Buying cars with crypto

[Balmain]

In some countries, paying with cryptocurrency, let alone buying a car, is completely banned. I've heard of Teslas being sold with Dogecoin. I think more examples will follow, and other car companies will engage in similar sales. I believe that some countries will eventually revise these cryptocurrency laws and allow trading. I hope so.

[NewRanger]

In some countries, paying with cryptocurrency, let alone buying a car, is completely banned. I've heard of Teslas being sold with Dogecoin. I think more examples will follow, and other car companies will engage in similar sales. I believe that some countries will eventually revise these cryptocurrency laws and allow trading. I hope so.

Yes, I've heard of it. As taufik123 said, in our country, this isn't yet possible because we're still bound by the law that legal tender for buying and selling cars is still using currencies specified in regulations, and buying a car with crypto isn't yet possible. However, it will be interesting to see if there will be changes and regulations regarding this in the future if the government changes its view and allows trading.

Even if we really want to buy, the most we can do is withdraw the assets and convert them to fiat currency. Otherwise, there's no other way that's legally valid, legitimate ownership, and won't cause problems when processing vehicle documents later.

[wiss19]

I can find a few dealers accepting bitcoins or cryptos as a payment mode but those dealers mostly deal with used cars. I don't think showrooms will think about integrating bitcoins as a payment method because of taxation as you said but used car dealers will always have this option because they can even save some on tax if they are dealing completely in bitcoins.

I would love buying a car with bitcoins but not a new car because I will need to show that as an expense on my balance sheet and I can't show such a big sum in bitcoins at the year end report. But I can always hide a transaction made to purchase a used car and I might not even have to show it on my year end report. I do see some local dealers interested in accepting bitcoins as a payment method but they are hesitant to accept 100% payment in cryptos. They will ask for a partial payment in fiat and remaining can be done in cryptos which will still be fine for me.

[abaeze]

Buying a car with crypto may seem a bit crazy to beginners, but it is not for experienced people, it is already happening in reality, it is just not mainstream yet and not accepting my country too . Dealerships in America, Europe, Dubai and some developed countries of the world already accept Bitcoin and in some such regions some dealerships directly accept BTC or USDT/USDC. In most cases they use processors like Binance Pay, BitPay. As a result, the dealership does not actually hold the crypto directly but after receiving the payment they convert it into FIAT. This protects the dealership from the risk of price volatility.

[ultrloa]

Buying a car with crypto may seem a bit crazy to beginners, but it is not for experienced people, it is already happening in reality, it is just not mainstream yet and not accepting my country too . Dealerships in America, Europe, Dubai and some developed countries of the world already accept Bitcoin and in some such regions some dealerships directly accept BTC or USDT/USDC. In most cases they use processors like Binance Pay, BitPay. As a result, the dealership does not actually hold the crypto directly but after receiving the payment they convert it into FIAT. This protects the dealership from the risk of price volatility.

Volatile aspects and availability would provably make it feel tricky for beginners that's why I think its not good to use for doing this kind of transaction. If they deal with Bitcoin directly maybe its good because we know how reliable Bitcoin is.

But to be honest I don't want to deal using this coins if I buy something like physical asset since for me I use that coins for investment.

That's why I want to use fiat all the time to avoid losing available funds to spend and will not get any further issues dealing with crypto on car dealers.

[Abiky]

I don't understand what you mean by large scale, but some big brands & dealers are already accepting payments using cryptocurrencies nowadays.

1. Ferrari (Car Brand)
Accepted crypto: Bitcoin (BTC), Ethereum (ETH), USDC (USDC)

2. BMW Dealerships, Bitcars, Ferris, Lamborghini Newport Beach, Post Oak Motors, Carriage Nissan & Stephen James (Dealer)
Accepted crypto: Various coins & tokens

3. Alki Motor Cars (Dealer)
Accepted crypto: Bitcoin (BTC) & Ethereum (ETH)

Cool. But these are luxury car brands. What about the others? Rich people aren't the only crypto users around. If dealerships of common brands (Ford, Toyota, Dodge, Nissan, Mitsubishi, etc) begin accepting crypto payments, that would be a true game changer. Tesla, while not a common brand (more like a mid-range brand), accepts Dogecoin payments. It did accept BTC before Elon changed its mind about it.

I understand that the volatile nature of crypto, makes car dealers think twice before accepting it as payment method. But with things like stablecoins and centralized payment processors (which immediately convert crypto to Fiat), this should no longer be a problem. Who knows? Maybe things will improve in the future. One can only hope.


P.S. By "large scale", I mean accepting crypto payments in-mass. Like every car dealership accepting it as payment method.

[Emitdama]

As taufik123 said, in our country, this isn't yet possible because we're still bound by the law that legal tender for buying and selling cars is still using currencies specified in regulations, and buying a car with crypto isn't yet possible. However, it will be interesting to see if there will be changes and regulations regarding this in the future if the government changes its view and allows trading.

Even if we really want to buy, the most we can do is withdraw the assets and convert them to fiat currency. Otherwise, there's no other way that's legally valid, legitimate ownership, and won't cause problems when processing vehicle documents later.

The only way we can buy a car with cryptos in your country will be when cryptos are accepted as a legal payment mode or are regulated in your country. This might take years but is not impossible. We can surely see a few dealers in future who will accept cryptos to sell a car. The amount to purchase a car is often big and that brings attention from the governments.

We can easily avoid paying tax when it comes to cryptos and this is a big no-no for the government agencies. If they find a way to tax all crypto transactions will be the time we can spend cryptos for these big purchases. As of now, the only option I can think about is to buy the car from a country which support cryptos so we can make the payment in cryptos but this will again bring heavy import duties which needs to be paid in fiat.

[fikrett]

Do you think govs will allow these juicy creams go away from them because you have crypto on you? I don't think so.

[Z390]

It is very possible to accept crypto or stable coin as means of settling car deals, do you not know the headaches involved in paying big amount of money using Fiat? A smart car dealer will consider this idea and I have been offered such before.
In my country the car dealer I knew is not even living here but in the US, his job is to fetch for cars and send them down to my country for him manager to sell, my cousin who needed a car back then was offered the option to pay in USDT if he can because he complained about the daily limit on his bank account.
He would have used the option but at that time he was holding Bitcoin and he doesn't want to spend it, I had to use my bank account to complete the money up for him and he refunded me the next day, but I knew the idea was so cool that I praised the car dealer himself on that day, it still rings a bell in my head, it is something I can't forget easily.

[Jegileman]

Do you think someday we'll see dealerships accepting crypto payments at a large scale? Or is it still too early to tell? Would stablecoins be a better choice than crypto for this kind of transaction? Your input would be greatly appreciated. Thank you.

With the rate of cryptocurrency adoption in businesses, I think it should have circulated to some regions where car dealers are already accepting cryptocurrency, and not maybe Bitcoin for payment for purchase of cars. People with Bitcoin may likely want to have their coins converted to stable coins for easy conversion rate to fiat in order to sell to pay money to the sellers, this is fine as long as crypto is being used as the payment gateway. I know it will be a matter of small time where cryptocurrencies will be used in almost every sector for payment of goods and services. It is getting the mass adoption it needs and that’s what will trigger the possibility of it happening.