Go Back  Bike Forums > Bike Forums > General Cycling Discussion
Reload this Page >

Why can't we lease bicycles ?

Notices
General Cycling Discussion Have a cycling related question or comment that doesn't fit in one of the other specialty forums? Drop on in and post in here! When possible, please select the forum above that most fits your post!

Why can't we lease bicycles ?

Old 07-06-22, 02:38 PM
  #1  
CheGiantForLife
Full Member
Thread Starter
 
Join Date: Sep 2020
Posts: 236
Mentioned: 1 Post(s)
Tagged: 0 Thread(s)
Quoted: 425 Post(s)
Liked 55 Times in 30 Posts
Why can't we lease bicycles ?

Disclaimer: I do not lease, I pay cash, but is there a biz oppty here?

Some bikes cost as a car.
Why can't we lease bicycles ?
What prevents this from being a thing ?
CheGiantForLife is offline  
Old 07-06-22, 02:44 PM
  #2  
njkayaker
Senior Member
 
Join Date: Sep 2007
Posts: 13,337
Mentioned: 27 Post(s)
Tagged: 0 Thread(s)
Quoted: 3538 Post(s)
Liked 941 Times in 656 Posts
Originally Posted by CheGiantForLife View Post
Disclaimer: I do not lease, I pay cash, but is there a biz oppty here?

Some bikes cost as a car.
Why can't we lease bicycles ?
What prevents this from being a thing ?
The majority of the bicycle market, most likely, are bikes that cost < $2000. The bikes that "cost as much as a car" ($20k) is, very likely, a tiny fraction of the market for bicycles.

The bikes that cost as much as a car are being purchased by wealthy people (generally). They don't need a lease.

Part of car leases is the residual value at the end of the lease. Used bicycles don't seem to have that much value after 3 years. There's also a very well-established market for used cars.

People selling car leases have lots of experience doing that and leases are an important part of making money selling cars. Bicycle sellers have no experience selling leases. And selling leases for < $2000 might not be worth the trouble.

There's a big market for car leases. The market for bicycle leases is, very likely, much smaller.

Last edited by njkayaker; 07-06-22 at 02:52 PM.
njkayaker is offline  
Likes For njkayaker:
Old 07-06-22, 02:46 PM
  #3  
m.c. 
Full Member
 
Join Date: Aug 2015
Posts: 284
Mentioned: 1 Post(s)
Tagged: 0 Thread(s)
Quoted: 105 Post(s)
Liked 97 Times in 56 Posts
Some companies now offer financing on them but I don't see them offering leasing. The company doesn't want the old used bike back at the end of the lease term. Then then need to pay people to deal with collecting them, rehab them, etc. Hard to get back if they don't pay. A good portion of the value is in parts that are easily separated from the frame.
m.c. is offline  
Likes For m.c.:
Old 07-06-22, 02:46 PM
  #4  
Rolla
Victimless Criminal
 
Rolla's Avatar
 
Join Date: Sep 2020
Posts: 2,519
Mentioned: 11 Post(s)
Tagged: 0 Thread(s)
Quoted: 1116 Post(s)
Liked 2,703 Times in 1,202 Posts
Already a thing.

https://www.wheelease.com/
Rolla is online now  
Likes For Rolla:
Old 07-06-22, 02:48 PM
  #5  
Iride01
MotuekaCascadeChinook
 
Iride01's Avatar
 
Join Date: Jul 2017
Location: Mississippi
Posts: 11,014

Bikes: Tarmac Disc Comp Di2 - 2020

Mentioned: 42 Post(s)
Tagged: 0 Thread(s)
Quoted: 4454 Post(s)
Liked 2,976 Times in 2,074 Posts
Probably not enough people wanting to ride bikes in a price range that requires them to finance them. Additionally for those that do finance them, they probably think their bike will be the one and only bike they'll ever need.

The only thing that prevents it from being a thing is no one sees any money to be made in it that can't be more easily made elsewhere. If you can do so, then maybe you should do it.

I don't lease cars, nor do I finance them. So I doubt I'd be your customer.
Iride01 is offline  
Old 07-06-22, 02:49 PM
  #6  
Badger6
Obsessed with Eddington
 
Badger6's Avatar
 
Join Date: Jun 2013
Location: Brussels (BE) 🇧🇪
Posts: 1,262

Bikes: '16 Spesh Diverge, '14 Spesh Fatboy, '18 Spesh Epic, '18 Spesh SL6, '21 Spesh SL7, '21 Spesh Diverge...and maybe n+1?

