The dealership that lets you buy cars with crypto in South Africa

South African fintech platform 6DOT50 has enabled the first integrated cryptocurrency vehicle purchase through Mercedes-Benz Constantiaberg, part of South Africa’s Super Group Dealerships network.

Its network comprises 35 automotive brands across Gauteng, North West Province, Mpumalanga, Limpopo and the Western Cape, as well as 69 dealerships.

The group has now activated all 69 dealerships to support the innovative alternative payment capability, allowing buyers to buy new and used vehicles using cryptocurrencies.

Beyond vehicle purchases, dealership customers can also use the platform to pay for a range of dealership products and services.

These include extended warranties, maintenance and service plans, parts purchases and other related offerings at participating dealerships.

By integrating 6DOT50 with the Seriti Solutions automotive finance technology platform, Super Group Dealerships can accept payments through any of the eight supported cryptocurrencies.

The system lets buyers convert any of these cryptocurrencies into merchant-accepted Digital Rand voucher value, allowing dealerships to receive seamless settlement without handling the cryptocurrency directly.

“We are delighted to now activate our full dealership footprint and offer our customers another way to pay,” said Jackie Steyn, Finance and Insurance Executive at Super Group Dealerships.

“We are very excited to see the integration and seamless payment solution offered by 6DOT50 come to life with our first sale.”

She added that the process was not only easy for the buyer, but also enabled seamless deal settlement and reporting through its integrated payment capability.

“This solution also gives customers greater flexibility, allowing them to use cryptocurrency not only for vehicle purchases, but also for value-added products and selected dealership services,” added Steyn.

Warren Venter, founder at 6DOT50, added that the transaction demonstrates how digital assets can be integrated into mainstream commerce through simple, secure and fully integrated payment experiences.

“The activation of the Super Group Dealership network is a significant step forward for cryptocurrency-enabled vehicle purchases globally,” he said.

Buying a used car with crypto in South Africa

Cryptocurrencies like Bitcoin, Ethereum, and XRP have become popular investments over the years, and many investors are looking to spend these on various items.

Since it became more mainstream, crypto buyers have been able to spend their returns on high-end luxury items, including watches, boats, cars and even property, as well as daily essentials like groceries.

In 2017, an American entrepreneur, Peter Saddington, became the first person ever to buy a luxury vehicle for Bitcoin.

Saddington bought a 2015 Lamborghini Huracan for 45 bitcoins, stating that he had bought the 45 bitcoins for $115 in 2011, which amounts to between R750 and R1,000 depending on the exchange rate at the time.

Ever since this purchase, many crypto holders have been reported to be spending their profits on high-end luxury items, especially sports cars.

In April 2021, the high-end South African car dealer Ferris Cars became the first local dealership to facilitate a deal using crypto.

“Ferris Cars is proud to be the first South African car dealership to publicly and directly accept cryptocurrency as a form of payment for a car,” the dealership said following the deal.

The dealership handled the purchase of a 2012 red Ferrari California for 2.08 bitcoins, which was a first for South Africa, and has since facilitated several such purchases using a range of digital currencies.

Buying a vehicle with cryptocurrency, whether it is a high-end investment like a 2012 Ferrari California or a daily driver, is rare in South Africa.

Independent dealerships like Ferris Cars and Infinite Auto facilitate these deals through their own channels and handle transactions themselves.

The rollout of an integrated cryptocurrency vehicle purchase through a major dealer network positions South Africa at the forefront of real-world cryptocurrency commerce, representing a major shift in the market.