Peloton recently announced that you could now finance the purchase of a new Peloton bike. Is it a good deal? Here are my thoughts:
Buy Without Financing: As detailed in my earlier Peloton App blog purchasing a Peloton bike without financing costs about $3,000 when you add in delivery, $468 class subscription fees for the first year ($39 per month), $125 for clip-in shoes, exercise mat, etc. Way outside of my budget.
0% APR Financing: While a 0% down APR sounds like a great detail, the devil is in the details. For qualified buyers, Peloton allows you to make 39 monthly payments of $58 for the bike. This does not include the Peloton classes. In addition to the cost of the bike, shoes, etc. to qualify for the 0% financing you need to commit to a 39-month class subscription of $39/mo. totaling $1,521. By my math the grand total over the 39-month period will be almost a $4,053 commitment when you add all the extras.