Economic question

/ Economic question #1  

nap61

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Dec 16, 2006
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Maybe the CPAs/accountants can chime-in. I have a freezer and a microwave that are going/gone. They are only 7 years old. They are high end models. I have a repairman coming out next week ($95 just to say hello). At what price point would you replace rather than repair - 40%, 50%, 60%, or?

Norman
 
/ Economic question #2  
$95 for the first trip to look, then he will most likely have to order parts if you decide to repair, and make another trip....you'll have couple hundred in labor + parts. (Which is why I fix all my own appliances or toss them).

Define what is wrong in 'going/gone', and I'd give a better opinion on whether to save even the 95 bucks.

But in any case, I'd not put over 50% cost of new in 7 yr old appliances. While they SHOULD last for 20-30 yrs, they simply don't much anymore.
 
/ Economic question #3  
Maybe the CPAs/accountants can chime-in. I have a freezer and a microwave that are going/gone. They are only 7 years old. They are high end models. I have a repairman coming out next week ($95 just to say hello). At what price point would you replace rather than repair - 40%, 50%, 60%, or?

Norman
not an accountant, just common sense... high end does not necessarily equate to high quality. Don't believe me, research audi, saab etc. and look at oil burning, repair frequency etc.
I would research the models you mentioned, and see if there are other issues just waiting in the closet to come out and bite you. We had a cheapo Frigidaire freezer that lasted 20 years, and an infinity front loader that we paid good money for that was complete junk in three years. Leaked, switches broke, lost it's mind etc.
 
/ Economic question #4  
Freezers, window A/C's, or refrig's are usually just better to replace. They are constantly being made more efficient [ not necessarily physically better ]... so I just would buy new. Microwave??? unless you have some fond feelings for it... pitch it and buy new.
 
/ Economic question #5  
Let's call your current appliance (e.g, a freezer) the Defender and call the potential replacement the Challenger. The rule is to replace the Defender if the marginal cost of the Defender (the cost of keeping the Defender an additional period, including repair cost) exceeds the average cost of the Challenger (assuming the Challenger is kept for the optimum time). Otherwise, keep the Defender.

Steve
 
/ Economic question #6  
Parts are usually cheap, labor is not. Always look to repair if I can fix it myself. If I can't fix it or the parts cost close to 50% of replacement (depending on age / prior history / critical nature i.e. furnace in winter) it gets replaced. It helps to know a refrigeration guy for refrigerant capture / charge.
 
/ Economic question #7  
get new so you're covered by a warranty. if you pay to repair then you need to factor in risk of something else breaking.
 
/ Economic question #8  
Parts are usually cheap, labor is not. Always look to repair if I can fix it myself. If I can't fix it or the parts cost close to 50% of replacement (depending on age / prior history / critical nature i.e. furnace in winter) it gets replaced. It helps to know a refrigeration guy for refrigerant capture / charge.
With my 4 year old dishwasher the mother board was bad.all cycles worked, but you had to manually push button to advance to next cycle. Parts were 80% of cost of new machine. I replaced it. Microwaves are usually not economic to have repairman fix
 
/ Economic question #9  
I don't know what to tell you. My electric stove is 34 years old and still going strong. Freezer going bonkers at seven years - never heard of such a thing. Freezers should go 25 to 30 years. My first microwave went 26 years and I replaced it with the exact same brand/model.

Your units may be top line but they apparently are still crap.
 
/ Economic question #10  
Your units may be top line but they apparently are still crap.

A lot of what's in the market today is junk.

I know a guy locally who is the second generation owner/operator of an Appliance Repair company. I was talking to him about a year and half ago about failure rates of new appliances. He said it was so bad that many of the 3'rd Party appliance-warranty companies decided the smart thing to do was declare bankruptcy.

If you still have an appliance old enough that it has mechanical controls, enjoy it.... most of what is available now probably won't last 1/4 of the lifespan of the old stuff.

If/when I need to replace a compressor here (fridge, freezer) I'll be taking a serious look at Sunfrost. They don't have internet access, frappacino machines, ice-makers etc. built-in, but IMO are the closest you'll find to old-school lifespans today....

^ Sunfrost also has DC options, but that's a whole other use-case......

Rgds, D.
 
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/ Economic question #11  
Be wary of appliance repair experts... often you will do better taking time online to research.

My brother called Bosch out for his Dishwasher... spent 145 and same condition... guy told him to replace it.

I went on line and found it was a common problem and the part $27... that was 5 years ago.

Sister In Law wanted high end front loaders... also called service out to repair... paid $115 and was told repair would be over $500... got online and told him to try a "Reboot" first basically unplugging and turning on the power to drain and residual current keeping memory... he did it and that was 3 years ago.

It really makes one suspect just how knowledgeable the Pros our.

The old 1980 Amana refrigerator has needed two repairs... total in parts $45... one defrost timer and one freezer condenser fan...

God, I like things I can work on!

Off topic but more of the Docs are back to leasing high end vehicles vs owning... they basically do not want to own anything... and a big part is no responsibility for repairs... as the vehicles are always under factory warranty...
 
/ Economic question #12  
I've a freezer I moved down to Mississippi about 4 or 5 years ago. I had moved it from Vermont in 1984. My Dad bought it in about 1963. They don't make them like they used to :(
I've several friends who had bought these "high end" freezers and over a few years after the warranty ran out they needed replacement mother boards. At almost the cost of a new freezer.
On one of them the owner is a "computer nut". He diagnosed the board and replaced a resistor for < $100. "They" had wanted about $1,300 for a new motherboard.
The last fridge I bought in 2011 was bottom line, < $400, still running fine.

