After Elon Musk took to Twitter in March of 2021, buying cars with crypto assets became one of the central discussion points in the crypto market. The Tesla Inc. founder said that users could now purchase Tesla vehicles using Bitcoin. Although the decision was primarily for the US market, Elon Musk added that the company had plans to make this option available outside the United States later this year. Many other automobile companies took a cue from Musk’s decision; General Motors, for instance, said that it was evaluating the feasibility of Bitcoin as a mode of payment for its vehicles.
However, it did not take much time for Musk to reverse his decision. During the middle of May, he tweeted again, saying that Tesla had suspended purchasing vehicles using Bitcoin, owing to concerns over the environmental impact of Bitcoin’s energy inefficient Proof of Work (PoW) consensus mechanism.
While Tesla went back and forth on its decision to allow buying cars with crypto, it was evident that the automobile industry was already seriously contemplating cryptocurrencies as a medium of exchange or mode of payment. Carnomaly is one such sophisticated solution that leverages the technology of the blockchain to buy, sell and own a car. The question is, how? Before delving deeper into how Carnomaly works, let’s take a brief look at our history.
A Brief History of Carnomaly
Located in Plano, Texas, Carnomaly was founded by Scott Heninger in 2018. While, at a functional level, the purpose behind establishing Carnomaly was to make blockchain technology and cryptocurrency approachable and valuable for the car owner, the larger vision was to innovate the car ownership experience with superior technology.
To achieve this, Carnomaly came up with three applications: CARRchain, CarrDeFi, and Carnomaly. It also devised a native token for the platform, known as CARR. While CARR fuels the economy of Carnomaly, it also trades live on exchanges like KuCoin, LATOKEN, BitForex, Probit, etc.
Most recently, Carnomaly partnered with the National Motor Vehicle Title Information System or NMVTIS. The goal of the NMVTIS is to protect consumers from fraud while preventing unsafe or stolen vehicles from being resold. The NMVTIS also helps states and law enforcement agencies deter and prevent title fraud and other automotive related crimes. The collaboration between Carnomaly and the NMVTIS further establishes our commitment to improving the automotive industry long-term.
CarrDeFi: The Future of Car Buying
CarrDeFi leverages the decentralized blockchain system to replace the traditional automotive lending industry with the help of crypto assets.
The CarrDeFi service segment connects potential borrowers with lenders through loan pools. The loan pool remains secured in a blockchain that users can easily check and verify for themselves.
Using a CarrDeFi loan pool is advantageous for multiple reasons:
- The platform follows the logic of decentralized finance, making it so you do not need to go through the cumbersome and time-consuming verification and approval processes required in traditional banks and lending institutions.
- Borrowers get convenient access to crypto-secured loans.
- Lenderscan earn robust interest rates by depositing their crypto assets into a loan pool.
The pools are optimized by Carnomaly’s underwriting team that minimizes the risk while maximizing the lender’s earning potential.
Advantages of Getting a Crypto Loan to Fund Your Car Purchase
Crypto loans, free from the interventions of a central bank, are cheaper, more transparent, and easily accessible. The lenders are assured of guaranteed income. Plus, the investments are fully secure as there is no involvement of third-party tools or sites apart from the lender or borrower and the Carnomaly platform. Carnomaly’s digital financing experts continuously review the value fluctuations. Therefore, there is no scope for a potential value loss.
Loan Pools: A Pool for Everyone
The lending pools of CarrDeFi ensure that irrespective of your credit score, you have the opportunity to secure a crypto loan.
The prime pools are for borrowers who have a relatively healthy credit score of 650 and above, along with a low default rate. Those who have a moderate credit score, ranging between 550 to 649, can access the mid-prime pool. The sub-prime pool loans are for those who have a credit score below 549 often associated with a high default rate.
The yield for prime pools can go up to 8.5% APY with CARR tokens, whereas it can go as high as 17.5% for mid-prime and sub-prime pools.
These loans are available in BTC, ETH, XRP, and CARR for flexible return periods of 48 months, 60 months, and 72 months.
You can choose to receive a loan in a crypto coin of your choice, using your existing assets as collateral. The funds will hit your account 30 days after the loan pool reaches full funding.
To apply for car financing through Carnomaly, you will have to fill out a simple form using information such as your name, phone number, current address, previous address, date of birth, marital status, etc. The types of documents you need to furnish include your social security number or quantum credit ID number and driver’s license.
Using Carr Tokens
To access Carr token benefits, you must buy them from exchanges like KuCoin, Bitforex, and Probit using USDT, BTC, or ETH.
Direct Purchase With Crypto
While accessing DeFi loans to purchase your car is one way that the blockchain is changing the purchasing process, you can also directly buy your next vehicle with crypto. The Carnomaly process of buying cars with crypto is simple. All you need to do is find your vehicle on our global digital marketplace. The sophisticated UI of Carnomaly allows you to filter and shop from a wide variety of car types, including truck, coupe, sedan, SUV, convertible, and hatchback — including all the highest luxury brands.
In the near future, you’ll then be able to pay for the vehicle using cryptocurrency on Carnomaly.com. Once your dealer confirms your payment, you can get your vehicle shipped anywhere in the world. For now, you’ll be able to purchase with Bitcoin, Ethereum, and LTC. The provision to buy cars with the CARR token, with 1% savings, is also imminent.
Bringing Together the Crypto Economy and the Automotive Market
Overall, Carnomaly empowers the average car owner — not just tech junkies or crypto investors — to manage each phase of their vehicle’s lifecycle with crypto assets, from financing and purchase to sale. Throughout that lifecycle, Carnomaly makes sure that the average vehicle owner can leverage the benefits of a decentralized finance paradigm, such as easy access, a low barrier to entry, and hassle-free processing, irrespective of your credit score.
In short, Carnomaly has built the bridge between the crypto economy and the automotive market. To learn more about our fleet of tech solutions, visit carnomaly.io/solution/.