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I bought a used bike with Sram 7 gear hub and after a few weeks, the chain started falling of all the time. I took it to a bike shop and they told me that the problem is in the gear hub, that it's not working as it should and because of that, the rear wheel keeps moving out of it's place, out of the dropouts. They also told me that probably no shop here in Denmark would be willing to do the rebuild of the hub.

Is this true? The cost of a new hub is more than 50% of the price I bought the bike for, so it doesn't seem reasonable to invest any more money in it.

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While not being able to comment on internal hubs, I think your approach to considering the cost/ value of repairing the bike could be revised. While the cost of replacing the hub is 50% of what you paid for the bike, how does it compare to purchasing a replacement bike? All depends on the other components on the bike. –  DWGKNZ Oct 1 '13 at 23:30
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The last time I rebuilt an internal gear hub was when I was a kid with a Sturmey Archer 3-speed. These things are at a whole other level.

That said, it depends on you, your tools, and mechanical know-how. Most shops would not attempt it unless they are a dealer, because they would not be sure of a positive outcome.

We would need pictures to corroborate what the shops are telling you. It seems unlikely to me, although it may be the reason the bike was sold in the first place.

Anyhow, see the SRAM TECHNICAL DEALER MANUAL. Even if you don't tackle the job yourself, it mentions the Denmark distributor (hopefully they haven't changed). They may be able to help or give an opinion.

I would try to get it working. Good luck.

PS Google shows other interesting links for "Sram 7 gear hub".

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I'm very skeptical that an internal fault in the hub is causing the external mounting of it to loosen up... unless you are experiencing frequent total rear wheel lockup and skidding, maybe. I have a SRAM P5 hub that I built into an old mountain bike myself. Originally I ignored SRAM's torque instructions for the rear axle nuts and just tightened them by judgement. I have rebuilt car engines this way in the past, with no problems. But after having my rear wheel loosen up, I got out the SRAM specs and a torque wrench. Let me tell you, they specify cranking those nuts A LOT tighter than I would have thought, or dared to do without the torque wrench.

I'm also skeptical that nobody in Denmark fixes internal-gear hubs. Never been to Denmark, but thought bikes with such hubs were very popular out that way.

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