lease or buy propane tank

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  • adit

    ReMember
    MDS Supporter
    Feb 20, 2013
    19,495
    DE
    Timely reboot. Let me tell you my saga with Amerigas. We have a smallish tank 120 lbs I think. We use it to run a propane fireplace in the house. Tank is owned by Amerigas. We go through one tank per year so we never make the minimum and we get charged a rental fee for the tank. Tank is probably 10 years old. I just called for my annual refill and they quoted me $4.58/ gallon to fill our tank! I said no I want 2019 prices please. They couldn't explain why it was so high. So I discussed my options with them: bend over and pay their price, buy the tank for $225 + tax, or have them come remove the tank for $135. Still deciding what to do.

    PS just filled up our 500 gallon tank at cabin in PA for 1.56/gallon

    Remove the tank yourself and drop it off. It's nothing more than turning the gas off and disconnecting the line. Put the $135 towards a tank from the links I posted above, or below.

    If you want smaller tank(s) 100lb tanks can be had anywhere. HD/Lowes sells them new, or used below.

    https://baltimore.craigslist.org/grd/d/glen-burnie-propane-tank-for-sale/7001222077.html
    https://baltimore.craigslist.org/for/d/white-marsh-100-pound-propane-tanks/6995865891.html
    https://delaware.craigslist.org/grd/d/sharptown-propane-tanks/6963329411.html
     

    fabsroman

    Ultimate Member
    Mar 14, 2009
    35,852
    Winfield/Taylorsville in Carroll
    Timely reboot. Let me tell you my saga with Amerigas. We have a smallish tank 120 lbs I think. We use it to run a propane fireplace in the house. Tank is owned by Amerigas. We go through one tank per year so we never make the minimum and we get charged a rental fee for the tank. Tank is probably 10 years old. I just called for my annual refill and they quoted me $4.58/ gallon to fill our tank! I said no I want 2019 prices please. They couldn't explain why it was so high. So I discussed my options with them: bend over and pay their price, buy the tank for $225 + tax, or have them come remove the tank for $135. Still deciding what to do.

    PS just filled up our 500 gallon tank at cabin in PA for 1.56/gallon

    I am so happy I read through this contract and all the indemnity and limit of liability clauses in the contract that I doubt Suburban would be willing to redline (i.e., they are adhesion in nature). It got me so steaming mad and thinking about how anti consumer this contract is, that I figured I wasn't signing this steaming pile but looking for other suppliers and/or keeping my options completely open going forward.

    Glad I remembered this thread from the spring.
     

    adit

    ReMember
    MDS Supporter
    Feb 20, 2013
    19,495
    DE
    And one more thing, if you buy a used tank, make sure you get a Bill of Sale. Some companies won't fill a personally owned tank without one. Keep your receipt if you buy a new one.

    These tanks will last forever. Outside of obvious abuse (i.e. bullet holes) there should be no reservations in buying a used tank.
     

    TapRackBang

    Cheaper Than Diamonds
    Jan 14, 2012
    1,919
    Bel Air
    Timely reboot. Let me tell you my saga with Amerigas. We have a smallish tank 120 lbs I think. [...] buy the tank for $225 + tax
    There are 100 lb tanks and there are 120 gallon tanks (420 lb). If it's the latter, $225 would be a bargain. That makes me think it's the 100 lb (23.6 gallon). If so, that's a screw job.

    Remove the tank yourself and drop it off.
    If it's the 100 lb DOT tank, he can do that. I think bigger tanks (ASME) have different rules that make it hard or illegal to move it yourself.

    And one more thing, if you buy a used tank, make sure you get a Bill of Sale. Some companies won't fill a personally owned tank without one.
    True, and good advice.
     

    adit

    ReMember
    MDS Supporter
    Feb 20, 2013
    19,495
    DE
    There are 100 lb tanks and there are 120 gallon tanks (420 lb). If it's the latter, $225 would be a bargain. That makes me think it's the 100 lb (23.6 gallon). If so, that's a screw job.

    If it's the 100 lb DOT tank, he can do that. I think bigger tanks (ASME) have different rules that make it hard or illegal to move it yourself.

    True, and good advice.

