Originally Posted by jarroo's lawncare
i was just wondering what your guys take on this was. i have been financing equipment to get started. last year i financed my viking hydro, i always make sure to get the one year no payments no interest when i do. i payed it off in just a couple of months. this year i bought my lazer z put in a few commercial bids got them and picked up around 30 residential accounts. i have the money to pay it off right now. i think i owe about 7500 dollars on it. the best thing is the season isnt over so there is some more money to be made. also my commercial accounts will pay me through march of next year. i am 21 and put in over 40 hours a week at a regular job and manage to get in 30 plus hours a week mowing.
I want you to do this... Continue making payments, get yourself a financial advisor and have him set you up a retirement/investment account where you can withdraw money (you will have to pay taxes if you do) from the account if you need it. This way you get a double dip on your money. You get to spread out your tax deductable mower payments over several years possibly lowering your tax bracket in future years and you get to deduct the money you are putting away for retirement now.
The only thing you will accomplish by paying off the mower in one big lump sum is a one time deduction. The little bit of interest you are paying on the loan is nothing compared to the payoff your investment will make later.