Golf Equipment Lease deals.

[Mel Smooth]

Do they exist? I can't say I've seen any being promoted - but in the same way lots of people lease cars, why don't club manufacturers offer something similar.

Significant down payment, monthly lease payment, settlement figure at the end of the lease to purchase the clubs outright, or trade them in for newer clubs?

The returned clubs - which would probably be no more than 1-2 years old could then be leased at lesser rates.


This was something that came to me this last week - Jamie has grown almost an inch in the last month, and his fairly new clubs are now becoming redundant - so I'm now facing the prospect of upgrading his driver shaft to something stiffer, and his irons which were built 2 degrees flat are now sitting toe down, and have lightweight shafts which he no longer needs - all these things are having a marginally detrimental affect on his game.


Are the club mfrs missing an opportunity here to get people who need or like to upgrade their clubs regularly into a procurement scheme that would be beneficial to both suppliers and players?

Essentially, if you upgrade your new clubs on a fairly regular basis, you'd be spreading the cost of the deprecation out on monthly terms, knowing that at the end of the lease period, you get an upgrade for a pre-determined fixed fee.

 

[Arthur Wedge]

Suspect with the cost of buying a set of clubs it doesn’t make financial sense for any OEM to lease out clubs

You can get finance deals for buying clubs

 

[The Squirrel]

Our local driving range offers something like this with colour coded junior sets in a range of sizes. Can’t remember the exact details but basically you return the smaller set and get a bigger one as needed at pretty nominal (maybe zero?) upgrade cost.
Helps that they can probably run it at zero profit if it keeps you turning up to hit balls - make their money that way.

By definition they’re going to be simple uniform starter sets of clubs for anything like this to work. For better players, individual fitting requirements and preferences and unique club sets are going to make any such arrangement pretty unworkable - would need to carry ludicrous amounts of stock to cover every junior size/shape/preference, while doing it per individual club would become insanely complex (imagine leasing each of 14 car components for your car on a separate deal!) making admin/running costs prohibitive.

 

[Golf is fun]

There is a program for kids clubs that does this, you pay a monthly fee and as the kid grows you swap the clubs for the next size up. I'll see if I can find the details in a bit.

I could see for adults there could be a market for it based on how often people change clubs, for those who keep them years it would be pointless but for those who want the latest kit each year or upgrade on a 2/3/4/5 year cycle, there could be a potential business there. You'd have to focus on the lack of hassle of reselling clubs and lean on the fact that you can have the latest kit for less than a few coffees a month or something.
It's not quite the same as with vehicles though, as the opportunity cost of having £20-150k of cash to invest alongside the tax advantages that wouldn't exist for golf clubs make it a very different proposition.

I suspect the OEMs wouldn't be interested in running it themselves though, you'd have to operate with an agreement from them like lease car firms do.

Edit: This is the scheme I was thinking of https://www.kondorkidz.co.uk/

 

[clubchamp98]

Do they exist? I can't say I've seen any being promoted - but in the same way lots of people lease cars, why don't club manufacturers offer something similar.

Significant down payment, monthly lease payment, settlement figure at the end of the lease to purchase the clubs outright, or trade them in for newer clubs?

The returned clubs - which would probably be no more than 1-2 years old could then be leased at lesser rates.


This was something that came to me this last week - Jamie has grown almost an inch in the last month, and his fairly new clubs are now becoming redundant - so I'm now facing the prospect of upgrading his driver shaft to something stiffer, and his irons which were built 2 degrees flat are now sitting toe down, and have lightweight shafts which he no longer needs - all these things are having a marginally detrimental affect on his game.


Are the club mfrs missing an opportunity here to get people who need or like to upgrade their clubs regularly into a procurement scheme that would be beneficial to both suppliers and players?

Essentially, if you upgrade your new clubs on a fairly regular basis, you'd be spreading the cost of the deprecation out on monthly terms, knowing that at the end of the lease period, you get an upgrade for a pre-determined fixed fee.

There’s a scheme for this in cycling.
It’s a very good idea in principal and I think it’s possible to implement but would need backing .
Must be someone who would finance such a scheme I would do it.

 

[Mel Smooth]

There’s a scheme for this in cycling.
It’s a very good idea in principal and I think it’s possible to implement but would need backing .
Must be someone who would finance such a scheme I would do it.

