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 of course furious at him for getting her bike stolen. 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 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 out 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 the other sisters). Realizing she has no choice, Lynn goes to the competition with the pink hand-me-down bike.
Later that same day, Clyde comes by the house with the cool bike that 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 also reveals that she's the new member 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.
Sometime later, Lincoln joins Clyde in riding his parents' tandem bike, while also making good use of the hand-me-downs he got. Lincoln explains to the viewers that thanks to his sisters, he learned that when you get hand-me-downs, you've got to make the best of them (with Colonel Crackers telling the viewers to listen to him).
This episode is available on the "Welcome to the Loud House" DVD.