Is a car luxury or an asset.

[Profwriter]

Can asset be defined outside of a business context?

An asset is something that brings in money to your pockets and appreciate, it can be move able or non move able. To many people they don't see owning a car as an asset but a liability. In an economic sense, a liability is what takes money out of your pocket.

If we say let's stay within the business context of defining asset and liability for our every day financial actions or decisions, no body needs to eat food.

Eating food takes money from our pockets, It doesn’t add to it, same with wearing of clothes and shelter.

I think the world economic system didn't create room for necessities of life.

To me, a car is never a luxury or an asset but a basic necessity.

Let's hear from you.

 

[Deleted member 28873]

what is an asset ?to a layman an asset is anything that brings money into your pocket,while a liability is anything that takes money out of your pocket.A car is a liability considering the fact that it takes money out of your pocket.you have to buy fuel for your car often times ,paying for damaged part of your car.The obvious basic reason why a car is not an asset is that it depreciates in value while at the same time removing money from your pocket. Your car is loosing value every day that you are driving it and at the same time eating into your wallet to maintain it in terms of fuel, service, insurance.

 

[IamDozzy]

A Car can never be an asset because it depreciates with time. It is considered a luxury because people can do without them by taking a public transport. Let me explain what I mean by depreciation, if one buys a car for like $2000 and use the car for like 2 years, you cannot sell the car for $2000 again rather you would sell for like $800 due to it mileage and all.

 

[Georgeadawara]

Car is lexury not an asset because car depreciation with years a car of 2005 and a car of today are different more model and more fashion and even price.

 

[Hena101]

Car can be luxury or asset depending on how the owner make use of. It can be for luxury if the owner just use it for his ride and family use. But it can be an asset when it's a commercial car because it can solve peoples transportation problems and bring profit to the owner which he can use for luxury and also use the same car for his personal and family luxury