Using propane as the primary energy source in your home is beneficial and has gained wide popularity over the last decade. However, when searching for a new propane tank for your home, you might find yourself asking the question of whether you should buy or lease the propane tank.
You might hear this referred to as owning vs. renting a propane tank or owning vs. loaning a propane tank. Both options come with several advantages and a few drawbacks. We have outlined the pros and cons of buying vs. leasing a propane tank below to help you decide whether to buy your propane tank or lease it from a reputable company.
Owning a Propane Tank:
- You can choose a tank from any manufacturer rather than being limited to tanks the suppliers from a lease would carry. This way, you can compare prices and go with the manufacturer that offers prices you agree with.
- You are not bound to a propane tank lease agreement. There is no risk of the supplier taking back the propane tank in the case of a billing disagreement.
- You do not have to worry about the added costs of propane lease agreements, such as an annual rental charge that comes with some tanks.
- You can choose your propane supplier and who you receive deliveries from. Whether you’re like most people and want automatic deliveries for peace of mind or will call deliveries, the choice of supplier is yours.
- Propane tanks can be an expensive purchase. A 120-gallon propane tank above ground can cost about $600-$900. These prices are WITHOUT the additional installation costs you will have.
- The installation process and costs can be a hassle. You might end up spending a lot of money on the following services during the installation process.
- The tank itself
- Piping into the home/appliance
- Digging the hole (if the tank is being placed underground)
- Concrete Slabs (if the tank is being placed above ground)
- Gas Lines
- You might end up spending more money in the long run on maintenance costs as well. Owning a tank means you might end up spending money on all of the following services down the road:
- Annual propane tank inspections
- Lines being chewed up by animals or lawn equipment
- Possible leak checks
- If you sell your home, you will have to negotiate the price of the propane tank into your sale.
Leasing a Propane Tank:
- The supplier does the installation for you, which can be a massive load off your shoulders. Choosing the right company is important because you want to make sure your installation will be done right.
- You do not have to worry about maintenance. The supplier usually handles the repairs or other services you might need if your propane tank is not functioning properly.
- Your supplier might offer special propane rates or benefits that would not be available if you chose to buy/own your tank.
- Leasing your tank means you are tied down to your supplier who owns the tank for the duration of the lease. They have the right to remove the tank from your property if contracted terms are not being met.
- If you want to change suppliers, you might be charged a termination and tank removal fee.
- Propane suppliers often charge annual propane tank rental charges to lease a tank. Depending on what the tank is used for will often determine if there is a tank rental fee. However, the tank rental fee is usually more cost-effective than purchasing a tank outright.
The Decision is Yours!
The decision to lease or own your propane tank is a personal one and depends on each person’s unique circumstance. Overall, owning your tank will give you more freedom, but you will also be responsible for your maintenance and repair costs.
On the other hand, leasing the tank allows you to not worry about routine services. Lease length will vary depending on the company you choose and the size tank you decide to lease.
Above all, choosing the right propane company to do business with will make this decision a much less stressful one and guarantee a quality working relationship.
Great Valley Propane is Here to Help!
If you need a propane tank for your new home, Great Valley Propane offers high-quality propane tanks with built-in safety features.
We install all kinds of propane tanks for all usage types and can help guide you in the right direction for your family or business.
Stuck on what size tank you might need? Check out our tank size guide!
If you need help deciding whether to buy or lease your propane tank, give us a call today at 610-251-2203, and our experts will help you make the best decision for you.