How to buy a car with Bitcoin (BTC) in 2025

Key takeaways

The benefits of paying with Bitcoin include efficiency, privacy and cost-effectiveness.
Key risks of using BTC as a payment method include volatility, limited acceptance, taxation and irreversibility.
Examples of crypto-friendly dealerships include AutoCoinCars, HGreg, BitCars and Truebil.
Ensure your Bitcoin wallet is insured, verify dealership AML compliance, and consult a financial adviser to navigate potential tax implications before purchasing.

As someone who has been fascinated by the intersection of technology and finance since I started my career as a software engineer, the idea of purchasing a car with Bitcoin has always intrigued me. Having followed the rise and fall of cryptocurrencies over the years, I’ve learned to appreciate their potential and be mindful of their challenges.

You can buy a car with Bitcoin in 2025; it just depends on where you shop.

It’s worth noting that the number of businesses accepting Bitcoin and other cryptocurrencies is growing steadily each year. This isn’t unexpected, considering the significant increase – 34% – in crypto adoption seen just in the year 2024. Given this trend, it makes perfect sense for them to provide payment methods tailored to this expanding market.

You could consider reaching out to your local dealership to find out if they currently accept cryptocurrency as a form of payment, or if they are planning to adopt it anytime soon.

As an analyst, I’m reminded that we can’t overlook the urgency for modernization in the automotive sector. The European Union is setting a timeline to end sales of new cars emitting carbon dioxide by 2035. Given these tight deadlines and substantial changes required, it’s likely that major players worldwide will revamp their current operations. This could catalyze a broad wave of modernization throughout the industry.

However, this article explores why, how and where to buy a car with Bitcoin (BTC).

Benefits and risks of buying a car with Bitcoin

If you’ve got the Bitcoin to spend, you’re only a few steps away from converting it to fiat, either through a peer-to-peer (P2P) marketplace or a standard exchange withdrawal.

You have two options to consider: Purchase using traditional currency or digital cryptocurrency. To aid your decision-making process, let’s examine the advantages and potential drawbacks of each option.

Benefits of paying in BTC

Efficiency: While Bitcoin transactions may be slower compared to some other cryptocurrencies, they’re still significantly faster than traditional bank transfers, which often involve intermediaries and can take several days to process. As a decentralized currency, Bitcoin also facilitates cross-border transactions without the delays caused by currency conversions or international banking protocols. This can be particularly advantageous if you’re purchasing a car from another country and arranging for it to be shipped.
Privacy: Bitcoin transactions don’t require you to share sensitive personal or financial information with the dealer, reducing the risk of data breaches and identity theft. Additionally, while Bitcoin transactions are recorded on the blockchain, personal identities aren’t directly linked. This provides a degree of anonymity compared to traditional payment methods like credit cards or bank transfers.
Cost-effectiveness: Using Bitcoin allows you to utilize your digital assets directly, avoiding the need to convert them into fiat currency, which often incurs fees and tax implications.

Risks of paying in BTC

Volatile: Bitcoin’s value can change rapidly. A significant drop in value after initiating a transaction could mean you effectively pay more than the car’s worth. To address this, some payment gateways offer a feature called guaranteed exchange rates to mitigate slippage risks. This mechanism ensures the exchange rate remains fixed for a specified period, allowing both buyer and seller to transact at a predetermined rate, regardless of market fluctuations.
Niche: Not all dealerships accept BTC, which limits your options and may require extensive research to find willing sellers. If you’re set on paying in crypto, be prepared to invest some time in your search. However, given the trajectory of crypto adoption, this issue is likely to diminish in the near future as more dealerships begin accepting digital currencies.
Taxable: While paying in BTC can sometimes be cheaper than using fiat, it can also trigger taxable events depending on your jurisdiction. In the United States, the Internal Revenue Service classifies cryptocurrency as property. Using Bitcoin to purchase goods or services, including cars, is considered a taxable event. If your Bitcoin has increased in value since you acquired it, you may owe capital gains tax. Similarly, in the European Union, capital gains taxes apply if there’s an increase in your crypto’s value since its acquisition. It’s essential to understand your local tax laws to avoid surprises.
Irreversible: Sending funds to the wrong address or falling victim to fraud can result in permanent loss of your funds. Unlike credit card payments, Bitcoin doesn’t offer chargebacks or dispute resolution mechanisms. This places greater responsibility on the buyer to ensure the legitimacy of the transaction and the trustworthiness of the seller.

