Before repairing or replacing any appliances, there should be calculation of exact cost that needed for repairing. If its lower than 30% of buying cost and is not too old, then its better to repair it. The video below give some more information about it.
Video Transcript: OK you’ve been there right. The dishwasher overflows that fridge just doesn’t keep stuff cold. So what should you do when you’re home appliance breaks down. Do you sell out the money to repair a part or bite the bullet and buy a new machine. Tom Kraeutler is the host of the nationally syndicated radio show The Money Pit and he joins us now with his advice. You know when I was just sitting thinking here while I was reading that was you can’t find somebody to repair half the stuff. Oh no. I think so many homeowners what they do is they just throw up their hands and they just buy something – they just want to replace it you know. But the the answer to the question really depends on three things. OK depends first on the age of the appliance because the older they get the higher the chance of repetitive failure. Then it depends on the cost of the repair and the replacement cost. If you want to buy new.
OK. We’re gonna do the math on all of that. But before you get to that two things First of all the new products have so many more cool gizmo, they do, and great new electronic wizardry A and B. These people want to sell your warranties.
They do. I think appliance warranties are almost never a good idea. You know there’s a lot of information that you need to consider. First of all you’re really getting an extra amount of warranty because a lot of times the default warranty maybe a year. There’s telling that it’s a two year extension it’s only one extra year of coverage. You know who breaks down who’s going to address it. Can you bring it back to the store. You know the FTC says they’re almost always a bad idea. And the other thing is you ought to check with your credit card company because a lot of credit card companies have programs where they’ll double the warranty if you use the card.
Wow that’s amazing. Yeah. I own my home insurance any help there.
Not really unless it’s part of a bigger claim. Like if you have a you know a storm damage or a roof collapse or something like that or is damaged in a flood that it might be covered. All right. I want to work through some of these numbers because you look at great metrics for people out there we try to simplify them right the whole list of moneypit.com. The people want to see it but let’s talk through OK refrigerator median age right. Repair or replace depends on the cost of that repair. So let’s say the age of the refrigerator is somewhere at eight to 15 years I would consider that sort of middle age for a refrigerator who has a thousand dollar refrigerator to buy a new one and you need to put a four hundred dollar compressor in it. Probably a bad idea because I only spend up to 30 percent of the value of that refrigerator that middle age on a repair.
So at 30 percent of the cost of buying new. Correct. That’s your limit. That’s that’s the break even point. What about a range.
Well similarly math with the range but I would put that number more at 20 percent. And a dishwasher. Yeah yeah dishwasher I would say it’s kind of more closer to that 30 percent number and that’s 10 to 15 year life expectancy in that middle range. So again look at the cost of the appliance. Look at the cost of the repair. If it’s more than 30 percent don’t do it if it’s less do it now where it gets sticky juries if it’s the second time you’ve had to fix it right then you really have to ask yourself Is it worth it. And most times it’s probably not. Built in microwave less than that about 15 percent.
OK. So devil’s in the details here and it really depends on how old that appliances because you are it is yeah the more you want to hurry you might want to put into it right.
You’re right out of warranty and something happens. Maybe you want to put some money into it then it gets old. Not so much.
And it probably also depends on the appliance itself because some easy to fix and others are hideously complicate.
Well for example suppose for disposal breaks down I would just toss it.
OK well that’s great advice. Now the other thing that you said that I thought was fascinating is that you’ve got to clean these appliance.
You do you do have to clean them now. Why just don’t need a lot of work. They do need to be maintained right. And they’re especially products out that can do just that. This is a line of products for example from glisten cleaners pretty new to the market. But I love the convenience of it. For example this is called dishwasher. Michael. I’m not paid by glisten OK. This is a protocol dishwasher magic. There’s a there’s a wax seal in here you unscrew it turn upside down and put it in a dishwasher. Press start and it does all the work. It basically cleans all that bacteria that gets in there and leads to the odor it breaks down the food particles and so on. So it’s dangerous for you if you don’t clean it out. Well it could be I mean have you ever had a washing machine like take your clothes out and have kind of a weird odor to it. Well that’s the bacteria gets into the seals and stuff. So if you use the washer magic product or something like that it will clean it.
And disposal care too.
Yeah that’s easy. You know there’s that there’s disposable. There’s a biodegradable packets in here. You throw it in the dispose or turning on it foams up and cleans the whole thing.
That’s so cool. Yeah pretty neat stuff. And that makes it work better work better and last longer. Tom Kraeutler you are a genius my friend. Thanks for coming on the show. Well.