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The last thing you want to have lingering in the back of your mind is the sting of buyer’s remorse from having spent thousands of dollars that you don’t have on a new hot tub. That certainly won’t help with your desire for total relaxation. You probably should have looked into hot tub financing. 

With dealer hot tub financing, you can pay a smaller amount of money every month until you pay your hot tub off.

Essentially, you can have the luxury hot tub you always dreamed of without depleting yourself financially. Sound pretty great, right?

Continue reading to find out more about the ins and outs of hot tub financing.

Understanding The Monthly Payment System

There are a few different factors that you need to consider when you decide to finance a hot tub, including:

  • The total price with financing, including accessories, add-ons, delivery, and installation.
  • The term length, which usually sits anywhere from 36-60 months on average.
  • The APR (Annual Percentage Rate) on which you finance the loan.

Let’s dig in and find out more about each of these payment factors.

The Cost of a Hot Tub

There are many factors that go into determining the overall cost of a hot tub, including the quality of the model, the performance, the design, and the built-in features.

Hot tub prices vary, you can spend as little as $3,000 for a budget-friendly spa or spend around $20,000 for a high-end, luxury model.

Beyond the hot tub itself, you’ll have to consider pricing from the specific dealer, the location you buy it from, and your service plan. You ALWAYS want to make sure that your chosen hot tub comes with a good warranty too. That warranty should be funded by a reputable hot tub manufacturer.

For the most part, the cost of a spa will fall under a few different categories:

Budget-Friendly ($2,000-$5,000)

Budget-friendly tubs are pretty minimalistic when it comes to features and the designs are far simpler as well.

You’ll get some pretty modest jet system and a few baseline controls.

Most of these hot tubs are constructed with rotomolded plastic, meaning they aren’t the most durable. 

However, you will be able to indulge in the same form of stress relief with the benefits of hydrotherapy.

Mid-Range ($5,000-$8,000)

Stepping up into the mid-range, you begin to see hot tubs that narrow their focus in terms of designs and features. For example, some mid-range hot tubs will have stronger acrylic shells with a focus on durability. Some will have energy-efficient pump systems with a focus on cash savings.

Premium ($8,000-$13,000)

When you get into the premium range, you begin to see hot tubs that are a bit more enticing. These hot tubs have incredible features, high-performance capabilities, and intuitive control systems. Premium models tend to focus more on comfort, energy-efficiency, and water care.

Luxury ($13,000-$20,000+)

You won’t find better hot tubs than luxury hot tubs. Expect strong pump systems, energy-efficient construction, elegant designs, and a wide variety of class-A features, including entertainment options, unique water care, and cutting-edge wireless control.

The beauty of financing is that you can get your hands on one of these high-end models, as you’ll only need to pay a smaller monthly fee. 

You have to decide whether it makes more sense for you to spend $8,000 right now or $200 per month.

Of course, you will also need to consider installation costs in your home, destination charges for your home, and additional local dealer charges.

Loan Repayment and Financing Agreements

You will typically see spa financing agreements anywhere from 36 months to 60 months (3-5 years). A quality spa can easily last you more than a decade, meaning you’ll still get to enjoy a decent spa model for many years after you finish paying it off.

Of course, your monthly payments will change based on the repayment term. If you decide to go with a shorter repayment term, your monthly payment will be much higher, though you’ll pay your spa off faster.

Let’s take an $8,000 spa with a 36-month repayment term at an 8% APR, for example. You will spend just above $250 for your monthly payment in this situation. With the same 8% APR and a 60-month loan repayment term, you will spend just above $162 for your monthly payment.

If you end up having to pay interest, we recommend going with a 36-month loan instead of a loan of 60 months, as a loan of 60 months will cost you more in interest charges over time.

It is up to you to choose whether you want to make more small monthly payments or fewer large monthly payments.

Understanding Your Interest Rate

There are a few factors that you will need to consider when it comes to your interest rate, which includes the dealer with whom you are financing the loan, the United States prime rate, and your credit history.

The good thing is that there are plenty of spa dealers that offers 0% interest rate plans for customers, meaning you will only pay back what you borrow initially. A dealer may charge you with financing or transaction fees, so you will need to get that information ahead of time.

Understanding APR

You can easily compare interest rate payments between various loans by looking at the APR. A lender must inform a borrower of the APR, according to the Federal Truth in Lending Act.

APR is defined by the actual costs per year of the loan’s principal. You might still have APR that is greater than zero even if you are given a 0% interest rate, as there may be additional fees and costs to account for.

Financing Fees

There are many dealers out there that will add financing fees to the initial cost instead of charging interest.

These additional fees exist to cover loan servicing charges given to them by the bank.

When you agree to your loan, you will see this information in the APR.

The initial fee might be what you would have paid if there was a greater-than-zero interest rate on the loan, which is why it is so important to check out different dealers to get the best price possible.

Bottom Line – Should You Finance A Hot Tub?

A monthly payment is a lot easier to stomach than a huge initial payment upfront, which is why so many people decide to go with dealer financing when shopping for a spa.

Of course, the monthly payment you get will depend on your credit history and your loan information. Before that, you need to get credit approval, which will determine whether or not you can finance a spa to begin with.

When it comes to getting rid of stress and basking in the health and wellness that only spas can provide, there is no better way to meet your needs than with a high-quality spa. You can easily avoid making a large payment right off the bat and instead make more manageable monthly payments over time.

Rest assured, your spa will pay you back from the moment you step into it. Make sure to get in contact with your local dealer to take about hot tub prices, monthly payment options, and financing promotion.

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Author S Krone

A lawyer never retires. So I would just say that I am not as active as I used to be. Now I simply dedicate myself to fishing, my hobby, and my grandchildren. For Business Finance News I write about legal aspects of mortgage policies, mostly regarding the rights of policyholders. I also have articles about personal injuries.

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