Gain a competitive edge with our cryptocurrency payments and lending platform
More than 2,300 retailers in the U.S. accept cryptocurrency as payment for products and services. Consumer demand is driving the fastest adoption curve in human history, and big names such as Walmart, Amazon, Delta, Royal Caribbean, BassPro Shops, and Airbnb have all realized that if they don’t offer crypto payment options, customers will take their business elsewhere.
Yet millions of cryptocurrency investors have few choices if they want to purchase a vehicle using crypto assets. As a group, auto dealerships lag behind other retailers in their ability to offer customers the option to pay for, or finance vehicles using cryptocurrency.
A vehicle is one of the largest purchases a consumer will make in their lifetime.The more financing options you can offer to help facilitate that purchase, the greater competitive edge your dealership will have.
Cion Digital has developed a secure crypto payments and marketplace lending platform designed to be fully integrated into your auto dealership’s existing sales and financing processes.
Are you a crypto skeptic? Do you believe that customers don’t care if you cater to their payment preferences? Think again!
Car shoppers want to pay with crypto
A man walked into a dealership. He told the salesperson he wanted to buy two vehicles for his two daughters. He asked if he could pay with Bitcoin and showed the salesperson an online wallet with a balance of over $2 million. The salesperson told the man that unfortunately, the dealership could not take cryptocurrency as payment. The man left without purchasing the two vehicles.
This scenario actually happened. Yes, the man could have sold some of his Bitcoin into fiat, transferred it to his bank account, and returned to the dealership three days later to arrange a wire transfer. But he didn’t. He wanted to pay with Bitcoin, and if the dealer had been set up to take crypto, the entire transaction would have only taken a few minutes.
Today, a small percentage of car shoppers are asking if they can use cryptocurrency for vehicle transactions. If you don’t believe there have been any requests at your dealership, ask your F&I manager. Many dealers are not aware of the consumer demand. This demand is expected to increase in the next few years, until eventually up to 20 percent of all vehicle transactions will involve cryptocurrency.
A growing market
According to a recent MotleyFool survey, 145 million adults in the U.S.—about 56 percent of the population—own cryptocurrency or have owned crypto in the past. Another 46.5million Americans say they are likely to invest in crypto for the first time in2023.
Of these crypto owners, 39 percent say that they use cryptocurrency as a means of payment for online shopping, according to a recent Bank of America survey.
In another study by PYMNTS, one quarter of consumers said they prefer to shop with merchants that accept cryptocurrency. Among consumers earning more than$100,000, that segment jumped to 29 percent.
Benefits of crypto-collateralized loans
Some customers want to use their crypto as payment. But the vast majority will prefer to finance vehicles using their crypto assets as collateral.
As vehicle prices and interest rates keep rising, more consumers are unable to qualify for optimal loan terms. The ability to offer customers crypto-collateralized loans is a win-win for dealerships. Dealers get to finance more deals, while customers get to keep their crypto assets.
Additionally, crypto-secured loans don’t require a credit check, are less risky and typically offer lower interest rates than traditional loans.
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