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Anchorage Dealership Accepting Cryptocurrency Payments

April 10, 2018 2 Comments

Per KTUU, United Auto Sales, a used-car dealership that has served Anchorage for 22 years, is one of the first dealerships in the city to accept cryptocurrencies as a form of payment.

The dealership started accepting Bitcoin and other cryptocurrencies (e.g. Litecoin and Ethereum) in September last year, according to marketing manager Ayesha Malak. Her father, Mohammad Malak, is the founder and owner of the business.

“I first heard about Bitcoin back in 2012, when my husband was mining it in our basement with his supercomputer,” Ayesha Malak said. “Then about two years ago, I saw in the Lower 48 Pizza Hut and Subway accepting Bitcoin as a form of payment… We decided back in September that United Auto Sales should accept Bitcoin as a form of payment.”

It wasn’t easy to get everyone on board at the beginning, she said.

“It was really hard for my father to understand it at first. And I totally understood, because I was the same way,” she said. “So he’s warming up to the idea. I think him seeing it in mainstream media all the time is helping him out to understanding it more.”

Once the idea was accepted, however, it was smooth sailing.

The dealership uses the Coinbase app, which many cryptocurrency users use to make transactions.

“They show us their app,” said Malak. “We see it – that the money is in their wallet – and it’s a really simple transfer. It goes from their Bitcoin wallet into our Bitcoin wallet.”

The majority of the dealership’s recent cryptocurrency transactions, Malak said, include both digital and traditional financing means.

“The majority of them [customers] have been using Bitcoin as a form of down payment, and then financing the rest through local banks in town,” she said. “There’s only one guy who bought a car full in Bitcoin, back in October. He bought a 1965 Mustang from us. That was a really fun exchange – it was also the fastest deal we’ve ever made.”

When asked what the company plans to do with the earned cryptocurrency, Malak said they’ve been watching the market.

“So our Bitcoin has just been sitting in our wallet,” she said. “We’ve been watching the market, and we will decide when we want to cash it in. But as for now, all the transfers we’ve done so far are just sitting in our wallet.”

About the Author:

Dave Martinson is a broadcast journalist for DrivingSalesNews. He has a background as a TV News Reporter, Anchor and Producer. He has also worked in Digital Marketing and Human Resources. He received his bachelor’s degree in Communication from Brigham Young University – Idaho. He’s married and originally from the state of Washington. He’s a huge football fan and enjoys the outdoors.

  • Chris+K says:

    I know a Lotus Dealer who offers BITPAY for crypto payments on new and used cars. It’s very easy, and basically, like bank wire transaction. Zero risks to the dealer and irreversible! Here’s a scenario so you see how simple it is:

    Customer finds dream car, contacts dealer, strikes deal
    customer is sent invoice for $25,000 car
    customer pays through Bitpay in crypto $25,000
    crypto is converted to USD at an exact rate
    no risk for cryptocurrency fluctuation
    1% Bitpay fee taken out (Bitpay)
    dollar deposited into dealers bank within 24 hours.
    Cash transaction for the dealer.
    No crypto reporting
    Customer must declare capital Gains if US based, and pays approx 15% tax.

    This is how to sell a car to anyone who has crypto.

  • Chris+K says:

    Any level-headed advisor would recommend any dealer avoid accepting any crypto coins directly because as soon as you do, you experience a capital gains event! Ta-Da! And assume a load of risk with currency fluctuations you can avoid altogether. But sadly, it’s a huge mistake as well, according to the IRS, you will owe an additional 15% on this money you did not have to! Bitpay circumvents the dealer’s liability as indicated by this story, and I’d love to know how they plan on avoiding a 15% fee on all the crypto to take out! I hope there were big profit margins in there.