While it might not be as common as using traditional payment methods, more and more car dealerships are accepting cryptocurrency, such as Bitcoin, as a form of payment. Below, we explain the steps.
It’s fair to say accepting crypto as a form of payment is generally only found at independent used car dealerships like ourselves. Due to the volatility and red tape, you are unlikely to find a franchise dealership that will accept cryptocurrency.
However, by getting in touch with a dealership like ourselves here at Prestige Cars Kent, the process normally goes as follows.
Choose Your Car
Decide on the car you like, and if applicable, choose items like a Warranty or Service Plan for the desired vehicle. Then communicate with us that you would like to use bitcoin, or another cryptocurrency to check that we can accept it.
Not seen a car you want? If one of our 300+ prestige cars isn’t quite right, we source cars to specification at no extra cost!
Got a Part Exchange as well? No problem! We accept virtually any part exchange, but also can take part payment – you can use part cryptocurrency, part cash, or even finance an amount.
Prepare Your Cryptocurrency
Ensure your cryptocurrency wallet is set up and funded with the necessary amount. Obtain the dealership's cryptocurrency address, which is a unique string of characters used to receive payments. Of course, before payment it’s very important to double-check the address before sending to avoid irreversible errors.
Wait for Confirmation
Cryptocurrency transactions are recorded on a blockchain, a public ledger. The time it takes for a transaction to be confirmed can vary depending on the cryptocurrency.
Complete the Purchase
Once the transaction is confirmed, sign the necessary paperwork to complete the purchase. The V5 document will then be put in your name, identifying you as the new owner of your car. You just need to then tax and insure the vehicle to drive it away. We can also arrange delivery to your door, if you purchase from us.
Additional Considerations
Some cryptocurrencies may have transaction fees. Be aware of these fees and factor them into your calculations.
Cryptocurrency prices can of course fluctuate significantly. Consider the potential impact of price changes on the final cost of your purchase. It’s important to be ready to go once you have made your decision, so you don’t lose out.