How to buy a car with Bitcoin (BTC)?
Buying a car with Bitcoin today is more straightforward than you think. Crypto enthusiasts can easily purchase a car using Bitcoin and take advantage of its many benefits.
Based on our extensive experience related to cryptocurrency payments, the process of buying a car with crypto is secure, fast, and cost-effective compared to traditional payment methods. Plus, there are different ways to pay for your vehicle, including through exclusive dealerships and marketplaces that accept cryptocurrency as well as BitPay or peer-to-peer transactions.
This article will provide everything you need to know about the process.
Benefits of buying a car with Bitcoin
Buying a car with Bitcoin can be advantageous for many reasons. From low fees to fast transactions, we have listed the most important advantages of buying a car with crypto:
Cash out on crypto
Purchasing a car with cryptocurrency can be an ideal way to cash out on crypto, as it allows you to exit from cryptocurrency without being subject to capital gains taxes.
This will save you from having to pay an amount for converting it from cryptocurrency back into your preferred currency, e.g., GBP or USD.
Low transaction fees
Compared to credit cards and wire transfers, Bitcoin transactions typically have significantly lower fees. This is particularly beneficial for international payments where the fees for fiat transactions are even higher.
Bitcoin transactions are decentralized and don’t involve intermediaries. BTC payments are usually finalized within 1 hour instead of days for traditional cross-border fiat payments.
When using Bitcoin to buy a car, you can rest assured that your transactions are secure. This is thanks to advanced encryption techniques and the immutable blockchain.
All transactions are recorded on the public ledger known as the blockchain, which is impossible to counterfeit or alter. This ensures that all transactions are permanent and tamper-proof. Transactions cannot be amended or deleted once they are recorded in the blockchain, making it nearly impossible for anyone to manipulate network records.
No Transaction Limits
With cryptocurrency, there are no limits as to how much can be spent on items. This makes it easy for anyone to buy a car using Bitcoin or other cryptocurrencies without the fear of having their transaction declined due to exceeding their bank account limit.
You can also buy plenty of other goods and services with Bitcoin and altcoins. Here, we have prepared a nice list of merchants that accept ETH.
Buy a car from dealerships and marketplaces that accept crypto exclusively
We at Coinlabz recommend trusting dealerships and marketplaces that accept cryptocurrency as a main payment method because they are familiar with the specifics of blockchain transactions, which leads to a faster and smoother experience. Also, during the years that we have been involved in projects related to cryptocurrency payments when it comes to buying expensive goods with Bitcoin, it is better to first check with merchants that are specialized in accepting crypto payments, not regular merchants that accept cryptocurrency just because it is trendy. Merchants that accept crypto exclusively usually are way more familiar with the process and any nuances, which, in general, leads to a better experience. Unfortunately, usually, such merchants don`t have as big an inventory of goods as their competition, but it is always worth checking.
Bitcars, a company registered in Germany, offers luxurious cars that can be purchased with Bitcoin, Ethereum, Litecoin, and other cryptocurrencies. Most of the cars are located in Europe, and they ship worldwide. Therefore, Bitcars is available to anyone with cryptocurrency and a digital wallet.
Moreover, they provide customers with the necessary documentation and export customs paperwork for their purchases. The process is straightforward: inquiries can be submitted through email or the product page online, upon which the BitCars team will search for the desired car and present offers. Furthermore, payments can be made using multiple cryptocurrencies like Bitcoin, Ethereum, Litecoin, etc.
With all these features combined, it’s clear that BitCars makes buying a car with cryptocurrency an easy process from start to finish!
Crypto Emporium is a peer-to-peer online marketplace similar to Amazon, where you can purchase cars and other goods using Bitcoin or Ethereum from other users. It opened its doors in 2018 and works together with reputable dealerships around the world so their customers can have access to a wide variety of manufacturers and models.
They provide an easy way for buyers and sellers to transact in over 125 countries using Bitcoin, Ethereum, Litecoin, Dogecoin, Binance USD, USD Coin, Wrapped Bitcoin, Pax Dollar, and Gemini Dollar.
