Bulletin
Investor Alert

New York Markets Close in:

Kelley Blue Book Archives | Email alerts

Aug. 13, 2022, 3:59 p.m. EDT

Yes, you can buy a car with crypto—here’s how

new
Watchlist Relevance
LEARN MORE

Want to see how this story relates to your watchlist?

Just add items to create a watchlist now:

  • X
    Bitcoin USD (BTCUSD)
  • X
    Ethereum USD (ETHUSD)
  • X
    Litecoin USD (LTCUSD)

or Cancel Already have a watchlist? Log In

By Eric Brandt

Whether you think cryptocurrency is just a fad or the future of finance, it’s a fascinating technology. You probably made your last car purchase with boring old dollars, but maybe the next one will be with a digital currency.

If you’re wondering if you can buy a car with cryptocurrency, you’re in the right place. Let’s take a look at how it works and whether it’s a good idea. As with all money matters, it’s best to consult your financial adviser before making any investments.

What is cryptocurrency?

Cryptocurrency is a decentralized digital asset. Created in the wake of the 2008 financial crisis, Bitcoin /zigman2/quotes/31322028/realtime BTCUSD +2.22% is the original cryptocurrency. It is still the biggest by market cap and has inspired thousands of “altcoins.” Popular alternatives are Ethereum /zigman2/quotes/108573964/realtime ETHUSD +1.24% , Litecoin /zigman2/quotes/108573968/realtime LTCUSD +1.28% , Ripple, Solana /zigman2/quotes/229898318/realtime SOLUSD +2.29% , and more. The purpose of some cryptocurrencies is to be a store of value like “digital gold.” Others intend to be a medium of exchange like cash for buying and selling goods and services.

Another type of cryptocurrency is stablecoins. Stablecoins like USD Coin /zigman2/quotes/226472410/realtime USDCUSD -0.0100% and Tether /zigman2/quotes/226258617/realtime USDTUSD -0.0100% are tied to government-issued currencies like the U.S. dollar and the euro. For example, one USDC is worth $1. Stablecoins serve as digital placeholders for real-world global currencies.

America’s largest cryptocurrency exchange is a website called Coinbase /zigman2/quotes/225893452/composite COIN +6.18% . You can buy, sell, and manage hundreds of different cryptocurrencies on Coinbase. Merchants can use it as a payment processor for crypto, similar to PayPal /zigman2/quotes/208054269/composite PYPL -0.47% .

Also see : Lost money from $4.5 million crypto wallets exploit? Here’s what you should do

How to buy a car with cryptocurrency

There are a few ways you can buy a car with cryptocurrency. Some online car marketplaces such as Car for Coin and BitCars allow you to exchange crypto — primarily Bitcoin — for a vehicle.

There is an easy way to use cryptocurrency as payment anywhere that accepts debit cards. Crypto debit cards like the BitPay Mastercard /zigman2/quotes/207581792/composite MA +0.55% and Coinbase Visa /zigman2/quotes/203660239/composite V +0.92% card work just like regular debit cards, but they draw funds from your crypto wallet rather than a bank account.

Some of BitPay’s trusted partners include RM Sotheby’s, Vegas Auto Gallery, and Mecum Auctions, but you can use a BitPay card anywhere Mastercard is accepted. You could use a crypto debit card for a down payment, monthly payments, and insurance payments, but you might have difficulty finding a dealer that lets you buy a car outright with a debit card.

BitPay supports many major cryptocurrencies like Bitcoin, Ethereum, and Litecoin, stablecoins like USD Coin and Binance USD, and even some memecoins like Dogecoin /zigman2/quotes/226077044/realtime DOGEUSD +0.70% and Shiba Inu /zigman2/quotes/231473891/realtime SHIBUSD +1.26% .

A couple of other options in crypto debit cards include the CryptoWallet Mastercard and Crypto.com Visa card.

Don’t miss: People are flipping Corvettes for profit and Chevy wants to pay them to stop

A list of dealers where you can buy with crypto

Some car dealerships across the country accept cryptocurrency as payment, but there are no manufacturers that accept crypto across their whole dealer network.

Here are a few dealerships that accept crypto via payment processors such as BitPay and Coinbase:

  • Jeff Wyler Automotive Family in Ohio, Kentucky, and Indiana

  • Carriage Auto Group in Georgia and Alabama

  • Bob Moore Auto Group in Oklahoma

  • Edmark Toyota in Nampa, Idaho

  • Lamborghini Newport Beach in Irvine, California.

