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

[tuna89]

In life generally, it's either you acquire assets or liabilities. As an entrepreneur, you would definitely acquire both, part of business is also acquiring those materials that will make the business easy for you and the employers, some ecommerce store have logistics channels in which they have acquired bikes which are liabilities, you just have to make sure there is little or no loss.

 

[Thosynho]

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?

Before you could define or determine which product is asset or liability, the purpose the product is bought for must be put into consideration. If buying the car will affect your business positively but causing you increase in sales then the car is an asset or investment however, if buying the car added no value to your business but takes from you then the car is a liability.

 

[Folaham]

If the car in question is to aid/support the business, it is an asset to the business. But if the car is for pleasure then it is a liability to the business.
Despite being an asset, it is a depreciating asset as it loses value with time

 

[Trojan8]

This depends on the reason for buying the car and how you want value this. If you believe buying the car would help drastically reduce transport costs, then it is fine. All in all, the car has to solve a basic need that concerns your business for it to be recognized. If you follow this principle then you won't waste money buying assets that your business do not need.

 

[Nurudeen]

There are some points you will attain in life that can never make you think buying a car to yourself is a liability. I only see this as a poverty thinking mentality. Side the fact that cars are used for business I think car also bring comfortability to humans when they get it. You can easily access any location with it withy jumping from one commercial bus to the other

 

[Odebunmi ajewamiri]

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An entrepreneur buying a car could be an investment and also can be a liability
If you are an entrepreneur running a small business scale and your line of business do not needs a delivery service of which the car can contribute,/ or for the transportation means for the business then having a is a liability to the business . and an entrepreneur running on a large scale and your business is aiding enough profit Haven a car could be a personal assets.
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An entrepreneur buying a car could be an investment and also can be a liability
If you are an entrepreneur running a small business scale and your line of business do not needs a delivery service of which the car can contribute,/ or for the transportation means for the business then having a is a liability to the business . and an entrepreneur running on a large scale and your business is aiding enough profit Haven a car could be a personal assets.

 

[Rainlover207]

It depends on what the car is for. If the car is a necessity. That is, if the car is meant to ease your daily outings mostly because of your business, then it is definitely an asset since it is used to run the business also.
But if the car serves as a luxury that is it isn't something you need, you just want it.

 

[Mama]

Buying a car for your business is a necessary liability,if your business depends on it to succeed. As an entrepreneur you cannot afford to waste the money you have not made. You have to sit down and think twice before you spend

 

[M Amin]

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?

If you own a car it is of course a liability but if you have number of cars and size one all of your cars are rented out and you are running from it it means it is your asset or investment.
And you can sell your car if you need your money.

 

[Sarfraz Ali123]

Your car may be considered an asset because you can sell it for a large amount of money. This can help in emergency situations and may help you to get out from underneath the loan. But your car is not an investment. ... It is important to realize as you make your car purchases that they are not investments.

 

[Ridorz]

I can not say YES or NO.
Because there are some of business that you will need a car to be doing it, for instance if you are a contract seeker in my country you will need a car to give more honor to your status so that people that want hire you evaluate you as a person that will not run out with thier money. And there are also a many business that needs to run with car. But if you Business doesn't require a car, I can see it as a liability.

 

[btaliat]

If the car is for buinsess oriented or aid in generating income, for instance, someone that buys a car to be taking to his workplace because of the distance, is still an asset. But if the car is just for easing transportation. Then it is a liability because you will need fueling and maintenance.

 

[Dowenship]

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?

Is the car for luxurious purpose, or for your customers or client. If the car as something to add to your business then its not a liability, you can be wealthy enough to buy a car got luxury, nothing bad in that also. But U just growing and u went to buy a car for luxurious purpose then its become a liability.

 

[Greatguy1]

If it is to run the business products or the entrepreneur at a faster pace then a car is an investment but if it is to show off or kept at home as a symbolic status then a car is a big time liability. An entrepreneur should discard all forms of liabilities but a liability that makes work faster or improves the business is an asset

 

[joy101]

Buying a car for business purpose I don't think is a liability, unless you buy it just for pleasure that means is a liability, without that I don't think is a liability buying a car in a business depend the kind of business you do.

 

[Ibrahim1]

It's investment not liability because it's an investment that's moving right now and making sense to the extend that everybody buying cars to reduce stress and to be comfortable in there journey in life

 

[Nma]

If you are an entrepreneur who is comfortable enough and can manage the car effectively without straining your finances then by all means go ahead and get the car.... it will also help you alot in business.... I wouldn't advise a young struggling entrepreneur to get a car because he won't be able to maintain it

 

[Trexxxy]

Indeed I think you have answered the question yourself, it depends solely on the usage if the car or vehicle is used for business purposes and it helps generate more money then, it becomes an asset.

 

[Hasan Raza]

My dear purchasing car by an entrepreneur is not a liability because it depends upon the nature of buying either purchased on cash or on credit basis. If it is purchased by cash then it is your asset. But if you purchase on credit then too it will be your asset but then there will occur a liability on buying credit basis.

 

[maventiger]

It's investment not liability because it's an investment that's moving right now and making sense to the extend that everybody buying cars to reduce stress and to be comfortable in there journey in life

@Ibrahim I understand your point of view, but would it not have been better if the usage of most cars on the road are not for luxurious flash or enjoyment. In developed countries you can own a car and still take public transportation to your workplace and you still enjoy the ride.