undisputed83

My credit is about as bad as it can be... I have a cyclocross bike that can pretty much be converted into any type of bike I want it to be except for overly rugged terrain type stuff...

I live four miles from work. Everything else I need is less than a mile away. If you count my car payment, insurance, and gas money every week... I probably spend $500 a month on my car... and I've always been passionate about biking. What should I do?

c.miller64

Sell the car.
If you owe more than you can get for it, man up and cover the difference.

undisputed83

Easier said than done my friend...

yarb

Five hundred a month on something you have no use for is nuts. If you can't sell it, give it up. If things got really bad you could even sell the bike too, with a mere four-mile commute and everything else close-by.

undisputed83

Sell my bike?!?!

wunderkind

Sell everything. Move back to your parents and get your finance in order. Stop reading this forum after you read this message. Don't even be tempted to reply. Bad credit remains with you for years.

undisputed83

Getting rid of my car pretty much would get my finances in order...

hopperja

+1 c.miller64. Easy or not, you got yourself into the mess, now you should take responsibility for it. The right thing is not always the easy thing.

exile

Can you trade in the car for one with lesser payments. If not, try and return it. If you really need one save up and buy a used one. Don't let your credit continue to get worse.

91MF

apply for another creditcard elsewhere and buy a dirtbike and some other awesome stuff...

what sort of advice are you looking for here? sell the car. ride your bike or if you can't, take public transit or walk. its only 4 miles.
stop eating out. get rid of your mobile phone. etc. etc. etc.

when you have the car sold and you are riding your bike, cmon back and post a pic or ask a question. no offence, but we dont care about your credit. everybody has financial issues of some sort, and we all dont come on the commuter forum and post about them.

scroca

So what if it's not easy?

Man up and do what is right. Sell the car. Get another job. Cut spending. Be responsible. What else is there... live the life of a dead beat?

HTFU.

phillyskyline

I'm going to take a wild guess and say that the OP was asking for advice about the practicality of living car-free, rather than what to do about his credit issue. This thread might do better over in the Living Car Free forum, but I'm a newbie so what do I know.

If everything you need is within a 4 mile radius, then yes, getting rid of the car (in whatever manner you decide) is a fine choice. Just be prepared to stock up some commuting gear and essentials if you don't already have 'em, and be prepared for rainy and foul weather commutes. Living in Maine, I'm guessing you see your fair share of snow. Have a back-up plan, whether it's getting studded tires and pushing through, catching a ride with a friend, or taking the bus.

Check out some of the threads in the car-free forum. I'm new to the whole car-free thing too, but it's been really helpful to read everything over there and see how other people deal with common barriers/issues.

agarose2000

Even with your bad credit score, if you're <30, you should try to show some reponsibility starting NOW, and not dig yourself into a deeper hole. At that age, you can still dig yourself out, and you definitely will not regret it down the road.

If you're older, you might have to actually declare bankruptcy at some point to stop creditors from getting after you. And guess what - you'll then have to start the hard work anyway - and starting from a deeper hole than you are now. Life is doubly hard in bankruptcy as well - makes it impossible to get a credit card, rent decent apartments, and other important life things.

I'd ditch the car completely, move in with the folks for a year, and get your finances together. Ride the bike the measly 4 miles to work. Even better, going car free will also limit your shopping and leisure expenditures because you'll be limited to a more local area.

truman

Say you owe $5,000 on the car and let it get repoed:
The car will be auctioned for what it will bring. Say (generously) $3,500.
You will still owe the bank $1,500 + whatever fees they care to add on for the cost of repossessing it, auctioning it, doing paperwork, et cetera. These fees can easily add another $1,000 to the amount.

emperorcezar

To sell a car you owe on, you need to do one of a few things. First thing is sell it outright. Even this can be hard as whoever you sell it to has to deal with the bank. Sometimes, if your loan bank is in your state, you can go in together to a physical branch. Otherwise it all has to be done by mail. Which means they have to trust you with the cash for x days until you get the title. Took me a month to get my title. The second thing is to get a loan to cover the difference, if you credit is bad, forget about it. This is just as hard as the previous thing.

Carmax and others can buy from you if it's worth less than you owe or you have the difference in "cash" onhand.

There's more to it, but it's quite difficult to sell a car you owe money on. It took me months and months to sell.

JeremyZ

8 miles a day during a Maine winter is not going to be easy on a bike or on foot. Don't you guys get loads of snow out there? I know there are guys here on the fourm the proudly bike commute in snow, but it doesn't seem smart to me. One slip and you're under the wheels of an SUV.

Sell it, pay the difference, and get a used car before winter if possible. If this isn't doable, walk the 4 miles when conditions are terrible. Consider buying a beater bike for $30, like a Huffy BMX or something, so you don't ruin your nice bike with road salt. Or maybe a set of cross-country skis to speed up the 4 miles.

JeremyZ

In any case, I wouldn't let it get repo'd. If it is like bankruptcy, it will ruin your credit for 7 years. That may seem OK now, but it will suck a couple years from now when your credit is fixed.

Tabor

If you can't pay for your loan, then the problem is answered for you. Your car will be repossessed and sold at auction. You will owe the difference between what you owe on the loan and what you sell it for. This is called a deficiency judgement. They will be able to seize your assets to pay this judgement. This includes any and all money you have in the bank and 25% of your take home pay (unless you really don't make much) until the judgement it paid off.

If there is any way you can swing not having your car repossessed (without borrowing even more money) it would probably be worth it in the long run. Short of filing for bankruptcy or becoming homeless with no job and no assets the bank will get their money one way or another. It is better to pay it to them before they add fees for repossessing your car and selling it at auction plus more interest.

Artkansas 

We can understand. But as difficult as it may be, its easier to sell it and find some way of repaying the difference, than it is to crawl out of the credit hole of a repo.

If you are spending $500.00 on the car, and sell it, you will have about 500 bucks per month available to pay off the loan with. That should clean things up in a few months.

Easier said than done, but when done, so much easier than the alternative.

cyclezealot

If you lived in sunny Calif , I'd say automatically, yeah do it..But, then you likely have no choice... So many people have had job problems are loss of income.. Don't feel guilty should that be the case.. Do you have public transportation in your town?. I could survive without a car, my wife could not .
We bike fanatics say automatically do it.. It will be a life style change, for which you might be ready... . If you can do it, the 700 dollars a month in savings might help to get your life back together.. I'd certainly rather build up my bike fitness, than take on a second job just to hang onto a car..
Should your credit already by damaged beyond repair, would a bank repo make it all that much worse. ? Should you be concerned.

DallasSoxFan

Ever try calling the bank and dealing with them? Perhaps they'll let you sell the car and convert you to an unsecured loan on the upside down difference.

chevy42083

Tabor

You can't sell the car for less than it is worth (unless you have cash to cover the difference) because the car is collateral on the loan. You can't sell the collateral out from under the loan. You can't get the title to the car without paying off the loan, and you can't sell the car without the title.

I don't know if you could work something out with the bank or not to convert the car loan (with the car as collateral) to an unsecured personal loan. It seems like it would, in general, be a bad idea for the bank to do that sort of thing.

Cyclaholic

...and you still need to ask the question?

DallasSoxFan

Very true, but much less costly to them than having to spend the cost of repo'ing a car. A big bank wouldn't entertain it, but if the OP has a small bank with a rational decision maker that could be talked to, he might have a chance.