When you buy a car, of course there is money spent. Even though, you can still sell private cars that have the same price. If you have used the car in years. Of course in some parts and need regular maintenance so that the condition remains excellent. Besides that, another reason is that the car is an asset that cannot provide revenue. Well, for more details, here are 4 reasons that will explain in detail whether the car is an asset or a liability.

1. Mobilize routine maintenance costs

In fact, it contains the costs that you need to spend after buying a car. One that is quite routine is the cost of care. The car that just came out of the showroom is a routine maintenance car used car. Routine maintenance and purchase of spare parts is needed so that the condition of the car you drive everyday as a support for the activities remains excellent. You want your day to have to sell it again. In this case the car is active as a liability. If you want to rent it in a few years you can say the car is an asset.

2. Cars for daily needs

In fact, a car that is used to fulfill daily needs such as workplaces, dropping off school children, holidaying on weekends is clearly not a car being an asset. You must know that a car for this purpose will certainly not bring profit. In fact, you have to spend fuel costs every day to fulfill your needs. In addition, you also have to pay a car tax that becomes an obligation.

3. The car is used for business

In fact, when you buy a car and work as a means of doing business, the car becomes an asset. Although the type of car you buy is a family car but you can use it for employees or as a rental car then move into money. Because, the car generates income for the owner.

4. Generate an amount of income in installments

In fact, there are still many Indonesians who use car loans as a payment method in having a dream car. Cash, of course, adds debt because every month the owner has a burden to repay. Not to mention the costs that have been used previously such as maintenance, fuel, taxes and insurance.