regulations to have a gas and electrical license. These licenses protect you, the consumer, by assuring that your dealer is competent to safely install these items. If you have unlicensed work done on your property, it may invalidate any insurance claims you may have as well as provide unsafe conditions within your home.
If your dealer cannot show you licenses for gas and electrical, ask him for the names of licensed plumbers and electricians that you can contact to do this portion of the job.
8. The manufacturer/dealer over sizes the coil to obtain a higher efficiency rating.
Sometimes, in order to compete with more efficient units, a manufacturer will try to squeeze additional SEER by over sizing the coil of the system. For example, a 3 Ton, 13 SEER condenser is matched with a 5 Ton coil to achieve a 14 SEER efficiency. When this occurs it impairs moisture removal capability (in many instances by as much as 50%) thereby lessening your comfort. Make sure your coil is the proper size for your installation.
All legitimately matched systems are rated with specific efficiency by the Air Conditioning and Refrigeration Institute (ARI). If you have any concerns regarding the system proposed, ask for the dealer to give you the ARI Certificate for the system you are purchasing.
