Dealerships Start Taking Digital Currency Featured

 

Like many people, Eugene Rubinchuk, general manager of Michael's Auto Plaza in East Greenbush, N.Y., first started paying attention to Bitcoin when it shot up in price last fall.

Rubinchuk learned that websites such as Overstock and Expedia were taking the digital currency for payments. So he asked himself, “Why not our store?”

He established a bitcoin wallet and sent out a press release at the end of the year announcing the move.

The release drew the attention of several news outlets, including Fox Business News.

A few weeks later, Michael’s sold its first car with Bitcoin as the payment method. A buyer in Virginia purchases a 2017 Subraru Impreza WRX.

“I believe it’s the future,” Rubinchuk said. “It’s not the norm yet, but it’s gradually shifting that way.”

Accepting Bitcoin is fairly simple, he said. The payment is transferred from the buyer’s digital wallet to the dealership’s.

The buyer pays in an amount of Bitcoin equal to the cash price of the vehicle. So if bitcoin is valued at $1,750 per coin and the car costs $17,500, the buyer pays ten bitcoins.

Rubinchuk’s store pays a 1 percent flat fee to Bitpay, a company that handles the transaction. The bitcoins are turned into cash and deposited in the bank, just like a cash sale.

And just like any other sale, the transaction is reported to the government.

 

Last modified on Wednesday, 16 May 2018 13:51

Please publish modules in offcanvas position.