Hey folks—Mike Sanders here. You know me: I like saving money where it counts, but never at the expense of quality. Over the years, I’ve discovered that one of the most misunderstood ways to save on big-ticket items like HVAC systems is through something called scratch & dent.
If you’ve ever walked through an appliance outlet and spotted a fridge with a dented door selling for half the price of the shiny one next to it, you already get the gist. But HVAC is a different animal—these systems are complex, costly, and absolutely critical to your family’s comfort. That’s why it pays to really understand what “scratch & dent” means in this space.
I’ll walk you through it all—from the basics to the myths, the savings, the risks, and how I personally decide whether a scratch & dent deal is worth it. By the end, you’ll be armed with insider knowledge, and I promise you’ll look at these deals differently.
🔎 1. What Does “Scratch & Dent” Mean in HVAC?
In HVAC, scratch & dent units are brand-new, fully functional systems that happen to have cosmetic blemishes—a dent in the metal casing, a scratch on the paint, or sometimes a dinged-up corner on the cabinet.
Think of it this way:
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The inside—the compressor, the blower motor, the coils—is untouched and brand-new.
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The outside just had a rough ride somewhere between the factory and the warehouse.
These aren’t “used” units. They’ve never been installed in a home. They’re not rebuilt or refurbished with old parts. They’re fresh off the line, just a little bruised on the outside.
👉 Ingram’s Water & Air explains it best: scratch & dent units are functionally new, but cosmetic flaws prevent them from being sold as perfect retail stock.
📦 2. Why Do Scratch & Dent Units Exist?
You might wonder—why don’t manufacturers just fix the dents? The truth is, it’s often not worth their time. Instead, they pass the savings on to us.
Here’s where these units usually come from:
🚚 A. Shipping & Handling Mishaps
Big HVAC equipment moves through warehouses, forklifts, and trucks. One bump against a pallet, one slip on a dolly, and you’ve got a dent.
🏬 B. Showroom Displays
Units on display in stores may get scratched by customers, installers, or even during setup. They can’t go back on the shelf as “new,” so they get discounted.
🏷️ C. Overstock or Discontinued Models
Sometimes a manufacturer is phasing out a model or has too much inventory. If they notice cosmetic imperfections, it’s easier to label them scratch & dent and move them fast.
👉 Budget Air Supply notes that many scratch & dent deals come straight from overstock—perfectly good systems marked down just to clear warehouse space.
💰 3. How Much Can You Save?
Now we’re talking numbers. This is where scratch & dent really shines.
Average Discounts:
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10–25% off for small cosmetic issues
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30–60% off for more visible dents, but still 100% functional
Here’s a real-world breakdown:
| Unit Type | New Retail Price | Scratch & Dent Price | Typical Savings |
|---|---|---|---|
| 3-Ton Goodman Heat Pump | $3,800 | $2,600 | $1,200 |
| 80,000 BTU Gas Furnace | $2,200 | $1,450 | $750 |
| 50-Gallon Electric Water Heater | $950 | $650 | $300 |
| 2.5 Ton AC Condenser | $2,900 | $1,950 | $950 |
When you’re outfitting an entire HVAC system (condenser + air handler + furnace), the savings can run into thousands of dollars.
👉 Surplus City Liquidators even highlights deals where buyers save over 50% on top brands like Goodman and Rheem.
⚡ 4. Performance: Do They Work Just As Well?
Here’s the million-dollar question: does that dent affect performance?
Short answer: No.
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A scratch on the casing won’t change your SEER2 efficiency rating.
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A ding on the corner panel doesn’t reduce airflow or heating capacity.
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Coils, compressors, fans, and circuit boards are protected inside.
The only time you should worry is if fins are bent, refrigerant lines are punctured, or the cabinet damage is so severe that panels won’t close properly. That’s why inspection is key (more on that later).
👉 F.G. Cooling & Heating clarifies that surface scratches don’t affect the internal refrigerant cycle or unit longevity.
✅ 5. Benefits of Buying Scratch & Dent
Let’s lay it out, Mike-style:
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Big Savings: Up to half off—sometimes more.
