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

[Olubayo12]

@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?

this is more reason some of them go bankrupt at the very early stage of their business endeavour. one should be able to know which is asset and which is liability. motor vehicle is good but if it is an asset, it is needed but if other wise it's a liability and not needed.

 

[tyrim88]

It depends on what the vehicle bought is used for,if it is for the running of the business then it's not a liability because the cost of maintainance will come from the business operation.

 

[Softdave]

Buying a car can either be a liability or an investment it depends on the reason for acquiring the car if it’s for commercial purposes then it’s an investment but for private it’s a liability with an advantage commercial purpose may depend on using the car to transport to goods to support your business growth and not hiring at expensive rates

 

[Sammyesx]

Getting a car as a business owner is is okay, if the car is used for business purposes, as a business owner you will definitely move from one place to another and sometimes on emergency, so having a car will surely aid the business.

 

[Victor72]

Well buying a car may not be a liability neither will it be an investment, but buying too many cars might be a liability to an entrepreneur

 

[Setho]

Whether we like it or not, if you buy a car you will have to spend money to manage it so if you are buying a car and it is not bringing in money directly then it should at least solve a lot of pain points that makes it extremely important. If not, it is a liability.

 

[Kelly5]

A simple rule of thumb will be that, whatever does not put money into your pocket is a liability. If the car does, then it's not, if otherwise, then it is

 

[Adventurer]

@Ralphjoe what of cars that are being acquired for business purpose but couldn't live up this expectations and purpose of purchase. Is such an acquisition still an asset or a liability? I await your response.

In my opinion it's still an asset, it's just like when a company folds up, no matter what there are still assets it has, like computers, furniture and equipment

 

[Jesuyemi 08]

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 for the purpose of business is purely an investment but any thing apart from this is to get comfort and you must pay for your comfort which is not a profit enabled activity.

 

[Senator]

Depending on how you used the car it can be an investment or it can be a liability. If the car is put into use to generate income then it is not a liability. But it is not generating income, then it is a liability

 

[Muhammadawais]

While your car is a costly purchase, it is not a long-term investment. Because of the high cost, many people consider a car to be an investment. When you spend a significant sum of money, you will expect that you will get a return on your investment.

 

[FreshKaz11]

Depends on the reason why you buy the car in the first place,some buy car to make more money by using it as a part-time job as well and make some profit at the end of the working business day. So it depends like I said earlier tho.

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?

 

[Abigael]

I think it truly depends on the purpose of the car as said by the creator of the thread. If the car will be essential for your business for example in doing deliveries or it will help you go to work early, then it is definitely an asset. But if it does not have any business value and you cannot really afford fueling and maintenance, then it becomes a liability.

 

[Setfragil]

It depends on the status of the business before you consider if buying a car is an investment or liability. If the business involves supply of good to the customers to their door step or moving around with your goods, then buying a car is not a liability.

 

[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?

If the car is meant for the purpose of the business, it is an asset but if otherwise, it is a liability and it should be avoided at the best possible way to avoid los

 

[Psalmseen]

As an entrepreneur, buying a car may be for different purposes. You may buy car for personal use or business use.. If you buy car personal use, it's liability but if it's for business use, then it's an asses, thus; it's investment

 

[Setho]

As an entrepreneur , owning a car can either be an achievement or a liability depending on what you intend to use the car for in the first place. If you want to use it to make the business much more easier then thats fine.

 

[Niftyyem]

For me, a car shouldn't be a luxurious item but a necessity especially in a country where the transportation system is nothing to write home about. For business or personal use, a car is important.

 

[Eodine]

To make moving around easy, it why the need for a car is obvious, and since entrepreneurs move around a lot it would be best to consider if the car would keep generating only expenses with no income then it's a liability but if it produces extra income it is an asset

 

[Kelly5]

An entrepreneur does not go about busying himself or herself about creating holes in it's business that drains his efforts. If he see such holes he blocks it