Cryptocurrencies could be another popular way for customers to pay for cars in the very near future.
Many column inches have been devoted to the new payment option, not least due to Elon Musk who recently revealed Tesla has invested $1.5bn in Bitcoin – one type of cryptocurrency – and is happy for customers to buy Teslas in this way.
Cryptocurrency is a digital currency and not physical like traditional money, and uses an online ledger with very strong cryptography (hence the name) to make transactions secure.
It’s growing in popularity among consumers with many wishing to purchase cars through the currency.
AutoCoinCars can help car dealers accept crypto payments. We caught up with the company’s director of operations, Luke Willmott, who explained more about the growing interest in cryptocurrencies and how AutoCoinCars can help dealers.
Do customers want to pay for cars using cryptocurrencies?
One of the biggest downsides historically with cryptocurrency is its real-world adoption. Customers with cryptocurrency want to spend it and turn their digital assets into physical assets.
With AutoCoinCars it allows them to have a service that was never before possible on a commercial scale. After property, cars are the go-to items for crypto users to buy.
With millions of users in the UK alone holding crypto, all with the capacity to buy cars. Customers always want options when buying and having cryptocurrency as another option has been positively received.
What sort of impact did Tesla’s decision have on the cryptocurrency market and has it supercharged dealers’ interest in it?
Crypto in itself has gone absolutely crazy within the last six months. Having been around since 2010, public interest and knowledge wasn’t great, but now due to mainstream media and with the help of Tesla, people are getting into cryptocurrency who a year ago didn’t even know it existed – there’s been a growth rate of over 20 per cent every quarter in the last year.
Tesla are as credible as it comes. To have a company like Tesla take on the adoption of crypto just reinforces what AutoCoinCars has been doing for many years now.
When Car Dealer surveyed dealers they said they weren’t keen on taking cryptocurrencies as payments – are they wrong?
With nearly 500 dealers on board to date it’s obvious that it’s not about right or wrong – it’s about education.
It’s about a lack of knowledge and the fear of the unknown. Once they see that AutoCoinCars takes all the stress, worry and risk away from cryptocurrency their opinions change.
Many dealers don’t even know that crypto payments are even an option, or some even don’t believe cryptocurrency is real.
Once they realise it’s a brand new untapped market of customers, who normally don’t haggle, don’t wait around, pay instantly, and with AutoCoinCars’ service, the money hits their banks in GBP, they instantly ask where to join and sign up.
When dealers receive the full invoice amount in pounds in the bank, it becomes a no-brainer for any dealership.
How popular will cryptocurrencies become for payment of large ticket items like cars?
In my opinion, without fail, cryptocurrency is the future of cars sales. With the speed of transactions, the growth of the market, and the increase of adoption within the world, this digital asset will begin pushing to the front, leading the way for all payments. Not just high ticket value items like cars, turning your crypto into cars has a nice ring to it.
Being able to purchase through AutoCoinCars takes all the risk away from the customers as well. They don’t have to sit around seeing their digital asset reduce down in value converting it into cash by using any rational means at their disposal.
What are the most popular cryptocurrencies and how do they differ?
Most people have now heard of Bitcoin (BTC) and it’s seen by some as the backbone of cryptocurrency and the flagship digital asset. Without a doubt, it’s the go-to first choice to start your crypto journey.
Bitcoin is like the ‘parent’ to two coins that are similar due to the structure on the blockchain: Bitcoin Cash (BCH) and LiteCoin (LTC). All of these use very similar structures. However, BCH and LTC have an improved mining structure which increases the traction speed and privacy.
Looking at another popular token within cryptocurrency must lead you to Ethereum (ETH). ETH is a refined blockchain that allows businesses to link together in ways of using smart contracts along with handling data requests. Ethereum has a faster transaction speed than BTC as well.
Another popular coin is Nano Coin (NANO). NANO is the lightest version of blockchain which was built for speed and minimalistic energy costs. We could go on forever about the currencies and differences, that is truly what makes cryptocurrency so exciting.
How can you help dealers accept cryptocurrencies as a form of payment?
Being the largest cryptocurrency market selling vehicles in the world, we are already helping dealers every day to have the ability to offer their stock for crypto.
Along with helping multiple dealers each week convert crypto sales and pay them out into the bank in pounds.
We take all the risk and confusion out of crypto payments by handling the crypto on behalf of all involved and paying the dealers to their bank in any currency they choose. This allows them to keep doing what they are best at – selling cars and giving a high level of customer service.
Dealers ask us all the time how they do it when they have no or little knowledge of it. Our reply is always the same: ‘That’s why we are here!’
We aren’t just a worldwide advertising platform, we are the payment processor as well. AutoCoinCars mitigates all the risk and make fast payments enabling dealerships to expand their customer pool to the crypto users of the world.
What will it cost dealers to use your services?
Being a dealer partner with AutoCoinCars works in two ways. The first is a monthly subscription basis. Choosing the package that suits each dealer individually is what makes us so popular. We are a fraction of the cost compared to any other method of dealers advertising which makes this exciting market easy to advertise on.
Secondly, is in the way of a brokerage fee. This makes it even more of a no-brainer coming on board as a partner dealer with AutoCoinCars. We are that confident in our marketplace and service that we only charge dealers when we sell a vehicle for them. This is normally a small fee based on the value of the vehicle.
With both of these being the normal way forward, due to Covid we made the commercial decision to allow all dealers with us zero subscription fee or brokerage fee for the rest of 2021. That means dealers don’t pay a thing to advertise and sell with AutoCoinCars for cryptocurrency payments. It’s a no brainer.
Will this open up a new market to dealers?
100 per cent! This market is absolutely massive. Cryptocurrency is one of the biggest markets in the world already and it’s still relatively young compared to others.
With AutoCoinCars ranking first on Google for terms like ‘buy a car with bitcoin’, ‘Buy a car with cryptocurrency’, along with all other terms relating to this, it’s becoming the hottest way for customers to spend their cryptocurrency.
Will the volatility of cryptocurrencies affect dealers using your solution?
The volatility is only really an issue for us. Using our platform and payment solution gives one of the biggest benefits to dealers in the way of AutoCoinCars mitigating all the risk of volatility.
What this means is no matter what happens to the coins the dealers always receive the full invoice amount in the bank.
Normally, this is in less than a couple of hours which from a business point of view gives them available funds instantly for dealers to be able to profit and replenish the vehicle just sold. AutoCoinCars is the only business offering this service on a commercial scale.
Once dealers accept and process their first cryptocurrency payment they understand just what all the hype is about.
With us involved giving a faultless service it is allowing us to show what we believe is the future of car sales.
T: 0115 671 5007
This post was sponsored by AutoCoinCars