I wonder if the true "commercial" stuff found in schools etc. is better.
 
/ Economic question #13  
I would call the manufacturer and see if they a service plan that you buy. I did this with my LG and for a one time fee it covered all my repairs for the next two years. The first repair would have been double the cost of the service plan even though it was still under warranty! It sounds strange, but true. It may not be the case in your situation but it痴 worth a try.
 
/ Economic question #14  
Newbury
My wife worked at a school. They had same problems with appliances. Old stuff ran forever ,new stuff requires repairs after a couple of years.

I second ultrarunners comments on internet diagnostics
 
/ Economic question #15  
I went on line and found it was a common problem...

Sister In Law wanted high end front loaders...

got online...

leasing high end vehicles vs owning...

Two key points worth highlighting.
I won't buy "high end" anything. I see it as paying more for more things to go wrong.
"On line" is a vast resource. Repairs used to be started with a few hand tools, now they get started with Google saving countless hours and unnecessary expense
 
/ Economic question #16  
Two key points worth highlighting.
I won't buy "high end" anything. I see it as paying more for more things to go wrong.
"On line" is a vast resource. Repairs used to be started with a few hand tools, now they get started with Google saving countless hours and unnecessary expense

Our biggest problem is lighting hitting the power line. then into the house and what ever protection you have is gone. in 22 years at this location the power meter has a protection module and it goes about every 3 years. and when is gone the surge takes every appliance connected. bushel basket of phones, modems,
stoves ,dishwashers and the washing machines and dryers sometimes goes same instant.

Then call power co. not there fault , Telco blames the power line no warranty covers lightening. there little line protectors for computers are a laugh the cover blows off goes across room and smoke is released after the computer give a strange IRK then a WHEEZE releases its smoke .
Electrician suggested a ground grid to spread the surge. ground rods with #8 copper attached in grid fashion if there is a gopher in the grid when surge hits would be cooked in a instant.
A month ago .clear sky no wind and power transformer on pole exploded blowing cover loose splashing oil on grass. everything in house was gone if attached to power. Co says not there fault. Lightening. could not say where.
I'm thinking if there could be a separation of the power coming in to a local generated power there would be less failures.
ken
 
/ Economic question #17  
Our biggest problem is lighting hitting the power line. then into the house and what ever protection you have is gone. in 22 years at this location the power meter has a protection module and it goes about every 3 years. and when is gone the surge takes every appliance connected. bushel basket of phones, modems,
stoves ,dishwashers and the washing machines and dryers sometimes goes same instant.

Then call power co. not there fault , Telco blames the power line no warranty covers lightening. there little line protectors for computers are a laugh the cover blows off goes across room and smoke is released after the computer give a strange IRK then a WHEEZE releases its smoke .
Electrician suggested a ground grid to spread the surge. ground rods with #8 copper attached in grid fashion if there is a gopher in the grid when surge hits would be cooked in a instant.
A month ago .clear sky no wind and power transformer on pole exploded blowing cover loose splashing oil on grass. everything in house was gone if attached to power. Co says not there fault. Lightening. could not say where.
I'm thinking if there could be a separation of the power coming in to a local generated power there would be less failures.
ken

Not my primary motivation, but what you just detailed ^ makes a good case for being off-grid.

Back to the thread..... modern appliances loaded with electronics are obviously more susceptible to major power-line events....

Rgds, D.
 
/ Economic question #18  
That sucks. Any help from the insurance company?

If I were in your situation I壇 be looking into my own industrial scale surge protector.
 
/ Economic question #19  
Two key points worth highlighting.
I won't buy "high end" anything. I see it as paying more for more things to go wrong.
"On line" is a vast resource. Repairs used to be started with a few hand tools, now they get started with Google saving countless hours and unnecessary expense

My neigbour is a good example.

His wife HAD to have the latest/"greatest" household appliances.... so, they gave away their perfectly running olde-school ones (which, are apparently still running fine today). Only a couple of years into owning the latest/"greatest", the clothes-washer shutdown on lockout. Turned out it was just a blocked internal filter (or maybe valve) - not a big deal to physically clear the blockage.

THE problem - getting the (expletive) control board to Reset. Power cycles didn't work or any obvious manipulation of front-panel controls. After multiple hours on the phone with Manuf tech support, he finally was able to execute the convoluted Reset on the board itself.

The internet can be a great resource (not just for tractor stuff :shocked:), but there will still be situations that have no easy to find solution, at least for a certain period of time.

Oh yeah, re. the example above ^ - my neighbour is a high-end HVAC Controls specialist. He runs his own general HVAC service, but a good portion of his business comes from other HVAC companies calling him in to commission or diagnose systems they can't.

So yeah, he has technical and diagnostic skills that surpass 99.99999999999999999999999999999999% of the general population. His appliance failure had a simple root-cause, and the machine just shut down. Many other people haven't been so lucky:

"It sounded like a bomb": Exploding washing machine knocks mom out - CBS News

Samsung washing machine owners warned after explosion reports - Sep. 28, 216

These companies have no Mechanical Engineers today ?

Modern appliances are mostly designed to fail by 10 years, and many well before that. Apparently, we are now Saving the Environment this way.......

Rgds, D.
 
 
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