Whether you plan on starting a health club or want to add a fitness center to your building as a benefit for employees or residents, it can frequently be much more affordable to lease gym equipment instead of buying.
What Does It Cost to Lease Gym Equipment?
You will typically spend $60 to $100 per month to lease a piece of gym equipment.
Compared to Buying Gym Equipment
With the cost of leasing equipment in mind, how does that compare to buying the equipment outright? The following are average costs to buy gym equipment:
- Treadmills, ellipticals, and stair steppers: $2,000 for light commercial units or $5,000 to $10,000 for heavy-duty units
- Single-exercise weight machines: $4,000 to $7,000
If you want to outfit a gym with 3,000 to 4,000 square feet of space, expect to pay $30,000 to $50,000 to buy everything outright. You may be able to get a package deal for equipment, starting at $45,000 for a smaller package and going up to $190,000 or so.
Given those high prices, leasing can provide a great deal of potential savings.
Benefits of Leasing Gym Equipment – And Reasons to Consider Buying
It may be in your best interest to lease gym equipment, but it may also make sense to buy. Here are some of the pros and cons of leasing compared to buying (Source).
Lower Cost Initially
The biggest benefit of leasing gym equipment is the lower up-front cost. Paying $60 to $100 per month instead of shelling out $5,000 for a single machine is a significant difference, especially if you are on a tight budget.
Your Money Goes Further
Because leasing equipment is more affordable up front and for the first few years, this allows you to get better quality equipment.
More Expensive in the Long Run
If, however, you plan on using the same equipment for a long time, then buying may make more sense financially. This will only apply if you plan to use the equipment for a few years or more.
For example, assume you could buy a weight machine for $4,000 or lease it for $100 per month. After leasing for 40 months, you will have paid for the machine.
On most leases, you will not be responsible for repairing or maintaining the gym equipment. This can result in significant savings and a lot less of a hassle.
Easily Swap Equipment Every Few Years
Leasing gym equipment also makes it much easier for you to upgrade the equipment every few years. You simply do not renew the lease on that particular item and start a new one instead. In contrast, if you bought the equipment, you would have to find a buyer.
You may not realize it, but you can frequently deduct your lease payments from your taxes as operating expenses, saving additional money.
What Affects the Price of Leasing Gym Equipment?
When you look at the average cost of leasing gym equipment, you will notice that there is a price range, with a reasonable amount of difference between the lowest and highest figures. If you are leasing dozens of pieces of equipment, this can result in hundreds or thousands of dollars of difference.
So, what affects what you will pay to lease gym equipment?
The Type of Equipment
Even if you lease the same brand of gym equipment, expect to pay slightly different rates for each type of machine. Treadmills, ellipticals, stationary bikes, weight machines, and other items will all have differences of at least several dollars. Smaller items like free weights and exercise mats will likely cost even less, while specialized equipment will cost even more.
The Equipment’s Condition and Features
Additionally, you will pay more to lease gym equipment that is worth more. This means that you should expect to pay more for a like-new treadmill with the latest features and a built-in TV than you would when leasing a five-year-old treadmill without a built-in TV.
You may be able to get a discount when leasing gym equipment if you lease more units. This will vary between companies, but it is a common practice. Companies will be willing to give you a better rate since they can count on a steady profit.
Your Credit Score
As with when you lease any other expensive item, the amount you pay will depend on your credit score. If you have a better credit score, you will likely pay less since the company leasing the equipment expects you to be less likely to miss or be late on a payment.
The Lease Terms
As with other leases, your price may depend on lease terms. For example, you will likely have a lower monthly fee for your lease if you sign a longer-term contract.
Whether It Is Lease to Buy
There are two main types of gym equipment leases, those designed for you to return the equipment at the end and those where you buy it at the end. Expect to pay more for the latter, or to have to pay a buyout at the end. This is because you will have to pay the full cost of the equipment instead of just its depreciation.
What Other Costs Do You Need to Keep in Mind?
In addition to the monthly cost of leasing gym equipment, you should keep a few other potential costs in mind, such as:
- A deposit, potentially for the first and the last month
- A security deposit
- Penalties for ending the lease contract early
- Maintenance costs
- Cleaning costs
- Electricity costs to run the equipment
- Cable or streaming costs for equipment with built-in TVs
- Buy-out costs if you have the option to buy the equipment
Ready to Lease Gym Equipment?
Once you consider everything and determine you should lease gym equipment instead of buying it, you just have a few things left to do.
Make a list of the equipment you need as well as your budget. Remember that the price will depend on the length of the lease, the type of equipment, the condition and quality of the equipment, how many pieces you plan to lease, and your credit score.
With all of the above information, you should have a much easier time correctly budgeting for your gym equipment.