Compare Leasing vs Buying Gym Equipment Costs

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Summary: Average Gym Equipment Costs

The cost to lease gym equipment averages between $60 and $100 per month, depending on the amount of equipment and the terms of the lease. Buying gym equipment has an average cost around $2,000 for a single piece of equipment, but may cost upwards of $100,000 to outfit a whole gym.

The Cost of Leasing Gym Equipment

Leasing costs for gym equipment depend on the amount of equipment, its condition, your credit, and the terms of the lease.

• The average cost of leasing gym equipment is between $60 and $100 per month, depending on the volume of equipment.
• Better credit ratings generally mean better lease prices. With a good credit score, you could easily lease $100,000 of gym equipment for between $2,500 and $2,700 per month.

Additional Costs to Leasing Gym Equipment

There are additional costs that come with leasing equipment, which primarily depend on the policies of the company you lease from. Some companies require a down payment, others require nothing. To be safe, additional costs to expect include:

• Deposit for first and last month's payment
• Higher overall costs if you opted for the $100 buyout plan
• Security deposit

Factors Affecting Leasing Costs

One of the primary goals of leasing is avoiding higher upfront costs, but you still need to think about the factors that affect your pricing. Factors that influence leasing costs include:

• Amount of equipment: The volume of the gym equipment you want to lease directly affects prices. Many lessors offer discounts for larger amounts of equipment.
• Cost of equipment: The higher the retail value of the gym equipment, the higher your lease payments are likely to be.
• Credit rating: A better credit rating usually means lower monthly payments.
• Equipment condition: The age and condition of the equipment play a role in determining price. Newer, unused equipment typically has a higher price.
• Lease length: How long you intend to have the equipment factors into your costs, with longer leases generally having lower monthly payments.

The Cost of Buying Gym Equipment

Gym equipment costs depend on the amount of equipment you buy, the type of equipment, and the condition of the equipment.

• Ellipticals, stair steppers, and treadmills have an average cost of $2,000 for light commercial models, with heavy-duty units averaging between $5,000 and $10,000.
• Single-exercise weight machines have an average cost between $4,000 and $7,000.
• Outfitting a 3,000 to 4,000 square foot gym has an average cost between $30,000 and $50,000.
• Some companies offer package deals that include a variety of equipment. Costs start around $45,000 for small packages and run up to $190,000 for larger packages.

Pros and Cons of Leasing vs Buying Gym Equipment

It can be difficult to decide between leasing and buying. There are pros and cons to both, and which outweighs the other depends on your specific needs and wants.

Costs of Equipment

• Leasing: With little to no upfront cost, leasing is great option for those who don't have the capital to buy equipment or want to test it out for a while. In the long run, though, leasing equipment comes at a higher price. You almost always end up paying more than the retail value and don't always get to keep the equipment.
• Buying: There is a much higher upfront cost when buying equipment. However, overall you spend less money because you make just a single payment for the equipment itself. Purchased equipment is also considered an asset, meaning you can get money back on your investment should you ever sell your gym.

Equipment Maintenance

• Leasing: When you lease, you save significantly on maintenance and repair costs. The lessor is generally responsible for fixing or replacing damaged equipment (be sure to check the provisions of the lease), so you do not have to cover those expenses.
• Buying: Since purchasing places full ownership of the equipment on you, all maintenance and repair costs are your responsibility. This means money to fix or replace the machine and a significant amount of time that the machine is missing from your gym.

Equipment Quality

• Leasing: Often, leasing gives you access to newer or more advanced equipment at a lower cost than purchasing. This typically means there is a wider variety of quality equipment at your disposal. But remember that selection varies from company to company, so don't expect each one to offer you the equipment of your dreams at a low price.
• Buying: If you're looking to customize equipment, then buying is the way to go. In addition to a multitude of state-of-the-art equipment on the market, purchasing gives you the ability to customize equipment to your specific gym. It should be noted, however, that this increases costs.

References:

• Should I lease or buy equipment?
• How much does it cost to open a gym?
• Gym Equipment Leasing: True Cost of Fitness Equipment Financing

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