Mentioned: 2 Post(s)
Tagged: 0 Thread(s)
Quoted: 499 Post(s)
Liked 567 Times in 347 Posts
Originally Posted by CheGiantForLife View Post
Disclaimer: I do not lease, I pay cash, but is there a biz oppty here?
No. Lack of a resale market makes this a loser for the bike companies.
Badger6 is offline  
Old 07-06-22, 02:52 PM
  #7  
njkayaker
Senior Member
 
Join Date: Sep 2007
Posts: 13,337
Mentioned: 27 Post(s)
Tagged: 0 Thread(s)
Quoted: 3538 Post(s)
Liked 941 Times in 656 Posts
Originally Posted by Rolla View Post
Not a big thing. And only, at the moment, in Southern California.

With a 10% down payment, a typical monthly payment for a $2000 bike is approximately $80 plus tax for a 12 month lease term and $50 plus tax for a 24 month lease term.
$200 + 12*80 = $1160. $200 + 24*50 = $1200. The end-of-lease purchase price is likely significantly more than $800.

Last edited by njkayaker; 07-06-22 at 03:08 PM.
njkayaker is offline  
Likes For njkayaker:
Old 07-06-22, 02:53 PM
  #8  
livedarklions
High Performance Noodler
 
livedarklions's Avatar
 
Join Date: Jun 2018
Location: New England
Posts: 13,175

Bikes: Serotta Atlanta; 1994 Specialized Allez Pro; Giant OCR A1; SOMA Double Cross Disc; 2022 Allez Elite mit der SRAM

Mentioned: 57 Post(s)
Tagged: 0 Thread(s)
Quoted: 6867 Post(s)
Liked 6,775 Times in 3,810 Posts
Originally Posted by m.c. View Post
Some companies now offer financing on them but I don't see them offering leasing. The company doesn't want the old used bike back at the end of the lease term. Then then need to pay people to deal with collecting them, rehab them, etc. Hard to get back if they don't pay. A good portion of the value is in parts that are easily separated from the frame.

I doubt the companies that finance bikes actually repo them upon default for mostly the same reasons. For one thing, repoing a car is much easier because cars are relatively easy to track down. Good luck tracing the bike when the borrower stops paying.
People don't realize that when you use a store credit card to purchase items in the store that's on the card, the store often has a PMSI on the goods, meaning they can repo them if you don't pay the credit card. The reason they don't realize it is that Best Buy and the like don't really follow through on this very often.
livedarklions is offline  
Old 07-06-22, 03:00 PM
  #9  
indyfabz
Banned.
 
Join Date: Jan 2010
Posts: 34,830
Mentioned: 202 Post(s)
Tagged: 1 Thread(s)
Quoted: 15909 Post(s)
Liked 10,152 Times in 4,950 Posts
indyfabz is offline  
Likes For indyfabz:
Old 07-06-22, 03:02 PM
  #10  
DonkeyShow
Junior Member
 
Join Date: Jul 2021
Posts: 142
Mentioned: 1 Post(s)
Tagged: 0 Thread(s)
Quoted: 67 Post(s)
Liked 90 Times in 59 Posts
How many miles do you get? New bikes are soo great...
DonkeyShow is offline  
Old 07-06-22, 03:07 PM
  #11  
zandoval 
Senior Member
 
zandoval's Avatar
 
Join Date: May 2010
Location: Bastrop Texas
Posts: 3,226

Bikes: Univega, Peu P6, Peu PR-10, Ted Williams, Peu UO-8, Peu UO-18 Mixte, Peu Dolomites

Mentioned: 5 Post(s)
Tagged: 0 Thread(s)
Quoted: 492 Post(s)
Liked 728 Times in 478 Posts
Pretty close to our new trend of the Disposable Society...

You got the money? Hey, I'll lease ya a bike... Ba-Duh-Bump...
__________________
No matter where your at... There you are... Δf:=f(1/2)-f(-1/2)
zandoval is offline  
Old 07-06-22, 03:14 PM
  #12  
DonkeyShow
Junior Member
 
Join Date: Jul 2021
Posts: 142
Mentioned: 1 Post(s)
Tagged: 0 Thread(s)
Quoted: 67 Post(s)
Liked 90 Times in 59 Posts
Originally Posted by zandoval View Post
Pretty close to our new trend of the Disposable Society...

You got the money? Hey, I'll lease ya a bike... Ba-Duh-Bump...
I got anything you want if you got the money.
DonkeyShow is offline  
Likes For DonkeyShow:
Old 07-06-22, 03:17 PM
  #13  
m.c. 
Full Member
 
Join Date: Aug 2015
Posts: 284
Mentioned: 1 Post(s)
Tagged: 0 Thread(s)
Quoted: 105 Post(s)
Liked 97 Times in 56 Posts
Originally Posted by livedarklions View Post
I doubt the companies that finance bikes actually repo them upon default for mostly the same reasons. For one thing, repoing a car is much easier because cars are relatively easy to track down. Good luck tracing the bike when the borrower stops paying.
People don't realize that when you use a store credit card to purchase items in the store that's on the card, the store often has a PMSI on the goods, meaning they can repo them if you don't pay the credit card. The reason they don't realize it is that Best Buy and the like don't really follow through on this very often.
I couldn't see them spending the money to repo a bicycle, maybe if its a high dollar one and the condition and location are known. Usually a defaulted loan or credit card ends up in a civil suit if its a large enough debt and negative things on their credit report. I knew someone in college that kept defaulting on things, the amazing part was that there was always a company giving her more money.
m.c. is offline  
Likes For m.c.:
Old 07-06-22, 03:24 PM
  #14  
Mojo31
...
 