Additionally, customer support is provided by phone or email during operating hours (Mon-Sun, 9 am-6 pm).
Here is a great video showing more about Crypto Emporium:
Cryptoexchange.com is a platform launched in 2018 that allows buyers to purchase cars with cryptocurrencies such as Bitcoin, Ether, Litecoin, and Monero. It offers buyers access to an extensive selection of cars, ranging from Ferrari and Lamborghini models, Porsche and Tesla vehicles, Rolls Royce classics, and more.
The marketplace provides a secure crypto escrow service for transactions as well as full functionality on the exchange platform. Users can have confidence that their funds will make it directly to the seller due to blockchain immutability and that any cashbacks or cancellations are impossible with this form of payment.
Furthermore, crypto escrow services guarantee delivery of the vehicle before payments are made so buyers will be sure they receive what they purchase in pristine condition before any money is exchanged.
AutoCoin Cars is a platform designed for buying and selling used cars with cryptocurrencies like Dash, Ethereum Classic, Zcash, and more. The company is located in London and has partnered with more than 100 car dealers in the UK, making it the nation’s market leader in trading cars with cryptocurrency.
Furthermore, their mission is to create an innovative marketplace that facilitates payments in the automotive industry while allowing cryptocurrency customers real-world usage for their assets. AutoCoin Cars provides exceptional customer service with transparency and integrity at its core. Their values focus on innovation, perseverance, simplicity & effectiveness as they continue to reshape how vehicles are purchased within the automotive industry.
The company offers competitive prices so you can get the vehicle you want without breaking the bank or having to wait long periods of time for funds to be transferred from one account to another. With AutoCoin Cars, you can enjoy a safe and secure car-buying experience using cryptocurrency in no time!
Buy a car with Bitcoin directly from car manufacturers and local dealerships
You can purchase your next car directly from local dealerships or even car manufacturers. Ferrari, Tesla, Bernie Moreno’s Car dealerships, Motorcars of Atlanta, and Armormax all accept Bitcoin for payment.
On 14.10.2023, Ferrari announced that they would be accepting cryptocurrency payments in the U.S.
Their decision to accept cryptocurrency payments has been driven by market demand and dealer requests. Enrico Galliera, Chief Marketing and Commercial Officer, confirmed the intentions. The company’s strong order portfolio is fully booked until 2025.
Ferrari’s aim is to connect with potential buyers beyond its usual clientele. Crypto payments will be introduced in Europe by Q1 2024, and the company plans to expand to other crypto-friendly regions in the future. Crypto transactions will be processed by Bitpay and will be done in Bitcoin, Ether, and USD Coin.
BitPay will promptly convert cryptocurrency payments into fiat currency, so dealers will not incur any additional fees or surcharges. The company is also taking steps to ensure the verification of digital currency to prevent illicit activities, as well as to be compliant with anti-money laundering and tax evasion regulations.
All Tesla products are priced in Dogecoin. When making a purchase, you need to have a Dogecoin wallet.
The payment page will provide Tesla’s wallet address for transfer. Make sure to account for any network fees that may be charged for each Dogecoin payment. You should also be aware of any transaction fees associated with your purchase and make sure that your total amount of Dogecoin is correct, or else your order may be canceled.
Additionally, note that Tesla cannot accept payments from multiple wallets for a single order, and it can take up to six hours for the Dogecoin network to confirm your payment. Finally, keep in mind that orders placed with Dogecoin cannot be cancelled or returned and Tesla only accepts this particular cryptocurrency; it won’t recognize other digital assets such as Bitcoin or Ethereum.
Jeff Wyler Automotive Family
Jeff Wyler Automotive family was founded in 1973 in the USA and has more than 20 dealerships located in Ohio, Kentucky, and Indiana.
They currently accept 12 different cryptocurrencies, including Bitcoin and Ethereum. The company made its first sale using cryptocurrency in April 2022 at a shop in Kentucky, and the payment was processed in Ethereum. They sold a S580 model of Mercedes-Benz to a buyer in Saudi Arabia.
