A friend of mine bought the bike in the pictures today at a garage sale for $25. The stickers on it say "Active Bike from Germany". I can tell it's never been used but I still don't know if anybody is familiar with this type of bike. It is 3-speed, had generator lights on the front and back, a rear rack with spring loaded clip. The derailleur is SRAM but is unlike anything I've seen before, which is why I took the picture. Umm...plastic chain guard, metal fenders, seat post and front axle suspension. I can tell everything on the bike came with it new. Just really curious to see if anybody knows anything about the bike. Thanks!

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I agree with MARK. Looks like an internal gear hub. How does it ride?
If it fits your friend then it is very a nice bike.
The picture isn't 100% clear, but it looks like a vertical dropout combined with an Internal Gear Hub (IGH). This is not uncommon, because it allows the bike manufacturers to allow an off the shelf frame. The IGH itself seems to be a standard 3 speed IGH. Nothing fancy, but it should last a long time.
I would just make sure the wheels are true and smooth rolling in the hub. Make sure the brakes are functioning properly.
Your friend could do a lot worse than this
Duppie
$25 for a bike that looks like it is equipped as the perfect Chicago commuter. Who cares if it is nice or not. Your friend scored I'd say. Now excuse me while I go out riding to some local garage sales!

Just for context, KHS sells their similarly equipped "Green" bike for > $300.
super familiar with this type of bike. you find them everywhere in germany. by law all bikes have to have lights in germany thus the generator lights. the rear hub is a sram spectro three. the plastic thing with a chain attached to it accuates the internal gear hub...if memory serves me correct it does not shift under load, so you have to stop peddeling, shift to the gear you like, and then start peddeling in order for the hub to make the shift. IGH bikes are big in the EU, and should be virtually maintaince free. if you do use this as a train bike make sure the shift cable is well lubricated. many people think the hub is messed up, when it is typically only a dry shifter cable...btw great buy for 25 bucks!
Snotbubble is right on the money. Aktiv is a popular commuter brand in Germany. Several professors at my school actually imported ones from themselves. The hub won't shift under load or movement at all which can cause confusion but requires less maintenance than a more typical geared bike. Congratulations on such a good find at a garage sale.

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