Your rights

The Consumer Guarantees Act (CGA) says products must be durable, based on what a reasonable person would expect given the type of product and the price paid. It also assumes that the use has been reasonable.

Say you buy a $200 heater at the beginning of winter. You use it properly - but it breaks down, just out of the manufacturer's warranty period, during the following winter. The CGA says you can get it repaired, replaced or your money back.

Manufacturers and importers must also still hold spares for the reasonable life of the appliance, unless you're told at the time you buy that spares and service will not be available.

Price matters

Consumer demand can influence product range. Many small appliances like toasters and kettles are made to a price because we don’t like to pay too much for them. The CGA takes this into account when talking about your rights to repair or replacement.

Small-appliance manufacturers who offer replacement warranties don’t expect their toasters to be repairable even after a few months. It’s simple economics: far cheaper to replace a 2-month-old low-cost toaster than to fix it it.

So if your toaster has a 12-month warranty and fails after 24 months, we reckon you have a right to a replacement or refund. But if it fails after five years we’d say you’ve had a reasonable life out of it. A toaster’s no big-ticket item – it’s time to buy another.

However … if your expensive plasma TV needs a new screen after four years, is that a reasonable lifespan? No it’s not.

The CGA says you can claim a refund or a repair. But because the cost of the TV repair may exceed the price for the latest version of your TV, you may be offered a replacement instead. We think this is fair. Although prices have come down and the replacement TV is cheaper, it’s likely to be of higher quality than the old TV.

Repair or replace?

You often face a complicated decision for older and more expensive appliances. If your CGA rights have expired, is the appliance worth repairing?

Maybe not. Many newer appliances use less energy and a replacement could save you 30 percent or more in running costs. For example a new 372-litre fridge costs $57 a year less to run than the equivalent 1993 model – that’s $850 you’ll save over the next 15 years. If the repair’s going to cost $500 and a replacement $1400, you need to weigh the real cost of replacement today ($900) against the $850 you’ll be saving in the future. We think it’s sensible to replace it.

Useful future life is another factor. Fixing something to run another year or two might be false economy. You need to ask the repair agent whether spare parts will be available for the next repair.

Our estimated lifespan tables give the reasonable life of a range of household appliances and electronic items. Use them to help you decide whether you’ll go the CGA route and get it repaired – or just buy another.