originaltigger61
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It can end up being both. If you buy a car and are thinking about the asset of it, you need to buy one that will hold its value like a Honda, Toyota or Mazda. You also don't want to be stuck making payments you can't afford, then you may risk ruining your credit. You also don't want to be stuck with a high interest rate, you will be paying more interest than principal. You also want to be sure that you can pay off the loan at any time and are not locked into a 4-5 year loan. You should try to pay it off as soon as you can and then you have the whole car value as an asset. Also factor in repairs, insurance and gas. You may need a smaller vehicle to get the best mileage possible. Good luck. |
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Frank Castle
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If the car is yours it's an asset.
If the car is not fully paid it's a liability. |
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Tomel
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The market value of the car is an asset. Any outstanding loan on the car is a liability. The difference is your equity (assuming the value of the car exceeds the loan balance). |
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clairesbaker
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In my mind, it is a liability. It does not retain value (in other words, it is always depreciating) and it requires significant money annually (insurance, oil changes, etc) |
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furnace4bro
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Both.
More of a liability for me though right now. Not enough income to actually sustain having a car properly. Insurence, registration, gas, tune-ups...etc.
I'm a public transportation kind of person. $14.00/mo. for a bus pass. I think I'll wait for a while to get a car. |
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Foxey
 |
The Car itself is an Asset with a depreciating value
but the operating costs to maintain and run the car is a Liability. |
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TheSmartass
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Liability. BIKE POWER! |
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Mohit Madaan
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Its all upto you how you use it. If you use that car for some proper work ofcourse, it is your assest otherwise if you like freaking ofsource is a liability. |
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Heather
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asset |
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Sylvusia
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it can be both... it has a certain value to it, therefore making it an asset, but at the same time it holds a great deal of liability potential because the car can cause damage and/or be damaged |
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Lisa
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The car it self is an asset but the car loan is a liability. |
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lily
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Since I use my car for one of my jobs it's a HUGE asset. Especially as I live in a part of the world where the public transport is horrible. |
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wolfman
 |
both |
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Xebeck
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Is an Asset but you only have to account for depreciation on your balance sheet. |
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lambo
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both |
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heather_55343
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If you are making payments on it I would say it is an expense... It won't hold it's value and it always will depreciate.. If your a business owner with a fleet of vehicles I would count it as an asset. |
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James M
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Assets go up in value. Liabilities go down in value. Therefor your car goes down in value so it's a liability. Just like a mobile home...goes down in value not up. |
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