Repair or Replace? How to Compare the Cost of a Broken Appliance

The washing machine stops mid-cycle with a full load of school uniforms inside. Or the fridge goes quiet on a Sunday night. Suddenly you're weighing up a repair you can't price against a new appliance you didn't budget for.

It's tempting to make the call fast. But a few checks before you spend anything can change the decision, and sometimes remove the cost altogether.

Step 1: Check your consumer rights before you pay

This is the step most people skip, and it can be the most valuable.

Under the Australian Consumer Law, products come with consumer guarantees. They sit on top of any manufacturer's warranty, and they don't automatically end when the warranty does. How long they last depends on factors like how much the product cost and what a reasonable person would expect from it. A more expensive appliance would generally be expected to last longer.

The ACCC explains two types of problem:

• Major failure. For example, the product is unsafe, is very different from how it was described, or can't do what it's normally used for and can't easily be fixed in a reasonable time. You can generally choose a refund or a replacement.
• Minor failure. Anything that doesn't meet the major threshold. The business must fix it, at least by providing a free repair. If they don't within a reasonable time, you may have other options.

Importantly, the business that sold you the product is responsible. The ACCC says businesses must not tell consumers to take the problem to the manufacturer instead.

So before calling a repairer, contact the retailer with your receipt or proof of purchase, explain what's happened and ask what they'll do. The ACCC's page on repair, replace, refund or cancel sets out your rights in plain language.

Also check your home and contents insurance policy. Some policies cover certain breakdowns or the food lost when a fridge fails. It depends entirely on your policy, so read the terms or ask your insurer.

Step 2: Get a proper repair quote

If your rights don't cover it, get a repair assessment. Ask for the full picture, not just a ballpark:

• The call-out or inspection fee, and whether it's deducted from the repair cost
• Parts and labour, itemised if possible
• How long the repair will take, including waiting for parts
• Whether the repair comes with its own warranty

For safety reasons, leave electrical, gas and refrigeration repairs to qualified technicians. A DIY fix that goes wrong can cost more than the original problem.

Step 3: Price the real cost of replacing

The price on the shelf is only part of it. A replacement often comes with extras:

• Delivery
• Installation or connection
• Removal and disposal of the old appliance
• Any new fittings, hoses or brackets

Ask what's included before you compare.

A worked example

Here are two fictional quotes for a broken washing machine:

• Repair: $240, including the call-out fee
• Replace: $650 for a new machine, plus $80 for delivery and removal of the old one, so $730 in total

On upfront cost alone, repairing saves $490. But that's not the end of the story. Information that could change the decision includes:

• Age and condition. If other parts are worn, another repair might not be far off.
• Repair warranty. A repair with a 12-month warranty is a different proposition to one with none.
• Running costs. A newer model may use less water or energy, though the saving depends on your usage.
• Downtime. If parts take three weeks, that's three weeks of laundromat trips, which have their own cost.

There's no universal rule, such as replacing anything over a certain age or when a repair costs more than a set percentage of a new one. Every situation is different, so compare the numbers you actually have.

Step 4: Consider what you can't price confidently

Some costs are uncertain, and it helps to name them rather than ignore them:

• How long a repaired appliance will keep going
• Whether a cheaper replacement will be as reliable
• How disruptive it is to be without the appliance for a week

When the gap between options is small, it's reasonable to favour certainty. When it's large, the cheaper option is often worth a little risk.

If the cost lands before payday

Sometimes you know what to do, but the money isn't there yet. Before borrowing, check whether the repairer or retailer offers payment options and what they cost in total.

If a bill lands before payday, a Beforepay Pay Advance can bridge the gap until payday. It is a short-term loan of $50 to $2,000, repaid within 62 days in up to 4 instalments, with a fixed 5% setup fee and interest up to 24% p.a. Eligibility criteria and T&Cs apply.

For larger amounts, a Beforepay Personal Loan runs from $2,001 to $5,000 over terms of 3 to 12 months, with the same fixed 5% setup fee, interest up to 24% p.a. and a 29.50% p.a. comparison rate. Pay Advance and Personal Loans of $5,000 or less don't involve a credit check (we look at your income and spending instead), and neither product charges late fees or early repayment fees. A customer may hold only one active Beforepay loan at a time.

Every application is subject to assessment, and approval is never automatic. Only borrow what you need, and only if the repayments fit alongside your essentials. Our guide on managing unexpected expenses and our six questions to ask before taking out a loan are worth a look first.

Your quote-comparison checklist

1. Have I contacted the retailer about consumer guarantees?
2. Have I checked my warranty and insurance?
3. What's the full repair cost, including call-out and parts?
4. Does the repair come with a warranty?
5. What's the full replacement cost, including delivery, installation and removal?
6. How long will I be without the appliance under each option?
7. What would change my mind?

Work through those seven questions and the decision usually becomes much clearer.

This article is general information only. It does not take your personal circumstances into account and it is not financial, tax or legal advice.