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Same Efficiency: You’re not giving up SEER2 or AFUE.
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Warranty Coverage: Many retain full manufacturer warranties.
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Eco-Friendly: Prevents waste of perfectly good systems.
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Fast Availability: Often in stock when new models are backordered.
For me personally, if the dent is in the back corner where no one sees it? That’s easy money saved.
⚠️ 6. Risks & What to Watch Out For
I’d be lying if I said scratch & dent is risk-free. Here’s the real talk:
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Cosmetic Visibility: If your condenser sits front-and-center by your porch, a dent may be an eyesore.
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Limited Stock: You can’t always find the exact size or SEER2 you want.
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Warranty Nuances: Most warranties cover function, not looks. If a door panel rattles later, that’s on you.
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Final Sale Policies: Some dealers sell as-is—returns may not be possible.
🆚 7. Scratch & Dent vs. Refurbished vs. Used
It’s easy to confuse these categories. Here’s the breakdown:
| Category | What It Means | Warranty | Risk Level |
|---|---|---|---|
| Scratch & Dent | Brand-new, cosmetic flaws only | Often full | Low |
| Refurbished | Repaired after failure or defect | Limited | Medium |
| Used | Previously installed & removed | Rare | High |
👉 Our Home London explains it well—scratch & dent is the safest way to save, since performance isn’t compromised.
🔧 8. Mike’s 7-Step Inspection Checklist
Here’s what I check before recommending any scratch & dent unit:
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Photos: Always ask for detailed pictures.
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Panel Fit: Make sure doors and covers still close tight.
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Fins & Coils: Bent fins = reduced efficiency.
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Label & Serial #: Confirm exact model and date.
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Warranty Terms: Read the fine print.
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Space & Fit: Double-check dimensions for install.
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Dealer Reputation: Stick with trusted names.
👉 The Furnace Outlet emphasizes this same due diligence—photos and warranty clarity are key.
👨🔧 9. Real-Life Scratch & Dent Success Stories
Mark’s $1,000 Heat Pump Savings
Mark in Kentucky picked up a Goodman 3-ton heat pump with a dent on the back panel. Savings: over $1,000. Performance: flawless two years later.
Lisa’s Water Heater on a Budget
Lisa needed a 50-gallon electric water heater. New price: $900. Scratch & dent price: $600. Installed in the basement, dent hidden behind piping. Saved enough to cover installation labor.
🙋 10. FAQs: What Homeowners Ask Me Most
Q: Does a scratch & dent unit void the Energy Star rating?
A: Nope. Efficiency ratings are based on performance, not looks.
Q: Can I still qualify for rebates or tax credits?
A: Yes—if the model meets efficiency requirements, rebates usually apply regardless of cosmetic flaws.
Q: Should I tell my installer it’s scratch & dent?
A: Absolutely. They’ll check for damage before install.
Q: Do these units resell well?
A: Functionally yes, cosmetically no. Buyers may hesitate if dents are obvious.
🏡 11. Who Should Buy Scratch & Dent (and Who Shouldn’t)
Great Fit For:
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Budget-conscious homeowners
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Landlords with multiple units
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House flippers and remodelers
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Anyone with mechanical rooms, closets, or garages (out of sight)
Not a Good Fit If:
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Your HVAC sits in a visible outdoor spot
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You’re obsessed with pristine aesthetics
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You want a flawless product to boost home resale
🧭 12. Mike’s Final Word: Value Over Vanity
If you’ve followed me this far, here’s my honest take:
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Scratch & dent makes HVAC affordable without sacrificing performance.
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Inspect, verify, and buy from trusted dealers—and you’ll walk away smiling.
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If it’s hidden, who cares what it looks like? Function beats finish every time.
At the end of the day, HVAC isn’t art—it’s comfort. I’ll take $1,000 back in my wallet over a flawless cabinet finish any day.
In the next topic we will know more about: Are Scratch & Dent Units Reliable? Pros & Cons Every Homeowner Should Know
