You just bought a home with a furnace or boiler that’s fueled by heating oil. You’re hearing terms like “budget plans,” “COD heating oil,” and “payment plans,” but you don’t know the difference. Then they throw around terms like “locked price” and “capped price.” How do you make a decision?
Take a deep breath. We have the answers you need to make an informed choice that fits your budget and lifestyle.
What Is COD Heating Oil?
The “COD” in the term “COD Heating Oil” is an old phrase that means “cash on delivery,” though in today’s world, actual cash isn’t used. The term “COD” is instead referring to the fact that you pay for the heating oil right away without any contract or deferred payments. Homeowners who prefer COD heating oil monitor how much oil they have and place orders when they’re ready.
COD heating oil provides the most flexibility for the homeowner – you choose when the oil is delivered. If you want to fill your tank during the summer, when prices are traditionally lower, you can.
COD heating oil is also typically cheaper than the alternatives, which involves service contracts, payment plans, and possibly budget plans. On average, COD heating oil can be as much as 20 cents per gallon cheaper.
What Is Budget Plan Oil Delivery?
Oil delivery utilizing budget plans typically involve full-service contracts that include a maintenance agreement and 24-hour emergency service for your oil burner. The oil company typically delivers at intervals, instead of the homeowner having to call them. It’s popular with homeowners who don’t want to monitor their heating oil usage and like the peace of mind of having maintenance and service included.
Payment plans or budget plans spread out the cost of your annual oil usage, so payments are consistent. With COD heating oil, you might go a month or two (or more in warmer weather) without a bill, and then when you do need a delivery, you pay the full cost at once. Both options are valid; it’s just a question of personal preference.
Heating oil contracts and budget plans usually involve either a locked price or a capped price. You’ll also hear the term “market price,” which refers to the price of residential heating oil at the time of delivery. Locked prices and capped prices are types of price protection plans designed to protect you from price shock if winter is unexpectedly cold or some outside forces cause the market heating oil price to surge.
-
- Locked Price Plan
With a locked price, the homeowner pays the same price per gallon for the entire duration of the contract, which is usually one year. So, if something causes the market price to skyrocket, you’re still locked in at the contracted rate.
- Capped Price Plan
With a capped price, homeowners will not pay more than a certain cost per gallon, but otherwise, the price per gallon varies. So, if the contract caps the price at $3.50 per gallon and the market price increases to $3.75, the homeowner will pay a maximum of $3.50 per gallon. If the residential heating oil price drops to $3.10 per gallon, then the homeowner pays that price.
Express C.O.D Is Your Reliable Source for COD Oil Delivery
Regardless of the type of oil delivery you want, Express C.O.D has you covered. Express C.O.D provides superior discounted oil-on-demand delivery, and our parent company, Tragar Home Services, provides budget plans for both regular heating oil and BioHeat®. At Express C.O.D, you can place orders 24/7 and we provide fast delivery and outstanding customer service. Contact us today, and let us know how we can help you.
