Car shopping can be tricky, and there is a whole slew of manners in which you can pay for your next ride. You can buy your vehicle outright, lease, finance it, or trade ride for ride with private parties online. However, with the new prevalence of cryptocurrencies like Bitcoin, you might wonder if your digital cash stash can secure you a new car. So the question remains: can you buy a car with crypto?
What is crypto?
Crypto, short for cryptocurrency, is a decentralized form of tender that owners could theoretically use to carry out transactions. Bitcoin is the founding form and the most popular version of cryptocurrency. Instead of the practice of traditionally earning currency, early Bitcoin holders could “mine” the money and store them in digital wallets. However, there are many forms of digital currency, like Litecoin, Ripple, and Ethereum.
Can you buy a vehicle with crypto?
Yes, you can buy a vehicle using cryptocurrencies like Bitcoin. However, it will likely not be as straightforward as buying or financing a car at a dealer. While you might not be able to stroll into some Ford dealerships and buy a Mustang Mach-E with your digital wallet just yet, there are methods to buy a car using your computer cash.
How do you buy a car with cryptocurrency?
You can buy a car with crypto using a handful of simple methods. According to Kelley Blue Book (KBB), purchasing a vehicle from a business that accepts debit cards is the easiest method. You can use a crypto debit card to then buy a car. In addition to physical dealerships, KBB states that many trusted auction organizations like Mecum Auctions accept cryptocurrency-based debit cars like BitPay.
Unfortunately, no automaker accepts crypto at every one of its dealerships, but some examples accept digital currencies. KBB says that multiple dealers have opted to take currencies like Bitcoin for vehicles. Furthermore, Elon Musk, founder of Tesla, has entertained the idea of crypto transactions.
Is using a cryptocurrency to buy a car better than using cash?
As of right now, the adage “cash is king” seems to be true. The convenience of finding a preowned car on Facebook Marketplace, setting up a meeting, and purchasing a vehicle is difficult to beat. Perhaps in the future, more private sellers and dealerships will welcome cryptocurrencies to the same extent. For now, though, cash seems to be king.
What can you do with crypto?
Many online stores and organizations accept cryptocurrency for goods and services. According to the New York Times, online retailers like Overstock accept crypto for transactions. So while you may not be able to buy a car at every dealership using digital currencies, you have options for your money. Still, cash seems to be the easiest way to get your hands on a new or used car for now.
Scroll down to the following article to read about car buying tips and tricks!