HVAC replacement vs repair in Arizona

[Erik Pacpaco]

We have a single family in Phoenix Arizona that we’ve owned for just over a year with an HVAC that has been having issues with the heat. We don’t know how old the system is and the previous tenant mentioned that the HVAC was having issues while they were in the unit last year. We had 2 technicians from 2 different repair companies check out the unit yesterday and they both confirmed that an electrical panel broke down and is causing the heat to turn on and off intermittently. They mentioned that the electrical panel can be replaced but it won’t guarantee that it will resolve the issue. Currently we have the renter using space heaters and the HVAC off bc Arizona is having temps in the 30-40s at night and the early morning. The advice that I’m seeking is whether I should replace the HVAC or to replace the panel. The panel costs $1000 to replace vs buying a whole new system for $7300. I also have the option of financing the HVAC for interest free payments for 2 years or with interest for 5 years. I’m leaning on the interest free payments bc I need cash liquid and available for investing and for other repairs as they come up. My wife and mother in law have the hair brained idea of just getting the electric panel repaired and just getting a home insurance like American Home Shield on the HVAC just in case the system breaks down. They’re hoping the HVAC will breakdown again and that it can be replace by the home insurance. I don’t like the idea bc we put in $1000 for the replacement of the electrical panel and take the risk that it won’t work. Most of all, this is all at the expense of the tenant’s living experience in the unit without heat.

Please send me your advice and thoughts.