With carplus, buying cars with cryptocurrency like Bitcoin is now possible in the UK. This guide covers how to use your crypto holdings to purchase a car in London. Paying with crypto gives more payment flexibility and may offer tax benefits versus selling crypto for cash. It also simplifies cross-border purchases for international buyers looking to buy cars in the UK.
Choosing the Right Dealer
The first step is finding a dealership that can accept cryptocurrency payments. While adoption is increasing, not all dealers have this capability yet. Do some research to find dealers that are setup to take crypto payments through an intermediary service.
One example is carplus. They have partnered with many car dealerships around London and the UK to facilitate crypto purchases. Check reviews and the reputation of the dealer, just like for any major purchase, to ensure a smooth experience.
Browsing Inventory
Once you’ve identified a dealer that works with crypto, you can browse their selection of cars just as you normally would. Consider factors like:
- Make and model
- Year and mileage
- Price and condition
- Features you need
If possible, test drive the car to make sure it suits your needs before making any purchase.
Arranging Payment
When you’ve settled on the car you want, confirm the price and agree on the sale with the dealer just like any normal transaction.
Then you’ll need to register as a customer with the intermediary service they work with, such as carplus. Go through their standard purchase checks and identity verification process.
Finally, the intermediary will provide details on where to send the crypto payment, along with the amount in the agreed currency like BTC.
Making the Crypto Payment
To complete the purchase, you’ll send the agreed amount of cryptocurrency like Bitcoin to the address you are provided.
The intermediary will handle exchanging the crypto to pounds and paying the dealer. If needed, you can also combine crypto with traditional payment methods like cash or financing to cover any remainder of the sale price.
Collecting the Car
Once the crypto payment is sent and the purchase finalized, the ownership of the car can be transferred to you. Schedule a time for pickup at the dealership or delivery, depending on what was arranged.
Before collecting the car, confirm with the dealer and intermediary that payment was received in full. This completes the crypto purchase process. Now you can drive away in your new car!
Conclusion
Purchasing a car with cryptocurrency is becoming a viable option, with more dealerships in London accepting crypto payments through intermediaries. The process follows the same steps as buying with cash – choosing a dealer, finding the right car, negotiating a sale price, and completing payment. Paying in crypto simply introduces the additional step of arranging the payment through a specialized intermediary service. This opens up more flexibility in how you can use your crypto asset holdings. As adoption increases, expect to see more car purchases in the UK facilitated with Bitcoin and other cryptocurrencies.
FAQs
What are the benefits of paying with crypto?
Paying with cryptocurrency provides more flexibility in using your current asset holdings directly for purchases. For some buyers, especially from overseas, there may also be tax advantages compared to first selling the crypto and converting to cash. It also simplifies international transactions.
Is it safe to send crypto to dealers?
It’s important to only send crypto payments through a reputable intermediary service that is integrated with the dealer, such as carplus. Payments should only be made after agreeing on the sale and once identity checks are cleared. Avoid sending payments to random addresses without verifying first.
How volatile is crypto when buying a car?
There is always some risk of price fluctuations with crypto between the time you agree on a sale price and when you actually make payment. This volatility risk can be minimized by completing the transaction quickly. Having a portion of the balance paid in normal cash can also hedge against major swings.
What documents or info do I need to provide?
The process of providing identification and documents should be the same as required for a normal cash purchase. You may need to go through additional verification of identity with the crypto intermediary service for anti-money laundering purposes. But overall this aligns with standard car buying.
What coins can I use for payment?
Bitcoin is the most widely accepted cryptocurrency for purchases. But many intermediaries will also support Ethereum, Litecoin, and other major coins. Check what options are available before browsing inventory so you know what you can pay with.