How to Buy Your Favorite Car with Bitcoin

The fact is that if you have even a nominal social media presence, you must have witnessed at least one post discussing the price of Bitcoins and other cryptocurrencies. It is the favorite topic of investment advisors these days. Just type 'how to invest in Bitcoins' on YouTube and you will find enough videos to keep you occupied for a whole day.

OK. You get it that everyone is talking about investing in Bitcoins, and how it will pay you rich rewards in the future. But once you have them, what are you going to do with them? No country has accepted Bitcoin as a legal substitute to its legal tender. It means no country has clearly said, “Ok, you can buy and sell things with Bitcoins.” So, where will you spend all these Bitcoins that internet financial advisors are imploring you to buy?

In this post, we'll show you one way you can spend these Bitcoins. Let us tell you how you can buy a car with Bitcoin.

Can I buy a car with Bitcoins?

Yes.

Buying a car with Bitcoin is still a very limited practice. It's not like you can enter your nearest car dealership and offer them to take your Bitcoins and give you a BMW. The majority of automobile manufacturers and dealers still prefer the traditional mode of payments: via cash, card, or bank transfer.

But there are clear signs that the trend is changing, and it is changing fast. For example, Tesla recently announced that it has invested $1.5 billion in Bitcoins and that it would soon begin to accept them as a payment method. So, you can get your dream car with Bitcoins but, it would take a little research to find the dealership.

Where to begin?

Your quest to finance your next car with Bitcoins starts with finding a buyer who isn't reluctant to accept them as a mode of payment. Yes, some legitimate dealers and marketplaces take Bitcoins and let you walk out with a car.

A quick Google search will bring to you a list of dealers. There are at least 40 automobile dealers in the whole world that accept crypto payments. In case you are unable to find a physical dealer nearby, you can always find a solution online.

There are online marketplaces that connect buyers with dealerships all over the world that accept crypto payments. These marketplaces allow users to view the entire stock available at the dealerships. You can sift through these cars.

Once you have found your favorite ride at a dealership, you can contact it through the marketplace to further the process.

In case, none of these marketplaces have the car of your choice, you can shift your search to websites that directly allow users to buy new and used cars and pay for them in Bitcoins. The transactions here are peer-to-peer and do not involve any authorized dealerships. These websites also allow users to place ads and sell their cars.

Got a dealer. What now?

Now the tricky business begins. Once you have found a dealer, you have to talk to them to finalize the deal. These dealerships list the prices in Bitcoins and other currencies like Dollar, Euro, Pounds, etc.

If you are buying from an online marketplace, you'll pay it to the marketplace and not the dealership. The dealership will receive their money in cash from the marketplace. The marketplace will also charge you some transaction fees. So, you need to ask them if the cost of the car is inclusive of the transaction fee or not.

However, if you're dealing directly with the dealership then you have to inform its representative about your decision to pay with Bitcoins. The sale representative will issue an invoice in your name and you have to pay the amount in Bitcoins. Since the price of Bitcoin is very volatile, the dealership might set a range for your Bitcoins in local currency to determine their value.

Found a dealer. Found my dream car, but…

People still have many apprehensions when it comes to cryptocurrencies. There are several factors to it: their volatility, legal status, anonymity, etc. so, it is understandable for your dealership to say:

"You know what, we would love to sell this car to you, but we'd like our payment in cash and not in a digital currency whose price would change before it changes hands."

In that case, you have to go through a different route to first cash your Bitcoins and then pay to the dealership. You can visit an online crypto exchange like Coinbase, etc. these forums allow users to buy and sell Bitcoins.

Once you have deposited your Bitcoins, the exchange will confirm the receipt. The next step is the transfer of fiat currency. This can be done through a bank transfer or PayPal. After you have got the cash, you can now go to the dealership and get your hands on your favorite ride.

Is it really that simple?

Paying in crypto also comes with its pitfall. You have to make sure that the dealer is authentic, and the car is in the ideal condition. The chances of scam in crypto dealing – however minimal – do exist. Since there is no intermediary to see the deal through, you have to do your due diligence to save yourself from a loss.

There are few other things you should keep in mind, including the condition of the vehicle and the transaction fee involved. It is prudent to talk to the dealership upfront about all the costs involved so that you won't be shocked when you are handed the bill.

Final words

Buying a car with Bitcoins is very simple if you can ascertain the authenticity of the dealership. Once the deal is done, and you have paid the money (read Bitcoins) you can take your wheel for a spin and enthrall in the air, just like Andy Dufresne did when he broke out of Shawshank. Yes, he broke out of jail, but you, my friend also bought a car with Bitcoin – no mean feat.

About the author

Justin is a fashion enthusiast and has the soul of a traveler. Staying atop the fashion trends, styling and grooming are etched in every fiber of his being. Not only that, but he loves to share his thoughts with a myriad of people via his blogs. You can follow him on Twitter @justcody89