Central AC Pricing

Central air conditioner prices and warranties

Central air conditioners are not normally sold directly to consumers. They must be installed by licensed contractors. Pricing is a package deal, which includes the air conditioner, ductwork, labor, permits and whatever else is needed for your installation. Prices vary radically, depending on both the quality (or efficiency) of the air conditioner and how much labor is needed. Installation and related costs are usually going to cost more than the air conditioner itself.

Consumer Reports says, "If you're replacing an old central-air system, you can expect to pay around $3,000 for the equipment. If you need ductwork installed expect to pay $6,000 or more." FurnaceCompare.com claims the range is $4,000 to $8,000 (and up). The Rocky Mountain Institute says, "Central air conditioners typically cost between $3,000 and $7,000, including installation." At least one contractor on AllExperts.com claims to charge considerably less.

Expect to pay less for a Goodman (Goodman, Janitrol and Amana brands) air conditioner than other brands. Contractors say they are cheaper to buy. Installation costs may also be lower because contractors say that Goodman is less selective about its authorized installers than other manufacturers are. If you buy one of the Goodman brands, some critics indicate that you are more likely to get high-quality installation if you choose a contractor that also sells a more expensive brand, such as American Standard, Carrier, Bryant, Trane or Lennox.

Manufacturers themselves don't reveal estimated installed costs. Experts agree that prices vary by region, and possibly even within a region. If you live in a development where multiple houses have the same floor plan, your neighbors may be the most accurate guide to good pricing. Make sure bids include all costs, including any government fees (such as permits) and disposal of the old unit.

Experts estimate that within a product line of otherwise identical central air conditioners, the price difference between a 13 SEER model and a 16 SEER model is about $500.

Product quality may not have a lot to do with air conditioner prices. Jim Barnhart, an HVAC contractor with 50 years experience, maintains "As far as quality and brand go many expensive big name brands are the same as an economical cheap priced unit, even made on the same assembly line." That doesn't mean you receive no benefit for paying more. We cover a number of those benefits below. A higher price may also net a better warranty.

Most central air conditioners have ten-year limited warranties on the compressor and five-year limited warranties on all other parts. Judging from many owner posts in forums, manufacturers do not cover labor costs. Contractors usually offer one-year warranties on the installation. Some offer lifetime warranties as a marketing tool.

Both manufacturers and contractors offer a variety of warranty and service options. Carrier, for example, offers transferable warranties on your choice of parts, labor or both. Installers usually offer service contracts. Bryant recommends them, noting that annual maintenance is necessary for any central-air system. The guarantee of work allows contractors to discount per-service prices with a package deal. However, if you don't plan to stay in your home indefinitely, an extended service contract might not pay off.