Buried LP Gas Tank

[tim5055]

Well, this is a question that builds on our home purchase in SC. As I was calling around setting up utilities for our closing at the end of the month I have discovered that the buried 120 gallon LP Gas tank is leased, not owned as the sales documents stated.

The sellers have offered to buy out the tank so I would own it, but now the question arises - do I want to own it?

Owning the tank I can select the lowest price vendor

Leasing the tank and the company is responsible and liable for any issues

What say you, own or lease?

[inspector57]

Lease it. If you find out you are getting the shaft on LP prices you can always tell them to come get their tank and go with a different company.

Purchasing a tank makes sense if it is new or relatively new and you plan on living there long enough to amortize the difference but I'm guessing it would be more than 15 years to see any savings. The liability and repair if something goes wrong could easily eat up any savings, IMHO.

[Jim Katen]

If the seller is willing to buy it for you, then own it. There's no downside.

The difference in cost for propane is remarkable. In my area, someone who owns his own tank can get propane at more than $1 less *per gallon* than someone stuck with a lease.

If you own the tank and it goes bad, just call another company to set up a lease, the cost is very low. Afterwards, you can cut up the old tank and use it for a watering trough.

[tim5055]

If the seller is willing to buy it for you, then own it. There's no downside.

yes, they admit their error and said they would buy it out if we wanted at no cost to us.

Mt realtor is really silent on the issue but the sellers realtor keeps talking about the "liability" of owning the tank.

[Scottpat]

I would have them buy the tank... As Jim noted it really has no downside but it will allow you to get a better price on LPG. But, I would make it into a trailer mounted bar-b-que smoker when it is time to repurpose it!

[John Kogel]

Re: having the dealer maintain and eventually remove the tank, look closely at their lease contract.

We bought property with a leased tank above ground. We took over the lease for the first winter. When I called to get rid of it, it took them a month to comply. Then I got a bill for over $200 for removal of their tank.