This might be the best time yet to buy a used Peloton bike
Peloton
- Now might be the best time since the start of the pandemic to buy a Peloton bike on the second-hand market.
- Listings are proliferating on Craigslist and Facebook Marketplace. One seller said, "I just want it gone."
- The second-hand market appears to be in full swing, with some bikes selling for a 50% discount.
Many former pandemic-era Peloton fans appear to be moving on from their bikes, and now might be the best time to buy one second-hand.
On a recent day, Insider spotted no fewer than 100 pages of results on Craigslist when searching for "Peloton bike" in the New York area, with some bikes listed at a significant discount. For example, one post offered a used bike in "good condition" for $250, more than 80% off of a new "Bike Basic" from Peloton, though Insider could not confirm whether the listing was legitimate.
Search results for "Peloton bike" on Facebook Marketplace and eBay similarly turn up dozens of results.
"In the past, there was an obvious price constraint, but there was also a supply constraint. We're watching both of those evaporate," said Simeon Siegel, an analyst who covers Peloton at BMO Capital Markets.
"I think it's fair to assume that we'll continue to see these listings grow, and they're no longer special, which means the price points will continue to go lower," Siegel said.
Peloton could not be immediately reached for comment.
The bike maker's fate has suffered from the US effectively returning to "normal life," despite the pandemic's recent surge that is still killing 3,000 Americans a week. As consumers started to venture out from their homes again, gym memberships and in-person classes rebounded; at-home fitness options seemed unnecessary to some.
"After things became a bit more opened up, I was realizing I enjoyed in-person gym sessions and in-person classes a lot more." said Nikilesh Eswarapu, who works in tech strategy in Manhattan. "The Peloton was a great replacement while things were remote." He recently sold his bike for $750, more than 50% below the current price of the "Bike Basic."
Peloton saw a massive surge in sales at the start of the pandemic as gyms and other fitness studios were forced to close due to the covid-19 pandemic. However, the at-home fitness company has recently been felled by slowing demand and several managerial missteps that resulted in founder John Foley stepping down as Peloton's CEO in February.
Jack, another New Yorker who works in sales and asked Insider to use only his first name, said he rode his Peloton 5 days a week for the first six months after he bought it in early 2021, but that number dwindled as people started going out more.
He said once Peloton increased its monthly subscription fee, that was the "final insult."
Jack he sold his used Peloton for $800 this week. "It's not even about the money... I just want it gone."
Demand in the second-hand market does not appear to be waning, though.
Majd Zeidan, a realtor in Philadelphia, listed his barely-used Peloton on Facebook Marketplace for $900, and got more than a dozen responses to his listing. He said someone came to pick up the bike last Friday.
from Business Insider https://ift.tt/ZrJHtAF
No comments