In all of the houses I've owned or lived in, only once has a hot water tank broken down. That's a lot of showers and baths and dish washings. So why are we hellbent on renting these darn things?
When we consider the actual costs of buying and maintaining a hot water tank, the numbers simply don't justify renting. According to the Direct Energy web site, a 60 U.S. gallon tank costs $15.48 per month (plus 5%, soon to be 13%). Unlike may other providers, they do not ask you to sign a long term contract. They claim the reasons for renting over buying are as follows:
Buying vs. Renting
There’s more than just the purchase price to consider when making the decision between buying or renting a water heater. There could be additional costs in money, time and peace of mind. Here are just a few to consider:
Your Money
- Installation Fees
- Diagnostic Charges
- Parts and Labour Costs
Your Time
- Spent search for a reputable contractor after warranty ends
Peace of Mind
- Warranty coverage fine print
- Parts and Labour Exclusions
- Length of Time parts are covered
- Who do you call for repairs?
On the other hand, what does it cost to buy a hot water tank?
On the Home Depot web site, they are selling a 60 U.S. gallon electric tank for $303.00 (on sale). I didn't investigate the warranty but my guess is it does come with some sort of guarantee. There are contractors working your neighbourhood every day who know how to install and repair these things. We don't rent refrigerators or any other appliance. Occasionally I'll sell a house with a rented furnace (once in 23 years) so we don't generally rent these. What's so special about hot water tanks?
Let's do the math. Let's see now. $303.00 divided by 15.48? Yes. This is looking good. In 19.5 months, I'll have paid for the hot water tank. Since these things last what seems like forever (my last one lasted 20+ years), why would I send Direct Energy $15.48 every month just to save me a bit of time and "peace of mind?".
If peace of mind is all I want, I'll go to church, a temple or a bar that features banjo music. That's a heck of a lot cheaper.