Buy A Car With Crypto
Buy A Car With Crypto
What cryptocurrencies can I pay with?
- BTC - Bitcoin
- ETH - Ethereum
- BCH - Bitcoin cash
- LTC - Litecoin
- PAXG - Paxos Gold
- MATIC - Polygon
- USDT - Tether
- USDC - USD Coin
- Am I restricted on where my funds come from (ie. exchange, wallet, ledger etc.)?
There are no restrictions. All exchanges, wallets, and offline (cold) storage will work.
- Can I do a partial down payment with fiat (USD) and then the rest in cryptocurrency?
You can do partial down payments with fiat currency and pay the rest with crypto. Please work with your sales rep and finance manager to determine the terms.
- How fast do transactions take?
Cryptocurrency transactions depend upon their blockchain network and the congestion at any given time but typically the majority of transactions can be done within less than 5 minutes.
- Will I be notified when the payment arrives at the dealership?
You will receive an email confirmation of the payment being complete. Additionally, you can check on the status of the transaction through the blockchain.
- Do I need to go through KYC to do the payment? Which documents can I use to complete my KYC?
No KYC is required to receive a payment with Cion digital, although the dealership has its own terms and will ask for personal information.
Borrowing With Crypto
- Should I be worried about volatility in the cryptocurrency market?
When a borrower has an active DeFi loan, for example with Aave, to avoid the risk of liquidation, the borrower should regularly monitor the liquidation LTV if the crypto price of the collateral the borrower supplied is dropping. The borrower will receive a notification email in case they are close to getting liquidated. In this case, the borrower should supply more collateral to avoid liquidation. For CeFi loans like Salt there is no liquidation LTV.
- How long will it take to process a loan?
As a borrower, requesting a loan on the CIon platform is really simple. It can take about 15-45 minutes to process a loan from start to finish with your sales or finance representative.
- How long will it take for a dealership to receive the funds from the loan?
- DeFi loans funds will be deposited within a few minutes once the borrower deposits the collateral.
- For CeFi loans like Salt, fund loans will be received as fast as the steps in the application process are completed. The average time to fund a loan is approximately 1 business day.
- How can the I select the best loan option available?
Borrowers can make their choice based on the following criteria:
- APR - Annual Percentage Rate
- LTV - Loan to Value Term - Duration of the loan (CeFi only):
- 12 months
- 36 months
- 60 months
- What type of cryptocurrencies are accepted for collateral?
Currently, the following cryptocurrencies can be used as collateral:
- BTC - Bitcoin
- ETH - Ethereum
- BCH - Bitcoin cash
- LTC - Litecoin
- PAXG - Paxos Gold
- BNB - Binance coin
- ADA - Cardano
- SOL - Solana
- DOT - Polkadot
- USDC - USD Coin
- Am I restricted on where the funds come from (ie. exchange, wallet, ledger, etc.)?
There are no restrictions. All exchanges, wallets, and offline (cold) storage will work.
- Can I make a partial down payment with fiat/crypto and finance the rest in cryptocurrency?
The borrower can make partial down payments either with fiat currency or with crypto, and finance the remaining amount. Terms will be determined by the car dealership.
- Can I add more collateral to the loan if crypto prices drop?
Borrowers are able to add collateral at any time to drop their LTV. Borrowers will also receive a warning email in case they are getting close to the liquidation threshold.
- Who pays the gas fees for sending the collateral?
The borrower will pay the gas fees for sending the transaction. Gas fees will depend on the blockchain being used and its network congestion. Typical gas fees are around $2-$10.
- Will I be notified if there is a margin call?
Borrowers will be notified with email alerts and warnings prior to any liquidation events providing enough time to rebalance the loan.
- What happens if I get liquidated?
Each DeFi loan liquidates at a different LTV but typically liquidation happens around 80-85% LTV. If liquidation were to happen, the loan would default; therefore, the collateral pledged would be taken by the lender and the borrower would have no further obligations for payments. For CeFi loans like Salt, there is no liquidation LTV.
- As a borrower how can I “Deposit Collateral", "Withdraw Collateral" or "Repay Loan?
When the loan is created, Cion will email a link to the borrower to manage that loan. The loan management page will have buttons such as "Deposit Collateral", "Withdraw Collateral" and "Repay Loan". It will also show all the information about that loan such as how much collateral is locked, the health factor of the loan, current LTV, and liquidation LTV.
- Where can I see my monthly payment?
For Defi, there is no such thing as a monthly payment, it works like a line of credit, where the borrower can decide when to repay the loan at any given time. For CeFi loans you can see the monthly payment amount before submitting the loan.
- If my crypto is staked, can they I use it as collateral?
No, borrowers cannot use staked crypto as collateral. They have to un-stake it first.
