It began as a meme about the simplified view of wealth acceleration through cryptocurrencies. Now, it’s a practical question for those with patience and plenty of crypto in their wallets: What cars can I buy with crypto, and how? Cryptocurrencies are becoming more common as a payment method in the car industry, but luxury cars still dominate the market, while everyday vehicles remain less common. Here is some useful information to guide you.
Buying Straight From the Source: Ferrari in the lead, when Lambo?
Dealers are more proactive than manufacturers with crypto solutions. You must wait and see if you want a direct relationship with Lamborghini or any other manufacturers.
Ferrari – Officially Accepting Crypto Ferrari has announced that most of its dealers in the U.S. and Europe have implemented an official crypto payment system integrated with traditional payment methods. Global expansion is expected in regions where it’s legally accepted. This is an authorized Ferrari payment system, though you will still be dealing with their official dealers.
Tesla – Close but No Car Tesla initially accepted Bitcoin as payment, but this policy has since been revoked. Dogecoin is now the only cryptocurrency accepted at Tesla, but only for merchandise and other products. This could be a precursor to accepting Dogecoin for vehicles, but no date has been set for that.
Crypto Car Marketplaces
Several platforms act as intermediaries between car buyers and dealers on an international scale. These online services are tailored for crypto purchases and accept most cryptocurrencies.
How It Works: Browse the listings, select your vehicle, and a representative will contact you to guide you through the buying process and relevant regulations. They can arrange test drives, help you reserve the vehicle, and handle payment via cryptocurrency. The platform settles the invoice with the dealership, and delivery arrangements are made either by the platform or the dealership.
Here are some of the established players:
BitCars Established in 2016, BitCars specializes in luxury, sports, and supercars with plenty of Lambos to choose from. Occasionally, you’ll find a Toyota, but only premium models.
Crypto Emporium offers a slightly better chance of finding mainstream brands like Toyota, but the focus is still on the luxury segment, with no shortage of Lambos.
CryptoAutos This marketplace has the largest supply of regular cars, though still in the upper segment. As with all these services, luxury cars dominate the listings.
Buying Directly From a Dealer
Most dealers use marketplaces to offer vehicles to crypto holders. However, there are local exceptions, primarily in the U.S., U.K., Germany, and the Middle East, where dealers focus mainly on luxury cars.
What Are the Upsides?
Speed Crypto transactions eliminate currency conversion, bank delays, and the need for intermediaries. Payments are instant, with Bitcoin transfers typically completed in minutes.
Lower Costs Crypto transactions often have lower fees than traditional bank transfers, especially for large sums. Some dealers even offer discounts for crypto payments due to cost savings.
Privacy and Security Crypto transactions offer greater privacy compared to traditional bank transfers, as they don’t require personal financial details. The decentralized nature of crypto provides security against fraud and chargebacks.
Transparency Blockchain technology ensures that crypto transactions are transparent and traceable. Smart contracts can mitigate disputes and ensure tamper-proof agreements between you and the seller.
No Intermediaries Cryptocurrencies allow direct transactions between buyer and seller, bypassing banks and financial institutions, which reduces fees and delays.
What Do I Need to Consider?
Capital Gains Tax A car purchase with crypto triggers capital gains tax if your cryptocurrency has appreciated in value during the holding period.
Vehicle Ownership Documentation Ensure that the dealer provides all necessary paperwork for vehicle registration and ownership transfer, particularly when dealing with international purchases.
Smart Contracts Verify that the dealer uses a clear, formal contract, preferably a smart contract built on blockchain technology. This can automate the release of funds once certain conditions are met.
Local regulations and import fees Be aware of local import regulations, taxes, and duties. For example, regardless of your payment method, VAT must be paid in your country of residence for a new car imported from another EU country. For used cars, VAT is typically paid in the export country.
OK, So Where’s the Lambo?
Here are your options: Get your Lambo at Crypto Emporium, BitCars, or CryptoAutos. If you prefer to deal directly with an authorized dealer, check out Automobili Lamborghini Milano in Switzerland or Lamborghini Newport Beach if you’re in the U.S.
For cryptocurrency to become a regular payment method in car retail, authorities need to create clearer directives, and dealers need to adopt trustworthy crypto payment services like Quickbit. Get in touch!