Why can't we lease bicycles ?
#101
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Leasing a bike only makes sense if it is considerably cheaper than buying the bike on credit. The smaller price for bicycles and the fact that the administrative costs are probably similar between a car and bike lease means that anyone offering a lease on a bike is going to have a much smaller profit margin to play with. Also, leasing out a car will also provide the company offering the lease with a significant payout at the end when the car is sold while the used bike isn't going to be worth anywhere near its purchase price. This same dynamic operates for car rentals as well--car rental companies are huge used car dealers. I doubt there's any bike rental entity that's making a significant amount of its revenue from selling the used rental bikes.
You asked the question, you obviously don't understand much of the answers. That's on you.
You understand that starting a bike leasing company like this is going to involve a pretty big capital investment?
You just posted that everyone knows leasing is "stoopid". If everyone knows that, what makes you think you should be able to get them to lease from you?
Last edited by livedarklions; 07-12-22 at 05:17 AM.
#102
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#103
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That's where the relatively low cost of the item comes in. The monthly payment on the financed amount over a few years is not going to be any higher than the probable lease payment.
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#104
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not all leases are 0$ down, so to put a down payment on a bicycle might really reduce the desirable rate of leasing.
If I were to lease out my bicycle, it'd likely require 1/2 of its value as a min down payment, maximum monthly % rate using a payment plan to pay the bicycle debt off well before the lease would expire.
If I were to lease out my bicycle, it'd likely require 1/2 of its value as a min down payment, maximum monthly % rate using a payment plan to pay the bicycle debt off well before the lease would expire.
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#105
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Leasing a bike only makes sense if it is considerably cheaper than buying the bike on credit.
Also, leasing out a car will also provide the company offering the lease with a significant payout at the end when the car is sold while the used bike isn't going to be worth anywhere near its purchase price.
Also, leasing out a car will also provide the company offering the lease with a significant payout at the end when the car is sold while the used bike isn't going to be worth anywhere near its purchase price.
Of course the bike is worth less than the car. The numbers will reflect that.
Price is irrelevant.
I can lease you a $700 cell phone.
I start with projected value after 3 years, let's say $250
Then I work the monthly numbers around that, to recoup my $450 and give me whatever target annual APY for my risk. Say $30/mo.
Yet, car leases are a thing.
Yet, car leases are a thing.
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Yes, just like a car lease. Leasing a bike will cost less than buying it on credit.
Of course the bike is worth less than the car. The numbers will reflect that.
Price is irrelevant.
I can lease you a $700 cell phone.
I start with projected value after 3 years, let's say $250
Then I work the monthly numbers around that, to recoup my $450 and give me whatever target annual APY for my risk. Say $30/mo.
The same could be said about car leases.
Yet, car leases are a thing.
The same could be said about car leases.
Yet, car leases are a thing.
Of course the bike is worth less than the car. The numbers will reflect that.
Price is irrelevant.
I can lease you a $700 cell phone.
I start with projected value after 3 years, let's say $250
Then I work the monthly numbers around that, to recoup my $450 and give me whatever target annual APY for my risk. Say $30/mo.
The same could be said about car leases.
Yet, car leases are a thing.
The same could be said about car leases.
Yet, car leases are a thing.
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#107
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#108
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https://www.moneygeek.com/auto-loans/loan-vs-lease/
Most car buyers can drive their cars for several years after the last car payment. But if you continually lease, the payments never stop. Walters says that leasing several cars over the years is almost always more expensive than buying a car. "If you had bought, you'd be closer to the end of your car payments, instead of starting over," he says.
Put another way, the ability to easily sell the car after the lease is an essential part of the car leasing business. (The used car market exists even without leasing.)
A lease needs to provide a profit over the depreciation of the object. Cars have a large residual value. Bicycles, overall, don't. Thus, the cost of a bicycle lease is going to have to cover most of the full cost of a bicycle (definitely not required for cars).
Last edited by njkayaker; 07-13-22 at 09:10 AM.
#109
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#110
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Didn't get a chance to read most replies, but what I did seemed correct. I will add, sorry if this is already explained this way, that items that are normally 'leased' are items that commonly have a known depreciation and tangible value as used items, even if damaged. Bicycles are different from cars in this way - if you lease a Pinarello Dogma and the frame snaps in a crash and one of the Campy S Record shifters gets broken, the total value of what remains, or of what would become of the bike after repairs are made, would not be the same ballpark as a car that was crashed and repaired. Furthermore, repairs, along with safety and road worthiness requirements on cars are generally standardized, while bike repairs are often done by a 'shade-tree' or other unregulated/non-standardized service provider - not that that's necessarily bad, but it's not secure enough for financial institutions to think it's a good investment.
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+1. There's clearly a lot of "stupid money" being left on the table, so go get it @CheGiantForLife!
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A big part of the car lease business is the used car business. There really is not appreciable used bike business.
Bicycles are different from cars in this way - if you lease a Pinarello Dogma and the frame snaps in a crash and one of the Campy S Record shifters gets broken, the total value of what remains, or of what would become of the bike after repairs are made, would not be the same ballpark as a car that was crashed and repaired. Furthermore, repairs, along with safety and road worthiness requirements on cars are generally standardized, while bike repairs are often done by a 'shade-tree' or other unregulated/non-standardized service provider - not that that's necessarily bad, but it's not secure enough for financial institutions to think it's a good investment.
#113
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Yes, just like a car lease. Leasing a bike will cost less than buying it on credit.
Of course the bike is worth less than the car. The numbers will reflect that.
Price is irrelevant.
I can lease you a $700 cell phone.
I start with projected value after 3 years, let's say $250
Then I work the monthly numbers around that, to recoup my $450 and give me whatever target annual APY for my risk. Say $30/mo.
The same could be said about car leases.
Yet, car leases are a thing.
The same could be said about car leases.
Yet, car leases are a thing.
Of course the bike is worth less than the car. The numbers will reflect that.
Price is irrelevant.
I can lease you a $700 cell phone.
I start with projected value after 3 years, let's say $250
Then I work the monthly numbers around that, to recoup my $450 and give me whatever target annual APY for my risk. Say $30/mo.
The same could be said about car leases.
Yet, car leases are a thing.
The same could be said about car leases.
Yet, car leases are a thing.
I don't think you can make the numbers work. Quit just asserting and prove me wrong.
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#114
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+1. There's clearly a lot of "stupid money" being left on the table, so go get it @CheGiantForLife!
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#115
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It’s only the middle of July, but this mess has my vote for dumbest thread of the year. But if anyone can top it it’s the OP. No one seems to be willing to put an end to this sort of thing.
#116
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I've made tons of money leasing bibs.
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#117
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^^^ Expand your offerings to include Depends for the Dementa-Bent crowd.
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#119
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I lease it out for $40/mo for 3 years.
That's $1440 in payments.
Residual value after 3 years is $250.
I sell phone for $250
Total is $1690.
Annual Rate of Return is 19%
Finance 101
#120
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Why would anybody pay $1690 when they could pay $750?
$1000 iPhone purchased (not leased) at $28/month over 3 years. This leaves the owner with a phone worth $250 after 3 years.
https://www.verizon.com/business/pro...-iphone-13-pro
Last edited by njkayaker; 07-14-22 at 10:21 AM.
#121
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