The decision to replace or repair your aging refrigerator, stove or washer is about to take center stage in your household.

Presidents' Day (Feb. 17) looms and with it will come the annual "Everything-Must-Go" round of sales on major appliances.

Thanks to the energy efficiency built into today's major appliances, your decision to buy a new appliance or fix an old one will be a lot easier than it has been for previous generations, but that doesn't mean you shouldn't consider other factors.

For years, the major appliance repair-or-replace rule-of-thumb has been: if an appliance's repair estimate is 50 percent of the cost of a new replacement and the item in need of repair is seven to 10 years old or older, it's probably a good idea to replace it, according to Mike Kozlowski, director of product service engineering for Chicago-based Sears, Roebuck and Co.

In the past, cost was the ruling variable. Two repairs, each costing half the price of a new appliance gets you a working, but outdated appliance that is more likely to break down again. You might as well bite the bullet and go for a new model.

Today, the rule-of-thumb is even more applicable because of the added savings provided by appliances that are much more energy efficient. Some new appliances are so much more energy efficient than older models, they warrant breaking the repair-or-replace rule-of-thumb.

"When it comes to refrigerators, even if it is four, five or six years old, there's a very strong argument to replace it with an Energy Star model," said Kozlowski.

The refrigerator is the biggest single power consumer in most households and the newest Energy Star models use half the power of a 10-year-old model, according to the U.S. Department of Energy's Energy Star division.

"If you have a unit that is 20 years old, you may be spending as much as $100 a year just in the operating cost. A new model with average energy efficiency costs in the $35-a-year range," says Jill Notini, spokeswoman for the Washington, D.C.-based Association of Home Appliance Manufacturers (AHAM) .

Only the most energy efficient home appliances earmarked for the federal government's program are emblazoned with the Energy Star logo. Energy Star labels have been affixed primarily to refrigerators, but also fewer models of dishwashers and clothes washers. Even models not yet eligible for the Energy Star label and appliances that don't participate in the program -- clothes dryers, ovens, and ranges -- all are more energy efficient with each new model.

Repair or replace

Beyond the energy efficiency considerations, the repair-or-replace decision can get tricky.

Deciding depends on a host of factors including age, repair costs, replacement costs, hidden costs and new technology.

It's a no-brainer if the appliance is still under warranty.

Chances are under-warranty appliances that break down are new enough to be energy efficient and the repair cost will be zero or negligible at best, says Kozlowski.

Later in an appliance's life, repair costs become out-of-pocket expenses that demand scrutiny.

The average useful life of a major appliance is about 14 or 15 years, but it varies depending upon the item -- 14 to 19 years for refrigerators and freezers; 14 to 18 years for ovens and ranges; 11 to 13 years for dishwashers; 11 to 14 years for clothes washers; 13 years for clothes dryers, according to AHAM.

Typically, a few years or more before the end of an appliance's useful life, repair costs will begin to reach the point where the traditional repair-or-replace rule-of-thumb should be considered -- with perhaps one exception.

Labor accounts for 75 percent of the cost of repair and a handy person may be able to repair the item at a substantial savings.

A Canton, MI-based do-it-yourself appliance service and repair Web site, RepairClinic.com, says owner-completed-repairs are an often overlooked option for home owners with appliances that are out of warranty, but perhaps not quite old enough to generate repair bills large enough to warrant buying a replacement.

Do it yourself?

"You can save up to 75 percent of the cost of a repair by doing it yourself. Usually, the parts you need are inexpensive. A good rule-of-thumb is if your machine is five years old (about one-third of its expected life), don't spend more than two-thirds of the replacement cost on the repair," says Linda Aubuchon, spokeswoman for RepairClinic.com.

That assumes, of course, the item is not still under warranty.

"When you consider warranties with appliances, if you remove panels and use a screw driver or other tools you could void the warranty," says Kozlowski.

In any event, when weighing repair and replacement costs, don't overlook special expenses including delivery and installation costs and fees to remove and dispose old appliances.

You may also have to consider the expense of replacing built-in or smaller-sized appliances with larger appliances that may not fit through doors or past railings in older homes.

On the other side of the cost calculation, along with energy savings, don't forget to include savings from recycling and energy efficient product rebates available from retailers, local utility companies and local governments.

Finally, you may not be able to put a dollar amount on new features, but conveniences such as quick-chill compartments and water dispensers in refrigerators and automatic dishwasher cycles can add user value to appliances -- provided the features will be used. Don't overlook the value of appliances with the latest features, but don't pay more for a feature-laden appliance if you won't use those features.

Part II: Preventive maintenance helps keep appliances fit.

Published: January 23, 2003

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Broderick Perkins parlayed a career in old-school journalism into a contemporary digital news service that really hits home. The award-winning consumer journalist, originally from Wilmington, DE, is founder, publisher and executive editor of the bootstrap DeadlineNews Group, a Silicon Valley-based editorial content and consulting service specializing in residential real estate, consumer news and related editorial consulting services. The DeadlineNews Group includes the website, DeadlineNews.com, offering real estate editorial content and consulting services, and its back shop, the Deadline Newsroom, an open house on news that really hits home. Perkins obtained his formal journalism education from University of Delaware and a journalism boot camp, the Institute of Journalism Education at the University of California-Berkeley. He went on to 20 years of service as a daily newspaper journalist at the Wilmington, DE News Journal and San Jose, CA Mercury News. Perkins covered housing on the San Jose Mercury News reporting team which earned a General News Reporting Pulitzer Prize in 1989 for coverage of the Loma Prieta earthquake. He has also produced real estate, consumer and small business content for the Wall Street Journal, Los Angeles Times, RealtyTimes.com, Nolo.com, Better Homes and Gardens, the National Association of Realtors, Homestore/Move and Intuit/Quicken among more than three dozen publications. In addition to managing the DeadlineNews Group, Perkins most recently served as chief editorial consultant for Nolo's Essential Guide To Buying Your First Home, Nolo, and writes real estate television scripts for RealtyTimes.com.