appliance repair or buy new

[econberkeley]

There is an NY times article about repair vs buy new dilemma.  It costs at least $100 to get a repairman to show up if an appliance breakdown. In my experience, I end up paying around $300 for repair.  Also, there is a chance you may one of the crooks who will suggest unnecessary repairs.  For example, couple of years ago, it cost me $350 to change a part for a bosch dishwasher. I could buy a new dishwasher for around $700. For a cheaper lower end brands, ratio is probably worse than 50%. If I did not want to repair it, then I had to pay around $130 so I decided to repair it even though it was 10 years old. It broke down one year after the repair.

How do you make a decision on repair vs buy new without knowing the repair cost? I think it make sense to buy new when it is out of warranty for appliances cost less $1000. What do you guys think?

Also, the cost of repair is going up higher than the inflation rate because it is mainly based on labor while appliance prices are staying the same. As a result, the ratio of repair/new appliance is going up.

http://www.nytimes.com/2009/05/28/garden/28repair.html?pagewanted=all&_r=0

[SDREMNGR]

Buy a relatively new used one for usually less than 1/3rd cost of new one.  Often 1/4 or 1/5th cost of new.  Look around and you can find some good deals.

[nordlead]

Stop paying people to fix simple problems and then the repair/replace question falls back over to the repair side easily. You'll also know upfront how much the repair is likely to cost since you'll have a good idea of what parts you need and for how much prior to making any financial commitment. Not only do you stop paying $100/hr+tax for labor, but you get your parts cheaper by sourcing them from discount parts stores. You don't have to wait around at home for a repairman, and you learn something in the process too.

My general rule of thumb is when parts start to hit 50% of cost, energy efficiency is significantly better with a new unit, or I foresee the breakdown rate increasing too high therefore taking too much of my time.

Last year my HVAC motor died. $200 later and I was back up and running in one morning. Had I called an HVAC specialist he would have driven out to my house, checked to see what parts he needed, had to go back out to get them, and then came back to install them. I would have been sitting home doing nothing except paying someone else to do all that stuff for me. I had no prior HVAC experience other than cleaning the air filter, but I do know how to turn a wrench.

Just yesterday, I changed the front brakes on my Forester in under 2 hours, and it cost me $40 (could have cost me $25, but I bought the "fancier" brake pads in hopes that I don't have to replace them as often. Oh, and I'll never have to pay for brake pads again on my Forester as they have a lifetime warranty.

Also, don't waste your money on "luxury" brands like Bosch. Bosch dishwashers advertise the lack of a hard food disposer and then have the nerve to charge you more for taking away a feature compared to the competition. Compared to an equivalent Maytag with hard food disposer and is cheaper (and plenty quite, I can't hear mine operating).

[guitar_stitch]

It costs at least $100 to get a repairman to show up if an appliance breakdown. In my experience, I end up paying around $300 for repair.  Also, there is a chance you may one of the crooks who will suggest unnecessary repairs. 
[...]
How do you make a decision on repair vs buy new without knowing the repair cost? I think it make sense to buy new when it is out of warranty for appliances cost less $1000. What do you guys think?

Also, the cost of repair is going up higher than the inflation rate because it is mainly based on labor while appliance prices are staying the same. As a result, the ratio of repair/new appliance is going up.

You actually pay people to come out and repair stuff?  You must be disgustingly, filthy, obscenely rich!

My typical repair goes as follows.

1) Identify key symptoms.
2) Google symptoms.  Start with the make/model included.  Refine until I have probable causation of symptoms.
3) Google test methods for suspect components.
4) Test components.
5) Google replacement part.  Compare cost to new appliance.

95% of the time, it's cheaper to fix and that's what I do.

I imagine if you're hiring servants to take care of your repair needs, it probably is cheaper to replace.  Then again, if you can afford a repairman, it really doesn't matter, does it?

[ChrisLansing]

This is not meant to be sarcastic -

If a dishwasher breaks down, why not take a moment to recognize that dishes can be washed by hand in the sink?   Sinks and hands rarely break down.   I'd just get rid of the dishwasher at that point.    If you have a SO then you have two dishwashers.   If you have kids, they'll grow up to be dishwashers.   

OK, there are appliances you need; 'fridge, stove, clothes washer.    I'm sympathetic to people who don't fix things themselves. Everyone is a little different and their comfort level with doing hands on work is different.   My lawyer SIL had a washer breakdown a couple weeks ago.   She asked about honest repair services.   I suggested she repair it herself by using Youtube videos.   I'm sure it wasn't very useful advice, as she'd pre-decided to hire the work done.   

RepairClinc, and other similar sites can walk you through appliance repair step by step.   A lot of times you can order the part on line and fix the thing yourself for far less than the service call from a repair service.   

Buying simple/durable is also a good way to lower long term costs.   We buy machines with few bells/whistles - fewer things to go wrong. 

Finally, to actually get around to answering your specific question - there is no magic formula such as buy new if the cost is less than $1000.    If your washer only needed a new belt then you'd save a lot fixing it rather than buying new.   (You'd have saved even more doing it yourself rather than calling a repair service).    Our simple Whirlpool washer with no special features may run for 15 more years.   It would be silly to go out and buy a new one if something breaks.   Most likely it could be fixed for far less than buying new.    OTOH, something like a dishwasher that is used daily, and is already 10 years old, well then it may make sense to replace it rather than repair.  I don't think there is a simple rule you can follow.   It depends on the service life of the appliance, the age of the appliance, the repair cost, etc.   The variables have to be weighed on a case by case basis.