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Leasing Gym Equipment | Gym Fitness Equipment Leasing Tips

Is leasing gym equipment better than buying it? In general, if you consider total outlay of monies, it is always cheaper to buy than to lease. However, when you are running a business, often cash flow is just as important or more important than total savings.

Therefore, when making a decision to lease gym equipment, rather than buying it, you or your accountant have to take into account cash flow and whether the improved cash flow you incur by leasing offsets the overall savings that you would have from buying the equipment.

Benefits of Leasing Gym Equipment

  • You can stock your gym with the most up to date equipment without incurring the cost of purchasing the equipment. And when newer models come out, you can easily upgrade. Alternatively, if you are looking to save money, you can lease some of the older models.
  • Your tax liability will most likely be lowered because you can probably write off 100% of your leasing fees as operating expenses. To be sure, however, consult with your accountant before making a decision.
  • You get to save your working capital for more important uses such as salaries, marketing, customer support, and so on.
  • If you borrow the money from your bank, leasing gym equipment can actually help you create a better relationship with your bank. It helps you to build the credit rating of your company so that when you go to them for future loans, you will meet with a minimum of resistance. In fact, they may even encourage you to take out a loan.
  • It helps prevent you from being stuck with "lemons" or gym equipment that that doesn't perform as advertised.

leasing gym equipment

Benefits of Buying Gym Equipment

  • The biggest benefit is that you have no finance charges to pay.
  • You are able to depreciate your cost of purchasing the gym equipment. Your accountant will have to perform an analysis of whether depreciation benefits more than offset the direct write-offs that leasing would provide you.
  • You actually own the equipment thus making it an asset of the company (although, some may not consider owning it a real benefit). If you are interested in only basic exercise equipment, and are relatively certain that you will keep it for a long time, then buying may be the best use of your funds.

Gym Equipment Leasing With An Option To Buy

Many equipment leasers will gladly add a clause to your leasing agreement that will allow you to buy the equipment at a deep discount after the term of the lease is up. In fact, some even make it a standard part of their agreement. This helps them in two ways. It allows them to make a further modest profit on their investment. And, it allows them to get rid of the equipment without having to resell or liquidate it.

Leasing with an option to buy is good for you as well. It allows you to give the equipment a real workout during the leasing period. And, if you like it, and if it is still in good shape after the leasing period, you can buy it for much cheaper than it would cost you to continue to lease it. Also, there is nothing wrong with having a mixture of gym equipment - i.e., some leased, and some owned.

If you continue to lease the gym equipment, however, because the market value of the machines has undoubtedly decreased over the term of the lease, you should be able to continue to lease it at a much cheaper rate.

Don't Forget Labor and Parts Warranty For Your Lease

Even the best of gym or fitness equipment will break down or need new parts at some time. To avoid the inconvenience of having to find someone to repair or replace gym equipment when it breaks down, make sure that you obtain a labor and parts guarantee or warranty in your lease agreement. You'll be glad you did.

Financing Your Gym Fitness Equipment Leasing

Nearly all gym equipment leasers will be able to offer competitive financing rates for the leasing of their gym equipment. This makes the whole process of leasing gym equipment a bit easier. But, don't feel as though you have to take them up on it. If you can get a better deal through your bank, your credit union, or other means, don't be shy about taking that route.

Leasing Home Gym Equipment

Normally, when talking about fitness equipment leasing, the focus is on commercial gym equipment leasing. But, if you have a home gym, there is no reason why you can't lease fitness equipment as well. It's true that some leasers will only lease in mass quantities. But, others are more flexible and will be willing to lease you all types of equipment for your home gym. This lets you try out many more varieties of fitness equipments than if you had to purchase them. It is also a viable alternative to buying second hand gym equipment.

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