A Sweeter Ride
Friday, August 29th, 2008
Portland credit union Unitus unveiled a new product this summer—the bicycle loan. Once approved, your new loan puts $250 – $2500 towards a brand new bicycle for a reasonable 7.99% APR. Maybe it’s the idealist in me, but I think this is brilliant. With both our economy and environment in shambles, this new microloan makes a lot of sense for the credit union and its customers.
I know I live in the alternate universe that is the Great Northwest. But what if bicycles began to claim at least some of the wasted space in the American psyche that cars have taken up for the last century? For most urbanites, cars are a largely irrational purchase based on a dash of necessity with equal parts ego, comfort and the reptilian brain. Wouldn’t it be nice to divert some of those Ice-Age impulses toward something as harmless as a bicycle?
Just imagine these scenarios:
Jeremy, a young professional just out of college withdraws all of his money from the bank and moves to the big city. After a plane ticket, apartment down payment and job-hunting expenses, he has no money left over for a car. Reluctant to add to his college debt and depressed at the thought of an hour and fifteen minute bus ride, he applies for his first loan. He’s approved and is now the proud owner of a brand new Cannondale Bad Boy Ultra.
Maria, a single waitress in her thirties, unable to afford to drive to work, trades in her ‘88 Escort for $500 and applies for a $2000 loan bicycle loan. She buys a custom-made Sweet Pea bicycle and is instantly the envy of the restaurant.
Paul, an overweight father of two, tired of public transportation, applies for a $500 bicycle loan. Thanks to his new commute, he loses 30 pounds, injects a little adventure into his life and pays off his loan in a few short months with the money he saved forgoing public transportation.
OK. I know what you’re thinking. This doesn’t address the fact that, as a population, we need to focus on buying less stuff and refashioning what we already own. What’s wrong with repairing your old bike?
The truth is, I don’t know how to begin to curb our fascination with buying new stuff. So, for now, the fact that anyone even thought a bicycle loan would be a remotely profitable product makes me happy.

