With the rising cases of COVID19 infection, a lot of people nowadays have opted to buy their own vehicles. For health reasons, most people choose to take a private car over public transportation to minimize health risks. Yes, having your own car can keep you safe from the spread of the virus when compared to taking the public bus. It also makes it easier to get to the places you wanted to go to anytime you want it. However, do you know that vehicles are considered as liabilities?
A car is a liability because you need to spend money on it: for the gas, insurance, maintenance, and of course, for the loan. All these things do not grow your assets. In fact, it diminishes them.
But do you know that it is possible to turn this liability into an asset? Here are some ways to do that:
- Your vehicle is an asset if you use it to improve your business operations. If you buy a vehicle because it will make you save money on the cost of your business and improve it, that will definitely make it an asset.
- Your vehicle is an asset if you use it to deliver goods and orders. There is always an option to pay for third-party delivery services, but if you can save money in delivering goods using your own vehicle, then that is a better option.
- A car is an asset if you use it for rental car service. Yes, the costs for the maintenance is still there, but you can cover all of that with the money that you earn from renting it out.