Bitcoin, one of the first cryptocurrencies to enter the public domain, has gained popularity due to its rapid payments, privacy, and potential for a quick profit. Cryptocurrencies were initially designed to be an innovative payment mode, but just several years ago, it was not anticipated that 2024 would see their use for car purchases. However, people have gradually started to embrace cryptocurrencies, which are now regularly used for online purchases.
In this article, we will discuss how you can buy a car with crypto and what the benefits of this purchase are.
Benefits of Buying a Car with Crypto
Bitcoin and other cryptos, despite not being widely accepted by the general public, are increasingly used for buying high-value items, such as cars, due to their fast and secure payments, low transaction fees, the privacy of sensitive financial information, and smoother payment process compared to bank transfers.
Many buyers are crypto investors who have made significant investments, opting to buy luxury items instead of exchanging crypto for fiat. Some buyers may not have access to fiat and instead use their crypto holdings. This is especially beneficial for those who have been investing for a while and want to make their dreams come true.
The transaction process is also significantly faster with BTC, as large-value transactions often require bank investigations for anti-money laundering controls.
Bitcoin fees are super-low, regardless of transaction size. Some car dealerships offer discounts when paying with crypto, possibly due to cost-effectiveness or a positive outlook on the future of digital money.
Bitcoin allows buyers to make instant payments and sellers to receive funds within 10 minutes. This contrasts significantly with lengthy and cumbersome bank transfers or cheques, which can take longer.
Bitcoin is a global currency that offers no geographical restrictions or exchange rates, allowing anyone with sufficient funds and a digital wallet to buy and hold it. This makes Bitcoin payments accessible worldwide, enabling users to make big purchases without worrying about bank wire charges.
If you're a crypto enthusiast, crypto auto sales could be a great way to use this innovative technology. The elimination of percentage-based fees could potentially save you money on large purchases; however, finding dealerships that accept digital coin payments remains challenging.
Is It Safe to Buy a Car with Crypto?
Crypto payments are not yet widely used, and scammers are prevalent in the crypto world. Therefore, when buying a car with crypto, it's crucial to understand the safety aspect of the process. The buying process is similar for both Bitcoin and fiat money. However, online purchases should be made with caution: it is strongly recommended to choose reputable dealers, considering their track record and public reviews.
Some Issues You May Face When Buying A Car With BTC
Bitcoin is a viable option for purchasing a car, but it has several significant issues.
Volatility - Bitcoin's volatility can be advantageous or risky when purchasing large items like cars. If the value rises, you may get a good deal, but if it drops significantly, you may pay more than you should.
Limited acceptance - Despite the availability of BTC for car purchases, not all car dealers have fully embraced this technology.
Lack of purchaser’s protection - Cryptos lack buyer protection, preventing a reversal of a car purchase transaction if a mistake is made.
Vulnerability to cyber attacks - Bitcoin dealerships are a primary target for cyber attacks due to their handling of personal information and money. To protect your assets when buying a car, you should take necessary precautions, such as setting up two-factor authentication and using a strong password, and be aware of the risks involved.
Several Ways to Buy an Auto with Crypto Coins
So, how exactly can you buy a car with Bitcoin? BTC and other cryptos can be used to buy a car in various ways, with dealerships, private sellers and BTC debit cards being the most widespread.
However, before buying a car with Bitcoin, be aware of the volatility of the asset, which can cause buyer's remorse. To avoid any issues with the price of the vehicle, transfer the cryptocurrency quickly since if the price of bitcoin spikes after purchasing a car, the dealership will benefit from the higher crypto price while the buyer's vehicle decreases in value.
Also, purchasing a car with crypto directly is a taxable transaction. It means you must pay taxes on any gain above the initial payment for the currency used in the purchase. This can add unexpected extra costs to your vehicle purchase when filing your tax return.
Dealership
Car dealerships are now accepting cryptocurrency as a payment method for car purchases. Purchasing a car with cryptocurrency is similar, requiring a BTC transfer from one's cryptocurrency wallet to the dealership's wallet using established procedures.
