Between price and his statements I see too many red flags for this contractor. From Trane's website:
"Please note that routine maintenance is required as recommended in the owner's manual to ensure proper performance of the equipment. Repairs that are required due to lack of routine maintenance are not covered by the Trane Extended Warranty Agreement. Your independent Trane dealer can provide routine maintenance. "
Go thru your Use and Care manuals to see what items they refer to. In my opinion none of these absolutely require a service contract. If your dealer is linking the ext. warranty to a service contract then IMHO he is stretching truth. By the way, my contractor did not try to sell me an annual service contract.
Website implies you could contact any authorized Trane dealer to purchase an ext. warranty. You might call around and see if they want to quote over phone and if dealer is one you prefer more. As I understand it. Dealer sells ext. warranty to you at whatever cost they can get and then they pay Trane a fixed price and keep difference. The ext. warranty is thru Trane, not the dealer. Then, at a later date if repair is made, Trane reimburses dealer for repair at a Trane determined rate and covers cost of part...
One more note, my theoretical example was taking a full system and extending the labor from 2 to 8 years. The parts were already at 10 years. In your case, you may be going from 1 year labor/5 years parts to 10 years parts and labor.. Obviously, that would be a more expensive contract as you're getting much more for your money.
Don't put any weight in my "theoretical" numbers as they were somewhat made up to try to illustrate a point. Let me put it another way.
If the cost of a contract is near the price of a compressor replacement then IMHO its not worth it. Especially since typically half that is parts where compressor is already covered for ten years. I'll even say that a VS ECM blower could be as pricy, but once again since you did complete xL15i system, don't you get 10 year parts standard???? So if labor to replace compressor was XXX and you paid XXX for contract, then you would need to replace ONE compressor just to break even and then have at least another service call to get ahead. I pay YY per hour for service call, how may YY's go into XXX?? How many hours of service are you buying in advance??
And as stated before, if its 10% of system cost, put money in bank account and after 10 years the odds are in your favor that you'll come out ahead. BUT, statistically there is a chance you will come out behind. Its just like gambling.
I do have the 10 year parts and 2 years labor for all including XV95, XL15i, TC803, and Humidifier....and the E-coil I believe eventhough it is ADP (not trane)..... it came with my system.
Eventhough your numbers were made up my real cost for a warranty is still considerably higher.
Your suggestion to consider another Trane dealer was condsidered. I spoke to 3 early in the process and one even through H-depot. I was disapointed in all that they did not do manual J's but extremely dissapointed that they did not do something as easy and important as a static pressure check. I was told by my installer they don't check static pressure because consumers don't want to hear that they need new ducts at additional cost .
This may be a true statement but that means they are operating blind.....and as a result my initial TESP was close to 1.1.
Thanks to Beenthere, Mayguy, Cmareos, Udarrel, Dash, and a bunch of others on this site, I was able to get it down to the more reasonable levels I listed. Bottom line is I am not yet confident the high cost of the warrenty is worth it considering I understand the importance of changing the filter. In fact, my magnehelic guage is temorarily connected across my filter to take the guesswork out of when it needs changing.....
In the land of the blind.....the man with one eye is king....
Don't take my posts out of context. We include the 10/10 on any Xli install. It is included in the proposal cost. And we go to bat for every customer we have installed for. All I was saying is there are plenty of companies out there that try to pull the "lack of maintenence" card and say it is not covered under warranty. We would never do that to one of our customers. Look around this site and you will clearly see the work we have done, (have some wall of pride material), and as always I could be wrong. The warranty has always been explained to me that there had to be maintenence done to honor the warranty. It sounds like you didn't get the best install, so it may be of interest for you to get it just to protect yourself from shoddy workmanship.