I'd definitely give it some thought - with a full bag of new clubs costing well over 2 grand these days, the option to split that outlay down into a lump sum and monthly payments secure in the knowledge that you could return the clubs ever year or two for an upgrade would surely appeal - throw in a fitting service as well, so you generate business for the professionals and club fitters and I'm sure the idea has legs.

Also, companies such as Golfbidder could offer some very acceptable terms on their used equipment by leasing it.

 

[Imurg]

I like the theory but my initial thought would be along the lines of...I'd be surprised if they hadn't thought of this already and discounted the idea for one reason or another..
If they have..I wonder what the reason is....

 

[Burnsey]

It is here, but not in the guise of a PCP. Klarna and similar for a short term spread, finance for a longer term.

Twelve hundred quid iron sets at £100 a month and likely still worth just over half that at the end of term.

A full bag though, dread to think how much you could spend...

Not a fan of finance for luxury goods, perhaps excluding a car, just due to the sheer cost.

 

[Golf is fun]

It is here, but not in the guise of a PCP. Klarna and similar for a short term spread, finance for a longer term.

Twelve hundred quid iron sets at £100 a month and likely still worth just over half that at the end of term.

A full bag though, dread to think how much you could spend...

Not a fan of finance for luxury goods, perhaps excluding a car, just due to the sheer cost.

How do you mean the sheer cost?

Say you replace your irons every 2 years, based on golfbidder a set of Mizuno Pro 243 Irons from 2023 at 7/10 condition is worth £769.99 and cost £1,348.99 brand new, so assuming (big assumption) you can sell for golfbidder prices privately over 2 years you've lost £579 and effectively had £1,350 tied up for 2 years.

A finance model could offer something like £30 a month to lease this set and after 2 years you'd give them back and if you want to take out a deal on the latest kit at the time. By leasing you've lost £720 so on paper you appear to be £141 worse off. However, at the start of the deal you have nearly all the price of the irons sitting in the bank, if you could get 5% interest on that by investing it somewhere you'd end the deal with £736 in the bank, so it's only cost you £612, so you're paying £33 for the convenience of knowing you can have a new set in 2 years and no hassle selling. If you could get 6% you'd only be £11 worse off and if you could get 7% you'd actually be better off. For someone who changes clubs regularly and prefers to keep their money working in other investments this is actually not a bad model.

 

[Arthur Wedge]

How do you mean the sheer cost?

Say you replace your irons every 2 years, based on golfbidder a set of Mizuno Pro 243 Irons from 2023 at 7/10 condition is worth £769.99 and cost £1,348.99 brand new, so assuming (big assumption) you can sell for golfbidder prices privately over 2 years you've lost £579 and effectively had £1,350 tied up for 2 years.

A finance model could offer something like £30 a month to lease this set and after 2 years you'd give them back and if you want to take out a deal on the latest kit at the time. By leasing you've lost £720 so on paper you appear to be £141 worse off. However, at the start of the deal you have nearly all the price of the irons sitting in the bank, if you could get 5% interest on that by investing it somewhere you'd end the deal with £736 in the bank, so it's only cost you £612, so you're paying £33 for the convenience of knowing you can have a new set in 2 years and no hassle selling. If you could get 6% you'd only be £11 worse off and if you could get 7% you'd actually be better off. For someone who changes clubs regularly and prefers to keep their money working in other investments this is actually not a bad model.

The level of income for the work needed wouldn’t be anywhere near what’s needed to justify starting

We are talking £1000 here as opposed to £10-70k for Car leases

 

[Mel Smooth]

How do you mean the sheer cost?

Say you replace your irons every 2 years, based on golfbidder a set of Mizuno Pro 243 Irons from 2023 at 7/10 condition is worth £769.99 and cost £1,348.99 brand new, so assuming (big assumption) you can sell for golfbidder prices privately over 2 years you've lost £579 and effectively had £1,350 tied up for 2 years.

