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

[Nicklas22]

As a young entrepreneur I'm now, buying a car now will be a very big liability because I will not be able to take care of the car well and it will be sucking my little money
But rich entrepreneurs such as Dangote, buying a car is not a liability to him
It just depends on how successful and rich you are as an entrepreneur

 

[Suba]

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?

Of course, first I have to ask whether you separate personal assets from business assets, and do you keep records of financial transactions (accounting). Of course we have to know whether it is company money or private money to buy a car, if private money certainly has no relationship with a business or company. but if it is the company's money, what function is the car for the company. whether the car is only used for personal use. If the purchase of a car is for the smooth running of a business, of course it is treated as an asset, and reduces cash or the bank. But if the car is purchased for personal use, it is treated as a Prive which reduces capital

 

[SammyOlas]

The question I will ask if what will you use the car for, is it for private use or for business purposes. If it's for business purposes it's not a liability but rather an asset but if it's for private use it's a liability because you will have to maintain the car in one way or the other

 

[Bilal0087]

I did not consider it a healthy type of investment, you can call it a liability because in this type of case you are unable to earn from your decisions.
it is better to invest in a small scale business rather than just buying a car for your own usage.

 

[Michaellee]

It depends on the what the car is meant for and it also depends on the level of the business. The the business is still struggling or rather gives low profit then buying a car for personal use is not adviceable ,but how ever if the car is for the purpose of the business then is ok.

 

[Roysnickz]

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 all depend on the purpose of buying the car. Cars that are bought for business purposes are not liabilities but assets. Cars can only be said to be liabilities when they are bought or used for personal services and their usage does not brings in money to the business person, but rather takes away money inform of maintenance.

 

[maventiger]

It all depend on the purpose of buying the car. Cars that are bought for business purposes are not liabilities but assets. Cars can only be said to be liabilities when they are bought or used for personal services and their usage does not brings in money to the business person, but rather takes away money inform of maintenance.

Would you have categorized a car bought for business purposes but with little contributions to the company's profit book an asset. I have seen situations whereby companies abandon their bus when the cost of maintenance is higher than it contribution to the profit realized.

 

[eojo2401]

Buying car is not a liability for an Enterpreneurer because car will add value to your business. You stand a chance to win some contract if you have a car. Some people may not even believe in your products or services if you don't have a car. So buying a car is an investment.

 

[Genius]

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?

Getting a car for your business is good if it will benefit your business by accelerating the amount of time spend on tasks. For this, it is expedient that the use of the car will generate more sales and one will have to ensure that the running costs accrued from using the car is totally dependent on the money that one can generate from its use

 

[Mostee501]

From my past experiences, Cars are always liabilities except for the fact that your using it for business purposes which can be an asset. Some businesses cannot function without the use of cars.

 

[Kaindio Agnes Wanja]

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?

This will depend on the purpose of the car.
If the car is used for business purposes then we can term it as an investment or an asset.
If the car is used for other purposes that doesn't contribute to the success of the business then the car will be a liability .

 

[Joseph555]

In life what works for you may not work for me so I'm not in a position to judge anybody can do what he or she intense to do there is no need for this or next week comparison moreover it is advisable to trade or invest on a particular source that will work for you

 

[Richard92]

Being an entrepreneur buying a car can be an asset if you are using it for business and it is bringing in profit to your organization but if the car is not for business purposes then it is a liability, because it only takes but do not give and it also have depreciation value.

 

[Psalmsavatar]

If the business requires the use of a car, then it's not a liability but ac investment. If the business can run smoothly without a car, then it's needless buying it, it'll be a liability. It's better to plough the money for a car into the business.

 

[Blessingedidiong]

It depends on why you are buying the car. If the purpose of buying a car is just to have a car to drive around,it will be a liability. If you want to use the car to transport your goods easily to customers,it is an asset but if not properly used and managed,might become a liability.

 

[Gilead]

Yeah a car is definitely a liability because it depreciates overtime and you also need to maintain her and all that. All these are costs and expenditures you will deduct from your income. It's only when the purpose of the car is for business reasons that it can only be an investment.

 

[Adexgrace]

As an entrepreneur who want to use the car for the transportation of goods from one place to another, I believe the car is not a liability but surely an investment because it will help in savings costs and also makes goods available to the customers at demands.

 

[Youngdee]

Buying a car as an entrepreneur could either be a good or bad investment depending on the purpose of use. An entrepreneur could possibly have a business that requires transportation from one end to another, getting a car for such isn’t a liability in this case. The car aids the source of profit.

 

[Abu4exel]

Buying a car has an entrepreneur is not liability because, the person needs car to move around wherever he or she wants to go and carryout is business. So, as an entrepreneur, buying a car is not a liability from my own point of view.

 

[Sariana23]

If the car is required by the business, for deliveries and for business use only, it is an asset, although it depreciates over time. Otherwise if you buy for personal use and you go to the company but also for personal matters, such as outings or visits to relatives, it is definitely a liability.