Why Renting Is Different From Leasing Your Fitness Equipment
Renting Fitness Equipment Is Different Than Leasing. Here is why.
Lease Agreement
Why Is Renting Different Than Leasing Your Gym Equipment?
Rental monthly payments are less than the monthly lease payments. And they INCLUDE all the regular equipment maintenance and includes a valuable, Bumper-to-Bumper warranty with ALL repair parts included.
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Closed-end lease
With a closed-end lease, nothing is owed when the lease period ends. You are not obligated to purchase the fitness equipment at the end of the lease. So you do not have to worry about the depreciation value of the gym equipment at the end of the lease. You just return the leased equipment and walk away. But now you must purchase new gym equipment for your Company. The closed end lease requires very expensive monthly payments for your business. Add up the total monthly lease payments you made and if you kept good records, how much in total was spent on maintenance and upkeep of the fitness equipment.
Open-end lease,
If you turn in the equipment at the end of the lease and it’s worth less than the value established in the contract, you’re responsible for paying the difference. If you do consider an open-end lease, make sure you’re not open to additional charges such as wear and tear. But try to find a lease where you do not owe a large payment to cover the depreciated value of the equipment. Be sure you understand that after the 3 year lease your Gym equipment will be worth about 10-cents on the dollar.
Finally, balloon payments allow you to make smaller monthly payments with a large payment, (the balloon) at the end. While this allows you to conserve your cash flow as you’re making those monthly payments, the bad news is, the final balloon payment may be more than the equipment is worth. Balloon payment is set by the finance company. I ask you how big a balloon are they going to want from you?
Now if your monthly lease payment is higher than a monthly rental payment. And your lease payment does not cover your regular preventive maintenance or repair expenses. You have to pay extra to properly maintain the fitness equipment. When your lease payments are finished your Gym equipment is worth about 10 cents on the dollar.
Your lease is a financial liability but when you rent all you have agreed to is a monthly budget that can be cancelled with a 30-day notice. We call this rental agreement an OFF-BALANCE-SHEET-TRANSACTION. Renting is not a liability on your credit and you never get an unexpected cost from broken machines and maintenance expenses.
You can’t opt out of your lease contract, even if you DIE. And a lease will tie up some of your credit line. A true month to month rental will not be seen by your creditors. It is not a lease and allows you to use more credit for other projects your Business has to pay for.
With your month-to-month rental agreement, you can cancel with only a 30-day notice. This is a smart agreement to provide Health Club quality gym equipment, with all expenses included.
How can you go wrong?
As far as what is less expensive for your business. Get a cost to Lease Health Club quality Gym equipment. Then go out and purchase a regular preventive maintenance contract. And then purchase a Bumper-to-Bumper warranty that covers ALL your parts replacement FOREVER. Now that’s expensive.
I’ve been in the SELLING of commercial gym equipment to companies for 25 years. And I can’t tell you how many times a company would lease the gym equipment and got the short end of the stick.
If you knew how many lawsuits I have seen between the buyer and the seller because what was promised and was not delivered.
When you RENT your gym equipment you do not have to pay for a buyout or balloon payment that is much more expensive than what the fitness equipment is worth at the end of the lease agreement.
Look at this, when you lease your gym equipment you still have to pay for the regular fitness equipment maintenance. And you still have to pay for the maintenance upkeep of the fitness machines you don’t own. And at the end of the lease is when you really get an expensive surprise.
After you make expensive lease payments for 3 years. Then have to pay the “fair market value” at the end of the lease. REALLY, who determines what the fair market value is? It’s the lease company that gains to profit from your fair market value payment at the end of your lease term.
My brother was in the lease business for business equipment, and he told me he made his fortune from the fair market value payments his company received at the end of a lease contract.
When you purchase your gym equipment, your equipment vendor sells your equipment to the Lease Company. The vendor makes all of his profits upfront and then the Lease companies make a huge profit on top of that.
After your vendor sells your equipment to the Lease Company, they have no more blood in the game.
When you Rent your gym equipment the renting vendor does not make 1 penny in profit until after more than a year of great service. And the renting Company assumes all the RISK and removes the risk from your Company. When you lease or purchase all the risk is placed on your company from day one. And you do not get a 30 day “OUT” if you are not happy with your fitness equipment.
The renting option changes the rules to your advantage by removing your risks and making the promise of performance the rental vendor’s problem.
Imagine if your families future income was only possible if you performed as promised and performed gallantly for a couple of years. Only ‘IF’ you satisfy your clients needs first before you can bring home cash flow to your family to pay for college and food. How much does that change your performance?
I wake up every day and my first thoughts are:
HOW CAN I BETTER SERVE THE NEEDS OF MY CLIENTS?
Because I have to or else I lose all my clients and I won’t be able to pay for my kid’s college or even feed my family.
I call the Rental option the best win-win business model that anyone can imagine. If my clients win, then only then can my family win. I have to put my client needs first, ahead of my families needs. And that takes a big commitment to EXCELLENCE.
I read stories of great salesmen and I never hear about how successful their customers are inside their business.
Why not?
Because everyone talks about the profits and success of the seller, but I live my business life by how successful I can help make my client’s business. If my clients are successful then and only then is my family successful.
When a Company sells a gym full of equipment all the success goes to the selling Company and all the stress is moved to the buying Company.
Remove your stress by using the rental option.
Listen, your business success requires partners that have blood in the game for your success. Their success must rely on your business success. This is a partnership your company probably can’t survive without.
Renting is the only Business process that makes your vendors success, based on your success.
Your business needs vendor partners. Not vendor Vultures.
Steve Paterson
I promise to deliver the highest Health Club quality Gym equipment to your fitness facility.
I promise to do the proper preventive maintenance on our Gym equipment to assure safe and productive workout equipment.
I promise to quickly repair a broken machine.
My goal is to serve your on-site fitness facility for years to come and keep your people active and excited about the fitness center you are providing them.
Please move around our website and see WHY this can be the best Solution for your Company.
If you would like me to personally call you and discuss your Companies needs. Send me an email here:
Steve@RentFitnessEquipment.com
Call Today 877-736-8348
WHAT IS FITNESS EQUIPMENT AS A MONTHLY SERVICE?
The Rent Fitness Equipment Company approves this message. And promises to perform for your Business for years to come.
