Spending and Saving

Repair or Replace: Which is Better? It Depends.

It’s a question everyone has faced at some point: When a beloved item breaks or wears out, is it a better deal to fix it or replace it?

Since the recession first began, an increasing number of families are going with the latter option, foregoing new appliances and electronics and instead fixing the products they already own at a local repair shop when they break. From cobblers to computer technicians, those working in the fix-it industry say they’re seeing more business than ever before.

Unfortunately, not every broken item may be worth saving. Certain kitchen appliances, for example, can almost always be found new at discount stores for a lower price than the amount they’d cost to repair.

To determine what’s worth fixing—from a financial standpoint—and what’s worth buying new, we’ve done the math to compare the costs.

Kitchen Appliances

Not only do major appliances like dishwashers, refrigerators, and ranges cost thousands up front, but anywhere from 20 to 37 percent end up breaking down within the first three years, according to the Times. It’s because of this that appliance repair shops are ubiquitous in cities across the country.
How it adds up: For appliances that aren’t under warranty, repair costs can add up fast and easily run upwards of $100. Increasingly, service technicians are advising clients to stick with the 50 percent rule—if a repair is going to be more than half the cost of buying the appliance new, forego fixing it and head to the store.
The bottom line: Following the 50 percent rule, it is nearly always a cheaper option to have bigger appliances—such as refrigerators and stovetops—fixed, while smaller kitchen appliances like microwaves and coffee makers should be recycled in favor of something new.

Shoes

Whether it makes financial sense to repair a pair of shoes rather than buy new depends on a number of factors, including the quality of the shoe itself and what repair needs to be done. Some of the most common fixes a cobbler can make include replacing heels and soles, fixing buckles and elastic closures, and adding lifts to heels.
How it adds up: Cobblers can fix up all types of shoes—not just super-expensive pairs—and generally charge around $8 to $12 for new heel lifts or $20 to $25 for sole protectors that can extend the life of a shoe for years.
The bottom line: Although repairing is the most frugal option when it comes to basic black pumps that you’ll wear for years, it may not be worth it for the trendy sandals that won’t be in style next season anyway.

Electronics

From laptops and iPods to cell phones and cameras, the sheer number of electronics the average person owns guarantees that something will inevitably crash and need repair. Accordingly, Best Buy’s Geek Squad—which has seen a double-digit increase in business in 2009—has launched a “fix or replace calculator” online to help customers determine whether it’s worth it to fix their device or buy something new.
How it adds up: On average, computer repairs costs $100 an hour while digital camera fixes can be $50 or more. Meanwhile, consumer electronics prices are falling fast, with the average camera costing $200 less than it did two years ago.
The bottom line: Whether a laptop or cell phone is worth fixing or buying new depends largely on whether you’re looking to upgrade in the near future. In the majority of cases, the cheaper or older the electronic item, the more likely a consumer should be to scrap the broken version and buy new.

Clothing

A good seamstress can fix a myriad of problems when it comes to quality clothing, from ripped seams to altering the size of dresses and pants. They can also change the look of expensive items, taking off sleeves, changing lengths, and adding new straps to give an old piece of clothing an entirely new feel.
How it adds up: The prices seamstresses and tailors charge vary greatly depending on the fix that’s needed. Although quick hemming jobs can cost as little at $10, complicated alterations can cost well into the hundreds.
The bottom line: Drastically changing the shape or size of a dress can be a complicated (read: costly) endeavor. Unless the piece is designer or a rare vintage, it’s usually cheaper to buy a new dress rather than completely alter the one you already own.

Tags: budgets, buy, fix, products, sell