Home Appliance Economics

By Community First Financial Advisors

The prices of major home appliances fell 19.5% over the three years between April 2022 and March 2025. They now cost less than they did ten years ago, despite having lots of convenient new features.¹ The flip side is that repair costs for today's complicated appliances have gone through the roof. Plus, many homeowners are convinced appliances are less reliable and don't last as long.²

Here are three things to consider when an appliance you rely on breaks down.

Should I Repair or Replace it?

If your appliance malfunctions while it is still under the manufacturer's warranty, the repair may be covered, but you should use a factory-authorized repair shop if you don't want to risk voiding the warranty. Service calls can cost $100 or more just to bring a tech to the door. If a broken appliance is approaching seven years old, or the cost to repair it will be more than half the price of a new one, replacement is often recommended.³
 

Interested in Purchasing a New Appliance?

Community First Credit Union can help. With financing options like a home equity fixed-rate loan or a home equity line of credit (HELOC). You can choose the solution that works best for your home and your budget.
 

If I Buy a New One, Should I Pay to Extend the Warranty?

Extended warranties (or service contracts) generally cover service and repairs after the manufacturer's warranty expires. Ask yourself whether you are more comfortable paying a fixed monthly cost than unexpectedly facing a high repair bill that eats into your emergency fund or ends up on your credit card. Each warranty is different, so read the contract carefully to find out what's covered and what's not.

In a 2024 poll, 3 out of 4 consumers said they believe the quality of household appliances has declined over time, and nearly 2 out of 3 said they have shorter lifespans. Here's why:
 

Source: USA Today, October 30, 2024

Can I Fix it Myself?

Before you give up on your old appliance, you might search for online repair guides provided by retailers that sell replacement parts and/or do some research on social media. An active community of DIYers may help you diagnose problems, and you will likely find plenty of free videos with step-by-step directions for common repairs.

Contact our Financial Advisors   Sign up for our monthly newsletter

Check the background of your financial professional with FINRA's BrokerCheck.

Securities and advisory services are offered through LPL Financial (LPL), a registered investment advisor and broker-dealer (Member FINRA/SIPC). Insurance products are offered through LPL or its licensed affiliates. Community First Credit Union and Community First Financial Advisors are not registered as a broker-dealer or investment advisor. Registered representatives of LPL offer products and services using Community First Financial Advisors, and may also be employees of Community First Credit Union. These products and services are being offered through LPL or its affiliates, which are separate entities from, and not affiliates of, Community First Credit Union or Community First Financial Advisors. Securities and insurance offered through LPL or its affiliates are:
 

Community First Credit Union (“Financial Institution”) provides referrals to financial professionals of LPL Financial LLC (“LPL”) pursuant to an agreement that allows LPL to pay the Financial Institution for these referrals. This creates an incentive for the Financial Institution to make these referrals, resulting in a conflict of interest. The Financial Institution is not a current client of LPL for brokerage or advisory services. Visit LPL Financial for more information.

The LPL Financial registered representatives associated with this website may discuss and/or transact business only with residents of the states in which they are properly registered or licensed. No offers may be made or accepted from any resident of any other state. Community First Financial Advisors is not registered as a broker-dealer or investment advisor.

LPL Financial Form CRS