SHOPSMART AUTOS – CUSTOMER INFORMATION – JANUARY 17, 2021 -2


Crypto-millionaires are buying vehicles with Bitcoin
The dealership, which sells new and used Lamborghinis, along with other used luxury cars like Ferraris, began accepting payments through bitcoin in 2013, a year in which bitcoin saw price fluctuations from below $100 to over $1,000. In December, when bitcoin hit a high of $19,000, Frigerio saw a jump in cryptocurrency-involved sales with Lamborghinis. Even with the price of bitcoin falling, in January, Frigerio sold three Lambos via transactions with the cryptocurrency. The dealership accepts bitcoin through BitPay, a third-party company that enables transactions between a buyer holding cryptocurrency and a seller who wants U.S. dollars, for a 1 percent fee paid by the dealership. At MotorCars of Georgia, general manager Saszi had heard questions from customers about bitcoin a few years before Saddington came to buy his Lamborghini. Saszi then heard about sales with bitcoin from Frigerio at Lamborghini Newport Beach, who he says is a friend and colleague. At that time it was infrequent, but not unheard of. Saddington’s purchase sparked a realization by Saszi in early November that accepting bitcoin might be something the dealership should do on a larger scale. MotorCars of Georgia also uses BitPay as a way to accept U.S. dollars in exchange for cryptocurrency, although Saszi adds they haven’t sold a car that way yet. Still, even dealerships selling less expensive cars are becoming interested in accepting bitcoin. Michael’s Auto Plaza in Albany, New York, also began accepting bitcoin payments through BitPay in December. Eugene Rubinchuk, a vice president and part owner at the dealership, which sells used cars with prices ranging from under $15,000 to an $89,000 Bentley, says he saw posts about extravagant cars like Lamborghinis bought with bitcoin on Facebook. Since beginning to use BitPay, Rubinchuk says the dealership has completed one transaction with cryptocurrency, selling a 2017 Subaru Impreza for 2.33783 bitcoin, or $34,500 to a man in Virginia. The move has garnered global attention for the upstate New York dealer after a wave of press coverage. For all its success as an appreciating asset for earlier adopters, bitcoin’s price instability has made it difficult to use as a currency. For example, when Saddington bought his Lamborghini in early October, his bitcoins were worth $4,000 to $6,000 apiece. Since bitcoin is now trading at over $8,000, the effective cost of his car has increased, too. It might be worth checking it out for yourself as more new car dealers around the country are accepting Bitcoin. Make It A Champion Day!

Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , ,

Trackback from your site.

Leave a comment

Save my name, email, and website in this browser for the next time I comment.

Shop Smart Autos is not responsible for any errors in price or vehicle information provided to us from our dealer partners. We take every precaution to ensure the information is accurate and correct. Any questions please contact the dealer.