Did you realize? Back in May 2024, a cryptocurrency trader suffered a massive loss of approximately $70 million in Wrapped Bitcoin (wBTC) due to an “address poisoning” fraud. The unfortunate trader unwittingly copied a fake address from their transaction history, which resulted in the mishandled transfer of 1,155.28 wBTC to the wrong location.

Dealerships accepting Bitcoin in 2025

As long as you’re comfortable with the potential risks associated with cryptocurrency transactions, the following step would be to explore local dealers. Below are some examples:

Prestige Cars Kent (United Kingdom)

Kent’s Prestige Cars Dealership is a standalone business focusing on high-end automobiles. As of April 2024, they welcome various digital currencies such as Bitcoin (BTC), Ethereum (ETH) and Ripple (XRP) for the purchase of their extensive collection of more than 300 luxury vehicles. They provide a straightforward crypto transaction process with no additional charges, ensuring a hassle-free and secure car buying journey.

Moreover, this dealership welcomes trade-ins and offers versatile payment plans, empowering customers to mix cryptocurrency transactions with conventional ones or finance options.

HGreg (US)

Since 2021, the prominent automobile dealer network, HGreg.com across North America, has begun accepting Bitcoin as a form of payment. This forward-thinking move provides customers with the opportunity to purchase both new and previously owned vehicles using Bitcoin directly.

By boasting a vast selection of vehicles and embracing cryptocurrency ahead of many others, HGreg has become a go-to choice for cryptocurrency enthusiasts. In 2024, this dealership broadened its crypto payment options to include luxury models like the Lamborghini Revuelto.

BitCars (Europe)

BitCars Europe, a unique dealer, concentrates on top-tier automobiles, yachts, and lavish goods. This dealership accepts cryptocurrency as the sole form of payment, offering worldwide delivery. The exclusive inventory includes digital currencies like Bitcoin (BTC), Ethereum (ETH), and Tether’s USDt (USDt). For crypto aficionados seeking premium and rare vehicles, BitCars Europe serves as a prime destination for luxury transactions in the digital currency sphere.

GTA Cars (UAE)

Nestled right in the core of the United Arab Emirates, GTA Cars is recognized for its expertise in purchasing and reselling top-notch pre-owned vehicles. This dealership boasts an impressive stock, fair pricing, and outstanding customer service. In the year 2022, it made a significant leap by accepting cryptocurrencies as a payment option for their cars.

At GTA Cars, our dedicated team brings together more than a century’s worth of automotive expertise. We help clients navigate the process of buying, selling, or trading vehicles, while also offering financial protection and vehicle registration services.

How to purchase a car with Bitcoin

Here’s a straightforward breakdown of how you can buy a car using Bitcoin, through one of the dealerships listed (such as HGreg.com):

For this article, a modest, used hybrid motor with a recent price drop has been selected.

Preparation

To purchase that vehicle, you should have approximately 25 Bitcoins available in your account, considering the date is December 12, 2024. It’s wise to have a little extra to cover network fees, possible price differences, and any taxes that might apply. Having this buffer can help prevent issues during the transaction process.

Contact the Lamborghini dealership to verify if they accept Bitcoin payments for the Revuelto model and if they have it in stock. Request more information about their cryptocurrency transaction process, such as the wallets and platforms they support, so you can confirm compatibility with your own system before proceeding with the purchase.

When buying a car, always double-check its condition, the details of the warranty, the number of miles it has traveled, if it’s undergone a safety inspection, and other relevant aspects.

