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

[Kingsley]

An entrepreneur is someone that combines all other factor of production, such land, Labour and capital, they make sure they get the maximum benefit from the factors of production, as touching buying a car, well it all depends on why you are buying the car. Is it for transport business or for pleasure? If for pleasure it might be too wise, but if it were to be for transport business then it Is a wise move.

 

[Segat]

It is both an investment and liability, it is an investment if the purpose is to make money which will in turn become a liability at a point when wear and tear set in. It can be a liability initially too if its not serving a purpose of bringing in profit.

 

[Usama Iqbal]

It depends on you that what are the purpose of buying the car. Buying a car both are investing and lability. I advise you not buy a car if you not use the car in the business. It wiil only the daily cost of fuel. But if you are using the car for Uber then the car definitely asset.

 

[Kelly5]

You will to be looking at this question of yours in two angle. Firstly is, if you are buying the car for a leisure purpose, then the car is not an asset but a liability. But if the car is serving a business purpose like transportation, then it is an asset.

 

[Princeeffiong]

A car to me is a liability asset which depreciates in value over a period of time. If begin to make so much money buying a car will be the last thing that would come to my mind. As someone who has driven various types of cars and know how much it cost to repair a damaged car, it's better to buy a car when the resources to maintain is readily available.

 

[Briangsam]

Buying a car as an entrepreneur could be either an investment or a liability. This depends on the type of business and what the car will be bought for. If the car will be bought to be registered with Uber for example, it will be an investment. But if it is for personal use, it will be a liability.

 

[Neeta313]

I won't see it as a liability because that car can assist you in your business and day to day activities, things will be done on time due to easy and fast movement, it will also save you the stress of using public transport. It is more of a necessity than a liability.

 

[mayreeh38]

As an entrepreneur, is the car you are purchasing for business purposes? Will you deliver goods and other services to customers with it? Or you are purchasing it just for convenient? If it is for convenient then it is a liability.

 

[Akgreat82]

It depends, it could be a liability or an asset, in a simple term, Liabilities are the things that takes money away from your pocket while assets while assets are those that puts money into your pocket. so if buying a car as an entrepreneur takes money from pocket than it puts there then you know the answer already.

 

[Mastercoded]

The car you are buying can be an asset or a liability depending on the purpose
if you using it for transportation, it is an asset.
if you are using it for haulage, it is an asset.
if you are using it for leisure, it is a liability.

 

[Ridwan Mohammed]

Asan en

It's an investment in my business because sometimes I have to deliver lots of goods to customers and it won't be cost effective to take public transportation, infact in all businesses cars are an asset.

As an entrepreneur the purpose to which am buying the car determines. If it is for the business to go smoothly and efficiently, then it is important. At the other hand an entrepreneur can also buy a car as long as he or Sha has the capability.

 

[Adeyoola7]

being a entrepreneurs buy car is not liability is part of your asset because of the country we are if you are Business man and don't have a car in this our Nigeria you would not be able to get the contract that is what our people here is first looking at first if you brought your car to where you want to receive the contract believe me they will give you the contract that is our nature

 

[Abdul Naveed]

Your car can be considered an asset because you can sell it for a lot of money. This can help you in emergencies and help you get out of debt. But your car is not an investment. ... It is important to understand that buying your car is not an investment

 

[Ayokex]

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.

Buying a car is definitely a liability and not an investment except you actually buy the for transportation purpose. Whatever property you buy that is not generating any revenue is a liability. Whatever you have that is bringing in some exre income is called an investment.

 

[Victor001]

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 either be for asset or liability depending on choice of view,if my business will need car to ease operation and maximize profit,then it's definitely my asset,but if the car becomes a burden and not necessarily for work purpose..it becomes a burden.

 

[gbadebo9]

Car is not a liability but it facilitate the business to grow in fold, once u have a car it improves the business on high side. It also saves time in produce our product BT facilitate our movement within and outside. Any company that has means of transportation will have the opportunity to convey their product to anywhere compare the company that did not have

 

[EMMANUEL]

Left to me buying a car is a liability, the only reasons why I may not accept the fact of it being called liability, is only when there is a tangible reason why you go for buying a car, but as far I can tell, it will be absurd, expenses that will be incurred based on this fact will be more than expectations.
Reasons why it is called liability is because it will never appreciate in value.

 

[Yan]

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?

Whether you call it a liability or not I believe that owning a car is a proper thing. And truly if it is for a business purpose then you could say it is fully and assets which will help you in terms of earning money but speaking of for personal use, if you look at biological economy you will see that owning a car is not totally inability. I can't personally tell me that you will truck 5 km without falling sick speak less off traveling longer distances so basically in my opinion it is an asset also.

 

[Olubayo12]

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 the car is used to fuel the productive capacity of the company, automatically it is an asset but if otherwise, then it is a liability. One has to check the purpose for which an asset is acquired and see if it passes the definition of what an asset should be

 

[maventiger]

if the car is used to fuel the productive capacity of the company, automatically it is an asset but if otherwise, then it is a liability. One has to check the purpose for which an asset is acquired and see if it passes the definition of what an asset should be

@Olubayo12 I agree with your contribution to the thread. Are you aware most business owners or startups sometimes get confused on what to define as an asset or what should be an asset?