Cryptocurrency has inched toward the mainstream in recent years, and it’s becoming far more common for brick-and-mortar stores to accept bitcoin. That’s not true of most car dealerships, though this is starting to shift as cryptocurrency continues to scale.
We at the MarketWatch Guides team have explored bitcoin’s legitimacy as a method for buying vehicles. Our team found a few car dealerships that already accept cryptocurrency, and we’ll explain whether buying a car with bitcoin is a reasonable option.
Why Do People Use Bitcoin?
Bitcoin gained popularity as one of the first cryptocurrencies to enter the public domain. Cryptocurrencies are digital assets that rely on blockchain encryption and lack the backing of any government’s central bank. For this reason, many companies consider bitcoin and other cryptocurrencies to be somewhat risky to deal with.
Bitcoin, ethereum and other popular forms of cryptocurrency have attracted early adopters by offering rapid payments, a greater sense of privacy and the potential for a quick profit. That last point is important to note due to the general volatility of cryptocurrencies compared to the dollar. While there’s a chance that owners will make a fast profit, they could lose money just as easily.
Cryptocurrency is appealing to investors who are willing to take major risks, but companies have been hesitant to join the trend. That’s especially true of car dealerships, who have much more money to lose per transaction than the average business if cryptocurrency’s value crashes.
Why Would Someone Buy a Car With Bitcoin?
While cryptocurrency isn’t popular yet among the general public, it has an extremely loyal following. Advocates of bitcoin payments point to the following as some key benefits:
- Payments are fast and secure
- Low or no transaction fees apply
- Sensitive financial information remains private
The elimination of percentage-based transaction fees could potentially save some customers considerable money when making a purchase as large as a car. Yet while the reasons above may appeal to some, it’s still relatively difficult to find dealerships that accept cryptocurrency payments.
How To Buy a Car With Bitcoin
Despite the concerns of many car dealers, it’s possible to purchase a vehicle with bitcoin at select shops. Debit cards often act as the medium for cryptocurrency transactions, allowing users to authorize payments in bitcoin whenever they swipe. Examples of cryptocurrency debit cards include:
- BitPay Mastercard
- Coinbase Visa
- CryptoWallet Mastercard
- Crypto.com Visa
You can also send bitcoin as payment by initiating a transaction with the receiving wallet’s information. For example, BitPay lets users scan a QR code or input wallet details directly to transfer cryptocurrency funds.
In addition, many cryptocurrency providers allow consumers to convert bitcoin to fiat currencies. Some dealerships that accept cryptocurrency may require buyers to convert the transaction to dollars before completing their purchase. The remaining steps in the buying process would then look similar to those if paying in cash.
Which Dealerships Accept Bitcoin?
Cryptocurrencies remain volatile, so few dealerships are willing to risk losing money on them — especially with a purchase as large as a car. However, there are a few options that accept bitcoin:
- CarForCoin
- BitCars
- Crypto Emporium
- Import Marques
- Mecum Auctions
You’ll also find that certain local car dealerships across the U.S. accept cryptocurrency payments. This is especially true for shops that sell luxury brands like Porsche and BMW.
Many of these car dealerships use BitPay to validate all payments. Several restrict which vehicles are eligible for this payment method, so never assume that you can buy a car with bitcoin before specifically asking.
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