Leasing vs Buying Gym Equipment for Schools: Which is Better?

When a school decides to invest in a fitness suite, one of the first questions the business manager will ask is whether to buy the equipment outright or lease it. Both options have their place, and the right choice depends on your school’s budget, how long you plan to keep the equipment, and how much risk you want to carry.

At Hire Fitness, we have worked with schools across the UK and Ireland since 2000, and we offer both options. Here is an honest comparison to help you decide which route suits your school gym equipment project.

Buying Outright

Purchasing equipment means the school owns it from day one. There are no ongoing payments and no contractual obligations beyond the initial purchase.

The advantages are straightforward. There are no monthly or quarterly payments to budget for after the initial spend. The school has complete flexibility to keep, sell or dispose of the equipment at any time. And there is a sense of permanence that appeals to some headteachers and governors.

The disadvantages are equally clear. The upfront cost is substantial. A fully equipped school gym with eight to twelve commercial machines plus accessories and flooring can cost anywhere from £20,000 to £60,000 or more depending on the specification. That is a significant chunk of capital budget that cannot be spent on anything else.

When equipment breaks down, the school is responsible for repairs. Commercial gym equipment servicing is specialist work that most school caretakers cannot do. You will need a maintenance contract or pay for callouts on an ad hoc basis, and costs can be unpredictable.

Commercial gym equipment typically has a useful life of seven to ten years with proper maintenance. After that, it needs replacing. The school then faces another large capital outlay, and the cycle repeats.

The school also carries the depreciation. From the moment you buy it, the equipment is worth less than what you paid. If the school’s needs change, or the room is needed for something else, you are left with heavy, specialist equipment that has limited resale value.

Leasing

Leasing gym equipment through a DfE approved lease means the school pays a fixed amount each month or quarter over an agreed term, typically three to five years. The school uses the equipment for the duration of the lease, and at the end of the term there are options to extend, upgrade or return.

The advantages for schools are significant. There is no large upfront cost. The school preserves its capital budget for other priorities while still getting access to commercial grade equipment from day one.

Payments are fixed and predictable, which makes budgeting simple. The school business manager knows exactly what the gym will cost each year for the entire lease term.

Maintenance and servicing are typically included in the lease agreement. At Hire Fitness, all our school leases include ongoing maintenance by DBS checked engineers. If a machine develops a fault during term time, we prioritise getting it repaired or replaced quickly so PE lessons are not disrupted.

At the end of the lease, the school has options. It can upgrade to newer equipment, extend the lease at a reduced rate, or return the equipment. This means the school always has access to reliable, well-maintained machines without ever being stuck with ageing equipment that needs replacing.

Leasing also means the school does not carry the depreciation risk. The value of the equipment is the leasing company’s concern, not the school’s.

The disadvantage is that leasing costs more than buying over the full lease term. You are paying for the convenience of spreading costs, the included maintenance, and the flexibility at the end of the term. Over five years, the total payments will exceed the upfront purchase price. However, this needs to be weighed against the maintenance costs, repair risks and eventual replacement costs that come with ownership.

A Direct Comparison

Consider a school gym project with a purchase price of £35,000 for equipment, delivery and installation.

If the school buys outright, it pays £35,000 in Year 1. It then needs to budget for maintenance, which might cost £1,500 to £2,500 per year. Over five years, the total spend including maintenance is roughly £42,500 to £47,500, and the school owns equipment that is now five years old and depreciating.

If the school leases the same equipment over five years, monthly payments are spread evenly over the term. Maintenance is included, breakdowns are covered, and at the end of the term the school can upgrade to new equipment without another large capital outlay. The total cost of leasing is typically higher than buying outright, but when you factor in maintenance, repair risk and the eventual replacement cost, the difference is smaller than most people assume.

For a personalised comparison based on your school’s requirements, contact our schools team for a no-obligation quote.

What About the DfE Lease Rules?

Since April 2024, changes under IFRS 16 mean that all leases for maintained schools are now classified as borrowing. For a full overview of DfE approved leases and other funding routes including the Condition Improvement Fund, see our guide to how to fund a school gym. The DfE has issued a General Consent covering common equipment categories, so most gym equipment leases do not require individual Secretary of State approval.

For academies, the same principles apply from September 2024. Academy trusts should ensure their lease agreements comply with the Academy Trust Handbook and that the lease is with a reputable provider on a DfE approved framework.

At Hire Fitness, our lease agreements are structured to comply with current DfE guidance. We work with education-specialist finance partners who understand the regulatory requirements.

Which Schools Buy and Which Lease?

In our experience, schools that buy outright tend to be those with a specific capital budget allocation for the project, often funded through a trust capital programme, a CIF grant, or fundraising. They want ownership and do not mind managing maintenance separately.

Schools that lease tend to be those working within tighter revenue budgets who cannot justify a large one-off spend. They value the predictability of fixed payments and the peace of mind that comes with included maintenance.

Many schools use a combination. They might buy smaller items like dumbbells, resistance bands, mats and fitness testing equipment outright, while leasing the larger and more expensive machines like treadmills, bikes, rowers and multi-gyms. This keeps the lease payments lower while still spreading the main cost.

For schools that want to test the waters before committing to a full gym, we also offer short-term hire with no long-term obligation. This is a good option for trialling equipment or covering a temporary need.

Our Recommendation

For most schools, leasing is the better option. It protects the capital budget, includes maintenance, and gives the school flexibility to upgrade when technology and curriculum needs change. For practical tips on phasing a gym project to fit a tight budget, read our PE teacher’s guide to setting up a school gym on a budget. The total cost is slightly higher than outright purchase, but the reduction in risk and administrative burden more than compensates.

If you would like to see what a lease package would look like for your school, get in touch with our schools team for a no-obligation quote.