Lincoln has just gotten an old hand-me-down bicycle from Lori, but he's afraid to ride it, because it's pink, frilly, and has a custom plate she made with his name on it. Just then, a group of kid bikers, named "Papa Wheelie" (The Leader), "Flat Tire", and "Rusty Spokes", show up, and deride the bike. To avoid being teased, Lincoln claims that it's not really his bike and that "his" bike is in the shop. They fall for the lie, but the bikers want him to come by the park with his bike to show it off. After they ride away, Lincoln panic about what he'll do but he then gets an idea when Lynn returns home riding her red BMX bike. He decides that he'll "borrow" it without Lynn's knowledge, show it off to the bikers, and return it before she's finds out.
At the park, Lincoln shows up on Lynn's bike, and the bikers are so impressed, they elect him to be their new leader, much to Papa Wheelie's chagrin. Lincoln, who now dubs himself "Chain Linc", leads the bikers around town, and gains the attention and admiration of some locals, all while keeping his use of the bike a secret from Lynn. However, this doesn't last very long, because later when Lincoln and his new friends are coming back to their bikes from getting ice cream, Lincoln discovers that the bike had been stolen (which Clyde blames on his dummy, Manny, not keeping watch).
At the house, after trying to think up lies to tell Lynn as to why her bike is missing, Lincoln attempts to tell Lynn the truth but finds out from her that she plans on riding the bike in a stunt competition. Now even more afraid to tell her, Lincoln tells Lynn that he'll tune it up for her, giving himself time to search for the stolen bike. He goes around town searching for it on the pink hand-me-down bike, and the embarrassing sight of him riding it makes him lose the locals' respect. During his search, he encounters the bikers again. Decides that he can't live his lie anymore, Lincoln confesses that the pink bike is his and that the cool bike was his sister's, causing the bikers to dump him as their leader.
Finally, Lincoln confesses to Lynn what happened to her bike and she is very angry with him. When Lincoln tells her that he took it so he wouldn't have to ride Lori's hand-me-down, Lynn reveals that her bike was also a hand-me-down; it first belonged to Leni when she was a kid, then it was modified by Luna to be a punk bike with a sidecar, and again modified by Luan to be a unicycle. Lori points out to her brother that they've all experienced getting hand-me-downs, but over time they've learned to make the best of it. At first, Lincoln tries pointing that Lori, as the oldest, doesn't have to deal with getting hand-me-downs like him and the rest of their sisters, but Lori explains that she gets hand-me-downs as well—for example, the tank top she wears is actually made from an old girdle that used to belong to their mom (much to the disgust of her siblings, minus Lincoln). Lynn goes to the competition on the pink hand-me-down bike, mostly because she has no other choice. As the rest of Lincoln's sisters go back inside, they get angry about Lincoln stealing Lynn's bike, even Colonel Crackers agrees with him.
Later, Clyde comes by the house with the cool bike which his parents found while they were antiquing, and Lincoln hopes to give it to Lynn before the competition starts. Just then, Lynn comes home with the pink bike and a first-place trophy, and she tells Lincoln that she's starting to like the pink bike and that he can keep the cool bike. She is also the new leader of the biker gang, and receives the nickname "Lynn-sanity", along with becoming their leader, again to Papa Wheelie's chagrin. Afterwards, Lincoln decides to hand the cool bike down to Lana who decides to make some changes to it herself. The episode ends with Lincoln joining Clyde in riding his parents' tandem bike that was holding his hand-me-downs from his sisters. He learned that it's not about what you have, but what you do with it. Then Colonel Crackers, who was riding with them, says that the viewers should listen to what he says.