  • Reed Jeep Chrysler Dodge Ram in Merriam, Kansas

  • Porsche Towson in Towson, Maryland

  • BMW of Rockville in Rockville, Maryland

  • Motor Cars of Atlanta in Atlanta, Georgia

Tesla CEO Elon Musk has gone back and forth on accepting Bitcoin as payment at Tesla /zigman2/quotes/203558040/composite TSLA +0.91%  stores, but as of this writing, that system isn’t in place. However, if you’d like to buy a Tesla or another electric car with cryptocurrency, you might find some for sale on the crypto exchanges or at car dealerships mentioned above.

Also see: Senate Crypto Bill Seeks to Regulate Trading of Bitcoin

Should I buy a car with crypto?

Anyone who’s spent time with digital currency knows a great deal of risk is involved with all things crypto. Cryptocurrency values are extremely volatile.

For example, Bitcoin hit an all-time high of nearly $68,000 in November 2021. You could have bought a new Porsche 718 Cayman with one Bitcoin. However, as of this writing, Bitcoin’s value is hovering around $20,000. That same Bitcoin that could’ve bought a Porsche less than a year ago will now get you a base Subaru Impreza.

See: Bitcoin Is Bouncing Back. Thank Mom and Pop Investors.

Since car values don’t fluctuate nearly as much as cryptocurrency values, stablecoins would be a good vehicle for paying for a car with digital currency. For example, putting USDC in a BitPay wallet and using that to make car payments is a safer way to pay for your car without worrying about the value of your crypto tanking.

If you’re a true believer in cryptocurrency, buying a car directly with crypto like Bitcoin could be a great way to put this innovative technology to use. Also, it might be fun to tell your friends you bought your car with Bitcoin.

This story originally ran on   

/zigman2/quotes/31322028/realtime
US : CoinDesk
19,914.62
+432.11 +2.22%
Volume: 0.00
Sept. 30, 2022 11:49a
loading...
/zigman2/quotes/108573964/realtime
US : Kraken
1,354.90
+16.65 +1.24%
Volume: 136.40M
Sept. 30, 2022 11:50a
loading...
/zigman2/quotes/108573968/realtime
US : Kraken
54.54
+0.69 +1.28%
Volume: 1.93M
Sept. 30, 2022 11:50a
loading...
/zigman2/quotes/229898318/realtime
US : Kraken
34.81
+0.78 +2.29%
Volume: 10.94M
Sept. 30, 2022 11:48a
loading...
/zigman2/quotes/226472410/realtime
US : Kraken
1.00
-0.0001 -0.0100%
Volume: 14.66M
Sept. 30, 2022 11:49a
loading...
/zigman2/quotes/226258617/realtime
US : Kraken
1.00
-0.0001 -0.0100%
Volume: 124.40M
Sept. 30, 2022 11:50a
loading...
/zigman2/quotes/225893452/composite
US : U.S.: Nasdaq
$ 65.77
+3.83 +6.18%
Volume: 5.37M
Sept. 30, 2022 11:50a
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$13.95 billion
Rev. per Employee
$1.55M
loading...
/zigman2/quotes/208054269/composite
US : U.S.: Nasdaq
$ 88.28
-0.42 -0.47%
Volume: 3.23M
Sept. 30, 2022 11:50a
P/E Ratio
51.27
Dividend Yield
N/A
Market Cap
$102.58 billion
Rev. per Employee
$850,388
loading...
/zigman2/quotes/207581792/composite
US : U.S.: NYSE
$ 288.35
+1.58 +0.55%
Volume: 912,151
Sept. 30, 2022 11:50a
P/E Ratio
29.37
Dividend Yield
0.68%
Market Cap
$277.13 billion
Rev. per Employee
$868,958
loading...
/zigman2/quotes/203660239/composite
US : U.S.: NYSE
$ 181.72
+1.66 +0.92%
Volume: 2.41M
Sept. 30, 2022 11:50a
P/E Ratio
28.53
Dividend Yield
0.82%
Market Cap
$372.51 billion
Rev. per Employee
$1.31M
loading...
/zigman2/quotes/226077044/realtime
US : Kraken
0.06
+0.0004 +0.70%
Volume: 804,522
Sept. 30, 2022 11:44a
loading...
/zigman2/quotes/231473891/realtime
US : Kraken
0.0000
+0.0000 +1.26%
Volume: 466,460
Sept. 30, 2022 11:50a
loading...
/zigman2/quotes/203558040/composite
US : U.S.: Nasdaq
$ 270.66
+2.44 +0.91%
Volume: 32.90M
Sept. 30, 2022 11:50a
P/E Ratio
98.81
Dividend Yield
N/A
Market Cap
$840.43 billion
Rev. per Employee
$676,463
loading...

This Story has 0 Comments
Be the first to comment
More News In
Personal Finance

Story Conversation

Commenting FAQs »

Rates »

Partner Center

Link to MarketWatch's Slice.