To make a purchase, customers need a sufficient amount of crypto on their wallets and an email address. The dealership generates an invoice and sends it to the customer's email address.
Payment can be made by entering the wallet's information or scanning a QR code. The process may vary depending on the dealership's structure.
You may have the option to either purchase a car with Bitcoin at a limited number of dealerships or convert your cryptocurrency to cash at dealerships that don't accept this form of payment.
Private seller
Private sellers accepting crypto payments can be a good option for obtaining a dream car. However, it is crucial to exercise extreme caution as some sellers may not be trustworthy.
If you find an honest seller, send the cryptocurrency to the seller using your preferred wallet and let them transfer ownership to you. To safeguard your purchase, transact coins through a trusted P2P platform and consider using a platform that can hold your Bitcoins until the transaction is complete for safety.
Bitcoin Debit Card
The Bitcoin Debit Card can be used to cover all car purchase expenses, including down payments, insurance, and monthly payments. It connects to the Bitcoin wallet app, converting cryptocurrency to the fiat currency of the car seller's choice instead of withdrawing money from your bank account.
A Step-By-Step Process of Purchasing a Car with Digital Money
Bitcoin-friendly dealerships have gained popularity with buyers due to their availability and rather straightforward purchasing process. So, you might wonder: "All I need to do to buy a vehicle is go to car dealerships that accept Bitcoin near me?" However, the process is a bit more complicated. Let’s look at it in detail.
Step 1: Find a Dealership
To buy a car, research dealerships that accept crypto payments to understand their car options, restrictions, reputation, and reliability. Check the dealership's Bitcoin exchange rate, as it can affect the car's price.
Some dealerships may limit Bitcoin-based car purchases to specific brands and models. Also, check the selected dealership’s website for details on its cryptocurrency acceptance and payment process. This includes understanding the required wallet type, minimum purchase amount, and any additional fees. Also, check if the dealership has a secure payment system in place to ensure the safe processing of your Bitcoin payment.
Step 2: Browse Cars
After finding a dealer accepting crypto, research the car models, compare the dealer's asking price, and compare it in both cryptocurrency and standard currency to understand the real value of the car. Negotiate the final price with the dealer to ensure a fair transaction.
Step 3: Get a Crypto Wallet and a Crypto Transfer App
A crypto wallet is a convenient way to store, send, and receive your digital coins, acting as a bank account with a public key and private key. It can be obtained through services like Coinbase or eToro, serving as a secure and convenient storage solution.
To pay with crypto, you also need to download a secure crypto transfer app like BitPay, CoinGate, or Coinify. These apps allow easy BTC transfers from your wallet to the car dealer's wallet and vice versa. Once linked, your dealer requests payment via the app, allowing you to make the payment.
Step 4: Transfer Your Payment to The Dealer
After agreeing on a price, transfer the cryptocurrency to the dealer's wallet using your own crypto wallet. Account for transaction fees and initiate the transfer to the dealer's designated wallet address. Note that if the digital payment is transferred to an incorrect wallet, it cannot be returned.
Wait for the dealer to confirm receipt before finalising the purchase. Once the transaction is complete, you may need proof of payment to receive your car.
Step 5: Complete The Purchase
After signing the agreements, you can complete the transaction of buying a car with Bitcoin, including signing the purchase paperwork, transferring the title, and taking possession of the car.
Top 7 Car Dealers That Accept Bitcoin
Many online car dealers now accept cryptocurrencies, but it's crucial to consider the safety and credibility of a Bitcoin car dealership before making a purchase. Here are some of the most reliable venues to buy a car with crypto money.
BMW Dealerships
BMW, a German multinational corporation known for producing luxury vehicles and motorcycles, now accepts cryptocurrency payments. Car dealers in the US and UK are utilising Bitcoin payment processors to replicate the process of purchasing a new vehicle, allowing them to offer luxury goods and services to these newcomers.
This shift is beneficial as Bitcoin users tend to purchase luxury products and services with digital currencies, paving the way for more consumers to buy cars with crypto in the future. BMW is on the right track in allowing its retailers to use the future currency in their dealings.
