Is A Car An Asset Or Liability?

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I believe it involves a relativity. Whenever I compare a car as an asset, it is mostly seen as luxury and comfort. However with the advent of uber and delivery outlets, one can begin to see it as an asset, in that way a room can be an asset with things like airbnb. A lot is changing now.

I saw some group comparing getting a car to getting a house and I thought it was a bit silly comparing that.
I ll rather consider a land comparison as it is still possible to have them in the same price range.

So real estate will keep being an asset forever, with tendencies of Xing really well.

But when it come to a car, one fault can almost dry up the income generated. Methinks

Cars in my opinion can not be liabilities unless in different circumstances as a result of negligence.

A car or motor vehicle can be seen as a company in motion. Like every other, for your company to not fall apart, you give the necessary attention and most of the time it costs nothing. A car serves in the best possible ways and it's vantages far outweigh the disadvantage. Your car can only become a liability when you overlook its needs.

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To know whether a car can be a liability or an asset depends on who make use of it. We all have our choices on what we want to make them as. If it brings money to the pocket, as you have said, it is more of an asset than a liability. Then if it does not, the other way round.

In life, we choose how we want things to affect us either good or bad. Example: The same cocaine used in anaesthetics drug which is a positive effect can also be negatively used.

well, many will consider a car a liability, given that it takes money from your pocket and also depreciates in value. This is because many only measure value in terms of 'money'. However, value can be derived from unquantifiable things. For example, since getting a car moving around has been more convenient. I save time and in some cases money moving from one spot to another. The vehicle might not be bringing in income currently but it has added value to my life.

Also, buying a second-hand vehicle and a brand new vehicle isn't the same. While the latter depreciate much quicker and significantly, the opposite is the case for the former. For instance, I purchased my car for two million. if I am to sell it today, I can still get something close to that amount if the car is well maintained. However, buying a brand new car for 10 million, its resale value might be around half the price or less, given how well the car has been maintained. So one needs to factor in all these before purchasing a vehicle

You know it's kind of teasing seeing this post?.lol, alot of people have different opinion about owning a car .
Some see it as liability .
Some see it as an Asset .

Car is only a liability when you buy for it for fitting in sake, when you buy a car because your friend bought or you didn't think through as per purposes the car would serve you. You can't just save up $2k to buy a car with no way of maintaining it. That's the problem. Think through what you need the car for before you conclude if it's an asset to you or lability .

Car is an asset when you have thought through why you want to own , let's take for example you bought a car maybe for business purposes? Or maybe you bought it for transportation purposes. Especially buses, many buses or bus drivers earn money a week or even a day depending than most salary earners.

For me car is a necessity, as an asset and mobility purposes. You choose whether your car will be an asset or a liability to you. It all depends on you

Thank you and have a nice evening

When we were living in South Africa, for 10 years, we took the taxi (mini bus) everywhere, and had to carry big bags of food from the shop, it was constraining, and felt that it limited our growth and ambition.

As we didn't own a car, not enough money to buy one, and we were at the mercy of everyone for lifts, for meeting people, for going to the hospital, sports, etc...

I would even daresay, that the system is made in such a way, so people stay poor, keep on using taxis their entire lives, and it will be very hard for them to get a better job, be on time for work, and even make bigger plans with their family.

It will also determine where you can live, what sort of opportunity you can apply for, and you are also giving your life in the hand of someone else's driving, and taxis are known not to respect laws, and having accidents all the time.

For years, my wife told me, "we need a car, we need you to get a license" and finally, a year before leaving to France, I got my license.
We then didn't have a car in France yet, we had to pay for it for a while, and from the moment we had it, it changed everything. We were able to move to the country side, and be independent.

I never think of the liability, but what sort of powers it gave us. A life changing asset.

Really good chat brother!!!

If you put it in a garage and never touch it could be a collectors item, there are cars that cost a hundred or so and worth much more now yet I am with you, mostly liabilities...

Through my findings, I came to discover that assets have the ability to add value to a company and at the same time increase a company’s equity while a liability has the ability to decrease a company’s value and equity.

If you think like this Yes. It is an asset. But Cars price drop every year and a few years later its price become zero. Isn't it?

I guess it depends on the person. For some, I image it is a Depreciating Asset, for others, it can be a liability.

Thanks for presenting on #PYPT, on @dreemport !

I would agree with what you said in #PYPT today that a car is indeed an asset just a depreciating one however all the value and utility a car can provide is almost unmatched. Even though there are costs to maintain and fuel it, it can also return those funds in other ways so yes I feel a car is definitely an asset as long as it is one you can sustain and afford, people nowadays get cars that are way out of their budget but though. Gotta work within your means and find a car that is suitable and sustainable for your lifestyle.