Hot tub dilemma Jacuzzi local vs dealer 100 miles away

[bakernt]

Just started looking for a hot tub and am interested in either a Jacuzzi J-325 or J-335.  I talked to a local dealer and to one about 125 miles to the north of me.  The guys to the north are lower in price and are offering 48mo interest free financing while the local guy is only offering 12 & wouldn't even consider trying to match.  The difference in price that I am finding between the cash and the credit price isn't large enough to make me want to go cash as I'll earn more in interest in an account then what I'll save in the short term (this is over the 48 month period).  My question really is if I buy from the non local dealer will there be a downside?  Will the local dealer not service the tub if it requires it? 

Any insight would be appreciated.

[Spoiledrotten]

The water feels better when you don't have to make monthly payments on it! Cash is the way to go with anything. Make those monthly payments to yourself if you feel that monthly payments will make you feel better. Making monthly payments to my retirement accounts rather than to the bank just feels better to me.
Beside, interest free is not free. You'll still be paying no less than $200.00 to finance, so add in. Our dealer put that savings in our final price. So, there's my input.

[Dr. Spa™ Ret.]

The local dealer wont service it and the non-local dealer might not be too accommodating to come 125 miles to service it.

[dennisoates]

I would go local, the other guy will forget your name

[wmccall]

Welcome to the forum!    As Moderator I try to acknowledge everyone on their first post and welcome them.   While I have owned a hot tub for more than 10 years, I recently just went through the same process as you, though I was better armed and prepared this time.   I got 10 years of use out of my last tub, but the dealer went out of business one year after I bought it and that caused me quite a bit of strife.    You can read a lot on here about the value of a local dealer that you are comfortable and while it may not have been my number 1 factor, it was more of a factor this time than my first purchase.

Financing was not an issue for me, I won't even try to address that.  My mortgage is paid off so I paid cash after taking money from my HEL.  That helps in the bargaining.   We came down to three models we liked,  One Jacuzzi, one Hot Springs, and one Sundance.  The Sundance ended up being the compromise choice between my wife and I.  There were several other factors and again, the dealer reputation and my relationship with that dealer were higher up in those factors.

Its been my experience all dealers will honor factory warranties and what they charge for labor/travel on a tub purchased elsewhere will vary, they almost always will charge something.  When there is a warranty call and you purchased the tub from them they are generally more forgiving if it turns out to be a problem you created      They will also be more likely to come to you first or quicker in cold weather.  Have you factored in delivery cost?
 
Now in terms of fairness and transparency, as moderator I can see where you live and I would say there is an excellent chance your Jazcuzzi dealer is my Sundance dealer.   I will speak their praises, but I an not bound to them or employed by them in any respect.  After a bad experience 10 years ago, I went into this with a higher comfort factor this time knowing I was dealing with two reputable firms that I and friends had relationships with.    I would probably never go with financing from a hot tub dealer or a car dealer as I have better options. Financing aside, the peace of mind  was worth a considerable amount toward my purchase decision.

PS - Take a look at YELP/GOOGLE REVIEWS/FOURSQUARE or other type consumer sites and weigh what you read accordingly.
PS+ - You will have questions or problems with any new tub.  Walking into a place you have a good relationship with is comforting and I would feel a little odd asking for free advice when I bought elsewhere.  I have gotten a lot of free advice in my day.  How easy would the other place be to reach by phone?

[hottubdan]

All things being equal, how can you have better options than 48 months no interest financing?

[Spoiledrotten]

All things being equal, how can you have better options than 48 months no interest financing?

Just a couple off the top of my head:
No 1) you will be charged a finance charge up front which might be disguised as part of the price of the tub. As I stated above, I saved $200.00 by paying cash for mine.
No 2) I don't like having to send a payment and dealing with logging and reconciling payments each month. Some will say that they love not tying up that much money at one time, but if it's sitting in the bank, why not use it for your good rather than allowing the bank to use it for a dollar to two paid out to you while they call it interest on your money.

But if it's good for you, then it really doesn't matter what others think. 

[Flyonthewall]

if you can negotiate a lower price for cash or check then consider it.  otherwise the credit is the way to go.  they should be paying a substantial fee to offer the 48 months, so they should be willing deal if they can avoid it.  if you do take the financing you can always pay it off early.  who couldn't use a couple free points on the credit score.

you say your local dealer won't match, but will he negotiate at all?  do both dealers charge a trip charge for warranty, and if so how much?  how long is the warranty on that model?  it's true that the local dealer won't pick up the warranty if you go to the other dealer, but they'd be foolish to not work with you on out of warranty repairs, chems, filters,and covers down the road. 

i appreciate the idea of supporting the local dealer/business, but there has to be a limit on how much more you'll spend to do so.

[Sam]

As stated above, these deferred interest finance options are very expensive to the company offering them.  For us to offer 12 months, the finance company charged us something on the order of an 8% fee.  I can't imagine what 48 months cost.  The dealer is simply building this into their price.  Nothing is free.  You can use this as a negotiating tool.  Anyplace offering these programs should be able to discount for a cash transaction. 

[Flyonthewall]

  You can use this as a negotiating tool.  Any place offering these programs should be able to discount for a cash transaction.

if they won't then they are really missing the boat.  car dealers usually operate this way.  when i bought my last car they offered a $1000 rebate and 3.2%, or zero interest.  as a retailer you need to be willing to use any tool available to best meet the customers needs.

[bakernt]

Update:

Due to overwhelming demand wanted to let you know I purchased a tub from the local dealer.  My considerations going into the purchase were:

• Would the difference between the cash price and the finance price go one way vs. the other with the money earning interest at 48, 36, 24, 18, 12 etc?
• Being only 30 would financing the tub benefit me in other ways vs. a cash purchase?
• According to multiple posts and what I was reading on the forums the local deal wouldn't service the spa if I purchased it from someone else (even if I move) so would the dealer 100 miles away really be able to provide a good level of service?
• Was I properly informed to negotiate a deal? - Everyone claims that they negotiate the price but with no benchmarking tools (MSRP, Invoice etc.) this is probably one of the most frustrating things about this purchasing decision.

In the end what pushed me local was the fact that I liked the dealer he put me at ease every time I went in, I especially liked the Irish Setter "salesman" who got into a dry tub with me while I was sitting in them.  I was also swayed by the potential lack of warrantee coverage / level of service that everyone warned wouldn't be there in the end with a guy 100 miles away. 

After exchanging a few emails this weekend we were able to come to an agreement and now comes the hard part, waiting for delivery.  In the mean time I have back yard prep pouring a pad, putting in pavers, killing the new plants I picked out to landscape (single guy here not good with plants) and trying to find an electrician who can do a 220 service for under 2K - If you have recommendations in the CMH area PM me.

[wmccall]

Congrats.  I'll look forward to seeing pics. I think you made a good choice.  Mine took about 4 weeks to deliver.  My nephew did the wiring 10 years ago and I just moved the wiring over to the new tub, so I can't help you there.

[wmccall]

Oh, yea, we are coming up on one year on my new tub, so I assume delivery will be about the same, though I know there will be other factors.  Did they say around 4 weeks?  I was real pleased with their delivery guys, another factor in my recent decision.     They said between 10am and 1pm and called me at 9:30 to see if it was ok to come then.

10 years ago I was told anytime during the day and I took the day off. The tub arrived at 10:30pm. That was a miserable day waiting.