Appliance repair vs. replacement: What’s more cost-effective?
Credit: Freepik
When your appliances are not working, you’re faced with a tough decision—should you repair them or replace them altogether? Choosing the right option can save you money and extend the lifespan of your household essentials. But how do you decide what makes the most financial sense? If your appliances not working has become a frequent issue, here’s a breakdown of key factors to consider before making a choice.
1. Assess the age of your appliance
One of the first things to consider when deciding between appliance repair and replacement is the age of the unit. Most appliances have a general lifespan:
- Refrigerators: 10-15 years
- Washing machines: 10-12 years
- Dryers: 10-13 years
- Dishwashers: 7-10 years
- Ovens and stoves: 10-15 years
If your appliance is approaching the end of its lifespan and has already been repaired multiple times, replacing it might be the better option. However, if it’s still within the average lifespan and the issue is minor, repairing it could be a smarter financial decision.
2. Calculate the repair costs vs. replacement costs
A good rule of thumb is the 50% rule—if the cost of repairing your appliance is more than 50% of the cost of a new one, replacement is usually the better choice. For example, if fixing your washing machine costs $300 but a new one costs $600, it may be time for an upgrade.
On the other hand, if your appliances are not working due to a simple issue like a broken switch, clogged hose, or faulty thermostat, a low-cost repair could save you hundreds compared to buying a brand-new unit.
3. Consider energy efficiency
Older appliances tend to consume more energy than newer, energy-efficient models. If your appliances are not working properly and causing your energy bills to rise, upgrading to an energy-efficient model could lead to long-term savings.
Look for ENERGY STAR-rated appliances, as they consume significantly less electricity and water compared to older models. While the upfront cost might be higher, the savings on utility bills over time can offset the investment.
4. Check warranty and service coverage
Before you spend money on repairs, check whether your appliance is still under warranty. Many manufacturers offer warranties that cover repairs or replacements within a specific period. If your appliance is relatively new, the repair might be free or significantly discounted.
Additionally, some credit cards offer extended warranty benefits when you purchase appliances. Be sure to check with your credit card provider before making any decisions.
5. Evaluate the frequency of breakdowns
If your appliances are not working frequently and require multiple repairs within a short period, it could indicate that they are nearing the end of their lifespan. Constant breakdowns can quickly add up in repair costs, making replacement a more practical choice.
However, if this is the first issue you’ve encountered, a one-time repair might be all you need to keep your appliance running smoothly for years to come.
6. Factor in resale value
When considering replacement, think about whether your current appliance has any resale value. Some people sell their older appliances in working condition, even if they need minor repairs. Platforms like Craigslist, Facebook Marketplace, and local appliance repair shops often buy used appliances.
If your appliance has no resale value and the cost of repair is high, it may be better to invest in a new unit rather than spending money on extensive repairs.
7. Determine availability of parts and repair services
Sometimes, finding parts for older appliances can be challenging. If your appliance is outdated and parts are scarce or expensive, replacement might be the more practical choice.
Before making a decision, choose an appliance repair service that can assess whether the necessary parts are readily available and cost-effective. If parts are difficult to source, replacement could be the only viable option.
8. Weigh the environmental impact
Replacing appliances contributes to e-waste, which can harm the environment. If your appliances are not working but can be repaired affordably, fixing them instead of tossing them in a landfill is the more eco-friendly option.
If you do decide to replace an appliance, consider recycling it or donating it to organizations that refurbish used appliances for resale or charitable donations.
9. Look at financing and rebate options
If you’re leaning toward replacing your appliance but are worried about the cost, check if there are financing options or rebates available. Many appliance stores offer zero-interest financing, and utility companies sometimes provide rebates for upgrading to energy-efficient models.
Before deciding, compare the costs and benefits of financing a new appliance versus paying for repairs upfront.
10. Make a decision based on long-term savings
Ultimately, your decision should be based on what provides the best value over time. If repairing your appliance keeps it running efficiently without frequent issues, it may be worth it. However, if ongoing repairs are costing more than a replacement would in the long run, upgrading might be the smarter financial choice.
By carefully evaluating these factors, you can make an informed decision that saves you money and keeps your home running smoothly.