REPAIR OR REPLACE: What’s the best plan with older appliances?
So, you’re worried the washing machine may be on its last spin cycle. Should you spend $319 to fix this outdated appliance or replace it with a $999 new model that will use less electricity and water?
Deciding whether to repair or replace an appliance can be challenging. Here are guidelines and suggestions to help you decide, based on costs for replacement and repairs and the advantages of new models.
• If you cannot pay cash for the new replacement
You should get it repaired to buy yourself time to save up for the replacement. Even if the repairs will only keep this appliance going for a year or two, you’re far better off repairing and then saving for a new machine than charging the cost of a new one and paying double-digit interest for the next three to five years.
• If you have some cash but not enough
Consider replacing your clunker with a quality late-model, lightly used machine. Check sites like Craigslist.org for latemodel, well-cared for used appliances. Spread the word to friends and neighbors. People are constantly relocating — creating situations where they need to sell perfectly lovely near-new appliances.
• If the appliance is eight years or older
Once an appliance becomes older, usually it makes sense to buy a new one. However, if you have a high-end older appliance, you may want to repair it, provided it is not prone to repairs.
• If repairs are really expensive
If the repair bill is more than half the price of a new product, you should consider buying a new one rather than repairing. But, again, the deciding factor will be whether or not you will have to go into debt to buy new.
• If the appliance is under warranty Even if repairs will be only partially covered by a warranty or service contract, repairing is the way you should go.
If it’s under warranty, call a factory-authorized repair shop. If not, an independent contractor is likely to offer better service at a lower cost.
The costs for diagnosing problems and making repairs on home appliances have gone up considerably in the last few years. This has made replacements with new models more common.
• A word to the wise Home appliances have built-in obsolescence. By design, life expectancy has gone d
own slowly over the years. Take refrigerators. They used to last for 30 years or longer. They were specifically designed to do that. These days you’ll be lucky to get 10 years. And that’s with excellent maintenance and timely repairs.
• Anticipate so you are not caught off guard
Anticipate costs to repair and eventually replace major home appliances. Create a special account designated for future appliance replacement.
Setting aside a small amount of money every month will give you cash options to make wise decisions when the time comes.