When opening a new gym or when replacing fitness equipment, one of the first questions to owners should ask is whether they should buy used gym equipment or lease gym equipment. There are advantages and disadvantages to each, primarily depending on your amount of capital and how you wish to run your gym. Fortunately we offer both options so we can break down the pros and cons of both options.
Leasing Fitness Equipment
Leasing fitness equipment is easily the most cost effective option in the short run. It does not require a huge upfront cost and generally down payment is quite manageable or even nonexistent. Starting up a brand new gym requires hefty capital and new owners need to save every bit of capital when starting out.
Another benefit of leasing equipment is that you are not tied down to the equipment. It is much simpler to change out your equipment every few years if you are on a lease as opposed to having to sell all your old equipment and buying new one. Upgrading equipment every few years also keeps your customers happy and impressed. You’ll always stay up to date with all the latest equipment and maintenance costs will be lower since you’re consistently getting new equipment and not old ones more prone to breaking.
A disadvantage is that you won’t technically be owning the gym equipment, which may be a problem for some. Once a lease expires, you have the option of returning the equipment, trading it in for an upgrade, or having to negotiate a buyout to own the equipment.
Another disadvantage is that leasing equipment will be more expensive in the long run. Leasing equipment offers great flexibility but it comes at a cost. You will also be paying monthly fees which may bother owners month to month. If worse comes to worse and your gym fails, it is much more difficult to negotiate out of a lease as opposed to just selling equipment that you own.
Buying Fitness Equipment
The greatest advantage of buying used gym equipment is that there are no ongoing costs. It may be pricier upfront but there are no worries about monthly payments cutting into expenses. There are no interest charges or other fees if you flat out purchase and pay for the equipment up front. It is also great because you have full ownership of these machines and you can sell it whenever you wish to.
You can also generally find much better deals when purchasing equipment as opposed to leasing.
It is much more expensive upfront. For owners just opening a gym, this can be a huge burden while trying to get their business up and running. Like most products, gym equipment depreciates in value once it sets foot on your floor. If you have regrets, you may lose money selling it back.
Gym equipment is consistently advancing so owners who buy gym equipment will find it more difficult to upgrade their equipment due to the cost. This could possibly upset gym goers if the machines are outdated compared to other gyms.
Both options have their pros and cons and it all varies depending on how much capital you have and how you want to run your business. Fortunately Primo Fitness offers both options, from leasing to buying equipment. Still not sure what you want to do? Give us a call at 714-957-2765 or contact us at [email protected]!