A finance model could offer something like £30 a month to lease this set and after 2 years you'd give them back and if you want to take out a deal on the latest kit at the time. By leasing you've lost £720 so on paper you appear to be £141 worse off. However, at the start of the deal you have nearly all the price of the irons sitting in the bank, if you could get 5% interest on that by investing it somewhere you'd end the deal with £736 in the bank, so it's only cost you £612, so you're paying £33 for the convenience of knowing you can have a new set in 2 years and no hassle selling. If you could get 6% you'd only be £11 worse off and if you could get 7% you'd actually be better off. For someone who changes clubs regularly and prefers to keep their money working in other investments this is actually not a bad model.

I’m amazed golfbidder aren’t offering this on their used equipment where the depreciation is much less over new equipment.
Not only can they offer replacement pre-owned clubs to the consumer, they effectively have that consumer on the hook for future business

 

[Burnsey]

How do you mean the sheer cost?

Say you replace your irons every 2 years, based on golfbidder a set of Mizuno Pro 243 Irons from 2023 at 7/10 condition is worth £769.99 and cost £1,348.99 brand new, so assuming (big assumption) you can sell for golfbidder prices privately over 2 years you've lost £579 and effectively had £1,350 tied up for 2 years.

A finance model could offer something like £30 a month to lease this set and after 2 years you'd give them back and if you want to take out a deal on the latest kit at the time. By leasing you've lost £720 so on paper you appear to be £141 worse off. However, at the start of the deal you have nearly all the price of the irons sitting in the bank, if you could get 5% interest on that by investing it somewhere you'd end the deal with £736 in the bank, so it's only cost you £612, so you're paying £33 for the convenience of knowing you can have a new set in 2 years and no hassle selling. If you could get 6% you'd only be £11 worse off and if you could get 7% you'd actually be better off. For someone who changes clubs regularly and prefers to keep their money working in other investments this is actually not a bad model.

Seriously, if you need to finance a set of irons, you're not arranging a 5% pa plus investment strategy for six ton

I change clubs regularly and accept the loss (and the hassle of selling is all of three minutes online, a visit to the pro shop, or a message on a club Whatsapp group). If you can't accept the loss, keep them longer. Thankfully I'm a Titleist fanboy, so the temptation is less, as they release less frequently than most.

It's a complete non starter.

 

[Arthur Wedge]

I’m amazed golfbidder aren’t offering this on their used equipment where the depreciation is much less over new equipment.
Not only can they offer replacement pre-owned clubs to the consumer, they effectively have that consumer on the hook for future business

Maybe it’s because it’s not financially viable for them ?

And they prob make more money from selling the second hand clubs

 

[C7usk]

Do they exist? I can't say I've seen any being promoted - but in the same way lots of people lease cars, why don't club manufacturers offer something similar.

Significant down payment, monthly lease payment, settlement figure at the end of the lease to purchase the clubs outright, or trade them in for newer clubs?

The returned clubs - which would probably be no more than 1-2 years old could then be leased at lesser rates.


This was something that came to me this last week - Jamie has grown almost an inch in the last month, and his fairly new clubs are now becoming redundant - so I'm now facing the prospect of upgrading his driver shaft to something stiffer, and his irons which were built 2 degrees flat are now sitting toe down, and have lightweight shafts which he no longer needs - all these things are having a marginally detrimental affect on his game.


Are the club mfrs missing an opportunity here to get people who need or like to upgrade their clubs regularly into a procurement scheme that would be beneficial to both suppliers and players?

Essentially, if you upgrade your new clubs on a fairly regular basis, you'd be spreading the cost of the deprecation out on monthly terms, knowing that at the end of the lease period, you get an upgrade for a pre-determined fixed fee.

That's a sore one... Couple of mates taking about there boys growing out of there school shoes... But growing out of golf clubs is much more financially painful.. ...
Sounds like a good idea tho.

 

[Mel Smooth]

That's a sore one... Couple of mates taking about there boys growing out of there school shoes... But growing out of golf clubs is much more financially painful.. ...
Sounds like a good idea tho.

He's 5ft 9 right now, by the time he finishes school next year he'll be 6ft I'd imagine. Driver ball speed is close to 150mph - if he comes up the grip on his regular shafted driver he starts losing control, so he's gripping down. He did have a few shots with his mates Qi35 with an Extra Stiff shaft in a few weeks back and said he hit them good and straight - I'm tempted to just trade in his Callaway Ai Smoke for something brand new with an XS shaft in - while the Callaway still has a good trade in value.

