Buying a hot tub is a lot like buying a car: it’s an investment that many people don’t pay off up-front. The monetary cost of your tub will be much easier to manage with monthly payments. Don’t worry about the cost and focus on choosing the tub of your dreams! Here are a few things to consider when financing a hot tub.
When you buy anything that you’ll pay off in installments, the folks selling you the item will want to run a credit check. Your credit score tells the seller about your track record for paying off your debt on time. Interest rates are often much higher when you decline the credit check. If your credit score has seen better days, financing a hot tub can wait. Be conscious of those interest rates.
How many months will you spend paying off the cost of your tub? Repayment terms are generally between 30 and 60 months. The shorter your term, the higher your monthly cost will be. The longer you take to pay it off, the lower your monthly cost—but watch out for the APR (annual percentage rate) at which you’ll be financing it. If your repayment term is closer to 60 months than 30, you may end up paying back much more than you borrowed!
Look through our hot tubs for sale in Portland, Oregon, and note the price differences associated with differently sized tubs. The hot tub or swim spa’s overall price affects how much you’ll be paying per month. Weigh whether or not it’s worth it—how many years of use will you get out of a six-person tub? If you see yourself enjoying the hot tub for years after your repayment term ends, financing that tub may be worth it.
When you do your math, make sure to factor in the costs associated with your hot tub. Don’t go off the tub’s price tag alone. Remember: you’ll need somebody to deliver and install it, too! Some dealers also add a financing fee to the total cost of the tub. The bank servicing the loan charges the dealer a certain amount of money to offer that loan, and some dealers will recoup that loss with a fee.
When you shop around for hot tubs and consider buying one on a repayment plan, think about your current financial situation. The tub’s price tag won’t tell you the whole story. Shop smart when you remember these things to consider when financing a hot tub. A repayment plan could be the option for you!