A home hot tub provides stress relief, allowing you to escape from the weight of the world and melt into a warm oasis of bliss whenever the mood hits. So, buying one should sow the seed of that experience, not cause more anxiety. A new spa is a large investment, and with just a little research, you can bring home the model of your dreams without spending thousands of dollars up front. Through dealer financing, you can pay a little bit each month until the spa is paid off. Manageable payments that accommodate your budget could easily put a luxury spa within your reach. How’s that for stress relief?
Financing Your Hot Tub: Factors That Influence Your Payment
- The total financed amount of the spa, including specific add-on features, accessories, delivery, and installation.
- The length of the repayment term (typically 36 to 60 months).
- The annual percentage rate (APR) at which the loan is financed (much more on this below).
Each of these factors comes with some variation. Let’s break each one of them down and look at them separately.
Hot Tub Prices
The overall cost of a hot tub depends on numerous factors, including size, features, materials, design, and performance enhancements. Therefore, prices can range from $3,000-$16,000+. In addition, dealer-specific factors, such as location and the service plan you choose, will influence cost. Before purchasing any spa, make sure it comes with a quality warranty that is backed and fully-funded by a reputable manufacturer.
Generally speaking, new spas fall into four price categories:
- Entry Level ($2,500-$5,000). Entry level hot tubs have fewer features, simple designs, basic controls, and modest jet options. Typically, the cabinet and shell are one piece, constructed of rotationally molded plastic instead of smooth, shiny acrylic. However, the warm water and soothing jets of these spas still provide their owners with the immersion and relaxation benefits they seek.
- Value Priced ($4,000-$8,000). Value-priced spas focus on specific areas of excellence. At this tier, you can choose a hot tub with amazing features but limited performance, or a spa with excellent performance but few bells and whistles. If you want a hard-working, durable hot tub, look for one with an acrylic shell, a powerful pump(s), and a reliable, energy-efficient heat system.
- Premium ($6,000-$10,000). Premium hot tubs are designed to entice. You’ll get strong performance, great features, and intuitive controls. Premium hot tubs are energy-efficient, comfortable, and have many jet and water care options.
- Luxury ($9,000-$16,000+). Luxury hot tubs are the best of the best. Their pumps are the strongest, their construction is the most energy efficient and durable, and their designs are the most elegant. They also have the widest array of features, state-of-the-art control systems and entertainment options, and simple, effective water care options.
While these prices might seem daunting at first glance, remember, as noted above, that through financing, affordable monthly payments are possible. So, consider your lifestyle and needs, and then ask yourself if it makes more sense financially to spend $5,000 up front for an entry-level hot tub or $250-350 a month for the best hot tub available?
Length of Repayment for Hot Tub Financing Agreements
Typically, spa finance repayment terms range from 36 to 60 months, or three to five years. Since quality hot tubs can last a decade or more, even a 60-month plan will allow you to enjoy your hot tub long after your final payment.
Naturally, the repayment term length will affect how much you pay per month. The shorter the repayment term, the more you’ll pay monthly; the longer the term, the less you’ll pay per month.
For example, an $8,000 hot tub with an APR of 8% paid over 36 months will cost $250.69 per month. That same spa with the same APR paid over 60 months will cost $162.21 per month. So, you’ll have to determine whether you’d rather make fewer larger payments or more smaller payments.
Hot Tub Financing Interest Rates and Fees
The interest rate attached to your hot tub financing plan will depend on a few factors, including the U.S. prime rate (the benchmark for determining the interest rates lenders make available to borrowers), the dealer financing the loan, and your credit history. However, many hot tub dealers offer customers a zero percent interest rate periodically throughout the year. With a zero percent interest rate, you’ll pay back only the amount you borrow. If the dealer charges transaction or financing fees, you’ll owe that money, too.
APR is used to help borrowers easily compare interest rates between different loans. According to the Federal Truth In Lending Act, lenders must inform borrowers of the APR of all consumer loans. The APR of a loan represents how much the loan’s principal actually costs per year, including any fees or additional costs included at the time of transaction. If you have a zero percent interest rate, you may still have an APR above zero due to fees and additional costs.
In lieu of charging interest, some dealers add a financing fee to the overall cost of your hot tub to cover what the bank charges them to service the loan. This will be expressed in your APR when you agree to the loan. This fee can equate to the total interest you’d be charged on an interest-based loan. So, shop around to compare prices and get the best possible deal. Be sure to ask about any special promotions coming up.
Financing a hot tub is a great way to bring home a slice of your own personal paradise. You can avoid making one large payment by spreading the cost of your new hot tub over many manageable payments over time. No matter how you pay for your hot tub, you can rest assured that it will pay you back day after day with soothing and relaxing soaks.
At CalderaⓇ, we believe that everybody deserves to own a hot tub. Even an entry-level home spa can reward its owner with the enjoyment and benefits of immersion. Our dealers work hard to help families find the financing option that works best for their lifestyles and budgets. To learn about hot tub pricing, request a quote.