Do Car Dealerships Accept Bitcoin?

While cryptocurrency has had a wild ride since its inception in 2009, several new features and companies are coming online to help back and stabilize the currency. This will make it even more palatable to retail establishments not already onboard. Companies like Bakkt will soon be trading cryptocurrency futures and ICOs backed by NYSE and Nasdaq are planning to rollout trading in early 2019.

There has been a massive increase in behind-the-scenes infrastructure to help stabilize and bolster global cryptocurrency exchange, in spite of the dire predictions of many speculators and naysayers. If you have been in the trenches mining cryptocurrency or using a successful bitcoin day trading strategy and are ready to make a major purchase, you only need to do a little research before you are able to drive home your dream car.

Outright purchase

Many retail establishments already accept currencies like Bitcoin. In the automotive world, for example, adoption of cryptocurrency is happening in fits and starts. There’s plenty of buzz surrounding luxury car dealerships that now accept bitcoin. Scattered throughout the country are dealerships with affordable vehicles that do accept bitcoin payments. It’s important to note, however, that if a dealership is able to accept Bitcoin for an outright purchase, they may pass on or even inflate corporate fees for access to bitcoin exchanges.

There are ways to avoid the pitfall of extensive dealer fees, though. One option is for you to convert your bitcoin to cash using a Bitcoin ATM, a Bitcoin-backed debit card to make the transaction, or convert your bitcoin using an exchange like Coinbase. You’ll be in control of the transaction fees rather than being subject to any fees the dealer might impose. The smartest thing to do to decide whether to pay directly to the dealer or make the conversion yourself is to call the car dealership that has the vehicle you want and ask them what their bitcoin transaction fees are.

Financing

It’s difficult for some investors to part with their hard-earned bitcoin as the lure of the next surge in value is always just around the corner. Though this represents a riskier strategy, it is now possible to obtain financing with bitcoin. But there are risks and cons to this option. Just as with cash, you may want to keep the bulk of your money in an investment vehicle so that it continues to earn you money while you drive around in your new car. The drawback is that this will cost you in fees and interest. The question is whether the potential earnings to be had on a sudden increase in bitcoin will outweigh the known costs of financing.

If your traditional credit score is low enough that you will be subject to additional fees and a higher interest rate for traditional financing, and you are trying to keep your bitcoin for as long as possible to realize a profit, this might option might appeal to you. Just be sure to read the fine print carefully.

If you have an online business and want to structure your auto purchase as a company car, there are services like Bitbond that can connect you to lenders willing to finance your next purchase with bitcoin payments. But the market volatility of cryptocurrency can make it difficult to weigh your options carefully. Also, remember that any new companies or services involved in bitcoin trading or exchange need to be vetted as carefully as possible to protect your investment.

Since all trading—especially crypto trading— is a bit of a gamble, make sure to research market trends and trading strategies as well as review your options for making a traditional type of purchase using your bitcoin funds so that you can find a way to complete your transaction at the lowest possible cost.