Used Pelotons Are Still a Great Deal (Even With the New $95 Fee)
The used Peloton exercise bike market has always been a strength for the brand. The bikes last for years, there’s no need to worry about changing the model number, and you can reactivate a bike you bought on Craigslist just as if it were brand new. However, that’s changing: Peloton will now charge customers $95 to install a used bike.
The news comes from Peloton’s fourth-quarter letter to shareholders , as reported by the Verge. In the letter, the company says used equipment brings in a “steady flow” of new subscribers, and they tend to stay with Peloton longer than leased subscribers. By the way, Peloton quietly ended its original bike rental program (as of August 1, 2024), telling shareholders that they didn’t have enough used bikes to sell as refurbished bikes and lease them out. They still rent the more expensive Bike+.
How to buy a used bike before
When you buy Peloton equipment like the Bike or Bike+ (more on the difference between them here ), you need to purchase that equipment and pay $44 per month for an all-access membership that gives you branded videos. activities and other related bike features (such as the power zone bar and displaying your rides in your phone app account).
You can buy your bike (or other Peloton equipment) new or refurbished, or rent it. You can also buy used equipment the same way you buy a used car or a vintage dress by simply giving money to the person who has it and wants to sell it.
Once you take your used bike home, you’ll need to activate it to start paying for your $44 per month subscription. Here are the current instructions on this, which do not yet mention the new board. What Peloton is offering is that you’ll have to pay $95 to activate your new (used) equipment—or, as one Reddit user put it , “you’re asking people to pay a fee so they can pay you a subscription fee.” “
At least you get something for your $95.
Peloton hasn’t yet revealed the full details of how the $95 fee will work, but they have provided some important information.
The email describes the $95 as a “one-time” fee, suggesting that if you let your subscription expire and then reactivate it, it won’t incur a new fee. You buy a used bike, pay $95, and then you’re in the same position as any other buyer. Based on the shareholder letter, the fee appears to only apply to “secondary market” sales and likely won’t apply to refurbished bikes purchased directly from Peloton.
And hey, you’ll get something for it! Peloton is pitching this as the best “onboarding experience” for members who purchase a used bike, so by paying $95 you’ll be able to get a “virtual customization” to make sure your bike is set up correctly. This is a service that people pay for from a third party, so it may be enough to soften the blow. However, I’m sure many new members would rather adjust the bike through trial and error and the instructions provided if it meant saving nearly a hundred dollars.
Peloton also says it will offer new members discounts on accessories, including shoes and parts.
A quick rundown of all the ways to get a Peloton Bike (or Bike+) and how much they cost.
With the new fee, you’ll need to add $95 to the purchase price of any used Peloton gear to get an idea of how much you’re actually paying to bring it home. Here’s a comparison:
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Used, Third Party : I’m seeing prices in the $400-$800 range for an original bike, plus you’ll need to factor in a $95 fee for a total of about $500-$900. Bike+ is more expensive, around $800-$1200. All of these prices can and will vary depending on your location, the condition of the bike, and other factors, so take them with a grain of salt.
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Refurbished from Peloton : $1,145 for regular Bike, $1,995 for Bike+ (no activation fee expected). Repaired equipment is provided with a warranty.
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Bike Rental+ : $119/month plus $150 shipping. Peloton no longer offers base model bike rentals. You can buy out your lease at any time, but you won’t actually save any money; The buyout cost plus past rental costs is usually similar to the cost of buying new. (We have a more detailed breakdown here .)
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Buying a New Bike : $1,495 per bike, $2,495 per bike + unless you catch a sale—in the past, big sales days like Black Friday and Prime Day brought huge discounts.
All in all, used bikes (and bikes+) are still the best deal. A few years ago, used bikes were only slightly cheaper than their new or refurbished counterparts; Used car prices are at an all-time low these days. Peloton wants a $95 share of those sales, but prices are already low enough that adding $95 shouldn’t deter you from buying a used car.