Or Repair What You Have?

Rebates are nice, but first you have to decide if your heater, dishwasher, etc., has really reached the end of its life.

“A good rule of thumb to determine if you should repair or replace an
appliance is to look at the age factor and the cost of repair,” writes
Angie Hicks, founder of Angie’s List, where thousands of consumers
share their ratings and reviews on local contractors and companies.
“The average price of a service call is between $60-$100 before parts
and labor. Many companies will deduct their call charge from the total
bill if you hire them to make the needed repairs. However, if a repair
will cost more than half the cost of the new appliance and the unit is
more than six or seven years old, you’re probably better off replacing
it.”

Hicks suggests 10 questions to ask yourself to determine whether to replace or repair an appliance:

1. Is it really broken? The trouble may be a short in the plug, a
   tripped circuit breaker, or a bad surge-protector outlet. Check the
   troubleshooting section of the unit’s instruction manual for the most
   common problems and solutions.
2. How old is the appliance? According to ABC News, the average life
   span of most household appliances is 15-20 years for refrigerators and
   freezers, 8-15 years for air conditioners, 5-12 years for dishwashers,
   and 8-12 years for all dryers, furnaces, heat pumps, clothes washers,
   and water heaters.
3. Have you had trouble with the unit before? If it has performed well,
   it might be worth fixing instead of replacing with something unproven.
4. How much will it cost to repair the unit?
5. What would a similar appliance cost?
6. Are there any hidden costs to the purchase (removal, installation, disposal, tax, etc.)?
7. How difficult is it to replace the appliance? Is it a built-in, or does it fit into an odd space or have an unusual color?
8. What additional features will I get with the new appliance?
9. What energy savings will I get with the new appliance? Will they offset the cost of a new appliance vs. repair?
10. What tax credits are available for purchasing an energy-efficient
    unit? Will they offset the cost of a new appliance vs. repair?

“This program is designed to help spur economic growth, create jobs,
make homes more energy efficient and reduce greenhouse gas emissions,”
Hicks wrote on her Web site. “Part of being environmentally friendly is
to use products as long as possible, so we’re not filling up landfills
with unnecessary waste. So, if your appliance is worth fixing and you
can get several more years out of it, repair might be the way to go.”

Keep the following in mind if you decide to go ahead with the purchase:

• Get the details. If you know the requirements before you start
  shopping, you’ll avoid making mistakes when filing for the rebate.
• Don’t delay. Even though states have until February 2012 to spend their
  funds, most will likely run out before then. Once the money’s gone,
  it’s gone, so don’t wait too long. States and territories have to
  notify consumers when the funding is exhausted.
• 
  Look into other offers. Some states will allow consumers to “stack”
  their federal appliance rebate on rebates from local utility companies
  if the appliance meets the criteria of both programs. For information
  on local rebates, check the Web site for the Database of State
  Incentives for Renewables and Efficiency. In addition, some appliances may also be eligible for federal tax
  credits (see the list at the Energy Star Web site).

Energy Star is a joint program of the EPA and the DOE. All appliances
and products with the Energy Star label meet strict energy-efficiency
guidelines set by the two agencies.