Completing necessary documentation

You can’t avoid the admin with crypto. The steps here are likely to be pretty familiar.

Provide identification: Submit any required documents, including government-issued ID, proof of insurance and any additional paperwork necessary for registering the vehicle.
Sign agreements: Carefully review and sign the sales contract and any supplementary documents to finalize the purchase.
Arrange delivery or pickup: Coordinate with HGreg.com to schedule the delivery of your Lamborghini Revuelto or arrange a pickup. Discuss and clarify shipping fees or logistics if applicable.

Payment

Here’s where the steps change slightly. It starts with receiving the dealership’s wallet address.

Confirm wallet address accuracy: Before transferring the full amount, conduct a test payment of a small sum — e.g., 0.01 BTC — to ensure the wallet address provided by HGreg.com is accurate and functional. However, some exchanges have minimum send requirements, so it’s crucial to check if your transaction meets the minimum threshold.
Make the transfer: Once the test payment is confirmed, proceed with transferring the full amount. Use your wallet to send the required Bitcoin and include any necessary memos or reference codes requested by HGreg.com.
Transaction confirmation: Monitor the blockchain to confirm the payment’s progress. Bitcoin transactions typically require several confirmations — e.g., three to six — before being fully processed. Most wallets and platforms will update you as the transaction progresses.
Obtain acknowledgment: After the transaction is confirmed, request a formal acknowledgment from HGreg.com, such as a receipt or written confirmation that the payment has been received.

Did you realize? Back in 2018, an astounding pair of Bugatti Chiron and Pagani Huayra were bought using approximately 340 Bitcoins, equivalent to $6 million. This groundbreaking purchase was made by a California-based dealer located in Newport Beach.

Tips for a smooth Bitcoin car purchase

Here are a few extra suggestions to help ensure a smooth process without any unexpected issues arising:

Insure your Bitcoin wallet: To add an extra layer of security, consider insuring your Bitcoin wallet, especially if you’re holding large amounts for high-value purchases. Wallet insurance services can protect you against cyberattacks, theft or unforeseen events that may lead to the loss of funds. This is particularly important when dealing with transactions of significant value.
Understand dealership AML policies: Dealerships accepting Bitcoin must comply with Anti-Money Laundering (AML) regulations and transaction monitoring practices. To ensure a smooth transaction, use blockchain analysis tools like Chainalysis or Elliptic to check that your Bitcoin address is free of any red flags. Additionally, be prepared to provide proof of Bitcoin ownership or wallet transaction history if the dealership requests it as part of their compliance requirements.
Consider a crypto loan: A crypto-backed loan is a smart way to purchase a car without selling your Bitcoin, allowing you to retain your investment and potentially benefit from future price increases. By using Bitcoin as collateral, you can borrow fiat currency — e.g., USD — to complete the purchase, avoiding taxable events such as capital gains. Once the loan is repaid, your Bitcoin is returned to you, preserving your portfolio. Platforms like Ledn provide secure and reputable options for leveraging your crypto while maintaining exposure to the market.
Consult a financial adviser: Bitcoin transactions can have tax implications, such as triggering capital gains tax if Bitcoin’s value has appreciated since acquisition. Consulting a financial adviser can help you navigate these obligations, understand local tax laws, and optimize your tax strategy to avoid surprises during tax season. Their guidance ensures that your purchase is both financially and legally sound.

The bottom line

By the year 2025, it’s become easier than ever to buy a car using Bitcoin, as an expanding array of automobile dealerships globally are now welcoming cryptocurrency transactions.

This advancement provides users increased operational efficiency, confidentiality, and financial savings. But remember, there are possible hazards that you should take into account, such as market fluctuations, limited adoption, tax consequences, and the permanent character of cryptocurrency transactions.

Through comprehensive study, selecting trustworthy auto dealers and adhering to sound guidelines, you can sail smoothly and safely through this procedure with confidence.

Here’s to finding the perfect ride!

2024-12-18 10:48