The crypto industry today has come a long way and has touched a record market cap of $3 trillion in 2021. The number of businesses accepting crypto payments is also growing rapidly. In fact, you will find sellers accepting crypto payments for online goods, software, and even cars.
Yes, you read that right! Though the number of car dealers accepting crypto payments is small, there is no denying the number will continue to grow. With 300 million crypto users and counting, crypto users as a whole is a huge market that the auto industry cannot ignore. In this article, we will take a look at how you can purchase and finance your car with crypto.
Buying a Car With Crypto
The most obvious option to buying a car with crypto is to convert your crypto holdings into cash. But the issue here is that converting crypto to cash is not a cost-effective strategy. After all, to sell cryptocurrencies for cash, you will have to go through a cryptocurrency exchange, which will attract a deposit and a trading fee. It will overall add to the cost of buying a car.
Another way is to look for car dealers that accept crypto payments. As we said in the beginning, some car dealers accept crypto payments, but their number is pretty small. So, first, you will have to put in some effort to research car dealers that accept crypto payments and also find out the cryptocurrencies they accept. Even then, it is not assured that you will be able to purchase a car brand of your choice, as the number of car dealers accepting crypto payments is still limited.
The next option is to choose a one-in-all blockchain-based car-buying platform like Carnomaly. Blockchain technology has enabled Carnomaly to do away with a long list of barriers that a user has to go through to obtain a car loan. So, all you need to access Carnomaly’s services is some crypto, an internet connection, and a crypto wallet.
Buying a car from Carnomaly involves three easy steps. Choose your vehicle from the available options, make payment in crypto, and confirm the payment with the dealer. That’s it! After you complete these three steps, you will receive your car at your doorstep. Currently, Carnomaly accepts Bitcoin, Ethereum, and Litecoin. It will soon add CARR Tokens to its accepted cryptocurrencies, which is Carnomaly’s native cryptocurrency.
As for the style of cars that Carnomaly offers, you will find trucks, coupes, sedans, SUVs, convertibles, and hatchbacks on their platform. You can also buy used cars through Carnomaly. But to buy a used car, you will have to fill out a form on Carnomaly’s website and enter the details like the make, model, year, mileage, and color of your desired used car. These details will enable the Carnomaly team to find your dream car.
Financing Your Car Purchase With Crypto
When it comes to cars, it’s only natural that a majority of car buyers are obtaining loans to make the purchase. After all, cars are expensive. But not every car buyer would turn to traditional financial institutions for car loans, as they have to go through a cumbersome multi-step process and submit a myriad of documents for approval.
So, what is the alternative? Thanks to the emerging decentralized finance market (DeFi), you can even finance your car with crypto. DeFi is much simpler because you don’t have to submit a plethora of documents to obtain a car loan. You don’t have to go through a long cumbersome process to get your car loan approved.
Now the growing demand for crypto car loans points to the fact that car buyers are looking for a straightforward process to finance their cars. But there are limited options to obtain car loans in the DeFi space. The only major player in the DeFi car loan segment is CarrDefi.
The process to obtain a car loan from CarrDefi is pretty simple. Fill out an online application form available on CarrDefi’s website. These details will enable CarrDefi’s digital financing experts to match you with a relevant lender. The car loan repayments duration available on CarrDefi are 48, 60, and 72 months.
Any user who obtains a car loan from the CarrDefi platform actually receives funding from a loan pool, which receives liquidity from its users. It means that you are obtaining loans from other users and not from large institutions. As there are no middlemen like banks and brokers involved in the process, you will obtain car loans at a comparatively cheaper rate and in the most transparent manner possible.
There are many other benefits of obtaining a car loan from CarrDefi. For instance, you do not have to over-collateralize while obtaining a car loan, which is common among other DeFi lending platforms. The reason behind this is that the car itself is an asset. Thus, you can back your loan with the car you are purchasing.
Gone are the days when car buyers had no other option than to liquidate their cryptocurrency holdings to buy a car or depend on middlemen like banks for car loans. Today, blockchain technology and the growing adoption of cryptocurrencies have made the car buying process free of hassles, regardless of a user paying for the car upfront or obtaining a loan to fund the purchase. Overall, DeFi is turning out to be a boom for car buyers as it has made it easy to buy a car with crypto, and CarrDefi is at the center of it all.