Every Filipino household has faced this dilemma: the aircon breaks down, the laptop slows to a crawl, or the family car keeps needing repairs. Do you fix it again, or is it time to buy a replacement?
According to Marion Evangelista, a Registered Financial Planner (RFP), the answer lies in knowing your personal and financial qualifiers. In an interview with Financial Adviser PH, he explained:
“The mind, the heart, and the wallet all play a part in deciding whether to hold on or let go of an asset. If repair costs are high and comfort is compromised, it may be smarter to replace.”
Here’s how Evangelista breaks down the decision-making process for common household assets.
When the Aircon Eats Up Your Budget
Air conditioning is a necessity for many Filipino families, especially during scorching summer months. But not all units are worth keeping.
Evangelista shared how his family once bought a secondhand aircon that started breaking down after just three months. “We spent almost ₱30,000 on repairs, but the problems kept coming. At that point, it was better to stop throwing money at repairs and buy a new one,” he recalled.
His qualifiers for replacement were simple: repair cost versus comfort and efficiency. “A newer, energy-efficient unit may have a higher upfront cost, but it saves money on electricity and provides better comfort long-term,” he explained.
Laptops: Balancing Durability and Upgrades
For professionals, laptops are more than just gadgets—they’re tools for income. Evangelista uses his own as an example.
“My laptop is four years old. It was pricey when I bought it, but it has paid for itself many times over in my work as a financial planner and in our family business,” he said.
Still, technology moves fast. His qualifiers for replacement are better features and personal needs. “I’ll need a faster processor, more RAM, and a clearer camera soon for client meetings. Once performance starts affecting productivity, it’s time to upgrade,” he added.
Vehicles: The Biggest Asset Dilemma
Cars are often the second-most expensive asset a family owns after a house. But unlike houses, vehicles depreciate quickly and become costlier to maintain as they age.
Evangelista recalled how his wife had to replace her seven-year-old car. “The compressor broke, and while fixing it was cheaper than buying a new car, other problems kept popping up—worn-out tires, busted bulbs, stereo issues. Unless you have time and money to constantly repair, it’s not practical,” he explained.
Another factor is insurance coverage. “Cars older than 10 years are harder to insure comprehensively. That’s a red flag for safety and financial risk,” he said.
His qualifiers for vehicle replacement: repair costs, comfort, and insurance availability.
The Role of Cash Flow and Financing
Even if the decision points toward replacement, Evangelista cautions against rushing if the funds aren’t ready.
“If you don’t have enough savings, wait. Otherwise, you’re just trading one problem for another—like replacing an old car but burying yourself in debt,” he said.
That said, there are flexible options. “Some stores offer 6- or 12-month 0% interest installments. If your cash flow allows, that can be a smart way to spread out the cost,” he added.
For Evangelista, making these decisions is all about weighing costs against comfort, needs, and financial capacity.
“Repair if it still makes sense, replace if comfort and safety are compromised, and defer if funds aren’t ready,” he told Financial Adviser PH. “Don’t let emotions alone dictate your decisions—use your qualifiers as a compass.”
At the end of the day, the goal is to maximize value from every peso spent. As Evangelista puts it:
“Being financially conscious doesn’t mean never buying new things. It means knowing when the smarter move is to repair, replace, or simply wait.”
