Fitness equipment leasing allows for short or long-term rental of workout equipment as an alternative to purchasing. Lease terms vary, with options to purchase, extend, or terminate at the end of the lease. Leasing can reduce upfront costs for gyms and fitness centers, but long-term costs may exceed the value of the equipment.
Fitness equipment leasing allows for the long-term or short-term rental of workout equipment as an alternative, or precursor, to purchasing. Many fitness equipment retailers offer a lease or lease-purchase option for both home and commercial fitness equipment. Lease terms and terms may vary depending on the quality, purpose, and provider of the equipment. Some people use leasing as a financing alternative to buying, especially for more expensive business equipment.
There are several types of fitness equipment leasing plans. Some, like the Fair Market Value (FMV) plan, offer flexible terms with lower monthly payments. Fair market value generally provides options at the end of the lease term, including purchase, lease extension, or lease termination, and return of the equipment. The $1 purchase plan is an option for those with a defined intent to purchase. Although the payments are typically higher than other plans, at the end of the lease term, lessees can purchase the equipment for $1 US dollar (USD).
Another common type of lease plan offers mid-range payments and terms that fall between the FMV and the $1 purchase plan. This type of plan typically allows the option to purchase or return the equipment at the end of the lease plan for fitness equipment. The purchase price is set at a fixed percentage of the equipment’s initial cost, typically 10%. Individual fitness equipment retailers may also have unique plans specific to their business model and products.
Leasing offers multiple benefits. A lease covers the initial cost of an investment in fitness equipment, allowing renters to use and own fitness equipment that they might not otherwise be able to afford. For gyms and fitness centers, leasing fitness equipment can drastically reduce the initial upfront costs incurred when purchasing equipment in bulk. For heavy-use facilities that often have to replace broken or obsolete equipment, leasing saves money by allowing them to pay only for the use of the equipment, rather than losing the full cost of expensive equipment each time it breaks down or becomes obsolete. . Some lease agreements also structure the payments so that they can be claimed as tax write-offs.
While leasing fitness equipment may cost less in the short term, the long-term costs may exceed the value of the equipment. Between accrued payments and interest, the full term of a lease can end up costing significantly more than market or retail value. This can be especially true in terms of rent-to-own plans that offer periodic payments for a certain period before a fixed final purchase cost. If the equipment becomes obsolete during the lease term, the market value may also decline to well below the accrued cost of the lease.
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