We are facing the same thing. Our heat pump system is not that old but they can't get parts for it anymore since the mfg. had quit making them right after it was installed, and and it's using R-12 coolant (not sure that is a big problem however). Our guys have been patching it together up to now. This system replaced a junk York unit that failed early also. Just had the coil replaced ($1,000) but the rest of the system has now crapped out. They were out each week for the last three weeks working to restore the A/C.
They are suggesting an all new system, outside unit, air handler and piping for a unit using the newer refrigerant and bigger coil (reason for the new air handler, the newer coil won't fit in the current air handler and the filter system is junk). They will give us credit for the old coil, they can use it for another installation so we are facing $4,000 and change for it all. We also have an oil burning hot water heat system with radiators to take some pressure off of running the heating side of the heat pump constantly.
My guys said that most of the service work they do is on heat pump systems rather than straight A/C and tried to talk us into a propane unit with A/C but for quite a bit more cost, or just A/C with the oil burner like we had when we bought the place. Relying on just oil again scares me since at one time we were paying almost $4 a gallon for heating oil, about $1,800 every month and a half or so. With the heat pump for the milder cool season has been less expense overall.
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