We’ve all been there. Our beloved appliance that we cannot remember how or when we acquired is showing signs of struggle. Maybe the coffee machine is taking a little longer to brew or the dishwasher is not operating at its best in the heavy-duty mode. Any time this happens, you most likely asked yourself is it worth fixing or replacing?
Before we get into a deep discussion—because I’m holding out hope more than two decade old toaster will last another five years—let’s find out the average life expectancy for most appliances.
- After surveying twenty manufacturers, Consumer Reports determine dishwashers usually last 10 years.
- Better Homes & Gardens estimates refrigerators should last 10 to 14 years.
- A microwave should live to see a decade according to The Kitchn.
- The New York Times determined a toaster should last between five and ten years. Which makes my Black and Decker toaster that I purchased at Big Lots in 2002 the Batman of all toasters.
Now back to that 50/50 rule. If an appliance has reached 50 percent of its lifespan and the cost of repairing it is more than 50 percent of a replacement, then it is time to go shopping for a new appliance.
Before you decide to replace an item, you should check if the appliance is under warranty. And sometimes, if you purchased an extended warranty and the model is no longer available, a manufacturer will reimburse the cost of the item; meaning you’ll receive money (or a credit) to go towards your replacement.
To apply the 50/50 rule you’ll need to do a few things:
- Assess how long you have had the appliance. Check your receipts and/or the manual.
- Research how much the repair will cost. It is important to get at least two to three quotes. If a repair is in your future and you really like a specific company, ask if they’ll price match. Or research how complicated it is to fix the appliance yourself. Consider purchasing the part and repairing.
- Now check to see how much a new appliance will cost. You’ll want to compare at least two to three retailers. Depending on the item, there may be an optimal time to purchase. For example—outside of big sales around Labor Day and Black Friday—dishwashers are usually marked down around late summer and early fall to make room for new stock.
If the 50/50 rule points you in the direction of a new purchase, you should consider:
- Warranty: Some manufacturers and/or retailers offer better warranties than others.
- Optional Repair Plans: Depending on the expense of your appliance, it might make sense to purchase a repair plan. Weigh the costs of repairing in comparison to purchasing a new item. Is there an additional deductible fee on top of the repair plan? Thoroughly review the options.
- Brand and Pricing: Check out reviews of the replacements you are considering. Does it make sense to purchase an expensive option or will the lower priced option be more efficient? If there is an installation cost associated with the appliance, consider what makes the most sense.
- Energy Efficiency: Is there an energy efficient replacement option? Spending a little more money might make sense if you’ll save on utilities.
- Removal: Search to see what environmentally friendly options are in your area to properly recycle and/or dispose of your used appliance. There may be a tax deduction you can take advantage of or a way for your item to be refurbished.
The 50/50 rule is a strategy to help you make the best financial decision when you are facing the difficult decision of repairing or replacing an important item.