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I asked myself this question when I was searching for my first hot tub. The answer I found was not what I expected and went deeper than I thought. But don’t worry, I’ll break it all down for you.
A hot tub is generally considered a depreciating asset much like a car. Therefore from a monetary standpoint, it is NOT a good investment. That does not mean it isn’t a good investment for non-monetary reasons, but it should not be considered a classic investment like stocks, bonds, and real estate.
While most people do not buy a hot tub for its monetary investment value, there are other reasons one should consider when determining why a tub may be a good investment overall.
If A Hot Tub Is Not A Good Investment, How Fast Does A Hot Tub Depreciate?
There are many things to consider when discussing the depreciation of your hot tub purchase. If you bought your hot tub new, you will take a large depreciation hit the first year. Pretty much the second you fill it with water and use it, it will be worth considerably less than what you bought it for. I have seen figures anywhere from 10-30% depreciation in the first year alone.
Much like a car though, if you bought your hot tub used, then you will save on that initial depreciation and should see a much slower decline than the original owner.
How slow? I analyzed new and used hot tub prices for some of the top brands like:
- Hot Spring
- Jacuzzi
- Bullfrog
I found that all three of these brands depreciated at roughly the same rate based on current showroom pricing. I provided a general depreciation guide at a few price points below.
| Year of Ownership | Price 1 | Price 2 | Price 3 |
|---|---|---|---|
| 0 | $5,000 | $10,000 | $15,000 |
| 1 | $3,500 | $7,000 | $10,500 |
| 2 | $3,150 | $6,300 | $9,450 |
| 3 | $2,835 | $5,670 | $8,505 |
| 4 | $2552 | $5,103 | $7,655 |
| 5 | $2296 | $4,593 | $6,889 |
| 6 | $2067 | $4,133 | $6,200 |
| 7 | $1860 | $3,720 | $5,580 |
| 8 | $1674 | $3,348 | $5,022 |
| 9 | $1507 | $3,013 | $4,520 |
| 10 | $1356 | $2,712 | $4,068 |
The depreciation figures above may vary based on your location, the condition of the hot tub, if used, and optional features on your particular hot tub. They are meant to be used for informational purposes only. If you purchase a new tub with top-of-the-line features such as a stereo system, upgraded lighting package, etc., you may see a higher depreciation the first year because the initial price was inflated.
If you are purchasing a used hot tub that is in like-new condition, you might want to add 5-10% to the above numbers. The numbers will decrease faster if the hot tub has any cosmetic or mechanical issues. I found extremely poor condition used hot tubs that were selling for only 10% of their original purchase price after 10 years. If the original cost was $10,000, then the remaining value would only be $1,000.
In general, the rate of depreciation does slow down significantly after the first few years so the longer you keep your hot tub, the better value you will receive if you bought it new.
Should I Buy A Hot Tub New?
I bought my first hot tub new. I have also bought a car new and built a new house. Are you catching a trend? There is just something exciting about being the first owner of something, especially with something as thrilling as your first hot tub! Ok, I’ll temper my excitement.
So if you are looking at buying a hot tub new what benefits will you get?
- You will be the first owner, meaning no other owner has soiled it yet. Yuck!
- The hot tub will have an outstanding manufacturers warranty (they don’t always transfer to the second owner).
- You should have many years of issue free enjoyment.
- If something does go wrong, the cost is generally covered.
- You will have the latest design and hydrotherapy technology.
- Operation should be as efficient as possible, lowering your usage costs.
As you can see there are many reasons to buy a hot tub new, but why shouldn’t you?
- If you buy new, you will pay a premium price vs a used hot tub.
- A large percentage of your hot tub’s value will be lost in the first few years.
- You may have to wait a while to get your hot tub delivered.
- The hot tub could be a lemon! (Probably not, but you never know.)
- You absolutely hate the smell of a new hot tub! (Kidding, but maybe someone out there is like this)
Should you buy a hot tub new? I did, but that is just me. If you want the latest and greatest and have the budget why not?
What About Buying A Used Hot Tub?
I can certainly appreciate the benefits of buying a used hot tub. I didn’t go this route, but I know many people do and get just as much enjoyment. Maybe if it wasn’t my first hot tub I would have considered it.
What are the reasons one might want to buy a used hot tub anyway?
- Cost! Hopefully this is painfully obvious after reading this post.
- Slower depreciation – As this post explained the first few years are generally the worst.
- You may still get a manufactures warranty.
- The hot tub is probably available very quickly.
- Most of the manufacturing issues (if any) should have been found. (Make sure to ask for service records!)
That all sounds great, how about the cons?
- There could be high maintenance costs without warranty coverage.
- The lifespan of the tub could be much shorter depending on how the previous owner cared for it.
- You will probably have to deep clean the tub and the internal plumbing.
- The technology will be outdated.
- Operating costs might be higher.
- You will have to organize your own delivery.
If you decide to buy a used hot tub, I would highly recommend Ahh-Some – Hot Tub Cleaner. It will visibly deep clean your pipes and get your tub as fresh as new. You can follow my amazon link to check it out for yourself or read my article about how often to fill your hot tub.
Can A Hot Tub Even Be A Good Investment?
I have shown you how much a hot tub depreciates after the first year. So I would be crazy to try to argue that a hot tub could be a good investment, right?
Wrong, there are plenty of great reasons why a hot tub is a good investment. Just don’t plan on making money on one, unless you are a dealer. Before I give you the list you have been waiting for, I would first like to tell you a story.
My wife and I have a daughter and a son, twins! And no, they are not identical (If you have twins then you know why I said that). Since they were about four months old, we have been taking them to swim lessons. Every week, we would get in the water with them and run through the same routine building up their comfort, confidence, and water skills. It was amazing to develop such a strong bond of trust with them in an environment that can be terrifying for some people. They are one year old at the time of writing this post, and swim lessons have become one of their favorite activities with mom and dad.
This brings me to my first argument and the point of my story. A hot tub is an investment in your family. It is a place that can be fun for young kids (just keep the temperature down). A place to bond with your spouse put down your phones, and have a real conversation with your friends, neighbors, whoever you invite into your tub.
So here are the reasons why a hot tub is a good investment: (Thank you for reading this far!)
- It is an investment in your family.
- It is an investment in your health and wellbeing.
- It can and will improve your quality of life, you just have to use it.
