At the end of the 10-year term, homeowners can renew or upgrade, and a purchase at fair market value is available at year 15. During the term, they can buy out the lease or transfer it when they sell the home.
Options
Option | Details |
Renew | Automatically for 1-year terms (the default if the customer doesn't respond), up to 5 years. Or the customer can choose a 3-year renewal, with the monthly payment dropping to 75% of the final year's payment. |
Purchase | At year 15, the customer can purchase the water heater at fair market value. |
Buyout | The buyout price is the greater of: the remaining payments discounted at 6%, or 22% of the total financed cost. |
Upgrade | Start a new lease with new equipment. A water heater may still be running at the end of the term, but always offer new equipment. |
Removal fee for water heaters: Open a Sales Support chat for current terms before discussing equipment return with a customer.
Selling the home
The buyer must qualify and sign a transfer agreement to take over the lease, or the homeowner can buy out the lease.
Palmetto releases the UCC-1 filing when the equipment is purchased, or transfers it when the lease moves to the new homeowner.
Who handles it
Homeowners can start a buyout or transfer by calling 855-339-1831.
Common questions
| Question | Answer |
A | Is it better to buy out or upgrade? | It depends on the homeowner. Buying out can lower the total cost, but ends the plan's maintenance and parts and labor coverage. Upgrading gets them newer equipment and keeps all the plan's benefits. |
B | Can a customer prepay the lease? | Yes. Prepaying keeps the warranty and maintenance coverage in place. See the note below on the amount. |
C | Can a customer cancel? | See the note below. |
Prepay amount: Open a Sales Support chat for a quote.
Cancellation / refund policy: Contact Sales Support before advising a customer.
Need help?
Text INSTALLER to 888-531-3327 or open a chat in the Palmetto portal. Homeowners can call 855-339-1831.