Join Date: Jul 2020
Posts: 7,536
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Quoted: 5715 Post(s)
Liked 3,486 Times in 1,920 Posts
Originally Posted by Badger6 View Post
No. Lack of a resale market makes this a loser for the bike companies.
That and -

No titling of bikes and therefore no way to prevent them rolling off
The return on investment would be too small and demand a very high volume of business
Bikes are toys and cars are necessities in most places

There is more money in financing a $2,000 or $3,000 bike at 15% than there is in leasing a $2,000 or $3,000 bike at 5%.
Mojo31 is offline  
Likes For Mojo31:
Old 07-06-22, 03:49 PM
  #15  
skidder
Bipsycorider
 
Join Date: Sep 2012
Location: Orange County, California
Posts: 1,441

Bikes: Why yes, I do have a few! Thank you for asking!

Mentioned: 11 Post(s)
Tagged: 0 Thread(s)
Quoted: 760 Post(s)
Liked 587 Times in 407 Posts
IF you just want to try out a bicycle see if you can rent it for a weekend. Its not too common, but I've seen it in a few branded stores (Trek, Specialized, etc). Pretty popular with hi-end sports cars. I rented a Porsche 911 for a weekend to see what it was like, and ended up not buying one. While it appealed to my 'machismo', my practical side couldn't see buying a +100 mph car when there's nowhere to (legally) drive it that fast here in Southern California, it only has two seats (usable seats), and maintenance costs were astoundingly high.
skidder is offline  
Likes For skidder:
Old 07-06-22, 04:06 PM
  #16  
Rolla
Victimless Criminal
 
Rolla's Avatar
 
Join Date: Sep 2020
Posts: 2,519
Mentioned: 11 Post(s)
Tagged: 0 Thread(s)
Quoted: 1116 Post(s)
Liked 2,703 Times in 1,202 Posts
Originally Posted by njkayaker View Post
Not a big thing. And only, at the moment, in Southern California.
I didn't say it was big, although it's also a thing in Europe and Australia. Often, companies lease a fleet for their employees.


https://www.lease-a-bike.nl/en
https://www.republicdutch.com/lease-a-bike/
https://www.lekkerbikes.com/company-ebike-lease/
https://www.o2o.be/en/

Last edited by Rolla; 07-06-22 at 04:10 PM.
Rolla is online now  
Old 07-06-22, 05:06 PM
  #17  
wolfchild
Senior Member
 
wolfchild's Avatar
 
Join Date: Feb 2008
Location: Mississauga/Toronto, Ontario canada
Posts: 7,508

Bikes: I have 3 singlespeed/fixed gear bikes

Mentioned: 22 Post(s)
Tagged: 0 Thread(s)
Quoted: 2887 Post(s)
Liked 1,642 Times in 803 Posts
Originally Posted by CheGiantForLife View Post

Some bikes cost as a car.
Why can't we lease bicycles ?
What prevents this from being a thing ?
.
Leasing involves monthly payments. Monthly payments for a bicycle is just a bad financial decision and it doesn't make any sense I would never pay monthly fees just to ride a bicycle...Pay cash and buy something that you can afford .
wolfchild is offline  
Old 07-06-22, 05:09 PM
  #18  
Racing Dan
Senior Member
 
Racing Dan's Avatar
 
Join Date: Aug 2015
Posts: 2,081
Mentioned: 9 Post(s)
Tagged: 0 Thread(s)
Quoted: 1227 Post(s)
Liked 265 Times in 177 Posts
Originally Posted by CheGiantForLife View Post
Disclaimer: I do not lease, I pay cash, but is there a biz oppty here?

