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Spa and Hot Tub Financing Explained

Published by Matt Fichera on 09/27/2019

Spa and Hot Tub Financing Explained

A new spa is a big investment, and with only a little bit of research you can find a great spa model with the possibility of not having to pay thousands of dollars up front. Spa financing allows you the ability to pay a monthly amount until the entire cost is paid off. Payments that help you manage your budget while still allowing you access to the things that you want are certainly ideal.

Financing and the process behind it can sometimes be confusing. There’s the potential for lots to be going on during the process and being confused about things is perfectly normal. Here’s a quick rundown of the process.

Factors Influencing a Monthly Payment

There are three factors that influence a monthly payment amount when you finance a spa or hot tub.

The total amount that is being financed. This is an amount that is agreed to and could include things like: base price, accessories, add-ons, delivery and potentially installation. The length of the repayment term (this tends to have a large range but is usually 36 to 60 months) with many options offering 0% interest if the full amount is paid off within a certain amount of time. (As of September 2019, we are offering  0% for 18 months.) The last factor is the annual percentage rate which is usually shortened to APR. All of these factors are definitely numbers which are not always set in stone.

The cost of a spa or hot tub is based on many different things. Factors include: brand, materials used, equipment, size (capacity), features, design, accessories, and more. Because of the many factors that are considered when calculating price, there is a very big range that can be anywhere from $3,000 to $16,000. You can also throw in other factors like dealership locations and possibly service plan options as well.

There are several tiers of spas that can typically be found in 4 categories. The categories are:

Entry Level: Fewer features, basic controls, less jet options, constructed of molded plastic and not acrylic.

Value Priced: Tend to focus on certain aspects that they excel at. Sometimes it’s great features but a limited performance.

Premium: Designed to entice. Packed with a strong performance and great features. Typically, energy efficient with many options.

Luxury: These are the best of the best. Constructed of the best materials, the most energy efficient and strongest all around.

Through your research, you may see many different spas and hot tubs that encompass all or some of these categories. Keep in mind that some or all of the prices could seem very daunting but also remember that by taking advantage of financing can create monthly payments that are very affordable while you completely relax in your new spa. Utilizing financing may also put the purchasing decision into more perspective. In other words, taking a look at a more expensive spa that you’ll get more enjoyment out of and lasts longer may be possible when financing is involved.

Three to five years is a typical repayment period for a spa or hot tub. Since most premium and luxury level products are setup to last more than a decade, it is a safe bet that you will be enjoying the benefits of your spa long after it’s paid off.

Just like any other loans that you may have or have had in the past the length of the repayment term will impact what you pay per month. A shorter length of time translates to a higher monthly payment and a longer term means the less you’ll pay monthly but will end up paying more in interest over that longer period. For example, an $11,000 hot tub with an APR of 7% paid over 36 months will cost $339.65 per month. That same spa with the same APR paid over 60 months will cost $217.81 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

Interest rate is calculated using a few factors. These factors include: the dealer who is financing the loan, your own history of credit, and the U.S. prime rate (the benchmark for determining the interest rates lenders make available to borrowers). It is also very typical for spa dealers to offer a zero percent interest rate sometimes. This rate is usually only good for a certain number of months where you, the customer, will only have to pay back the amount you borrow with no extra accrued interest. The only thing that you’ll need to possibly pay would be a dealership’s financing or transaction fees in a situation where no interest is involved.


The APR is used so that borrowers can easily and quickly compare interest rates between different loans from different lenders. This is a number that all lenders must furnish to prospective or actual borrowing customers. 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.

Financing Fees

A financing fee comes about when the dealer needs to cover the overall cost of what the bank charges them to service the loan. This number is likely to be expressed in the form of an APR when you agree to the loan. It is definitely good advice to shop around and fully understand all options and find a rate and loan that works the best for you. Also be sure to inquire about specials and promotions coming up as this could factor into your overall decisions.

Financing your spa or hot tub is a great way to bring home that spa or hot tub that you’ve always wanted. It may even be a way for you to take a step up and get the best available product or that exact model that you’ve had your eye on. To learn more, or if you have any questions, be sure to reach out.

Contact Us

For more information, please visit any of our 3 stores, call us, or use the form below to have a specialist contact you with more information.