Repairing versus Replacing Old Appliances

Posted by MoneySavvy on Aug 28th, 2010 | no comments home title

You know when it happens. The day after you stock up on ice cream for your son’s July birthday party the freezer quits working. Or the morning before a dinner hoping to impress a new boss your oven suddenly won’t heat up. It’s enough to put you into a panic! And then the decisions begin – do you call a repair man or just go to the appliance store and buy a new one before the ice cream all melts or you have to order take-out?

Whatever the problem, there are some things to consider before you make the repair or replace decision.

Warranty – If your appliance is under warranty, then it makes sense to just get it fixed. Even if you have to pay a service fee, it’s surely going to be less expensive. And if an appliance is still under warranty, it’s probably still fairly new and has a long life left.

Age of appliance – The older your appliance, the more sense it makes to just replace it. A good rule of thumb is to replace it if it is about eight years old for a high-end appliance and half that for a less expensive one. If it has had little use, such as an appliance in a vacation property or if you simply don’t cook much, then it could be worth considering a fix if it’s older than that.

Cost of fixing – If fixing the appliance will cost more than half the price of an equivalent new appliance, then it’s usually not worth fixing. If you are handy, you may be able to fix it yourself, so consider all options before deciding.

Cost of replacing - The sticker price on a new appliance may not be the only thing you have to consider at this point of the decision. Do you want a higher-end model? Have you been planning to renovate your kitchen?

Make sure you get the appliance you are going to want a year or two from now to go with the other new appliances you may have been planning to purchase. Does the appliance qualify for a tax credit or rebate at this time? That would be a huge dent in the sticker price. Also look at the cost to run the appliance. The less energy it takes, the less the appliance will cost in the long run.

Environmental impact – No matter which way you end up going, there will be an environmental impact. If you keep the older appliance, it will probably be using more electricity than a newer model. However, if you replace it, the older appliance may end up in a land-fill.

To minimize the latter scenario, first consider if it’s worth donating. Someone who cannot afford a new appliance might very well be able to afford fixing your old one, and many charities have volunteers who fix donated appliances for free. Offer the appliance on Freecycle or post it for free on Craigslist. Someone may want it to fix or to part out. Even if it’s in really bad shape, the metal can be recycled by someone who knows how to do it.

Deciding whether to replace or repair an appliance is a difficult decision for some, especially when finances are tight. Considering all of these aspects should help smooth that decision.