Bitcars
BitCars, a cryptocurrency-based automobile dealer, was one of the first to accept bitcoins for online transactions. BitCars offers exotic and expensive cars from manufacturers like Mercedes-Benz, Lamborghini, Ferrari, Bentley, Audi, Rolls-Royce, and Tesla.
BitCars is a crypto-only dealership offering premium cars and unique retro vehicles, facilitating transactions with worldwide shipping and ensuring necessary paperwork. The company also provides crypto escrow services for car sales.
However, delivery times may be longer because most cars are located worldwide, mainly in Europe. Guarantees only apply to new cars, so purchasing a used car may require additional escrow services from a third party.
Ferris
Ferris Cars is a South African dealership specialising in Ferrari cars, including old models like Ferrari Testarossa and new ones like Ferrari 488 Spider. The dealership also has a workshop for Ferrari owners to fix their cars or conduct regular maintenance.
Ferris is one of the few South African merchants accepting cryptocurrencies for its products, allowing customers to buy Ferrari cars with Bitcoin, Litecoin, or Tether.
Lamborghini Newport Beach
Lamborghini Newport Beach, a major California dealership, began accepting Bitcoin as a payment method in 2013 and now offers a wide range of vehicles, including Lamborghinis, Alfa Romeo, Aston Martin, Porsche, and Ferrari. The dealership experienced a surge in car sales during the 2017 Bitcoin surge, selling 10 Lamborghinis via Bitcoin in just one month.
Lamborghini Newport Beach provides both new and used vehicles, allowing customers to arrange test drives at any time. The dealership also accepts Bitcoin, eliminating the need for cryptocurrency investors to convert Bitcoin to cash before purchasing. This makes Lamborghini Newport Beach a popular choice for Lambo enthusiasts.
Post Oak Motors
Post Oak Motor Cars is a US car dealer accepting BTC since 2018. The decision to accept cryptocurrency was influenced by employees' desire for innovation. Post Oak Motors specialises in selling luxury cars like Bentleys, Bugattis, and Rolls-Royces. They also offer less luxurious models like Mercedes and Toyota. The dealership also offers exclusive deals, such as rare Karma cars.
Both new and pre-owned cars are available for viewing online, and test drives are available for those interested. Post Oak Motor Cars accepts Bitcoin, making it easy to pay for a new vehicle using crypto. The process is quick and settled by the dealer's partner.
Carriage Nissan
Carriage Nissan, a Nissan dealer in Gainesville, Georgia, offers both new and used cars. They have partnered with Coinbase to offer Bitcoin payment options for customers. However, this method has limitations, as it cannot be used for leases or financing, and the payment must cover the all-in purchase price, including tax, tag, and title. Despite this, Carriage Nissan remains an excellent dealership for those looking to buy a Nissan car with Bitcoin at an affordable price.
Stephen James
Stephen James is a renowned UK dealership for BMW and MINI enthusiasts, operating BMW facilities and three MINI locations. Established in 1973, it became an authorised dealer in 1985, making it one of the country's top sellers. Today, customers can purchase used and modern vehicles at competitive prices, offering a wide selection of models from both brands.
The dealership also offers Bitcoin payments, allowing customers more flexibility in purchasing cars. However, the dealership does not directly accept Bitcoin payments but uses Bitpay, a service that processes these payments for the company.
Bottom Line
Cryptocurrency is revolutionising the automotive industry, offering benefits like security, speed, privacy, and lower fees. Car dealers increasingly accept cryptocurrencies as payment methods, delivering a viable alternative to fiat money. Purchasing a car with Bitcoin may seem daunting, but it's a simple process that can be completed quickly and securely.
To buy a car with crypto, find a dealer accepting your preferred currency, agree on a fair price, and transfer funds securely. However, this venture requires caution since the crypto sector is still vulnerable to price volatility hacker attacks. So, thorough research of dealerships and platforms selling vehicles for digital coins is crucial for keeping your assets safe.
