Buying your dream car can be challenging, especially if it’s the first one. You might need to take a loan, as well as provide proof of your income, insurance coverage and many other documents.
However, you can make things simpler by buying your new car with cryptocurrencies. An emerging number of companies allow customers to make crypto purchases with Bitcoin, Ethereum, Litecoin and much more. If you want to see how much you’d have to spend for a
vehicle, you can check the Bitcoin price.
The transaction process isn’t complicated, but if you’re not used to crypto investing and are new to this field, you may need to do some research beforehand. That’s because you need to understand how cryptocurrency exchange apps work and find out what virtual currency is accepted by the dealership you want to work with. At the same time, you need to research the wallets available and get one suited for your needs.
Here are our tips on how to buy a car with crypto.
The advantages of buying your car with crypto
As more businesses approach cryptocurrencies, they’ve also provided benefits to clients. Therefore, the automobile industry offered customers the option to purchase their vehicles with a few selected cryptocurrencies. And there are many advantages to it.
For example, buying a car with digital coins liberates you from being subject to capital gains taxes. That means you won’t have to pay the amount for converting your official currency to cryptocurrency, which will help you save money. This provides you with an array of purchasing options so that you can also choose between more interesting car options.
Other crypto-buying benefits include safer transactions through authentication processes and low fees. Bitcoin and other alternatives have the smallest costs, some of which are close to zero, while Ethereum might be a little pricier, but there’s not really a considerable difference.
The final advantage of choosing crypto for your next car purchase might be a little more complicated. You might’ve heard that the crypto market is highly volatile, meaning that prices change rapidly and are increasing and decreasing quickly. Well, if you’re buying a car with crypto when its market values increase, you will be able to get a car worth more than what you’ve paid for in crypto, but this is more the case when you’re already a crypto enthusiast.
The downsides when making a crypto transaction
Of course, there are also downsides you need to consider. The biggest concern is precisely the volatility we’ve discussed, which can make you overpay for the car’s value if the market’s worth decreases. This is why you should make thorough research on what the crypto market requires for you to leverage its benefits fully.
At the same time, safety can be an issue, too, although blockchain technology is known to provide customers with secure transactions. This is linked to the lack of authority ruling the crypto market, which is an enormous disadvantage in this case. If you encounter an issue, you have no one to discuss it with outside the dealership business, which can’t assure you of the same price discussed previously.
Finally, given that cryptocurrency is relatively new, the number of dealerships accepting this payment form is still limited. Even those who receive it have a finite amount of cryptocurrency options. Therefore, you need to be 100% sure of this transaction because if you’re not prepared, you might lose money and not get the product you’ve wished for.
Steps to buying a car with cryptocurrency
There are a few ways to buy a vehicle through cryptocurrency transactions. For example, you can purchase from a private seller, but this might be a little more challenging, so you might want to work with a business that accepts crypto, for which you need to follow the next steps:
- Research the dealerships in your area that accept cryptocurrency payments. Although they should provide a varied array of coins, if the company allows Bitcoin or Ethereum, it’s easier for you to convert your cash;
- Research cryptocurrency exchange apps and learn how they work. Some companies only work with certain exchanges, so get that checked too. However, make sure you choose a trustworthy one;
- Select a vehicle. This might be the easiest and fun part, but know that dealerships still don’t have too many cars for sale through cryptocurrency, but the models provided might be to your liking;
- Make the transaction with the dealership and ensure you have car insurance to protect your vehicle and you as well. You might need to provide certain documents, depending on the company, but most of the time, the transaction is done anonymously;
What are some car models you can buy with crypto?
If you’re convinced to buy a new car with crypto, here are some famous models you can choose from:
- AUDI
- FORD
- BMW
- Nissan
- Tesla
- Toyota
- Porsche
- Electric vehicles
Of course, this is only a limited list. Many important brands are listed in bigger dealerships that you need to search for. But now that most cars bought with cryptocurrency are luxurious, which is self-explanatory. However, some regular people have also started to get their vehicles with crypto, which is why, besides expensive models, Toyota is among the brands preferred.
Some of these cars can be bought with less-known cryptocurrencies, such as DogeCoin. For example, if you want a Tesla, the company provides many crypto options to choose from since the company’s owner, Elon Musk, is an investor. Therefore, you need to get insight into the companies that sell vehicles and accept crypto because some might be more advantageous than others.
Bottom line
Buying a car with cryptocurrency is not difficult. Given that the trend is increasing and cryptocurrencies are more widely accepted, the future of purchasing vehicles is here! Now you can have your dream car with Bitcoin, Ethereum or Dogecoin and even get a better price than expected if you’re lucky to catch the market in a reasonable constant. Timing is money!