 

[clubchamp98]

He's 5ft 9 right now, by the time he finishes school next year he'll be 6ft I'd imagine. Driver ball speed is close to 150mph - if he comes up the grip on his regular shafted driver he starts losing control, so he's gripping down. He did have a few shots with his mates Qi35 with an Extra Stiff shaft in a few weeks back and said he hit them good and straight - I'm tempted to just trade in his Callaway Ai Smoke for something brand new with an XS shaft in - while the Callaway still has a good trade in value.

Just buy him a XS shaft off eBay cut it down for him .( will make it a bit stiffer though)
When he grows put a shaft extender in to bring it back to standard length.

Alternately cut his shaft down now then buy him a shaft later when he grows .

Cutting it down might alter the swingweight but dought he would notice most ams can’t.

 

[doublebogey7]

How do you mean the sheer cost?

Say you replace your irons every 2 years, based on golfbidder a set of Mizuno Pro 243 Irons from 2023 at 7/10 condition is worth £769.99 and cost £1,348.99 brand new, so assuming (big assumption) you can sell for golfbidder prices privately over 2 years you've lost £579 and effectively had £1,350 tied up for 2 years.

A finance model could offer something like £30 a month to lease this set and after 2 years you'd give them back and if you want to take out a deal on the latest kit at the time. By leasing you've lost £720 so on paper you appear to be £141 worse off. However, at the start of the deal you have nearly all the price of the irons sitting in the bank, if you could get 5% interest on that by investing it somewhere you'd end the deal with £736 in the bank, so it's only cost you £612, so you're paying £33 for the convenience of knowing you can have a new set in 2 years and no hassle selling. If you could get 6% you'd only be £11 worse off and if you could get 7% you'd actually be better off. For someone who changes clubs regularly and prefers to keep their money working in other investments this is actually not a bad model.

Sounds like a rotton deal for the lease company to me. Plus if this actually took off second hand values would likely plummet making it an even worse deal for them.

 

[Neilds]

He's 5ft 9 right now, by the time he finishes school next year he'll be 6ft I'd imagine. Driver ball speed is close to 150mph - if he comes up the grip on his regular shafted driver he starts losing control, so he's gripping down. He did have a few shots with his mates Qi35 with an Extra Stiff shaft in a few weeks back and said he hit them good and straight - I'm tempted to just trade in his Callaway Ai Smoke for something brand new with an XS shaft in - while the Callaway still has a good trade in value.

Hope he's got a part time job to help contribute to all these new clubs - got to teach them the value of money early.

 

[Golf is fun]

The level of income for the work needed wouldn’t be anywhere near what’s needed to justify starting

We are talking £1000 here as opposed to £10-70k for Car leases

I don't think this is true, there are companies out there leasing TVs, white goods, audio equipment, laptops, clothes, textbooks which are all similar or less in value and I suspect depreciate as much or even more than golf clubs.

Seriously, if you need to finance a set of irons, you're not arranging a 5% pa plus investment strategy for six ton

I change clubs regularly and accept the loss (and the hassle of selling is all of three minutes online, a visit to the pro shop, or a message on a club Whatsapp group). If you can't accept the loss, keep them longer. Thankfully I'm a Titleist fanboy, so the temptation is less, as they release less frequently than most.

It's a complete non starter.

It's not about needing to, it's about how you manage your cashflow. The point is the scaling of doing this across all depreciating assets you may want to obtain, and in the fact you may have money tied up investments that penalise you for liquidating before a given term.
Although I suspect those that want shiny new clubs and previously couldn't afford them would become a target market.

Sounds like a rotton deal for the lease company to me. Plus if this actually took off second hand values would likely plummet making it an even worse deal for them.

The pricing would be based on that, I just came up with a random example, as I'm not planning to set up a business in this space. Given its done for things cheaper and with similar depreciation to golf clubs, I'm sure it's feasible.

Whether golfers want this is perhaps the bigger question, many people have an emotive desire to own things, when it's not always rational.

 

[Golf is fun]

Looks like it's actually a thing. Examples from the UK and NZ found from a 30 second google.

https://www.thegolfsubscriptioncompany.com/

https://igotgolf.com/