Posted By Sav on 11 Jun 2012 09:54 AM
The cheapest quote for a roughly equivalent split system is 2.5x the cost of the packaged unit! Like $3000 compared to almost $10,000.
Apparently I live in a rip-off area ;-)
Apologies for not getting back here sooner.
I think you are over simplifying and being a tad naive or disingenuous.
If you count a pro's cost of permits (both mechanical and electrical) as well as skilled labor, custom sheet metal, refrigerant recovery and disposal and have them offer you the lower efficiency that comes with the package system, I think you may find there is significantly less than a $7,000 price difference.
DIY equity is always available. It also often requires comprimises (in your case, lower efficiency), and often involves breaking the rules (say skipping the pesky permit process or waving bye-bye to the R22 in your old system as it is "accidently" leaked into our air).
To suggest every contractor in your area is dishonest ("I apparently live in a rip-off area") without itemizing the differences is unkind at best.