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A lukewarm water heater exposed the real bargain: a 12-year tank for under $1,000

"No one wants to fix a tank ever in this day and age, replacement only."

A person in red gloves adjusts a water heater in a basement.

Photo Credit: Bradford White Water Heaters

A failed water heater can quickly turn a routine home repair into a stressful, expensive shopping trip, and one Reddit homeowner's search for a replacement under $1,000 showed exactly why the cheapest-looking option isn't always the best deal.

Once warranty terms, installation plans, and future energy costs enter the equation, a unit's real value can look very different from the sticker price.

Here's what to know

The homeowner posted in the r/Plumbing subreddit wanting replacement recommendations for a short 40-gallon Bradford White natural gas unit installed Aug. 7, 2012, with a budget under $1,000. 

They said, "My water heater has finally failed, water doesn't get hot only luke warm."

The homeowner added, "The twelve year warranty rheem is 800 the 6 year pro grade at the supply house is 1240." 

They also said "three plumbers" told them replacement made more sense than a repair.

That left the homeowner weighing an $800 Rheem from Home Depot with a 12-year warranty against a $1,240 pro-grade supply-house model backed for six years.

More background

The comments showed there was no complete consensus on replacing the heater. 

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One user said, "Unless it's leaking, it's likely repairable," while another said, "No one wants to fix a tank ever in this day and age, replacement only."

Once a tank water heater reaches its second decade, repair costs can run up against the odds of another failure, especially when the water is only getting lukewarm, or replacement parts are no longer practical.

An $800 tank with a 12-year warranty works out to about $67 per year of coverage, while a $1,240 tank with a six-year warranty comes to roughly $207 per year.

What can be done?

The budget itself also prompted a reality check, since the total cost can climb beyond the unit alone. 

One user asked, "For just the tank?"

Another commented, "The cheaper units are just garbage."

Where can I learn more?

Read more about heat pump and tankless water heaters, along with a few simple ways to cut water bills.

• Many homeowners find heat pump water heaters cut utility bills while replacing aging tanks.

• GE's smart heat pump model can save households up to $550 each year.

• Some households switch to a tankless water heater to lower energy use and save money.

• Turning off the tap while brushing can save about eight gallons daily.

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