Buying a car is one of the biggest purchases you’ll probably make. Most people have to finance their vehicle and pay it off over several years. It’s no surprise that you want to find the best interest rates and monthly payments, particularly if you don’t want to fork out more than you need to for your new ride.
You’ve come to the right site if you’re wondering if can you buy a car with crypto. Let’s see how it works and whether it’s a good concept. Before making any investments, like with any financial decisions, it’s best to consult with your financial advisor.
What exactly is crypto?
Crypto, or cryptocurrency, is a decentralized form of payment that owners might theoretically use to conduct transactions. Bitcoin is the original and most widely used kind of cryptocurrency.
It remains the largest by market cap and has spurred thousands of “altcoins,” including Ethereum, Litecoin, Ripple, Solana, and others. Some cryptocurrencies are intended to be a store of value, similar to “digital gold,” while others are intended to be a medium of exchange, similar to cash, for buying and selling goods and services.
Coinbase is the largest cryptocurrency exchange in the United States. Coinbase allows you to purchase, sell, and manage hundreds of different cryptocurrencies. Merchants can utilize it as a cryptocurrency payment processor, similar to PayPal.
Can you buy a car with crypto?
Yes, cryptocurrencies such as Bitcoin can be used to purchase a vehicle.
However, it is unlikely to be as simple as purchasing or financing a car from a dealership. While you won’t be able to walk into a Ford dealership and buy a Mustang Mach-E with your digital wallet just soon, there are ways to buy a car using digital money.
How to Buy a Car Using Cryptocurrency
There are several ways to purchase a car with cryptocurrency. Some online automotive marketplaces, such as Car for Coin and BitCars, allow you to trade in cryptocurrency, typically Bitcoin, for a vehicle.
RM Sotheby’s, Vegas Auto Gallery, and Mecum Auctions are among BitPay‘s trusted partners, although you can use a BitPay card everywhere Mastercard is accepted.
There is an easy way to pay with cryptocurrency everywhere that accepts debit cards.
Crypto debit cards, such as the BitPay Mastercard and Coinbase Visa card, function similarly to traditional debit cards, but they take funds from your crypto wallet rather than your bank account.
Can you make a down payment using Crypto?
You might use a crypto debit card to make a down payment, monthly payments, and insurance payments, but it may be tough to locate a dealer who will let you buy a car outright with a debit card.
BitPay accepts Bitcoin, Ethereum, and Litecoin, as well as stablecoins like USD Coin and Binance USD and meme coins like Dogecoin and Shiba Inu.
Other crypto debit card choices include the CryptoWallet Mastercard and the Crypto.com Visa card.
A List of Vehicles That Can Be Purchased Using Crypto
While certain car shops around the country accept cryptocurrencies as payment, no manufacturers accept cryptocurrency across their entire dealer network.
Here are a few dealerships that accept cryptocurrency through payment processors like BitPay and Coinbase:
- Jeff Wyler Automotive Family – Ohio, Kentucky, and Indiana.
- Porsche Towson – Towson, Maryland
- Carriage Auto Group – Georgia and Alabama
- Lamborghini Newport Beach – Irvine, California
- BMW of Rockville – Rockville, Maryland
- Reed Jeep Chrysler Dodge – Merriam, Kansas
- Edmark Toyota – Nampa, Idaho
- Bob Moore Auto Group – Oklahoma
Tesla CEO Elon Musk has gone back and forth on allowing Bitcoin as payment at Tesla stores, but that system is still not in place as of this writing. If you want to buy a Tesla or another electric car, you might be able to find them on the crypto exchanges or car dealerships indicated above.
Is it OK to buy a car with cryptocurrencies instead of cash?
The cliche “cash is king” appears to be accurate right now.
Finding a used automobile on Facebook Marketplace, scheduling a meeting, and purchasing a vehicle is difficult to beat. Perhaps in the future, more individual sellers and dealerships will be as welcoming to bitcoins. However, cash appears to be king for the time being.
Should you buy a car now?
Anyone who has worked with digital money knows that there is a lot of danger involved with everything crypto. The value of cryptocurrencies is quite variable.
In November 2021, for example, Bitcoin reached an all-time high of approximately $68,000. With one Bitcoin, you could have purchased a new Porsche 718 Cayman. However, as of this writing, the value of Bitcoin is around $19,000. The same Bitcoin that could have purchased a Porsche less than a year ago may now be used to purchase a standard Subaru Impreza.
If you believe in cryptocurrency, buying a car with cryptocurrency such as Bitcoin could be a terrific way to put this revolutionary technology to work. It might also be entertaining to tell your pals that you got your car with Bitcoin.
How cool is that? Let me know your thoughts below.
Want to learn how to start day trading? Check out Martina’s Learn to Trade & Invest Crypto Academy platform to get access to a complete trading & investing video curriculum, trading resources, our trading community, e-mail support, and 2 Zoom lives with Martina every month. Your first month is 100% FREE!