Why I strategically paid for a $2,000 Peloton bike with the Sapphire Reserve Card

Signing up for credit cards through partner links earns us a commission. Terms apply to the offers listed on this page. Here’s our full advertising policy: How we make money.

Update:   One or more card offers in this post are no longer available.  Check our Hot Deals for the latest offers.

My wife is obsessed with indoor cycling classes at places like SoulCycle, Flywheel, and Cycle House. But if you’ve ever been to one of these studios, you’ll know they aren’t cheap. You can pay $30 for a 45-minute class, which really adds up each month.

The monthly expense of her current workout classes is why my wife has had her eye on a Peloton bike for a while. A Peloton is an Internet-connected, indoor cycling bike, which streams live and recorded classes. It gives you the flexibility to take a class whenever you want right from home!

The bike isn’t cheap (~$2,000) and you have to pay a small monthly membership fee. But I calculated the breakeven to be a few months worth of classes at one of the studios I mentioned above. So it’s still a worthwhile purchase depending on how often you use it. And buying big-ticket items with a rewards credit card means easy ways to boost miles & points balances!

Chase Sapphire Reserve extended warranty coverage

One reason I used my Chase Sapphire Reserve® card to pay for the purchase was to earn flexible Chase Ultimate Rewards points, which I can redeem for Hyatt hotel stays and nearly First class flights. But the main reason for paying with the Sapphire Reserve was to protect my purchase with one of the card’s benefits, automatic warranty coverage.

When you shop with the Sapphire Reserve, you’ll get one extra year added to a warranty of three years or less. The Peloton comes with a one-year manufacturer warranty. So with the Sapphire Reserve coverage, I’ll have two years worth of warranty coverage. And the Sapphire Reserve covers for the amount charged to your card, up to a maximum of $10,000 per item, and no more than $50,000 per calendar year. This coverage gives me more than enough protection should something go wrong over the next 24 months. Plus, I didn’t have to pay $220 to purchase an extended warranty plan through Peloton.

Many popular rewards credit cards offer certain levels of purchase protection benefits, including many with automatic warranty coverage. But it’s important to read the terms & conditions that go along with your card’s benefits. For example, I have a Citi credit card that extends the manufacturers warranty by 24 months. However, the terms & conditions say you’re not covered for issues resulting from normal wear and tear. The Chase Sapphire Reserve doesn’t have the same exclusion, which is why I chose to use it instead of a Citi card.

Applying for a rewards credit card with solid purchase protection benefits can make a lot of sense! This way you can earn valuable rewards on a big-ticket purchase while also having peace of mind in case something goes wrong after the manufacturer’s warranty expires.