Some bikes cost as a car.
Why can't we lease bicycles ?
What prevents this from being a thing ?
In Europe bike leasing is available and somewhat popular. Swapfiets is one such company, available in several countries.

https://swapfiets.co.uk/?_ga=2.10557...056.1657148933
Racing Dan is offline  
Old 07-06-22, 09:47 PM
  #19  
dedhed
SE Wis
 
dedhed's Avatar
 
Join Date: Apr 2005
Location: Milwaukee, WI
Posts: 9,039

Bikes: '68 Raleigh Sprite, '02 Raleigh C500, '84 Raleigh Gran Prix, '91 Trek 400, 2013 Novara Randonee, 1990 Trek 970

Mentioned: 34 Post(s)
Tagged: 0 Thread(s)
Quoted: 2140 Post(s)
Liked 2,166 Times in 1,339 Posts
In a large portion of this country biking is not a year round thing
dedhed is online now  
Old 07-06-22, 10:07 PM
  #20  
tkamd73 
Senior Member
 
Join Date: Dec 2015
Location: Menomonee Falls, WI
Posts: 1,594

Bikes: 1984 Schwinn Supersport, 1988 Trek 400T, 1977 Trek TX900, 1982 Bianchi Champione del Mondo, 1978 Raleigh Supercourse, 1986 Trek 400 Elance, 1991 Waterford PDG OS Paramount, 1971 Schwinn Sports Tourer, 1985 Trek 670

Mentioned: 6 Post(s)
Tagged: 0 Thread(s)
Quoted: 527 Post(s)
Liked 723 Times in 393 Posts
You never lease something, that you can just easily pay cash for.
Tim
tkamd73 is offline  
Old 07-07-22, 01:35 AM
  #21  
phughes
Senior Member
 
phughes's Avatar
 
Join Date: Mar 2011
Posts: 2,496
Mentioned: 7 Post(s)
Tagged: 0 Thread(s)
Quoted: 754 Post(s)
Liked 798 Times in 471 Posts
Can you lease a bike with a golf club carrier?
phughes is online now  
Likes For phughes:
Old 07-07-22, 04:21 AM
  #22  
Herzlos
Full Member
 
Join Date: Sep 2020
Location: Scotland
Posts: 273

Bikes: Gravel, MTB

Mentioned: 2 Post(s)
Tagged: 0 Thread(s)
Quoted: 466 Post(s)
Liked 375 Times in 209 Posts
One of mine is a lease, sorta. There's a tax free scheme in the UK where you rent the bike for 12 months and then can buy it at the end for some puny sum. It means you can get a bike for about 30% off retail, with 12 months interest free.

I've also seen a lot of ads for a kids bike leasing scheme, where for a monthly payment you get a bike that you can change whenever they grow.

There's also plenty of short-ish term hire, for up to about a month.

But really, I don't think there's that much demand, the vast vast majority of bikes being sold are under maybe $1000 (possibly $500), through retailers that already offer various credit payment schemes.
Most bikes just aren't worth enough to bother with the overhead cost of leasing them, having to potentially take them back and so on.
Herzlos is offline  
Old 07-07-22, 04:49 AM
  #23  
Sy Reene
Advocatus Diaboli
 
Sy Reene's Avatar
 
Join Date: Feb 2015
Location: Wherever I am
Posts: 7,904

Bikes: Merlin Cyrene, Nashbar steel CX

Mentioned: 12 Post(s)
Tagged: 1 Thread(s)
Quoted: 4249 Post(s)
Liked 1,221 Times in 803 Posts
Sorta on the topic of rentals, surprised it's not commonly available to rent power meter pedals.
Sy Reene is offline  
Old 07-07-22, 04:59 AM
  #24  
WhyFi
Senior Member
 
WhyFi's Avatar
 
Join Date: Jan 2010
Location: TC, MN
Posts: 38,601

Bikes: R3 Disc, Haanjo

Mentioned: 352 Post(s)
Tagged: 1 Thread(s)
Quoted: 19983 Post(s)
Liked 8,603 Times in 4,305 Posts
Originally Posted by livedarklions View Post
I doubt the companies that finance bikes actually repo them upon default for mostly the same reasons. For one thing, repoing a car is much easier because cars are relatively easy to track down. Good luck tracing the bike when the borrower stops paying.
Finding the bike would be harder, vs an auto, and taking possession of it would be harderer. Most (nice) bikes are kept inside unless they're being ridden; repo men can't B&E and they're not going to intentionally confront someone, either.
WhyFi is offline  
Likes For WhyFi:
Old 07-07-22, 05:33 AM
  #25  
Koyote
Senior Member
 
Join Date: Sep 2017
Posts: 5,327
Mentioned: 35 Post(s)
Tagged: 0 Thread(s)
Quoted: 5078 Post(s)
Liked 7,435 Times in 3,226 Posts
Why canít we lease toothbrushes?
Koyote is offline  
Likes For Koyote:

Thread Tools
Search this Thread

Contact Us - Archive - Advertising - Cookie Policy - Privacy Statement - Terms of Service - Do Not Sell My Personal Information -

Copyright © 2021 MH Sub I, LLC dba Internet Brands. All rights reserved. Use of this site indicates your consent to the Terms of Use.