    IIRC DOT regulations on fuel transport kick in at 1000lbs. Tanks over 125 gal cannot be more than 5% full, AKA empty. Over that and you need HAZMAT endorsement on a CDL and a propane placard.
     

    DadOSix

    Ultimate Member
    MDS Supporter
    May 25, 2013
    1,590
    Allegany Co.
    So, i’m curious.

    You guys who own your tanks, how much per gallon are you saving over a leased tank?

    I’m faced with installing a tank this fall and so far, 1 supplier is at $249 / yr for 1000 gallon with fills at $2.29

    And they will not sell me a tank. Says owned tanks are a few (5 cents) per gallon cheaper to fill

    Btw - he told how bad Thrifty Propane sux when it comes time for refill.

    Maybe that is because they (thrifty) don’t have a presence out here in Allegany Co.
     

    Speed3

    Ultimate Member
    Aug 19, 2011
    7,816
    MD
    So, i’m curious.

    You guys who own your tanks, how much per gallon are you saving over a leased tank?

    I’m faced with installing a tank this fall and so far, 1 supplier is at $249 / yr for 1000 gallon with fills at $2.29

    And they will not sell me a tank. Says owned tanks are a few (5 cents) per gallon cheaper to fill

    Btw - he told how bad Thrifty Propane sux when it comes time for refill.

    Maybe that is because they (thrifty) don’t have a presence out here in Allegany Co.


    I can only give you my experience, we took over the plan from.previous owner. It was $40 per month for tank lease and 80 gallons (figure $480 per year). I got a smoking deal on a used tank(120 gallon)so I dont think my comparison is the norm (it was $200). Depeding on when I fill it (summer being cheaper than winter) I've seen low $2/gallon up to mid $3/gallon. I use more propane now but I'm still way ahead.
     

    adit

    ReMember
    MDS Supporter
    Feb 20, 2013
    19,495
    DE
    Figure on $0.70 - $1 / gallon cheaper if you own your tank.

    All propane is moved via rail. The closer you are to a supplier who has nearby rail access the cheaper the price should be.
     

    Mightydog

    Ultimate Member
    MDS Supporter
    Figure on $0.70 - $1 / gallon cheaper if you own your tank.

    All propane is moved via rail. The closer you are to a supplier who has nearby rail access the cheaper the price should be.



    Just got my leased 100 gal tank filled. $4.359 a gal! Actual cost of propane is under $2/gal. Rest is “add one” like “hazardous material handling” fee. Looks almost like my electric bill with all the extra charges.
     

    fabsroman

    Ultimate Member
    Mar 14, 2009
    35,852
    Winfield/Taylorsville in Carroll
    Just got my leased 100 gal tank filled. $4.359 a gal! Actual cost of propane is under $2/gal. Rest is “add one” like “hazardous material handling” fee. Looks almost like my electric bill with all the extra charges.

    How many gallons did they put in?

    Think I will have a stroke if propane costs us $4.60/gallon for 500 gallons. Will be installing wood stoves throughout the house if that is the case.
     

    LANDFORGOTTEN

    Active Member
    Sep 28, 2012
    369
    WA state
    Disclaimer: The misses works for Amerigas.

    As anything there are competitors you can bargain with or search for the best deal, i.e. have them compete against each other. You threaten to leave and get to speak with a manager versus the customer service representative (CSR) is a big difference depending on how much authority the specific CSR has, or that manager delegates and possible contract rates. It can be a huge difference!!! They have a lot of incentive to keep customers!!! So many bonuses dependent on retention, turnover and new customers. How much time and effort are you willing to put into this, possible every year?

    Regarding owning your own tank there are risks regarding condition and certification date whether they will fill it or require recertification which requires testing which costs money and possibly costly maintenance or an entirely new tank.
     

    CharlieFoxtrot

    ,
    Industry Partner
    Sep 30, 2007
    2,527
    Foothills of Appalachia
    There are 100 lb tanks and there are 120 gallon tanks (420 lb). If it's the latter, $225 would be a bargain. That makes me think it's the 100 lb (23.6 gallon). If so, that's a screw job.

