Reflector Guy

This, exactly. I'd feel all kinds of wrong writing those checks for the December-through-March months. I'd rather bite the bullet and buy the bike outright.

njkayaker

You didn't say it was big. You didn't say it wasn't.

Knowing it's not big is useful information.

I'd guess the OP is in the US.

Leasing for companies is another thing (it's an accounting trick). So, that doesn't seem relevant to the OP's question.

livedarklions

That isn't really leasing a single bike, it's subscribing to a bike share service. Completely different model.
Similar arrangements have been tried with cars in the US, but they really don't seem to have done well,

VegasTriker

People who give good financial advice often refer to a lease as a fleece. Car dealers love the idea as it allows them to "sell" a more expensive and profitable car or truck the buyer would never consider buying outright based on the monthly payments they could realistically afford. The dealer usually collects a pretty substantial upfront payment as well. At end of the lease you have no equity in the vehicle to apply as a down-payment for a new vehicle. If you go over the mileage limits you can get a big bill just to turn in the vehicle.

I had a neighbor who used to lease vehicles and turn them in after a few years. She always drove a newer vehicle than I did. The last time I remember her getting a new car she had to roll over a pretty hefty balance into the new lease just to get out of the old one. It's a vicious cycle where you end up paying more for the vehicle and never have any equity in what you are paying for.

njkayaker

The bike you get from "swapfeits" isn't shared with anybody.

Anyway, it kind of depends what people mean by "lease". It's basically a synonym for "rent". You can certainly rent bicycles in the US but the cost of that doesn't make sense for anything long term.

I'm assuming the OP is talking about private (not business) "car leases" applied to bicycles.

Racing Dan

Their business model may not exactly fit your definition of leasing, but it definitely isn't "bike sharing". Swapfiets have a few options renting a bike. Either short term or 6 months minimum, leasing like terms. Where I live I see them every day. I even considered getting one myself, an e-bike, to try it out.

Rolla

The mighty gatekeeper has spoken.

njkayaker

No, your comment was pretty useless, That's on you.

Oh, you also have no idea what "gatekeeping" means.

tomato coupe

A good financial advisor will tell you that leasing can be a useful tool, like mortgages, loans, lines of credit, etc.

Rolla

He asked why it wasn't a thing. I showed him that it was. I don't GAF if you approve.

GhostRider62

Leasing is somewhat more common in Europe. Leasing a high end bike or especially a velomobile has tax benefits and isn't so uncommon there. Here is one example...... I forget the others from a german forum that I frequent.


https://www.jobrad.org/

njkayaker

Make up your mind.

70sSanO

I didn’t follow all of the links, so this may already exist.

In a bike centric community where it is the primary method of transportation, I can see where leasing a bike can work. Obviously security is an issue, but I could see it as a niche industry.

Leasing a bike for just pleasure/fitness in a car centric environment probably has less of a chance to be successful since a bike is not essential.

John

m.c. 

This is all a ploy for Big Lease to infiltrate the community

livedarklions

It's not MY definition of "leasing", it doesn't fit any reasonable definition of leasing. There's no lease. This is a month-to-month "membership" fee and if the bike stops being useable for any reason, they'll just swap bikes with you.

Real leases tie you into a specific vehicle over a much longer period than a month. If you know someone who got stuck ina lease of a crappy car, you'd spot the significant and real differences between this and leasing right away.

Koyote

Depends on the circumstances -- personal vs business use, etc. Also depends on timing -- e.g., I know several people whose leases ended during the past year or two, and were able to buy the vehicles (at the predetermined contract prices) and immediately flip them (to the same dealer) at very substantial profits because used cars were so scarce.

This. It always makes me laugh when someone (usually an older male, full of wisdom) gives the advice to never borrow money for a new car. I could've paid cash for my last several cars, but always financed them. As long as the interest rate is below the S&P500's average annual rate of return, the car loan is a smart move. On our current vehicle we're paying 1.87% APR. Anyone who turns that down ought to have his head examined.

livedarklions

Quite right, all you said was that it existed. I'm skeptical that it will grow, but you just pointed to someone to watch to see if it will.
If it works, it won't fit my narrative of why it can't in the US, but I think I'll get over it.

Kayak guy will just go over and over it in circles until a mod tells him to knock it off.

livedarklions

Time your lease expiration date with the next pandemic and you're golden!

Not disagreeing with you, just think the example is maybe the best example of pure luck in timing possible.

Koyote

True, most definitely. But it supports my broader point, which is that blanket statements usually don't hold up very well.

Even more broadly, we are all willing to pay for certain conveniences: flying business class vs coach, having someone else do your yardwork, going to a restaurant vs eating at home, etc...The list is infinitely long. Some people prefer to have a new car every few years, and a lease is an easy way to get that. If a person can afford it, why not? We all do things that make little financial sense to other observers, as we all have different preferences.

livedarklions

If we were arguing, this would be the point where I'd tell you an anecdote about a car lease gone wrong.

I take your point also to be that such financial decisions are personal and situational, and no matter what they are, some element of luck is going to be involved as to how it works out.

I will make one blanket statement I think holds up very well--unless you're starting it yourself, don't go anywhere near a "multilevel marketing" scheme.

Koyote

Agreed on the pyramid schemes...Though if you ARE at the top, they're great.

I'm not sure how a car lease can go wrong, since everything is spelled out in the contract. I have hear horror stories of people who went over the mileage limits and were charged big penalties, but that's all in a contract. (Disclaimer: I've never leased a car, so there may be aspects with which I'm unfamiliar.)

livedarklions

Well, for one thing, getting divorced in the middle of the term is not really in the contract.... I have a lot of clients who suddenly find the big SUV they're leasing ain't so great for that situation, especially if it's got mechanical issues.

Joe Bikerider

It’s not really leasing but a lot of retailers are now offering POS financing. Especially online purchasers. When checking out the offer is given to make payments. I think this is really a bad idea for most people but isn’t that it in a nutshell?

CAT7RDR

Coming soon: Repo Bikeman starring Emilio Estevez as an unemployed actor that has resorted to repo-ing expired lease Treks for $50 each.

Germany_chris

If we're talking e-bike I think leasing is probably the next thing.