Do you Own or Lease your Security Alarm System?

Do you Own or Lease your home security alarm system?Is your current home security alarm system owned or leased?

You may be SHOCKED at what you find!

A few years ago, it was very common that home alarm companies would lease you a security system.  They would calculate an inflated installation purchase price, lease it to you for a reduced cost, and then charge an additional “lease” fee to your bill.  The payback period (the amount of time that it would take the alarm company to make back the difference between the leased priced and the purchased price, was typically 18-36 months.  Everyone was happy.  The customer got a security system at a substantially reduced initial cost, and the alarm company got a higher monthly.  Well, the problem is that after the payback period, lets say 36 months, you kept paying the higher fee.  If fact, you would keep paying the higher fee forever, often paying for that system 2 or 3 times over.  Also, if you ever wanted to switch alarm companies, even if you had your current system for 20 years, your old alarm company would 1) demand you keep paying until your contract term is over, AND 2) they would demand to come in to your house to remove THEIR leased alarm system.  If you did not allow them to remove the system, they would charge you full retail cost of a brand-new replacement.  Quite often the alarm company would charge you $2000-$3000 replacement fee for your 20 year old system.  It only makes sense if you realize that they are trying to “encourage” you to stay with them.

More recently, most home security alarm companies are selling the systems instead of leasing them.  Often, the sale price is lower than their cost of equipment, labor, and commissions.  They sell it at a loss, and make up the difference through 3-5 year monitoring contracts, sometimes at $50-$60 a month.  Remember, there is no such thing as a free lunch.  You WILL have to pay for your system, either up front, or through time.

If you can afford it, ask for the price to purchase the system up front, and then negotiate a lower monthly cost.  Don’t be fooled by companies selling FREE systems; if you look closely, you will find multi-year contracts, high monthly costs, and less-than-complete systems.  We don’t make much (if any) profit on the installations.  We survive on the monthly fees.  Be sure to understand what you are getting, read the contract (front and back), ask questions, and research the company.

As always, if you like on Oahu, Hawaii, and are in the market, call 808-488-4111 and Team Aloha! will be eager to help.

Mark Plischke
Home Security Alarm Systems
Aloha Alarm
Honolulu, Oahu, Hawaii



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