Currency is not what it used to be. The web has changed things considerably. Currency took a major step forward with cryptocurrency, which car dealerships should embrace.

This type of money was introduced in 2009, and now millions of people own a chunk. The following are a few reasons why dealerships should accept this digital currency.

A Few Dealerships Have Taken the Leap

It should be noted that many retailers and small businesses are making steps to accept cryptocurrencies. Furthermore, there are also a number of car dealerships taking the leap, too. Some of the first dealerships to accept digital coins as payment are online car marketplaces, which makes sense because they sell online.

There are also some large automakers who are also accepting this form of payment such as Tesla. These companies trust helps solidify the value of digital coins. There is no telling how far this is going to go in the auto sales industry, but it is wise to jump in early rather than later.

Get an Edge Over Others

Cyrptocurrency is very new, and a lot of it is still a work progress. It provides optimal privacy, anonymity with each transaction, and it protects all users from nation-related problems that could fluctuate currency. There are definitely a number of benefits.

Jumping into this digital currency now helps you learn more about this currency before others. It gives your dealership and your sales people the opportunity to get familiar with all the cryptocurrency available at any given time, and it also gives you a chance to explore cryptocurrency wallets to keep your money safe. This also allows you to build an established procedure to accept and process cryptocurrencies, which is probably going to become more important as time moves on.

Transaction Fees are Significantly Reduced

Another reason car dealerships should consider accepting digital monies deals with transaction fees. Most car buyers use banks or credit unions. This means the dealership has to deal with the crippling transaction percentage fees linked to these types of monetary institutions. Some could end up charging a dealership between three to four percent per transaction.

Fees are deceased with digital monies because there is no middle man. The customer nor the dealership has to worry about banks or credit card companies. All dealerships need to do is find a transaction partner who specializes in cryptocurrencies. The good thing is that most of these digital transaction percentage fees fall around one percent though these companies do have a minimum transaction threshold that has to be surpassed by the dealership in order to receive discounts.

A Word of Caution

The benefits of accepting this new form of payment are obvious, but that does not mean you should not take a few precautionary steps. Dealerships are going to have to accept that there are a few responsibilities a dealership needs to assume before accepting cryptocurrency. For one, it is important that your accounting team create additional procedures to handle digital transactions since digital coin transactions are virtually anonymous.

This means there is no paper trail online to follow, so it is up to you to create that paper trail to protect yourself should something go wrong. You should also make sure to set an immovable return policy. Cryptocurrencies are quite new, so the market is fluctuating. Just make sure that any refund you have to issue is issued at the original rate.

Car dealerships should start looking into digital tokens or altcoins, even if you are opting to stay out of this emerging currency. There is no harm in learning more about it, and it may help prepare you for the future.