Get the diagnosis in plain words before you approve anything. A failed capacitor, a failed fan motor and a failed compressor are completely different conversations. "The system is old" is an observation, not a diagnosis.
Treat maintenance plans as a purchase, not a formality. Almost every large Phoenix company sells an annual membership. Some are good value — two tune-ups, priority scheduling in peak season, a repair discount. Others mainly exist to get a salesperson into your house twice a year. Ask exactly what is included and what the priority scheduling is worth in July, then decide.
On a replacement, get the exact model and SEER2 rating in writing, plus whether permits, duct or electrical work, and haul-away are included. Identical houses routinely get quotes thousands of dollars apart, and most of the gap is scope.
Ask about utility rebates. Both APS and SRP have run rebate programmes for high-efficiency cooling equipment. They change, so ask the contractor — and check the utility's site yourself — before you choose a unit.
Check the licence. Get the ROC number, search it on the free public register, and make sure it covers air conditioning, not only plumbing. Arizona's Recovery Fund does not cover work by a contractor whose licence was inactive or expired when you signed; our guide to checking an Arizona contractor's licence walks through it.
Do not buy a replacement during the emergency if you can avoid it. If a repair gets you through the week, take the week and get a second quote.