Before you buy a new appliance this Labor Day, consider this simple test

Labor Day is known for deep discounts on major appliances, but consumer advocates say shoppers should think twice before automatically replacing a broken refrigerator, dishwasher or washing machine.

According to the nonprofit Consumers' Checkbook, an older appliance does not necessarily belong on the curb. In many cases, a repair may make more financial sense than buying new.

Three questions to ask before replacing an appliance

Consumers' Checkbook Executive Editor Kevin Brasler says homeowners should focus on more than just an appliance's age when deciding whether to repair or replace it.

Before shopping for a replacement, consider:

• Has the appliance been reliable overall?
• Are you still happy with its features and performance?
• Would the repair cost only a few hundred dollars?

If the answer to those questions is yes, Brasler says a repair is often worth considering.

Some repairs are simply too expensive

There are exceptions.

Brasler says major component failures can make replacement the more practical option because repair costs can approach the price of a new appliance.

"If the compressor's gone bad in a refrigerator or a freezer, or if the transmission's gone bad in your washing machine, don't pay to have those things replaced — because it's going to be nearly the cost of a new appliance," Brasler said.

"But if you have an appliance, it hasn't broken down and you still like the features, then it's worth getting the repair so long as the repair is less than $200-$250 or so. And most appliance repairs are that inexpensive." 

Consumers' Checkbook also cautions consumers against relying too heavily on online repair-versus-replace calculators, which often use average appliance lifespans that may not reflect the condition of a specific machine. An appliance that has been reliable for years could continue operating well beyond published averages.

Shopping for a new appliance? Compare prices

For shoppers who do decide to replace an appliance, Consumers' Checkbook recommends comparing prices from multiple retailers.

The organization found that local independent appliance stores frequently offered better overall deals than larger retailers once delivery and installation costs were included. Consumers should ask for total out-the-door pricing and not focus solely on the sticker price.

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