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How to buy a car when you are a crypto trader

How to buy a car when you are a crypto trader

If you are a crypto trader and want to buy a car, you are in the right spot. There are Canadians cashing in on the crypto craze that has been taking the globe by storm in the last few years.

While most people think of Bitcoin when they hear the term Crypto, there are other currencies like Ethereum, which was developed by Canadian Vitalik Buterin, and is a strong contender for a digital currency that the masses can use.

Documenting your income

When financing a car, something that everyone has to prove, no matter how good their credit rating is their income.

When you work a conventional job, your employer will give you a payslip which shows how much money you earn for each pay period.

With crypto traders, it can be hard to determine your income because the value of the digital asset changes dramatically from day to day.

Lenders only deal with dollars and cents, so the only way you can prove you have income as a crypto trader is when you redeem your Bitcoin, Ethereum, etc... for actual fiat currency through legitimate channels like BitBuy.

Redeeming your Crypto is just one component; in order for it to count as actual income, you need to claim it on your income tax and pay taxes on it.

All of this may sound complicated, but you cannot walk into a local car dealership and put down BTC to buy a car, at least not yet.

Do you have good enough credit to qualify for a car loan?

Most lenders will accept your income so long as you declare it to the CRA. Where things can get a bit tricky is when it comes to your credit score.

Most crypto users tend to shy away from big finance and having their transactions tracked by TransUnion and Equifax.

This usually translates into the prospective borrower not having a good credit score or credit score at all!

Building a strong credit score

You will need credit at some point in your life, if it's even for something as simple as applying for a lease to rent a place. What you should do is sign up for secured credit facilities from companies like Capital One.

Keep your transactions small and always pay your bills on time; this will help you have a high credit score and never have to worry about paying interest.

Where to get a car loan when you are a crypto trader

Forget about getting a car loan online; these channels are set up to process run-of-the-mill car loan applications by borrowers who work traditional jobs.

The only way you can get approved is by working with a dealership in your area that will look you in the eye and get to know you personally.

The dealership can explain your situation to prospective lenders and help get you the lowest interest rate possible.

While waiting for the world to catch up to the benefits of Crypto, you should reach out to your local dealership today and get the ball rolling.

If you need help or advice on anything to do with auto loans in Lincoln, contact Car Nation Canada today, we can help!

Categories: Car News