Moving Money from a Saving Account into A vehicle: how?

Instead of a transfer from savings to the car asset account, you should be entering a transfer from savings to the car loan account. That will decrement the loan debt as you make payments.

Bruce.

Vit wrote in news:30360bed-e855-4c00-966b- snipped-for-privacy@d26g2000prn.googlegroups.com:

Let's say the car cost $20,000. You withdrew $5,000 from savings and borrowed the rest.

Enter a withdrawal transaction in your savings account for $5,000. Payee is the name of the dealer or the individual who sold you the car. Category is "Auto: Purchase". You might put something in the memo field like "2011 Edsel"

Create a loan account called something like "2011 Edsel Load" with an opening balance of $15,000.

You can also create an Asset account for the car with value of $20,000. As the car depreciates, you should adjust the value.

Here is what I have done (many times) Create a "2011 Edsel" Car (asset) account.

During the purchasing process transfer every related expense into that account (e.g. deposits, research expenses, bribes, bus fare, whatever).

Use a linked loan (liability) account and transfer the loan amount into the Car account also.

Once its all done, take the closing statement you got and make sure all the fees you paid for (e.g. registration, insurance, pimp fees, etc.) are accounted for in the Car account.

What is then left over in the Car account is what the asset actually cost you.

Last step is to adjust that down to what your (now used) car is actually worth by depreciating it.

You never touch the Car account again until you sell it, except to adjust down the value (annually) to account for depreciation.

As you pay down the loan, you apply that to the linked liability account.

thanks for your suggestion, I did exactly like you suggested...

my only doubt is the Loan....

the opening balance, should be the amount of money borrowed or the amount of money + Interest?

I have this doubt, because when I will start to repay the loan, I will pay the money + interest and this will be (as total), money borrowed + interest...

thanks all

Vit

Vit wrote in news: snipped-for-privacy@34g2000pru.googlegroups.com:

Money borrowed + total interest to be paid over the life of the loan.

I assume the loan agreement specifies the number of payments and how much you have to pay each month. Just multiply one by the other to get the opening balance of the loan. (just for kicks you might run the amount borrowed, the interest rate and the duration through a loan calculator to make sure the numbers match.)