Compare Leasing vs Buying Gym Equipment Costs
Leasing Gym Equipment Overview
Leasing is a great way to acquire expensive gym equipment without breaking the bank. Whether you’re starting a new gym or refurbishing an existing one, leasing allows you to outfit the facility with the latest equipment for little or no money down.
Most leasing companies will lease all of the equipment and furniture you need to outfit a gym. Items that are commonly leased include treadmills, ellipticals, stair steppers, free weights, universal gyms, exercise benches and mats. But the options are nearly unlimited.
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With a lease, you’ll make monthly payments over a period of years - usually two to four. When the lease term expires, you can trade in the equipment for newer models, return it or purchase it for fair market value.
Leasing Gym Equipment Cost
Your monthly payment is determined by several factors: the total cost of the equipment, the length of the lease and your credit rating. With good credit, you could lease $100,000 worth of equipment for $2,500 to $2,700 per month for four years.
Most leasing companies offer a $100 buyout plan. For a slight increase in monthly payments, you can reserve the right to purchase the equipment at the end of the lease term for just $100, instead of fair market value.
Leasing Gym Equipment Pros
- Low upfront costs - Leases rarely require a downpayment. If they do, it is relatively small. Acquire all of the equipment you need without compromising your cash flow.
- Modern equipment - When you lease gym equipment, you’ll always have state-of-the-art machines. Having up-to-date equipment will help you attract and retain members.
Leasing Gym Equipment Cons
- Costly in the long run - Leasing is almost always more expensive than buying in the long run. The leasing company builds in fees because they’re essentially fronting you the money to acquire equipment.
- Lack of ownership - When you lease, the equipment never belongs to you. Even if you’ve more than paid for the total cost of the equipment over the life of the lease, it still doesn’t belong to you when the lease expires. You’ll have to return it, exchange it or negotiate a buyout.
Buying Gym Equipment Overview
The alternative to leasing is simply purchasing the equipment outright. You can fund the purchase with cash - if you have it - or seek a loan from the bank. Buying outright is obviously the less expensive option because you won’t have to pay interest.
Buying Gym Equipment Cost
Commercial fitness equipment is expensive, but the total cost varies based on the size of your gym and the type of machines you decide to buy.
- Light commercial treadmills start at about $2,000, while regular commercial treadmills start at about $3,000. High-end models can cost as much as $5,000 to $10,000.
- Commercial ellipticals and stair steppers are similarly priced.
- Commercial weight machines vary widely in price, depending on quality and the number of stations. Single-exercise weight machines usually cost about $4,000 to $7,000.
Buying Gym Equipment Pros
- Ownership - When you purchase gym equipment, it is yours to keep for as long as you’d like. You’ll never have to deal with the hassle of return or replacing equipment that is in good shape simply because the lease term is up.
- Cheaper in the long run - In the long run, buying gym equipment is almost always a better deal than leasing. You’ll pay less for the same equipment because you won’t have to pay a leasing company’s fees.
Buying Gym Equipment Cons
- Obsolescence - Gym equipment is constantly evolving and improving. When you purchase gym equipment, you run the risk that better technology could emerge a short time later.
- Depreciation - Gym equipment, much like a new car, starts to depreciate as soon as it arrives on your gym floor.
- Expensive upfront - Buying gym equipment outright is very expensive. Some businesses owners simply can’t afford to part with that much cash.