How Much Can You Really Save on Scratch & Dent HVAC Equipment?

🔧 Introduction: Mike’s Money-Smart Perspective

Let me ask you something straight: when you think of HVAC equipment—air conditioners, heat pumps, furnaces—what comes to mind first? For most homeowners I talk to, it’s the price tag.

And for good reason. A brand-new, high-efficiency HVAC system can run anywhere from $3,000 to $10,000+, depending on the size of your home and where you live. That’s not pocket change.

Now imagine seeing the same system for 30–50% less just because of a scratch on the side or a dented corner on the cabinet. That’s the reality of scratch & dent HVAC equipment.

But here’s the million-dollar question: how much can you really save, and is it worth it?

Today, I’ll break it down with real-world numbers, examples, and practical advice so you can see where scratch & dent equipment makes sense—and where it might not.

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💡 1. What Scratch & Dent Savings Look Like in Real Life

Scratch & dent HVAC equipment is brand new, never installed, but sold at a discount because of cosmetic damage. Think of it as the “open-box” section of an appliance store.

Typical Discounts:

• 10–25% off for light scratches or small blemishes

• 30–50% off for visible dents or discontinued stock

• Up to 60% off in clearance sales when retailers need warehouse space

👉 According to Surplus City Liquidators, homeowners can regularly save thousands of dollars on scratch & dent systems without sacrificing performance.

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📊 2. Example Scenarios: Real-World Savings

Here’s where the numbers get exciting.

🌀 Central Air Conditioners

• New Retail Price: $2,900

• Scratch & Dent Price: $1,950

• Savings: $950

🌡️ Heat Pumps

• New Retail Price: $3,800

• Scratch & Dent Price: $2,600

• Savings: $1,200

🔥 Gas Furnaces

• New Retail Price: $2,200

• Scratch & Dent Price: $1,450

• Savings: $750

🚿 Water Heaters (50-Gallon Electric)

• New Retail Price: $950

• Scratch & Dent Price: $650

• Savings: $300

👉 Budget Air Supply reports savings of 30–50% on popular Goodman, Rheem, and other trusted brands.

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🏷️ 3. What Affects How Much You Save

Not all scratch & dent deals are equal. Here’s what drives the discount:

1. Cosmetic Damage Severity – Small scratches = smaller savings. Big visible dents = deeper discounts.

2. Model Year – Last year’s model often gets bigger markdowns.

3. System Type & Size – Larger HVAC systems mean bigger dollar savings.

4. Seller Inventory Pressure – Overstock or discontinued models are priced to move.

5. Return/Warranty Terms – The stricter the return policy, the bigger the discount.

👉 The Furnace Outlet explains that savings can vary widely based on warranty coverage and dealer policies.

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📈 4. Pros of Scratch & Dent Savings

Here’s where scratch & dent shines:

• Lower Upfront Cost – Saves hundreds to thousands.

• Upgrade Potential – You may afford a higher SEER2 or AFUE rating within budget.

• Budget Room for Installation – Extra money covers pro labor or a new thermostat.

• Environmental Benefit – Prevents functional units from going to waste.

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⚠️ 5. Risks That Could Offset Savings

I’ll be honest—it’s not all sunshine and savings. Here’s the flip side:

• Warranty Nuances – Cosmetic issues rarely covered.

• Final Sale Policies – Many are “as-is” with no returns.

• Limited Stock – Hard to find exact size/brand combo.

• Potential Coil/Fan Damage – Rare, but possible if the dent is in a critical spot.

👉 DeWaard & Bode cautions that buyers should always confirm warranty and return details before purchase.

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🧮 6. Mike’s “Smart Savings” Formula

Here’s the simple math I use:

Total Cost = Equipment + Installation – Rebates

Example:

• New Heat Pump: $3,800 + $1,800 install = $5,600

• Scratch & Dent Heat Pump: $2,600 + $1,800 install = $4,400

• Net Savings = $1,200

Multiply that by a furnace + AC combo? You’re looking at $2,000–$3,000 back in your pocket.

👉 Energy.gov also reminds us that installation cost is just as critical as equipment price—so factor it into savings.

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🛠️ 7. Where to Find the Best Scratch & Dent Deals

• Online HVAC retailers with dedicated clearance sections

• Local distributor warehouses (overstock + damaged stock)

• Big-box appliance outlets (seasonal clearance)

• Reputable online sellers like The Furnace Outlet

👉 Ingram’s Water & Air confirms that many scratch & dent systems are simply overstock or discontinued—no risk to performance.

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🏡 8. Who Benefits Most from These Savings?

Scratch & dent isn’t for everyone—but it’s a game-changer for:

• Budget-conscious homeowners stretching dollars further

• Landlords installing multiple units in rentals

• House flippers who want value, not vanity

• Families with basements/garages (out of sight = out of mind)

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🙋 FAQs: The Most Common Questions I Get

Q: Can I still get tax credits/rebates?
A: Yes, as long as the unit meets SEER2 or AFUE requirements.

Q: Will a dent shorten the system’s life?
A: No—longevity is tied to maintenance, not cosmetics.

Q: Are scratch & dent systems Energy Star certified?
A: If the model was certified new, it still qualifies.

Q: Should I tell my installer it’s scratch & dent?
A: Absolutely—they’ll inspect for hidden issues during setup.

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🧭 Mike’s Final Word: Value Over Vanity

So, how much can you really save?

• $500 to $1,500 per unit on average.

• $2,000–$3,000 when replacing a full system.

• In rare cases, up to 50–60% off retail.

My advice? If the unit is structurally sound, warranty-covered, and bought from a reputable seller, then the savings are absolutely worth it.

Personally, I’d rather see a dent in my HVAC cabinet than a dent in my wallet.

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In the next topic we will know more about: Scratch & Dent Furnaces: What Mike Looks for Before Buying