Can You Buy a Car With Bitcoin in 2024?

Want to cash out your crypto for a new ride? We're answering the question 'Can I buy a car with Bitcoin or crypto?' as well as where and how to buy a car with Bitcoin.

Can I buy a car with crypto?

Yes, you can buy a car with crypto. Some car dealerships and manufacturers accept cryptocurrencies like Bitcoin and Dogecoin, and there are dedicated digital automotive marketplaces that accept crypto payments.

Where can I buy a car with crypto?

To buy a car with Bitcoin or other cryptocurrencies, you generally have two options:

1. Buy from a dealership or manufacturer that accepts crypto

2. Buy from a private seller on an online automotive marketplace that accepts crypto

You can also use certain crypto credit cards to finance your car purchase and make your car loan payments.

Read next: Top Crypto Credit Cards

Which car accept crypto?

Want to buy a car with crypto? Car manufacturers that currently accept payments in crypto include:

• Ferrari

• Lotus

• BMW

• Nissan

• Lamborghini

• Audi

• Mercedes

• Tesla

• Nissan

As you can probably spot from this list, car manufacturers that accept crypto as payment largely skew toward the luxury vehicle market and in almost all instances manufacturers have focused on accepting Bitcoin as opposed to other cryptocurrencies, with the exception of of Tesla, which only accepts Dogecoin. Of course, there’s nothing stopping you from using an accepted crypto credit card to finance a car with a manufacturer directly.

Which car dealerships accept crypto?

When it comes to car dealerships that accept crypto, the list is too long to write. In almost every state in the US including California, New York, Florida, Texas, and Pennslyvania, there will be a selection of car dealerships from the manufacturers above and more that accept crypto as a form of payment as it’s become more widely accepted in the mainstream.

As well as this, there are dedicated online marketplaces for private sellers looking to sell cars for crypto. Examples include:

• Crypto Emporium: A crypto-only marketplace offering everything from cars to watches to property.

• BitCars: A crypto-only marketplace specializing in luxury European cars.

• Mecum Auctions: A well-known auction house and online marketplace specializing in classic cars that accept crypto payments.

Should I buy a car with crypto?

This very much depends on your personal circumstances. If you’re in need of a new vehicle and hold crypto as an investment, but are cash-low, buying a car with cryptocurrency may be the best option for you. But there’s an important consideration in the form of your tax bill.

Not only will you generally pay Sales Tax on car purchases (excluding in states where Sales Tax is non-applicable), but you may also be liable for Capital Gains Tax when you buy a car with crypto.

Will I be taxed for buying a car with crypto?

Potentially - yes. Spending crypto is generally seen as a disposal of an asset, and any profit from it would be subject to Capital Gains Tax. So if you purchased Bitcoin at a lower price than the day you spent it, you’d have a capital gain and that gain would be taxable. Use a cryptocurrency portfolio tracker and tax calculator like Koinly to track your profit and loss.

Read next: How is Crypto Taxed?