Inside one company’s journey to enable cryptocurrency options for Canadian dealers
Cryptocurrency usage is gaining popularity at a dramatic pace, especially among the millennial generation.
In fact, according to data cited by Cion Digital president and co-founder Fred Brothers — whose company delivers a cryptocurrency purchasing option for auto dealers — almost half of the millennial generation owns crypto.
As overall faith in the centralized banking system declines, especially among the younger generations, the idea of a decentralized financial option is becoming more popular. This can help to provide a secure and safe feeling and sense of control when it comes to the management of personal assets.
That’s a good reason for companies like Cion Digital to develop and market a product that enables auto dealers to allow their customers to purchase cars using cryptocurrency for both payments and lending.
And the company, fairly new to the market at one-and-a-half years old, is now moving into Canada.
“We are delighted to help Canadian dealers support this fast-growing market of buyers who demand more financing and purchasing options at the dealership,” Brothers said in a press release announcing the news.
“The Cion Digital platform works to offer lower loan rates and help car dealers support the “future generations of car buyers”.
Millennials and the younger generations often come into the dealership with non-prime credit ratings, mostly because established credit systems can be tough for newer entrants to the market.
Two of the first Canadian dealers to offer Cion Digital’s new service to their customers include Budds’ family-owned automotive stores and services in Southern Ontario and Farquhar Chrysler, based north of Toronto.
“The Cion Digital team has an automotive background and understand where the opportunities in a dealer setting lay within the cryptocurrency market. The industry experience they have makes a perfect match when trying to be the first on the scene to be able to offer vehicles for sale and accept crypto as payment, or provide a loan using bitcoin or other currencies as collateral,” said Ryan Farquhar, owner and president of Farquhar Chrysler.
Farquhar told Auto Remarketing Canada that the company’s clients are beginning to ask how they can use their digital assets toward a purchase.
“Not too common … yet I am proud to say Farquhar Chrysler is looking to be the first in Canada, possibly North America, to transact in this manner. I currently have four clients on standby for when we ‘flip the switch’ and are ready to begin this business model,” he said.
The auto dealer said there are many benefits to allowing customers to use digital assets: you can expand your geographical reach, and serve clients who have no other dealership to work with to perform this type of vehicle purchase.
Farquhar plans to advertise the new cryptocurrency offering for his store through a strong web presence, billboards across the country, signage throughout the store and a media attendance at the launch on location at Farquhar Chrysler in North Bay.
“I believe other progressive dealers will be researching how they can be involved, at least open to learning how,” said Farquhar.