Customers are able to pay for part of their transaction or for the full amount using one of the available cryptocurrencies they accept.
Motorcars of Atlanta
This Georgia-based dealership offers new and pre-owned exotic vehicles from various manufacturers like Aston Martin, Lotus, Rolls-Royce, Lamborghini, and Koenigsegg.
If you want to switch cars more often than not, this dealer also offers leasing services. They even have their own repair department and accept orders for vehicle parts.
MotorCars of Atlanta is a great option if you’re looking to buy an exciting car using Bitcoin or other cryptocurrencies without having to deal with private sellers or third-party financing companies.
You can trust in the safety and security of the BitPay platform as it facilitates payments made in Bitcoin, Ethereum, Bitcoin Cash, Dogecoin, Shiba Inu, Litecoin, XRP, Dai, Binance USD, USD Coin, Wrapped Bitcoin, Pax Dollar, and Gemini Dollar. This makes it easy for car sales organizations to accept cryptocurrency payments.
Armormax offers an extensive selection of vehicles from various manufacturers, including luxury models such as the Lexus LX 570 and Mercedes-Benz G 63. These vehicles are outfitted with Armormax’s compact ballistic armoring materials, which can reduce a car’s load by up to 60%. The armoring process is covert and does not alter the appearance of the vehicle.
All armoring is done using durable yet lightweight materials that provide maximum protection without compromising on performance or design. In addition to high-end cars like the Lexus LX 570 and Mercedes-Benz G 63, Armormax also offers bulletproof Chevrolet vans.
Armormax’s parent company, Global Armoring Corporation, produces some of the most advanced armored vehicles in the world. With their expertise, you can be sure that your car will be secure while still looking stylish.
Buy a car with cryptocurrency by Peer 2 Peer transaction
Purchasing a vehicle through peer-to-peer transactions with digital assets requires finding a willing seller and utilizing your preferred crypto wallet to transfer funds, ultimately simplifying the exchange process.
The process is straightforward once you find a private car seller that accepts cryptocurrency for their car. You would simply use your crypto wallet to transfer the funds to the seller and have them transfer ownership as they would in any other sale.
The advantage of using peer-to-peer transactions for purchasing cars with cryptocurrency is that it eliminates third-party intermediaries, such as dealerships or financing companies, from the transaction process. This means faster transactions and potentially lower fees.
However, it’s important to exercise caution when buying from private sellers and ensure you understand all aspects of the transaction before sending any funds.
Frequently Asked Questions
Are there any tax implications for buying a car with cryptocurrency?
Buying a car with cryptocurrency may have tax implications depending on where you live. In the U.S., for example, Bitcoin and other cryptocurrencies are treated as property for tax purposes, so gains and losses from sales of these assets must be reported to the IRS.
Additionally, any payments made in cryptocurrency could trigger sales taxes or other applicable taxes in the state where the car is purchased.
The Coinlabz team recommends talking to a professional if you have doubts about local laws to prevent yourself from getting into any trouble.
In conclusion, buying a car with Bitcoin is a process that requires some specific steps and knowledge, but it is entirely possible in this increasingly digital age. The most critical steps involve understanding the value and fluctuation of Bitcoin and finding a dealership or private seller willing to accept Bitcoin as payment. However, it is essential to remember that the volatile nature of Bitcoin can present both advantages and potential risks. The digital currency’s value can increase or decrease significantly in a short time, affecting the overall cost of your car purchase. Despite these uncertainties, the convenience, speed, and privacy of Bitcoin transactions are significant attractions for many buyers and sellers alike. As Bitcoin and other cryptocurrencies continue to evolve and become more mainstream, we may see a greater shift towards these alternative forms of payment in the automotive industry and beyond.
Zornitsa is the Editor-in-chief at Coinlabz. She is involved in researching the impact of blockchain technology and the way crypto is transforming peoples’ perceptions of finances.