How Much does it Cost to Lease Gym Equipment?

The closest wordplay I can requite you is: it depends…on A LOT of factors. I’ll go over some of the biggies below. I can requite you some national averages, though.

It takes approximately $30-50,000 to fill a gym with well-nigh 3-4,000 sq ft and well-nigh $10,000 for a smaller studio or gym with roughly 1,500 sq ft. Now, depending on how many big machines vs. smaller items you want, increasingly versatile things like bands, dumbbells, and benches, you would be looking at an stereotype of $60-100 a month…PER ITEM.

The worthier the gym space, the increasingly needed equipment, and the higher the monthly lease charges. Now, let’s discuss those factors.

Type of Equipment

The monthly stereotype of $60-100 per item is typical for worthier equipment such as treadmills, ellipticals, and stationary and recumbent bikes. These are the main staples for a gym. Whether your clients are novices or pro athletes, scrutinizingly everyone hits cardio in some fashion.

Most leasing companies split their misogynist equipment into 3 main categories: Cardio, Strength, and Accessories. You can lease everything from dumbbells to treadmills and mats if necessary.

The most popular equipment leased includes:

• Treadmills
• Ellipticals
• Bikes- Recumbent and Stationary
• Rowing Machines
• Free Weights
• Benches, Bars, Racks
• Battle Ropes and other Specialized equipment

Cost of Equipment

Just like any other purchase, the lease forfeit depends on how much the product is in the first place. For example, I did a search for machines at various leasing companies.

• Treadmill prices ranged from $2,999 all the way up to $14,000.
• Bench options ranged from $250-600 each.
• Row machines ranged anywhere from $1,200 to $2,800.
• Multi-Gym machines with subscription pulling options ran virtually $17,000!

So, unless you have the money upfront to pay for just one of each of these, leasing is a very viable option.

Buying in Bulk

It moreover helps to lease in bulk. If your gym space is smaller, you may only be worldly-wise to fit 2 or 3 big machines, a weight rack, and have increasingly “mobile” type equipment. Benches, self-ruling weights, bands, ropes, and plyo boxes can be moved virtually the gym for users, and the price is lower. You might save money leasing these items in bulk.

Lease Terms

Three key components factor into the monthly lease agreement: term length, the locked-in interest rate, and the type of agreement. Most term lengths range from 12- 60 months. Interest rates aren’t locked in until you sign a contract, but they make a big impact on the monthly payments. Use this handy calculator to help you understand variegated term lengths.

Some leases let you buy out the equipment once you pay the lease off, or they requite you a unbelieve to renew the lease. Other options imbricate maintenance and replacement within the agreement. Just make sure you read the fine print first.

Credit Score and Budget

Your credit score plays a big part in how much a leasing visitor or a wall will indulge you to finance. The stereotype qualifying credit score is 620-640 at a minimum. The higher the score, the largest financing you can get. This affects the term and interest rate offered to you as well.

Your upkeep is what you can sire to shell out monthly for the lease of all your equipment. The weightier translating overly given to me on any large purchase in life is this:

Make a list of everything you need to put money towards for your business. Rent for the building, monthly utilities, and payroll, to name the big ones. Then make a list of income-bearing items like gym memberships and any add-ons like personal training sessions your clients will pay for.

Figure out your projected expenses, so you know what you are well-appointed paying monthly for each leased machine. You moreover need to know how much you can spend and still make a profit to alimony your gym a success. This is tabbed your break-even point.

Pros and Cons of Leasing Gym Equipment

Some of the numbers whilom might be worthier than some people are ready to see, so let me put it a little increasingly into perspective for you. Leasing has its good and bad points, but ultimately the deciding factor comes lanugo to upfront costs.

Pros for Leasing

The biggest item in the pro post is the lower upfront costs. Instead of shelling out the $30-50,000 in one shot, you can lease for a monthly payment. This keeps your throne whilom water increasingly since you will have money coming in monthly to help offset the monthly costs.

Another big pro item is maintenance… if you segregate the right contract. While you are substantially renting this equipment, the leasing visitor wants to ensure the longevity of its products. They will typically imbricate any regular maintenance and damages from the usual wear and tear.

Taxes. Yes, leasing can be a tax unravel for the business. Since you don’t own the equipment, you don’t have to count them as merchantry assets. PLUS, you can usually write the monthly payments off as a merchantry expense. WIN WIN!

Cons for Leasing

Really, you can put the ownership question on both lists. Since you don’t own it, you aren’t wholly responsible, but BECAUSE you don’t own it, you can’t unchangingly segregate the trademark of product or the condition of what you lease. Sometimes companies only offer used equipment. Others provide new but only select brands and models.

That forfeit you are saving by not having to pay in full, you may be paying in interest rates and financing. Because you are leasing, you have a monthly payment. Some of those companies will include value for maintenance and depreciation while in use. Do the math surpassing signing a lease agreement; you may find ownership outright is cheaper in the long run.

Overall, the forfeit of leasing gym equipment comes lanugo to the size of your gym, how much equipment you need, and how much your upkeep allows for widow monthly expenses.