They buy bikes out in the suburbs on the East Coast (Pennsylvania someplace, if I recall correctly), where one can actually find bikes at garage sales and whatnot on a regular basis, and rehab them for sale in the city. Yes, they're a lot more expensive than you could get the sme quality bike out in the suburbs if you could get there yourself
heh, sounds like via bicycle in philadelphia. except they pick theirs from the trash and dont bother to wash the dust off them, then sell em for a hundred bucks.