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Advice on Buying Bikes

This advice is geared primarily towards the first-time buyer. Thus it emphasizes the low-to-mid-quality bikes that are of greater interest for such people. Personal experience will then tell you whether you want to spend the money on a better bike. For more information, your best resource is anyone who has been bicycling for a while.
What does a higher price buy you?
The best part about the bike industry is that it's low markup and quite competitive, which means you don't have to run all around town looking for a sale on a bike the same way you would shop for a TV. That is, You Get What You Pay For (plus or minus $50 perhaps). Since virtually all manufacturers are buying from the same components suppliers, and the components take up by far the majority of the cost of a bike, there isn't much room for snake oil salesmen in the industry.
Also, similar quality components from different manufacturers tend to have similar prices. However, this is much less true as you get into more expensive equipment, where you are also paying for the prestige of the equipment.

Better components. This means stronger, lighter, smoother acting, more corrosion resistant, more serviceable, more interchangeable (for upgrades), better looking, higher resale value. Questions like "Should I get EX 300 or EX 400 components" no one can really answer for you; it's best just to ask your wallet and go with its recommendation. In time you'll begin to notice the finer points separating the various groups (quick release on brakes, shifter change from 7 to 8 speed freewheel, etc.), but for a first bike, don't bother much with these considerations. A great benefit of the structuring of the industry is that with only a few component manufacturers dominating the markets you can easily upgrade specific components on a bike (if you find something hindering you at a later time).
Better frame. Perhaps. A manufacturer often won't offer more than one frame in this price range (add another frame if you're talking about both mountain and road bikes) except for size differences. When compared to $150 bikes a frame on a better bike will be stronger and a few pounds lighter. (But as with cost, the components on a bike greatly outweigh a frame and thus dominate the overall bike weight.) Unless you're getting into heavy touring or racing or some other extreme activity (and you probably won't be if you're buying a first bike) the frame won't make too much difference to you.
A better bike shop. This can be critical, because whereas you won't be taking your TV back to the TV store for regular advice and tune-ups, you will be taking your bike back for regular lookovers. The difference between bike shops is often overlooked. Unless you are a largely self-sufficient mechanic (which isn't difficult, but takes specialized tools), make sure you buy from a store you can get to easily and with whom you enjoy doing business. All shops should offer you at a minimum a free 30-day checkup on the bike -- a new bike always needs minor adjustments.
A better tuned bike. All shops receive bikes in partially assembled condition; a bad shop will spend 1/2 hour assembling the bike and hand it over to you; a good shop will fine-tune lots of adjustments on the bike that are very noticeable when ignored. If you find the same bike at different shops for $50 difference in price, don't automatically buy from the cheaper store.
Bikes don't carry a lot of markup. You'll rarely see more than $100 taken off a $600 bike for a sale.

What kind of bike?
There are four main types of bikes: utility, road, mountain, and recumbant. Each type has its strengths and weaknesses; what you should buy will depend on what kind of biking you want to do.
Here I classify utility bikes as those with Sturmey-Archer-style 3-, 4-, or 5- speed rear hubs. They are perfectly adequate for short commuting trips, as they are inexpensive and typically sturdy. While common in Europe, they are generally only available here used.
If you want to ride around unpaved trails at all, buy a mountain bike, as you need its strong frame. It has fat, knobby tires and the heavy-duty componentry you'll need if you're going to spend a lot of time offroad.
If you want to bike for aerobic exercise (country rides of over an hour), you have to buy a road bike, as the riding position of a mountain bike will get too uncomfortable after a while. There are subdivisions of road bikes for different types of riding. A touring bike is designed for comfortable long-distance riding. A racing bike is designed for fast riding and quick handling, with criterium or time-trial bikes and fixed-gear bikes designed for specific kinds of racing. Their narrow tires aren't appropriate even for trails paved with crushed stone. Sport bikes are low-to-mid-priced intermediates between touring and racing bikes. Despite many people's claims that they can't take potholes and such, they can, but your body will take more of the shock.
A hybrid typically looks like a mountain bike with thinner tires and drop handlebars. Well, actually it typically has a road-bike frame, so it's perhaps best to call it a road bike with thicker tires and heavier-duty components. Some people prefer this intermediate choice, but they are not suitable for hard use off- or on-road, especially since there is no such thing as a high-end hybrid bike.
On a recumbant, the rider is in a position more like regular sitting or lying down. These bikes handle much different from the standard style of bicycles, since they are much lower and longer and have completely different frames. They take getting used to, but fans swear by them.
If you're commuting to work, your choice depends on the commute, whether you want to commute in all weather, and whether you expect to ride the bike for other uses. To commute on a road bike, you must be sure you have good quality tires to withstand the broken glass and other debris and potholes on urban streets (especially in Pittsburgh). Even the smooth mountain bike tires have little problem because they are larger and have lower air pressure. You cannot attach fenders, a near necessity for commuting in the rain, to a racing bike. Otherwise, the longer the commute, the stronger the case for a road bike.
Also, keep in mind that if you plan to commute for shopping such that the bike will be frequently left outside, you will want a bike that at least doesn't look too good. Bikes that look expensive tend to get stolen, even if locked.

