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

[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 is an expenses especially when the car is not used for business purposes but only for luxurious purposes.

 

[kayode10]

This largely depends on the thing you want to use the for, I mean the main purpose of the car. If you buy the car as a mean of transporting your products around, I would say it is an asset.

 

[Kvngsammy]

A car can be an investment once it becomes the source of income; for example, when you use your car for a car riding program like bolt or uber, your car is now an investment because then it's bringing income for you by increasing cash flow and revenue

 

[Solutionav]

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?

You are right if it is for business purpose it an asset but for just personal use is a liability because maintaining the car is not easy but for business purpose you can use the money you get from the car to maintain it

 

[Kubiat-Abasi]

Being an entrepreneur, it is even needful to buy a car to ease the stress. I cannot even be a full time entrepreneur without having a car to aid in mobility.

 

[Toyoabasi]

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?

Purchasing your own car can never be a liability. It automatically becomes an asset once you've acquired it.
A car can become an investment when you're using it monetarily. I know of people who buy cars and give them to drivers to generate money with it via transportation.

 

[Seno inyang]

Acquiring a car as an entrepreneur could be a liability or investment depending on the entrepreneur's purpose for getting the car. If it's to push the business then it's an investment but if otherwise then a liability.

 

[Dagm1]

As an entrepreneur, purchasing an automobile is a must in order to keep you and your company afloat. This is because you'll need that automobile to get about and, if feasible, deliver the things you sell. As a result, I would argue that purchasing a car as an entrepreneur is an investment rather than a liability.

 

[Heatman]

Being an entrepreneur, it is even needful to buy a car to ease the stress. I cannot even be a full time entrepreneur without having a car to aid in mobility.

As long as the car that you're purchasing is to help your business in one way or another, then it's definitely worth the buy. But if it's just for fun when your business can't boost of over 2 million profits in a year, it's not worth the buy.

 

[kayode10]

This will depend on what you want to use the car for. A car will become an asset if you buy it for the business. It becomes liability when you buy it for personal use. But you can still buy a car for business and still use for personal use.

 

[Heatman]

Seriously cars are liability to me especially when your business is new because the cost of maintenance you're going to be spending on the car is going to affect your business drastically.

 

[Mayox25]

To label a car as an asset or liability depends on the purpose of purchase. If it is to be used for business purposes to add value to the operations of the business then it is an asset but if otherwise then it can be said to be a liability.

 

[jay]

Well buying car should not be a liability to the business provided it will enhance the business profitability because you need mobility for some business.it depends on the kind of business you may need car to move your product around

Till tomorrow I'm always going to see buying a car as a liability to someone who is running a sole proprietorship because the car will only be an added extra expenses to the business.

 

[tyrim88]

A car is never and will never be an investment and if you are buying a car and thinking that you are investing in the car then obviously you are at a very wrong decision that might affect your capitals because a car depreciate over time but if you invest the money in land and housing that is the investment that appreciates over time.

That is very correct,because except you are using the vehicle to generate some sort of revenue, then it will just be draining your finance without bringing in any form of returns for you.

 

[Heatman]

If you're running a single man business it's not advisable to dip your hand into the small capital that is used to run the business to purchase the car because it's going to drive the business growth backwards.

 

[Godspower]

Just like you said, if it will contribute positively in the overall running of the business, then it is a good idea. However, buying a car shouldn't come at the expense of more pressing needs of the business.

 

[YERUS]

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?

It depends on what you intend using the car for.
If it is an investment, then it is expected that you use it for transport services.
If it is a private property, then it is not an investment.

 

[Sotherefore]

If the car is for business purpose then obviously that is just the best option because it can help you to run the business conveniently, when you are just buying a car with no purpose to used it for then it becomes a liability because is not generating you anything in return.

 

[Skysaint]

Well, I don't see it to be a liability especially when the car is used to carryout some business related activities. Just that we need to cut our coat according to our size so as not to buy a car that's too fancy for the reason we bought it for

 

[Ghost1]

Depending on what you are using the car for. Is it for the purpose of the company and for your own personal use. It's an asset if it'll help your company but a liability if it wouldn't