The crypto market is worth trillions of dollars, which is why many more people are looking to buy, sell and invest in this digital currency. You can use it in different markets, for instance, in sports, wagering on college football picks.
If you were an early investor in crypto like Ethereum and bitcoin and held on to the coin when it first came out, you’ve likely built up substantial value within crypto. While it cost Laszlo Hanyecz 10,000 bitcoins to purchase two pizzas in 2010, a single bitcoin is now worth over $30,000 in 2022 and can get you your choice of car.
If you are considering buying your dream car, you can as well buy and pay with crypto coins, as many car dealers now accept payment in these virtual currencies—-bitcoin, Ethereum, and done dogecoins.
But before making payments using crypto, there are things you should be aware of and consider, and we’ll be discussing those things in this article.
Dealers Accepting Crypto for Car Purchases
One of the first things to consider when you’ve decided to get a new car is to check out for dealers or merchants accepting payments in cryptocurrency.
You can research whether a car dealership accepts bitcoin or other crypto coins like Ethereum, Solana, etc., as payment for purchasing a car. One of the fastest methods to find out is by calling dealerships in your location. The salesperson may have to ask management, but answers are usually prompt.
If calling them might seem like a delay as time is critical when purchasing with crypto, you can easily check car dealership websites to find out if they accept bitcoin and other coins as payment.
Your location plays a vital role when considering buying a car with crypto. Some car dealers across the country may accept or decline cryptocurrency. Most manufacturers do not accept crypto across their whole dealer network. Before deciding to purchase, ensure you do your due diligence. Here are some cars you can pay for using crypto:
Nissan: A Nissan dealership in Florida accepts $5,000 as down payments with the virtual currency, DogeCoin.
Toyota: You have to be located in the United States or any other European country before you can pay with cryptocurrency when buying a Toyota car.
Tesla: When Elon Musk Tweeted in May 2021 that Tesla can now be purchased with bitcoin, it made headlines as this means more crypto enthusiasts can now pay using their virtual currency.
Pros and Cons of Using Crypto to Buy Cars
When purchasing any item, there are pros and cons that one has to consider before making payments. However, ensuring that the pros outweigh the cons makes it a good purchase. Below are some of the pros and cons of using crypto to buy cars:
- Cryptocurrency is widely accepted, providing buyers with more options while simultaneously providing sellers with more sales opportunities.
- Every transaction is secured through authentication processes.
- Transaction fees can be as little to none, depending on the type of exchange employed by both parties.
- If the value of the crypto used for purchase increases, you could buy a car worth more than the amount you paid in crypto.
- A mistake in the buyer’s wallet address can cost you your cryptocurrency. This can happen if you’re not careful, and once the coin has been transferred to another address, retrieving it is almost impossible.
- There are still a limited number of car merchants accepting payments in crypto.
- Car dealers may have a preferred virtual currency, which might differ from yours.
- Cryptocurrency is still highly volatile, which means you could overpay for the car if the value of the used virtual currency decreases.
Ease of Transaction
Car dealers can easily confirm transactions using cryptocurrency because transactions take less than 10 minutes to complete. The expected time may, however, depend on the cryptocurrency and the exchange platform used in transacting.
Before you purchase a car with crypto, you should be aware that it’s a volatile asset, which means prices can change in seconds, and you’ll need to transfer your payment quickly to avoid inflation of prices.
The volatile nature of the coin could either favor you or the seller. For instance, if the price of coin spikes after you purchase a car, the seller will benefit from the higher price of the cryptocurrency, and if the price decreases, the seller may experience loss, making it a good buy for you.
So, before buying, ensure you weigh all the options available to make a good choice. Either way, cryptocurrencies have tangible value. You have to decide if the advantages of buying a car with it outweigh the disadvantages.