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

[Adetayo100]

Here are the few questions to ask before buying a landed properties like house, Is the home in a flood zone?
Why is the seller leaving?
What's included in the sale?
Were there any additions or major renovations?
How old is the roof?
How old are the appliances and major systems?
How long has the house been on the market?

 

[Robrown83]

A car is categories as liability no matter what you are using it for. Whatever that is accrue expense is called liability. Car is just like a wife you marry that you must take care of everytime. If the car is being use for business, if care is not taking all the money you make on it can be spent on it.

 

[singlej007]

It all depends if you are buying a luxury car or a business car. If the car is to support your business in loading and offloading goods or in delivery or buying of goods then is not a liability, but if it is otherwise, then it is a liability car.

 

[maventiger]

A car is categories as liability no matter what you are using it for. Whatever that is accrue expense is called liability. Car is just like a wife you marry that you must take care of everytime. If the car is being use for business, if care is not taking all the money you make on it can be spent on it.

@Robrown83 what about uber drivers whose investment in purchase of cars suitable for doing cab and limo rentals an asset to their businesses. In this case, you can't call it a liability but an asset to the business?

 

[Diamond07]

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?

Yes you're right, if the purpose of purchasing the car is for business then you can consider it an asset. If your product needs transporting from a location to another then it's okay to have a car. It will save you stress and money of involving a logistics company

 

[maventiger]

Yes you're right, if the purpose of purchasing the car is for business then you can consider it an asset. If your product needs transporting from a location to another then it's okay to have a car. It will save you stress and money of involving a logistics company

@Diamond07 This is the easiest way to solve logistics problem and reduce stress that comes with using logistics companies. But the cost of maintaining the car is something to put into consideration.

 

[Smithkid]

If your business requires the use of automobile to enhance and facilitate your work,then a car is one of the asset for the business otherwise it is a liability. Some businesses like supply of wholesales of goods. In this case an automobile vehicle is needed.

 

[Eodine]

A car is a liability because it depreciates in value, you can't sell the car for the same amount you bought it even if it is just for one day and a car would always incur expenses like fuel, servicing etc. It can only be regarded as assets I it generates revenue like Uber service.

 

[Draysongz]

As an entrepreneur, a car would only be an asset when it is being used to generate income for the owner otherwise a car will always be a liability because you pay for repairs and maintenance and also for gasoline

 

[Aniwhyte]

If you have enough funds at hand after buying the car then it isn't a liability, but if after buying the car you are struggling to fuel it then it is sure a liability. If I'm to buy a car then surely I would be needing it for my business, anything more than that then I don't have such interest of buying a car now as it won't add any value to me, instead it would milked me dry.

 

[Kamon c4]

Business investors and ideologists mostly refer to it as a liability. Their point of view is acceptable. In my own point of view, owning a car can help facilitate and fasten the time taken to complete a transaction and it also help in easy conveyance of goods. This serves a purpose though it comes with some maintenance expenses. I beleive anything that can minimize the time taken for a business deal is an asset cause money is an element of time

 

[Kiwi]

It depends that you are purchasing it for fun or for your business. It depends on what you want to use the car for. A car will be a liability if you buy it just to be cruising around the town. In a simple term, asset is something that put money into your pocket while liability takes the money out without any replacement.

 

[Sarfraz Ali123]

Seriously. Cars are depreciating assets, meaning they lose value over time. New cars are the worst. That's because the biggest depreciation comes in the first year, with a big chunk of that coming when you drive it away and it goes from new to used.

 

[Bart Simpson]

It depends on the purpose a person would purchase a car and how the customer wants to value the vehicle. If you believe buying the car will be a major help in accomplishing your mission, then go ahead and do so. In terms of intangible qualities, the car has to address a simple need that affects the company in order to be remembered. If you practice this philosophy with your assets then you will not spend your money purchasing assets that do not help the company.

 

[mubinadaddy]

The motives behind buying the car matters a lot, if it's for business sake then it considered an assets while if it's just for personal use it's a liability. So it's all depend on the type of use which the car is been use that really matters alot.

 

[Blessedsam60]

Yeah, it depends because for example as a contractor that needs to win a project or as a public figure, there are some ways you have to systematically package your self and sell yourself to your clients so they will have the confidence in you and be ready to award you the project since you are big enough to handle it.

 

[Okeh]

For me I think it depends on why the car is being purchased.

If it's for the running around of the business, it's not liability rather something that will help in building the business.

But if it's for pressure, that's when it becomes a liability because he will be maintaining the car from business.

 

[jay]

When it's not directly linked to the business growth, it is a huge liability. Buying car in such cases is not the case, maintaining it is. And if you can do yourself a favour a noted down every single money the car took for you within one year, you will underground how much of a liability it is to your business.

 

[maventiger]

When it's not directly linked to the business growth, it is a huge liability. Buying car in such cases is not the case, maintaining it is. And if you can do yourself a favour a noted down every single money the car took for you within one year, you will underground how much of a liability it is to your business.

Personally, I have seen businesses that needs a car for swift running of the business and on time delivery of their product. Lack of maintenance coupled with bad roads available in most developing countries would increase the cost which is more liability to the company.

 

[KvngMurphy]

As an entrepreneur buying a car can be an investment and on the other side a liability.
If for example your reason for buying a car was to ease mobility while selling or transporting your goods then it's a plus to your business but if there's no tangible reason to why you bought the car then it's better to avoid wasting the profit from your business