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

[Sake]

Yeah it depends on what are you using it for if it helps you earn money and saves you a lot because you bought it then i will call it an investment. Entrepreneurs needs car anyways because they keep going to places to do business a lot, but if you're buying just because you want it and to feel good about yourself then you know what it is.

 

[Sammyesx]

Like you said, it all depends on the purpose of the car, but I still believe it is not wrong to buy car just for your own personal use, as an entrepreneur you will definitely need to move from one place to another to attend to business, so the car is also serving a purpose.

 

[idhans]

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?

Buying a car doesn't mean wasting of money as an entrepreneur. As a matter of fact there are some business you do that will require mobility. The only problem is when you buy a car that you don't worth. Don't use all your money to buy a car as an entrepreneur. If you don't have spare money, to get a car, then wait till the money comes.

 

[eenya001]

It totallyy depends on the purpose you are using the car for, it could be an asset or a liability to you. if you want to use the car for let's say uber, Bolt, taxify and the likes or you're using the car to convey produced from one point to another then it could be referred to as a business car and is an asset to you. but if you are using it for your day-to-day running around then that's a liability no 2 ways about it

 

[Ayokex]

Buying a car can either be an investment or a liability depending on what you do with the car. If you buy a car for pleasure it a liability because it's not bringing any revenue to you but rather takes money away from your pulse. If you buy a car for transportation service then it becomes an investment because no matter how little the can will generating revenue to take care of itself and even bring some profits to you.

 

[Smithkid]

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

 

[GIFTMICHAEL]

There is nothing wrong in buying a car, that you are an entrepreneur doesn't mean that you need to see wrong in everything.
Entrepreneurs also want good for themselves as well.
One thing about entrepreneurs is that they have to consider so many factors before doing anything.

 

[Godleads1]

Buying a car as an entrepreneur would be judged by how you use it or what you use it for. If it's time cruise town, know it's a liability. But if it's use has to do with helping the business, it is an asset and it's good.

 

[maventiger]

@Godleads1 the usage of such automobiles plays a major role in classifying it as a liability. Overtime, entrepreneur started adding automobiles as an asset of business but they but the usage proves otherwise.

 

[Kane]

Investment is something that gives you financial return, will you gain anything financially by buying a car? I am sure your answer is no. In that case car is not your investment. However, if you rent out your car it is definitely an investment

 

[Akinwale701]

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?

Buying a car can be an asset or a liability sometimes depending on the use of the car. If the car is for the carrying of goods supplied by the company, surely it is an asset but if it were for stuff that won't being any monetary gain to the company, automatically it is not recognized as an asset even in financial account. It is a liability like that

 

[Thosynho]

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

Very correct bro. If buying a car as an entrepreneur adds nothing to your business instead you spend from the business to maintain the car, then it is nothing but liability. But if buying a car is to grow your business then, it becomes an asset but a depreciating asset as you rightly put it.

 

[Folaham]

Very correct bro. If buying a car as an entrepreneur adds nothing to your business instead you spend from the business to maintain the car, then it is nothing but liability. But if buying a car is to grow your business then, it becomes an asset but a depreciating asset as you rightly put it.

I discussed this with an accounting expert ( a chartered accountant) and he said the car is an asset. He sighted examples of company vehicles that they offer service that can be measured.

 

[Shigobad20201]

Being an entrepreneur, buying a car might be an asset of or a liability depending on the purpose of the car, if the car is used for business purpose ,it will be an asset but if its for personal gain or pleasure, if might turn into a liability.

 

[Zamaney]

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

 

[unhappy triad]

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

 

[Lyrrex]

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.

 

[Bholozy]

If the car is used for the business, it should be considered an investment but when the car is not meant for the business and the expenses made on the car is from the business fund, it should be considered as a liability for the business

 

[Asad Ali]

A vehicle is in no way and could in no way be an funding and in case you are shopping for a automobile and wondering which you are making an investment withinside the automobile then manifestly you're at a completely incorrect choice that could have an effect on your capitals due to the fact a vehicle depreciate over the years however in case you make investments the cash in land and housing this is the funding that appreciates over the years.
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A vehicle is in no way and could in no way be an funding and in case you are shopping for a automobile and wondering which you are making an investment withinside the automobile then manifestly you're at a completely incorrect choice that could have an effect on your capitals due to the fact a vehicle depreciate over the years however in case you make investments the cash in land and housing this is the funding that appreciates over the years.

 

[Planet408]

Buying a car which is a non business car is not an investment because cars does not save you of any cost. Rather, it adds to your expenses and neither does it yield any income to you. Therefore, I consider a non business car a liability.