Published on July 3rd, 2020 | by Alycia Gordan0
Using Bitcoins To Buy A Car: Here Are 6 Things You Should Know
Ah, the indescribable thrill of driving a luxury car! The sleek exterior, coupled with the extravagant interior is something that everyone dreams of.
But the delight of purchasing your very own luxury vehicle tops it all. You don’t want anything to put a damper on the entire car-buying process, from browsing online to the test driving to making the payment. You just want to find the perfect set of wheels and drive away.
However, this doesn’t have to feel like a dream. Technological advancements are making this simpler than you can imagine. And now, with the worldwide acceptance of cryptocurrency, making payments across the globe couldn’t be easier- and safer.
Though once considered a convenient option for remote payments, digital currencies are currently proving to be more critical than ever. They’ve become increasingly more accessible and more valuable over the years.
The few last weeks saw a 72% surge in the use of fintech apps in Europe, says marketwatch.com. With the risk of potentially handling virus-infected physical currency during the corona pandemic, people are ready to incorporate new ways to adapt to the new normal. So the COVID-19 outbreak has shown the demand- and need- of digital money as a safe-to-use alternative.
Buying a car with Bitcoin
Crypto investors and traders have access to large sums of money. And Bitcoin, among others such as Ethereum, Litecoin, and BitcoinCash, is one of many preferred digital currencies. And lately, it’s become a popular form of money that people are using it to purchase just about anything, including a new car.
However, as a crypto enthusiast, there are just a couple of things that you should be aware of before going down that path.
1. Make sure you have enough tokens in a digital wallet
This may sound like a no brainer, but you have to realize that the crypto market is volatile. The value of any given token fluctuates throughout the day. So before you decide to make a payment, you need to make sure that you have enough money to buy a car. The amount of crypto you have should convert into the price of the vehicle (usually mentioned in fiat currency). More importantly, you don’t want to end up overpaying for the car.
You just may be able to snag a good deal by monitoring the value of Bitcoin all throughout your search for a car. Watching the price charts will let you identify the perfect moment to buy Bitcoin at a lower price and sell at a higher one.
For more on some of the best wallets, read Top 10 BEST Crypto Trading Books for New Traders (2020).
2. Find a platform that accepts Bitcoin
If you’re lucky, you might be able to find an individual selling a car in Bitcoin. But the easier way is to find online dealerships that accept bitcoins as payment. Over the years, dealerships have come to realize that there is a demand for purchasing cars with cryptocurrency.
But it’s not enough to merely find one that accepts Bitcoin as a mode of payment. You want to interact with one that is legally registered. You do not wind up being scammed.
Check out the location of the dealership on Google Maps to make sure that this business actually exists.
3. Check reviews and ratings
There are several platforms where you can purchase a vehicle with digital coins, but not all of them are the same. You need to verify that the dealer you wish to interact with is reliable and trustworthy. After all, you need a secure platform that ensures a great deal of security, whether with your assets or sensitive information.
But another cause for concern is the fact that you need a car dealer like Shaks Specialist Cars that promises to deliver a car that meets your expectations. You want to be with people who work with you to live the dream and drive the dream. So when it comes to dealing with car dealerships, be sure to read the customer reviews and ratings. This will give you a clear idea of how they do business.
Trading in Bitcoin allows individuals to trade whenever they want, irrespective of bank holidays or weekends. Therefore an established business that deals in crypto should have 24/7 customer service to help guide you through the car-buying and payment process.
4. Test drive your baby
Buying a car online sure has its perks, but nothing beats the good old test drive around the block. So whether you buy a car with cash or crypto, remember to give your vehicle a good once over. After all, it’s a considerable amount of money. The last thing you need to invest in is in a lemon.
Unless you are buying from a reputable auto dealer, check the car history as well.
5. Transfer the tokens
You have a car picked out, and everything checks out, and now you need quick and easy access to your bitcoins. Inform the cashier that you would like to pay with crypto. The fiat amount of the selected automobile will be keyed in at the POS terminal. The corresponding crypto amount will be displayed, as well.
Now it’s time to transfer your tokens, whether they are stored in a wallet or already available in the exchange. In order to get ready for the trade, you need to coordinate the necessary information with the dealership so that the funds can be transferred to their bank account. Once the cashier receives confirmation, the transaction has been successfully completed. Now it’s time to have the title transferred to your name.
You need to key in the password manually and the token amount being paid to confirm the payment. Remember, once your Bitcoins leave your wallet, it may be difficult to recover them.
6. Follow the law
When dealing with virtual currency, you need to be aware of taxable crypto transactions. This includes the sale of crypto that is
- sold for cash
- traded for another cryptocurrency
- used to buy something
Remember also that buying a car with crypto is no longer anonymous. You will have to provide personal data such as your driver’s license, insurance, and tax information.
Buying a car with Bitcoin may not altogether be much different than online payment. But the benefits of utilizing crypto sure facilitate auto transactions and make it a preferred choice for many.
As businesses realize being online is the future, their practices are now geared towards incorporating emerging technology. And Bitcoin is the natural progression of the business model.