Did you know that you can use cryptocurrency to buy your morning coffee? If you’re short on cash, you can use it to purchase your groceries and subscription services.
For those with a large amount of cryptocurrency sitting in their digital wallet, buying a car with bitcoin is within the realm of possibility. While cryptocurrency tends to be more popular with luxury dealerships, the more standard ones are starting to get on board as well.
The question is, just because you can buy a car with your digital wallet, does that mean you should? What does the process look like? Continue reading to find out.
How Does the Process Work?
The typical car buying process involves handing over a downpayment in the form of cash or trade-in. From there, the dealership will work with you to secure financing for the rest of the vehicle.
Buying with bitcoin works a little differently. Instead of writing a check or handing over cash, you’ll use cryptocurrency.
The dealership will give you specific instructions on how to send the bitcoin. You’ll need to make sure to follow the instructions in the letter. If you send the money to the wrong digital wallet, you won’t be able to get it back.
Is It Better Than Using Cash?
As of right now, cash is still the better option. Not a lot of dealerships will allow customers to buy with bitcoin.
You can still use your crypto wallet, but you may have to visit an ATM first to turn your digital currency into physical cash.
How Do You Know If a Dealership Takes Cryptocurrency?
The best way to find out if a dealership takes bitcoin is to call and ask. You should be able to get an answer the same day.
You can also go to the dealership’s website. Some companies list the payment options they take.
Pros of Buying a Car With Bitcoin
When you dump all your bitcoin on a car, you get rid of your cryptocurrency without having to deal with a capital gains tax. You’ll also get to use your bitcoin on a physical asset. It will make investing in bitcoin feel more than worth it.
Cryptocurrency transactions are pretty fast. You’ll be able to buy your new vehicle in a matter of minutes. While credit cards and bank transfers are also quick, they’re not as safe as bitcoin because they don’t allow for the same amount of anonymity.
You may regret using all your cryptocurrency on a car and exiting the market if it suddenly rises.
On the upside, though you lost out on the gains you would have gotten if you’d stayed in the market, you’re driving around in a new car.
Everything You Need to Know About Buying With Bitcoin
There are many things that you can buy with cryptocurrency. That includes vehicles.
Buying a car with bitcoin is fast and easy if you can find a dealership that accepts it. If you can’t, you’ll have to visit a bitcoin ATM to withdraw cash.
For more information on cryptocurrency, visit the Bitcoin section of our blog.