UAE is a powerhouse of innovation, providing space for all the latest advancements in varied sectors. The prime example of accepting innovation is the usage of digital currency for purchasing cars. Involving two important verticals, financial technology and autos, the Central Bank has legalised the usage of digital currency for commercial transactions. Hopping on the bandwagon, a number of brands and their authorised dealers are now accepting digital currency as a payment.
Let’s take a closer look at how to buy a car with digital currency in the UAE.
Using Cryptocurrency for Car Purchases in the UAE
Cryptocurrency is now being accepted for car purchases in the UAE, catering to the rise in the usage of digital currencies across the globe. However, the Central Bank has recently restricted the usage of Dirham-backed coins only, free zones in Dubai and Abu Dhabi are free from the restriction.
Here are all the steps to buy a car with digital currency in the UAE.
Step 1: Find a Seller & Select Car
The first step when using digital currency for car purchases in the UAE is to find a seller who accepts digital currency. Once done, choose a car that fits your requirements.
In case you are overwhelmed by the options, here are some tips for buying used cars that can help you in making an informed decision.
Step 2: Register Account
Register an account on the preferred cryptocurrency and decide all the terms and conditions. Carefully mention all the terms like the car’s mileage, engine specs, safety features and exterior condition, to ensure the shipment of a car-perfect car.
Besides car condition, also mention the preferred shipment option and price of the car.
Step 3: Choose Escrow Service
After the dealer has agreed to all the conditions, choose a cryptocurrency escrow service and register it. The buyer will transfer the agreed-upon amount to the escrow account. The escrow account service will verify the transaction and notify the seller, instructing them to proceed with the shipment.
Step 4: Wait for the Car Shipment
Provide the dealer with the complete and accurate address of the shipment and wait for the vehicle to be delivered.
Step 5: Testing Period
Once you have received the shipment, make sure the car fits the description provided by the dealer. Consider important things during the test drive like acceleration, noises and driveability. The test drive period is limited, as agreed upon in the terms and conditions.
After the testing period, either accept or reject the vehicle. In case of acceptance, follow the next step.
Step 6: Pay Seller
After confirming the purchase, transfer the cryptocurrency from the escrow account to the seller’s account and complete the transaction.
Pros and Cons of Buying a Car With Digital Currency in the UAE
Now that you know how to buy a car with digital currency in the UAE, let’s move to its pros and cons.
Pros of Buying a Car With Digital Currency
The pros of buying a car with digital currency in the UAE are as follows.
- Efficient Process: The transfer of digital currency is an efficient process compared to conventional bank transfers.
- Cost-Effective: Deductibles and transfer fees of digital currency are usually lower than the charges applied by banks or other wire transfer services.
- Convenient: Buying a car with a digital currency is convenient, as the majority of the process can be completed online.
Cons of Buying a Car With Digital Currency
Here are some cons of using digital currency for buying a car in the UAE.
- Instability: The value of digital currency can change rapidly, affecting the overall price.
- Limited Option: Not all the dealers and brands in the Emirates accept digital currency, forcing buyers to choose from limited available options.
- Irreversible: Transferring funds to the wrong account is irreversible, and buyers may end up losing the whole amount.
FAQs
Can I use Bitcoin to buy a car in the UAE?
Yes, cryptocurrencies like Bitcoin can be used to buy a car in the UAE.
Is digital currency legal in the UAE?
Yes, digital currency is legal in the UAE and can be used to purchase different items.
Is cryptocurrency halal in the UAE?
The status of cryptocurrency is ‘Tawaquf’, which means it is neither haram nor halal.
This is how to buy a car with digital currency in the UAE. Using digital currency for car purchases is an efficient process, showcasing UAE’s technological adaptation. Though digital currency offers a wide range of pros, it also has its own cons. Vehicle conditions, credible dealerships and many other aspects are required to be considered. To avoid the hassle, you can opt for the used cars for sale in the UAE listed on dubizzle, a credible and leading classified platform of the Emirates.
Stay tuned to dubizzle’s auto blog for more information on the used car market.
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