Buying a new boiler and pay monthly.
As I write this, boilers from all leading manufacturers have gone up in price four times this year. The next increase is early August, and this one will be another whopping eight per cent, yes 8%. Unjustified? Probably not, you have to consider the increase worldwide in the price of raw materials, the increased fuel and distribution costs, basically in this world the increased everything.
What can you do? Plan ahead as a new boiler is not going to come cheap. It will soon be on a par with a new kitchen, or bathroom or even double glazing.
If you currently have a broken or obsolete boiler and you are short on available cash, then you either have to lend, finance it somehow or have a higher limit on a credit card that you can use. Not the nicest sentence I’ve ever written, but alternatives are in short order now. Free boilers are nowhere near as accessible as they once were, so prepare to pay monthly, and the minefield that can be….
Buy a new boiler on finance
Say it quick and it sounds straight forward. Zero %, Buy Now Pay Later or Deferred Payments, Interest rates, Length of loan in years….dear me the list is long.
Firstly zero %. Well to be honest, there is no such thing. Anybody lending money wants a return on it, simple economics. In this case it is built into the price.
Let me explain better, if someone was to lend you two thousand pounds (£2000) to buy a boiler over a period of say three years on a normal loan deal, you would, dependent upon the interest rate, pay back somewhere in the region of £2300 to £2400. To me that makes good business sense and people know this. However, with a buy our boiler with zero % interest offer, the purchase price at the start would now be £2300 to £2400, and not £2000. Does that make sense?
So, you think you are getting a great deal, but are you? Ask yourself.
For this reason, we do not offer zero% finance. We don’t think it is a fair concept at all. We will never mislead customers….
Buy now pay later, is quite simply the process of giving yourself a bit of breathing space before your re-payments begin. The downside is it takes longer to finish the agreement and because of this, the interest rate charged tends to be higher to cover the increased duration. Finance companies, banks and the like never lose out….
Choosing the length of your borrowing term is very important. The longer the term, say ten years instead of three, and you’re going to pay more back on the original amount you borrowed. The upside is that your monthly repayments are lower and not as demanding on your monthly outgoings…My advice is always to pay things off as soon as you are able, but not everybody can afford this, so alternatively, go for the best deal you can and one you can manage.
Interest rates are fairly stable and very similar among all leading finance or lending organisations. Having said that, this only applies if you have a good credit history, and you are considered a good customer in terms of your history and ability to make the repayments throughout the length of the loan.
What happens if your circumstances are different? What happens if you have poor credit history? That is where it can become naughty. For one you are going to pay higher interest charges, which means higher monthly repayments. Two, certain firms might even increase the quotation price, knowing your options are limited, this is not something we would even consider. Three, this type of credit is difficult, not impossible though, to obtain. Please, just be careful, and only go through reputable organisations. If in doubt, ask us.
Can you get a new boiler for free?
Technically yes you can. However, the circumstances in which you can, have now changed. In a nutshell it is harder. The same qualifying benefits apply, however, those with the old back boilers (behind a gas fire or fireplace) are in vogue presently. This is simply because they offer the greatest savings in harmful emissions terms. This may well change….
The government have been pushing for the free systems offered to be either the air source or ground source type. Quite simply, unless you have a large, very large area of land, then ground source is not viable. Air source is not practical either unless you are building from new or undergoing a total transformation of your property. Trust, do not fall for salesmen’s patter, do your homework, and keep away from them. There needs to be better efficiency ratings before they take off….
Is it worth buying a new gas boiler?
Yes, what else would you buy? Gas has been the leading performer in fuel efficiency, costs and the like for decades. The new boilers from the leading manufacturers will or are already compatible for the next generation fuel, which is hydrogen. Indeed, tests are ongoing in a Northeast area currently.
Electricity is expensive, probably the most expensive of all fuels currently available. Whilst you obtain 100% efficiency, it is far too dear to contemplate, unless you have no other choice. Tariffs are available for off peak times, but the vast majority of us need the opposite. This is another area where more research and availability is needed to make it competitive.
Oil is not cheap either in running cost terms. You also have large unsightly storage tanks to find somewhere near to your property, with the disadvantage of having re-fuelling tankers coming nearby on a regular basis. Not long term viability given oil is running out….
Fossil fuels, wood and coal are environmentally unfriendly, expensive, require storage, and are just dirty all together. Blast from the past and if at all possible, should be left there…
Should you buy a new gas boiler?
If your boiler is over ten years old, obsolete (back boilers), on its last legs then absolutely yes. The savings you make on running costs will more than pay for itself, usually in 3 to 4 years