Buying a Medium-Quality Bike
Early in the season, look to buy one of last year's models. This is one of the best times to get a good deal on a bike. Like the car industry, the incremental technology improvements generally aren't worth the premium you'll pay (compared to the discounted price of last year's.) The only problem is if you have weird constraints, like a very large or very small frame or a particular color, it might be tough to find a bike to match.
Make sure you take the bike on a 1/2 hour test ride. Tell the guy you'll be gone for 5 minutes, and then just don't come back for a while. Try it up hills, on fast flats, etc. Shift through all the gears. The first bike or two you do this on won't mean much; it's only after you've ridden several bikes that the differences will become apparent. As with other largish investments, don't plan on buying the first or even the second day of shopping.
It's important to have a good relationship with your bike shop, as you'll be back there often. Thus, as much as you should be looking for a bike that fits and feels well, also find a shop with friendly personnel. You might notice that some shops cater primarily to low budget (< 200) or high budget (> 800) wallets; the latter in particular might not appreciate your business. Or at least there's a shop like that in Pgh.
Don't buy any new technology that is only a couple years old. Even if the idea is good, the first few implementations are always bad, e.g., index shifting, hyperglide drivetrains, on-the-handlebar thumb shifters. This also gives some time to weed out bad ideas like non-round chainrings, e.g., Biopace or OvalTech.
The following is predicated on your buying a mountain bike. If you're going to use it primarily for commuting, then you might want to look at the tires on the bike, which are the greatest concern for commuters. Genuine off-road tires are full of hard knobs which vibrate like hell on pavement. Pavement-oriented tires will have either a motorcycle-like tread (deep grooves, but not knobs) or even a solid section of rubber down the center of the tire (leaving the sidewalls knobby for traction offroad, a decent compromise.) Such tires will make urban commuting much, much more enjoyable. A good shop will offer to switch tires on a new bike for only the difference in value of the tire. (Mountain bike tires should run $15-20 each.)
You may want to swap some parts for those more appropriate for you.
Women frequently prefer a women's saddle, which is wider and somewhat differently shaped to better fit their pelvis.
You may want to change the gearing, either higher or lower, depending on your skills and the hilliness of where you plan to ride.
If you are tall, you may need a taller handlebar stem or seatpost.
Believe it or not, any decent shop should be able to tell you all of this, and a good salesman will be willing to spend some time with you. Tell him what you want to do with the bike and let him help you out. In particular he'll give you more details on fitting the bike size.
The same bike might be $50 more at one shop than another. It might be worth it, for this reason: bike shops get bikes unassembled, or partially thrown together; the shop has to assemble the rest, and do a lot of adjusting to make sure everything works smoothly. There is a notorious variabililty in the quality of work that shops put into their new bikes. it's hard in email to give you an idea of what sort of tip-offs to look for; for the time being, just make sure everything on the bike works perfectly: shifting, braking, smooth steering, &c.: if anything's out of alignment, it might mean other, more hidden problems might show up later. And there are a lot of those that can.
All bike shops should offer a free 30-day check up, when you bring the bike back in for a check of wheel true, brake adjustment, and so on. If they don't offer even this minimal service, walk away.
Components
As emphasized before, one general rule of thumb is that more expensive components are better and are worth the money if you're willing to spend it. However, there are some choices in the style of components.
Pedals. There are three general categories. The basic pedal, a pedal with a toe-clip (basically a strap to hold your foot on the pedal), and clipless pedals. The latter two are designed to attach your foot to the pedal so that you can apply power on the upstroke as well as downstroke (actually, during the whole revolution). Toe-clips can be annoying to learn how to use, but can be used with either regular shoes or bike shoes, which are stiffer and more efficient in transferring leg power to the pedals. Clipless pedals can only be used with the appropriate bike shoes, but are easier to use and somewhat lighter than toe-clips. There are several different non-interchangable clipless systems, and it's generally best to stay with the more established ones, currently SPD and Look-style.
Chainrings. During the 80's, non-round chainrings were popular. Their advantage is that they increase the share of each pedal revolution associated with each foot's downstroke, the most powerful part of the revolution. The general conclusion is that they are mostly a bad idea, as they promote poor cycling technique. Uneven pedaling is difficult at the high cadences (rpm) that you should use, and they can be bad for your knees. However, they are ok for granny gears if you need the extra power at low cadences during hill climbing.
Shifters. On road bikes, there are currently many options in where shifters are located.
Down tube. The traditional spot. It's mildly annoying to move your hands from the handlebars.
Head tube. Avoid these at all costs. They are dangerous in an accident if you slide forward from the seat.
Handlebar ends. Some people like them, others don't. They've never really caught on enough to become standard equipment.
Integrated with the brake levers. This latest improvement is probably the best, but is still expensive.
Saddles. Ignore those cheap saddles with springs in them, they aren't comfortable for any length of time. Despite they're looks, the narrow ones are much better as they make your pelvis bone take the weight and don't chafe your moving legs. However, different saddles fit different people, so you may want to try several. Note that there are now saddles specifically for women.
Accessories
You can find alot of this stuff at a number of local resources
Here's what's needed for rides shorter than about an hour:

