HVAC Repair or Replace: How to Help Customers Decide

For customers experiencing a breakdown, making an HVAC repair or replace decision can be very difficult. They are not experts, yet they are faced with making a choice about how much longer their equipment might last with a repair, or if it’s better to spend a lot of money to replace it now. 

When you break the news and ask them to make that decision, they will usually look to you (as the expert) for advice.  

Unless the equipment is really too far gone or impossible to repair, you can’t make the choice for them. But here’s how you can guide them helpfully and appropriately.

HVAC repair or replace decisions: 7 factors to review with your customer

When facing an HVAC repair or replace decision, your customer needs information. How can they decide whether the equipment might last a while longer with a repair? Or if they are wasting their money on a system that’s likely to break again soon, and HVAC replacement is a better choice?

You can help by reviewing the following factors with the customer.

1. Equipment age 

What is the expected lifespan of the equipment, and how old is the unit? Commercial systems typically last 15 to 20 years, while residential units might be rated for 10 to 15 years. 

So if a commercial system is 8 years old, it’s more likely to last a while longer. But for a 15 year old system, it might be smarter to replace it.

2. Equipment condition & maintenance history 

The condition of the equipment can shorten or lengthen its expected lifespan. For example, a unit that has been meticulously maintained according to the manufacturer’s recommendations since its installation is much more likely to last longer. A unit in poor condition that hasn’t had regular maintenance will need to be replaced sooner.

3. Scope & type of repair issues

What’s broken now and in need of repair? Is the problem contained to one part of the system (like a leaky condenser coil, for example), or are there multiple problems that need to be fixed?

Also, certain types of problems, such as electrical issues, tend to be simpler and less expensive to fix. On the other hand, if an AC compressor goes, that’s a much more complex and expensive repair. And, compressors often fail because of other undetected problems, so if the compressor is replaced the original problem may recur and cause the system to fail again. In that case, air conditioning replacement may be the better decision.

If recent performance has been good, and the problem is contained, the unit is more likely to last a while longer. In that case, replacement may be able to wait.

4. Refrigerant

Does the system use a refrigerant that’s phased out (R22), or in the process of being phased out (R-410a)?

In that case, it may be smart to replace the AC unit now. If a future failure requires adding refrigerant, the cost of these refrigerants might be very high due to the declining supply.

5. Availability of parts & equipment

If the unit is older, getting replacement parts might be time consuming and expensive. On the other hand, with the global supply chain issues, customers may also have to wait for new units.

Be sure to inform the customer about any wait times for either repair or replacement.

6. Cost

Obviously a repair will cost less than replacement. But, if the unit fails again soon, the customer will need a replacement anyway. So, how much should the customer consider spending on a repair for an older system?

Here’s a rule of thumb that can be helpful: if the unit’s age is more than 75 percent of its estimated lifespan, AND the repair cost is more than a third of the replacement cost, then replacement probably makes sense.

If the unit is newer and/or the repair is minor and inexpensive, then repairing might be worth it to buy the customer time to plan for replacement in a few years.

Also, remind the customer that there may be additional costs to consider beyond the price of the repair or replacement equipment. For example, a business can lose money if they have to close while waiting for a new AC system. Also, customers can save a great deal on energy expenses with a newer, more efficient system.

7. Personal factors

There are all kinds of personal or business situations (especially financial ones) that might impact an HVAC repair or replace decision. For example, if a family or a business is moving soon, they might not want to invest in a new system. Or, if limited-time rebates or tax deductions are available, that might shift the decision towards replacement.

Once you have reviewed these factors and discussed them with the customer, don’t press them for a decision immediately. In fact, you should provide them with an estimate for the repair and for system replacement so they can make an informed decision.

HVACR technicians: grow your knowledge & your career

If you found this article helpful, check out more articles that can help you build your expertise and a successful career in the HVACR industry.

HVACR Career Connect NY was created to promote the exceptional quality-of-life benefits of a career in HVAC and Refrigeration service, and also to provide a clear path for getting started in the profession. In doing so, we serve as a resource for employers in the New York City metro area to find and hire smart and capable new technicians. We also serve as an educational resource to support business growth and to help service technicians succeed in their chosen profession.