Should I Use Cash Or Take Out Financing

In the past, owning an in ground pool was thought of as a luxury for the rich. If you didn’t have the money available, you simply weren’t able to get a swimming pool. Luckily, there are numerous lending companies available that will provide swimming pool financing for you. But the real question is. “Should I take advantage of pool financing or should I simply use my available cash to pay for a pool to be built?” This article is designed to help guide you to the right answer.

Let’s assume for a moment that you are able to pay cash upfront for the pool. If you think this isn’t realistic, you may be surprised to learn that over half of new swimming pool owners do not finance their swimming pool.

Assuming you have the cash available, would it be wiser to pay for the pool upfront versus using financing? To determine the answer, you have to think about whether or not you could use the money in a better way.

As an example, if you can put the money into the stock market and achieve returns of 10% and a pool loan is costing you 8%, it would make more financial sense to finance the pool. On the other hand, if you are only making 3% in a certificate of deposit and your pool loan’s interest rate is 8%, you would be better off paying for the pool upfront in cash.

Therefore, when it comes down to choosing whether to pay for the swimming pool upfront or using financing, you just need to run the numbers and determine which way is better for your money.