    If it's the 100 lb DOT tank, he can do that. I think bigger tanks (ASME) have different rules that make it hard or illegal to move it yourself.

    True, and good advice.

    Went out and looked- its a 120 gallon tank. It was also manufactured in 2003 if that makes a difference.

    An interesting development: after my conversation last week above where I told them I wasn't interested in getting a fill until we decided what to do they came out Wednesday and filled it! Had an interesting conversation with customer service and "the manager is reviewing the recording of the call." Not sure where we will go from here.
     

    Mightydog

    Ultimate Member
    MDS Supporter
    Disclaimer: The misses works for Amerigas.

    As anything there are competitors you can bargain with or search for the best deal, i.e. have them compete against each other. You threaten to leave and get to speak with a manager versus the customer service representative (CSR) is a big difference depending on how much authority the specific CSR has, or that manager delegates and possible contract rates. It can be a huge difference!!! They have a lot of incentive to keep customers!!! So many bonuses dependent on retention, turnover and new customers. How much time and effort are you willing to put into this, possible every year?

    Regarding owning your own tank there are risks regarding condition and certification date whether they will fill it or require recertification which requires testing which costs money and possibly costly maintenance or an entirely new tank.



    Does your misses know of any “deals” done? I’ve been with them for almost 20 years. No issues with rental fee because I’ve always used the “minimum required” during the year. The fill before this last one they charged me a rental fee. I called and asked why and they said “changed our policy, everyone pays the rental, no more minimum usage”. Since I got a new propane stove in the family room to replace the one with a faulty valve I’m expecting to use more propane than last year.
     

    fabsroman

    Ultimate Member
    Mar 14, 2009
    35,852
    Winfield/Taylorsville in Carroll
    What do you guys think about a quote of $3,400 for the install of a 500 gallon above ground tank with 400 gallons (i.e., what a 500 gallon tank can hold) of propane as part of the deal? This is being done in the Westminster area.
     

    Speed3

    Ultimate Member
    Aug 19, 2011
    7,816
    MD
    What do you guys think about a quote of $3,400 for the install of a 500 gallon above ground tank with 400 gallons (i.e., what a 500 gallon tank can hold) of propane as part of the deal? This is being done in the Westminster area.

    Ballparking numbers

    Propane (assuming $2.50/gallon, probably on the high side) = $1,000
    Above ground tank = $2,000
    Install = $400(backed into the math).

    I'd shop around and see what others are quoting.
     

    fabsroman

    Ultimate Member
    Mar 14, 2009
    35,852
    Winfield/Taylorsville in Carroll
    Ballparking numbers

    Propane (assuming $2.50/gallon, probably on the high side) = $1,000
    Above ground tank = $2,000
    Install = $400(backed into the math).

    I'd shop around and see what others are quoting.

    Yeah, just got off the phone with Aero and the difference is amazing. Quite insane that the first guy initially quoted me $4,500. Rattled off the names of propane providers I had on my spreadsheet and his quote quickly came down to $3,400.

    Aero
    $1,267 for a refurbished above ground tank
    $150 for install
    $360 for 400 gallons of propane to fill the tank.

    $1,777 for the install. Believe she said it was something like $1,900 for a new tank, so even then it is $2,410.
     

    Mightydog

    Ultimate Member
    MDS Supporter
    Yeah, just got off the phone with Aero and the difference is amazing. Quite insane that the first guy initially quoted me $4,500. Rattled off the names of propane providers I had on my spreadsheet and his quote quickly came down to $3,400.

    Aero
    $1,267 for a refurbished above ground tank
    $150 for install
    $360 for 400 gallons of propane to fill the tank.

    $1,777 for the install. Believe she said it was something like $1,900 for a new tank, so even then it is $2,410.

    Is that a one time price for the initial fill of propane? That’s $.90/gal! Need to find out what the cost of propane is after the initial fill.
     

    Speed3

    Ultimate Member
    Aug 19, 2011
    7,816
    MD
    Is that a one time price for the initial fill of propane? That’s $.90/gal! Need to find out what the cost of propane is after the initial fill.

    But if he owns the tank, he shouldn't be locked into Aero. He can shop around next year for lowest price (aka summer time).
     

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