Car sales and, more specifically, luxury cars continue to be in demand with all of the impending product shortages. So much so that roughly buyers purchase $100 billion worth of luxury vehicles each year. However, with more money on the line than any other vehicle sale, considering the sales process beforehand will ensure you get top dollar and avoid facing any difficult buyers.
Among the most recommended ways to sell a luxury product online is through cryptocurrency. It allows for the instant transfer of funds in large denominations and for the lowest fees. To put some perspective, the World Bank estimated that average fees for transferring fiat currencies are roughly 6.75%, which can be significant to your earnings. Since the blockchain has less overhead and relies on a digital rather than a physical transfer, funds can be cleared nearly instantly (in some instances, this is seconds). There is also less room for error than a wire transfer which has many complex routing numbers. Although a bitcoin address is complex, these can often be copied and pasted from a digital wallet. The benefits don’t stop there either.
However, for those who haven’t used cryptocurrency before, the concept of selling a product for a digital currency might sound complex especially, if you don’t want to hold the digital currency afterward. Here we’ll break down the simplest method of selling online with cryptocurrency. The method? Using a specialized cryptocurrency marketplace.
The benefits of selling through a marketplace
Not only do you have the protection of a platform that requires verification of buyers who use it, but you also receive the backing of a company that wouldn’t want their reputation ruined for a transaction gone awry. These platforms thrive on repeat business and will have the necessary safeguards in place to ensure that they are protecting their buyers and sellers from fraudulent parties.
In addition to safety, your sale benefits from increased brand awareness. The platform likely already has a high amount of traffic looking to make a purchase, which means you’ll get eyeballs on your luxury vehicle just for listing. Buyers who have purchased before likely have a certain level of comfort that they would not have from an unknown website.
A third benefit is that many marketplaces will also have a built-in or preferred vehicle escrow service partner. Many people associate escrow services with buyer protection. However, they also go a long way in protecting the seller too. For example, luxury car sellers may have to consider what would happen if the buyer never sends the funds. Or even worse, if the funds even exist. Escrow eliminates these worries. For those new to the concept, we can outline the escrow process as:
The escrow service process
Escrow services are a concept defined by a third party that will act as a middleman on behalf of two parties in a buy and sell transaction. Escrow will often involve a fee to use a preferred agent to hold the funds and review the details of your transactions. Real estate, luxury goods, and other high ticket items are among the most common use cases for escrow. However, sellers can use escrow services on just about any product or service where one party is looking for added security.
Some of the benefits you can expect as a seller include:
- A guarantee that funds exist. Before you send over your vehicle, an escrow agent will verify the buyer has the agreed-upon funds by temporarily storing this amount in an escrow account. The escrow agent will also ensure all anti-fraud regulations have been met and may even confirm their identity through Know Your Customer (KYC) protocols.
- A guarantee you will receive funds. Sellers will automatically receive funds from escrow when the vehicle has been delivered and accepted by the buyer.
- Trackable returns. If during the inspection period, the buyer decides to back out of the deal, the escrow service will help to manage the return of the vehicle and shipping process.
- Dispute resolution. If the buyer is difficult and looking for ways to back out of the deal, a neutral third party will evaluate the conditions and award the funds accordingly. However, buyers will typically not back out since the third party is already holding their funds in escrow, and they run the risk of not getting it back at all.
Verifying the marketplace
Once you have decided on your method of selling, you will need to determine where you will do it. The best advice is to look for a fully licensed and regulated escrow service in your area. The presence of a license will often mean that you are subject to routine audits conducted by the applicable governing bodies, so you have the assurance that you are using a legitimate service.