Skid steer financing depreciation?

[shovelracer]

OK we are purchasing a Bobcat S175 skid this week. No need to comment on the machine. We need to make a decision on the financing options. Option 1 is to get $5000 off and pay full rate financing, lets say 22K machine 4.9% for 48. Option 2 is to pay full price for the machine and get 0% financing, lets say 27K machine, 0% for 42. At the end the machine costs us the same. One way is on the equipment, the other is in interest. Interest is deductible and so is the equipment. I am aware of the 100% depreciation, but would like to space it out over several years. Am I better to pay more for the equipment to get additional depreciation, or pay a little less each month and get less depreciation?

[MassSteelerfan]

I would take the discount considering you are going to keep the machine well beyond 48 mnths, and pay the intrest. If the rate were over 10% maybe I would consider the other route.

[shovelracer]

Thats what we did. Actually it came out to about 2000 cheaper over the life of the loan. Not sure the benifit of the added depreciation would have equalled that. Thanks