Propane tanks...own vs. rent?

mammabooh · #1 01/15/10, 08:39 AM

We pulled out our fuel oil furnace and replaced it with a used propane furnace (it's only a few years old and was FREE!). It will only be used as back up to our wood furnace. Since we are making the switch, I'll be able to cook with propane instead of electric (hallelujah!).

One local company wants to put in a 500 gallon tank and have us sign a contract where we'll use 500 gallons a year or they will charge us $100.00.

Another company will put in a 325 gallon tank and their minimum usage a year is 200 gallons. However, their price per gallon is more.

The manager of the first company is a friend of mine, so he's on the lookout for a used tank for us. But, I thought I'd come here and ask what your thoughts were on us owning vs. the company owning the tank. The way I see it, if we own the tank, we can shop around for the best price per gallon. But, I've heard horror stories of folks saying that some companies won't deliver to them if they don't have a contract. So...any thoughts for us?

P.S. My propane manager friend is also checking to see how much it would cost for him to get us a new 325 gallon tank from his supplier. Normally, they only set up 100 gallon and 500 gallon tanks, but he's going to see what he can do for us. If we can't find a used one that seems like a good deal, that might be the route we take. If we buy a new one through him, it will be run through the propane company, but if we find a used one, he can still go get it and set it up for us because he does that on the side.

**Kris in MI** · #2 01/15/10, 09:05 AM

When we built our house, we wanted to buy our own propane tank, but the cost was prohibitive, and the local propane company didn't charge a rental fee if you filled your tank twice a year. Based on our propane usage at our old house, we figured twice a year fill up would be no problem!

But, six years and an outdoor wood boiler later, all we use propane now for is the gas stove, hot water in the summer, and the dryer in the winter. It took us 18 months to go through the last 200 gallons of propane we had, and we have gotten socked with a $75 rental fee the last couple of years.

We are currently looking for a used propane tank to buy. Our local co. will service and fill it for us, and actually gives a 10 cent per gallon discount if you own your own tank. But, again, tanks are not cheap and so far we can't find a used one around here!

jmtinmi · #3 01/15/10, 09:10 AM

We prefer to own in our area. They can really gouge you for propane otherwise. I am pretty sure we filled last at $1.60 range and at one point when we rented a tank it was way over $2.50 a gallon!

Our friends in the UP have big problems with a rented tank and per gallon costs too.

mammabooh · #4 01/15/10, 09:12 AM

Yeah...I called one company that had used tanks and they want very close to new prices for them.

I'm hoping for the deal similar to the one my dad got...$65.00 for a decent used 325 gallon tank!

I'm going to call my uncle and some of my other farmer friends to see if they know of any tanks around that aren't being used and might be for sale.

okiemom · #5 01/15/10, 09:28 AM

If you rent you are stuck with the company you rent from. A bought tank you can shop around and get the best price.

We bought a used tank at our last place and around here a used tank is about half of a new one. WE bought a big 800gal tank. filled it is 700gal. We can fill it up when it is cheap in the summer and it will last most of the year. A small tank must be filled more often and you get hit with high winter costs.

In our new house we ended up w/ a rental and we are not thrilled but it will do for now. WE are stuck with the price we get. Summer is always cheaper if you can get on the prepay deal.

Batt · #6 01/15/10, 09:37 AM

Sometimes used tanks are hard to find...Keep shopping, one will eventually show up. You need to be prepared to jump on it though. None of this "Well I'll think about it and get back to you". Check auctions, local bulletin boards and post a request at the local church bulletin board. And of course check Craigs list daily.

littlebitfarm · #7 01/15/10, 10:04 AM

Used to rent the tank, it was free as long as I had it filled once a year. Company got bought out and all the rules changed and they started jacking prices. I bought my own tank and can use any company I want to fill it.

Think about a 500 gal. tank, minimum. Around here they charge for deliveries of less than 200 gal. If you go with 325 gal, it will have to be almost empty to get it filled since they only fill it to 80%.

