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Home Appliance Economics

As a category, the prices of major home appliances have fallen 19.5% over the past three years (between April 2022 and March 2025), and they cost less now than they did ten years ago, despite having lots of convenient new features.1 The flip side is that the cost of repairing today's complicated appliances has gone through the roof. Even worse, many homeowners are convinced appliances have become 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 10 years old, or the cost to repair it will be more than half the price of a new one, replacement is often recommended.3

If I buy a new one, should I pay extra 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 potentially dealing with an unexpectedly high repair bill that eats into your emergency fund or could end up on your credit card. Each warranty is different, so you will have to 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:

2024 poll results: 41% of consumers said they had to replace appliances sooner than expected; 40% said newer appliances have more plastic and less metal; 37% said friends and family have had bad experiences with newer appliances; 31% said their appliances have broken down more frequently; 30% said their appliances don't perform as well as they used to.

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.

1) U.S. Bureau of Labor Statistics, 2025
2) The Wall Street Journal, February 20, 2024
3) Realtor.com, 2024

This information is not intended as tax, legal, investment, or retirement advice or recommendations, and it may not be relied on for the purpose of avoiding any federal tax penalties. You are encouraged to seek guidance from an independent tax or legal professional. The content is derived from sources believed to be accurate. Neither the information presented nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. This material was written and prepared by Broadridge Advisor Solutions. © 2025 Broadridge Financial Solutions, Inc.