Glossary termNo. 3 / 10
- Category
- Dealers & contracts
- Fuel
- Heating oil
- Source
- Industry practice
A buying model where you pay for your heating oil in full at (or just before) delivery — cash, check, or card — rather than being billed later or on a plan.
COD dealers are typically low-overhead discount operations that price close to the daily wholesale cost and pass the savings on; they generally don't offer service contracts or emergency repair. COD rewards homeowners who are comfortable watching their own tank and paying up front, in exchange for a lower price per gallon.
Source: industry-standard payment term (see the full-service-vs-COD guide for the trade-off).
Filed by Nick Bruzzi