Pump, $15. The type will partly depend on the size and shape of the bike frame, as these have various nifty ways of getting mounted to the bike frame, and it's not entirely standardized what's the best way.
Flat kit, $2; tire irons, $3; spare inner tube, $4. The flat kit will fix multiple flats, the tube simply replaces it. The tire irons let you get the tire off and on the rim. Many places will throw in some sort of maintenance kit if you buy a bike from them; this can include all of these and more.
Helmet, $30+. There are three main types available. The old hard-shell is the strongest, but the heaviest. The new thin-shell incorporates a thinner, but sufficient, shell onto the foam padding and is just as safe and lighter. The all-foam helmets are just as safe and even lighter, but can be damaged more easily. For the most part, the foam protects you, the hard coating protects the helmet.
Only buy a helmet that is ANSI certified and/or Snell certified (Snell is a tougher certification). Be sure it is a comfortable fit to your head (some helmets are rounder; others, more oval). All helmets come with sizing pads: soft foam inserts to fit the helmet to your skull. It's a plus if these are velcro-attached instead of stick-on, so you can change them after the first try.

Eyewear, $15+. Any eyewear will do, but something is mandatory. A bug in the eye will almost certainly cause a crash if you don't have eyewear.
Many people will also need a lock and frame mount, $20 + $4. Get the big U-kind of any brand, but try to get the Rhode Gear frame mount for it--it's a lot easier to use than the clamp-down type of frame mount. A lock is usually not needed for longer pleasure rides, just the short trips around campus, shopping, etc.
For rides longer than about an hour, you'll need:

Water cage and bottle, $7 + $2. You need to drink fluids!
Bike gloves, $10-$20. They protect the nerves in your hands from your weight and road shock. They also save you from painful scape injuries when you fall.
Bike shorts, $25+. Much more comfortable for sitting on a saddle.
Bike shoes and the appropriate pedals. They limit foot flex, both protecting your foot and providing more efficient power transfer.
You may want:
Light. A must if you're riding frequently in the dark. They are more for being seen than to help you see, so the big ones are usually overkill. If you need headlights to see road hazards, you'll need at least 3 Watts. Stronger ones of 10 Watts or more are needed for night off-road riding.
Mirror. Some people like them when commuting in traffic, but others find them distracting and less useful than turning their head.
More tools.

 

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