I have a 1000 gal tank. It holds a 2 year supply. But more importantly it allows me to fill when I feel the price is best. Used to be August, just before farmers start harvest. Two years ago it was June. Either way I can get it filled and not have to pay December prices!

Kathie

Common Tator · #8 01/15/10, 10:07 AM

I vote to own. We have 2 500 gallon tanks, which we fill when propane prices are low. Have you checked craigslist for used tanks?

mammabooh · #9 01/15/10, 10:33 AM

Quote:

Originally Posted by Common Tator

Have you checked craigslist for used tanks?

Yes, but I haven't found anything yet. Well, I did find one 325 gallon tank, but they wanted almost as much for it as a new one is.

watcher · #10 01/15/10, 10:36 AM

If you rent your tank there is one thing you might want to check out. I had a very honest gas dealer who told me flat out: We charge you more per gallon if you have a rented tank.

I was shocked and asked why. He said if you rent their tank you can ONLY buy gas from them. But if you own your tank you can buy it from anyone therefore they must compete for your business.

You might want to call around and see how much different places charge per gallon to fill a owned tank. In some cases you can save enough money in one year to pay for a brand new tank.

ronbre · #11 01/15/10, 10:43 AM

own if you can buy one..i have no idea how much they cost to buy

wally · #12 01/15/10, 10:56 AM

We own our 1000 size and. Gas furnce for backup. we use about 200 ga year we try to heat as much as possibe. The have been seeing tanks for sale for about what it holds..Just being me I would purchase one if your budget could afford it.Good luck

cfabe · #13 01/15/10, 11:10 AM

Currently I have a rented 500gal tank that came with the house. We also have a wood boiler so we only use 200gal of lp a year. So far, they haven't charged me the rental fee, but according to the contract it would be $75 per year.

I'm really hoping that before I use up the rest of this gas, I can afford to buy my own tank and get rid of this one. I think it's a better idea in general to own your tank, especially if you are a low volume user but want to keep a tank for backup heat or generator.

fantasymaker · #14 01/15/10, 11:30 AM

Dont forget the most important part of owning a tank.

YOU GET TO PAINT IT!

I prefer the hot dog in a bun but the weinnie dog look is nice too.

atobols · #15 01/15/10, 11:42 AM

We bought ours about 6 years ago because we could get it filled cheaper if we owned our tank. We usually get propane from Kelly's Propane (had to throw that in since I see you're near Jeromesville too). We got a wood boiler last year, so at this point propane is only used as a backup system.

If I was in the OP's situation, I would start making some phone calls. Find out what the local propane suppliers will charge you if you own vs. rent. Try to come up with a good estimate of how much propane you'll use each year. Find out the cost of a new or used propane tank and find out what you can rent one for. Then I'd grab a calculator and start figuring out how long it will take you to recoup the purchase cost if it's only used as a backup.

okiemom · #16 01/15/10, 12:06 PM

A new one you do know that there is nothing wrong with it. A used one can have some problems with leaking around the fittings.

We install a wet line on our tanks so we can fill the smaller bbq tanks.

amwitched · #17 01/15/10, 12:13 PM

When we set-up our propane tank, we didn't know that we could buy our tank. The delivery driver actually told us about it. The rental fee was $65 a year. The cost of buying the used tank was only $300. I couldn't pass that up.

watcher · #18 01/15/10, 12:21 PM

Quote:

Originally Posted by okiemom

We install a wet line on our tanks so we can fill the smaller bbq tanks.

How do you do this? I'd like to be able to fill my own tanks

Ravenlost · #19 01/15/10, 12:49 PM

Personally, I think owning is always better than renting.

Jim-mi · #20 01/15/10, 01:14 PM

To the OP . . .both those 'deals' are poor.
Look for a 500 to buy.
That would be a good thing for your dealer friend to install one for you. . . . .
Get back on the phone...........shop around.

I own 2 500's