Your Car is not a Liability, but a Fast Depreciating Asset?

An asset is anything that you control and has an economic value, and which you expect to return benefits sometime in the future or generate income. On the other hand, a claim against that asset is what we call a liability. The drawback arises from business operations or transactions and does not return a profit.

So based on this definition, is your automobile an asset or a liability? Many people will argue that their vehicle is a liability because of the numerous associated expenses. Let’s explore more.

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