🚗 Being an Entrepreneur, is buying a Car an investment or liability?

[Emmado]

if you're buying a car for business purposes in the car is an investment purposes because it will help your business grow stronger, buying a car with no use purpose is a liability because it doesn't mean anything for you.

 

[Ralphjoe]

@Ralphjoe what of cars that are being acquired for business purpose but couldn't live up this expectations and purpose of purchase. Is such an acquisition still an asset or a liability? I await your response.

Well as for such a car, it will be called a liability because it must have drained the Business of it's financial resources during the time that the car was not working well. In such a situation the most logical thing for any business to do would be to sell off the car and buy another one.

 

[Heatman]

A car is a big expense so many are hesitating on that. However, if the car can be beneficial to the business then it is good to buy a car if you have a budget. My brother whose business was selling special steel bought a truck for delivery and a car for him and his business partner. They needed that for the image of the company.

This is exactly my point because in a situation whereby the car is actually going to help the business grow, for that I believe that it's something that should be done because if you don't, it will keep on driving your business back instead of helping it to grow.

 

[Hena101]

As an entrepreneur buying a car will not be a liability as long as it will help you in carrying out your business. But if it can not help you in carrying out your business activities then it's a liability because it can take more than you can get from it for services and maintainance while it add nothing to your business.

 

[Prettyjanie]

Personally, it depends on the purpose of acquiring the Car.
If it is business oriented I will agree it's an asset to your business.
If otherwise, a car will always be a liability.
What's your take?

As an entrepreneur, it depends on the nature of your business, as some businesses will thrive better when a car is available. However, when it's for the purpose of luxury then it may be a liability to you.

 

[Setho]

This might mean different things according to the situation. If the car is going to be beneficial to the business then there is nothing wrong with buying.

 

[Sotherefore]

As an entrepreneur buying a car will not be a liability as long as it will help you in carrying out your business. But if it can not help you in carrying out your business activities then it's a liability because it can take more than you can get from it for services and maintainance while it add nothing to your business.

As an entrepreneur, a car can only be profitable if you are buying it for the main purpose of moving your business to the next level, without this buying a car for any other thing is a liability as it will not generate you anything

 

[kay169]

If you are buying and selling it’s not a bad thing but if you’re buying for personal use it is a liability and it can lead to a lot of expenses

 

[Alexandoy]

This might mean different things according to the situation. If the car is going to be beneficial to the business then there is nothing wrong with buying.

That is also my take on buying a car. A business owner needs to have the so called corporate image and the car is part of that image. If the business owner is just taking the bus then customers may look down on him that may affect the reputation of his business brand.

 

[Lordfalcao]

It’s an investment when you buy and sell but a liability when you only buy for personal use because it will create more expenses for you than profit

 

[Emmy]

Some entrepreneurs buy car to transport goods in and out in the business which I can refer to as liability because to deliver goods to customers, entrepreneurs have to get fuel for the delivery which is pure expenses.

 

[Richard92]

Yours like you rightly said, it depends on the purpose why you are buying the car. As an entrepreneur are you buying it as a tool to move your business forward maybe to run errands or deliver goods or it's just for pleasure and flex.

Being an entrepreneur buying a car most times can be a liability northerninvestment except if the car is used for business purpose then it becomes an investment but if it's for luxury purpose it is a liability.

 

[Setfragil]

The purpose for which the car is bought will determine if the car is an investment or liability. If the car is needed to improve the services of the business, it is not a liability rather it is an asset to the business.

 

[Jlife]

The purpose for which the car is bought will determine if the car is an investment or liability. If the car is needed to improve the services of the business, it is not a liability rather it is an asset to the business.

A car can only be an investment if you are using it to do anything like business but if the car is not generating you some money from your business ,then the car is obviously a liability and that is not the best.

 

[Hena101]

It's not considered liability when the car is bought for business purposes but to be sincere its a liability when its bought for the intention of rising one standard.

 

[Setfragil]

A car can only be an investment if you are using it to do anything like business but if the car is not generating you some money from your business ,then the car is obviously a liability and that is not the best.

Some people uses their vehicle to move their employees and businesses around before they could make a reasonable sale of their product. To people like that, buying a car is not a liability but an asset to the business.

 

[Jlife]

Some people uses their vehicle to move their employees and businesses around before they could make a reasonable sale of their product. To people like that, buying a car is not a liability but an asset to the business.

Yes I do not see anything wrong with this because it is an investment and you are investing in your business for profit ,it is something that is helping your business to run effectively, one should only buy car when they are capable of managing it if they are not doing business with it.

 

[Bousine123]

It depends on your financial stability and what you are using the car for. It's best we spend our money on what brings us joy when we have it.

 

[Thinker009]

It's not considered liability when the car is bought for business purposes but to be sincere its a liability when its bought for the althointention of rising one standard.

Yeah most people involves themselves in driving business and they see it as been profitable ,as they could easily earn with it rather than just having the car and it would be a liability

 

[Sotherefore]

For a car to be an investment it has to generate your some sort of money on monthly basis but if the car is not generating you anything then obviously it is a liability and is for luxury purposes.