Buying guide, Equipment

What to ask before signing a gym equipment lease

The questions that separate a 7% lease from a 19% one, and what service terms should say.

By Nils Oyedepo, services and equipment analystLast updated November 20267 min read

The checklist

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1. Is this a capital lease or an operating lease?It changes the buyout, the balance sheet treatment and who writes off the asset.2. What is the money factor behind the monthly payment?Monthly payments hide the rate. Ask for the implied annual rate in writing.3. Who pays for preventive maintenance in years two and three?First-year service is usually free. The cost shows up exactly when belts and decks wear.4. What is the parts lead time for belts, consoles and decks?A treadmill waiting six weeks for a console is a treadmill you are paying for and cannot use.5. Is removal and disposal of the old units included?Haul-away is a common line item, typically $75 to $200 per unit when it is not.6. What happens to payments when a unit is out of service?Service credits after seven days of downtime are reasonable to ask for.7. Is there an automatic renewal clause?Evergreen renewal with 90-day notice is standard and easy to miss.8. What insurance is required and who is named?The certificate requirement can add several hundred dollars a year to the real cost.

What good looks like

Effective annual rate under 9%
Buyout stated in dollars at signing, not as fair market value
Parts dispatched within 48 hours
Service credits start after seven days of downtime

Walk away signals

Payment quoted without a rate or a buyout figure
Maintenance described as included with no term length
Evergreen renewal with notice longer than 60 days
Delivery date not committed in the schedule

What to ask before signing a gym equipment lease

The checklist

What good looks like

Walk away signals

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