By: John Pfister, CLFP, CEO and Co-Founder of MAZO Capital Solutions
Equipment dealerships and business owners have faced an unusual year: steady demand, tight credit, and higher interest rates. But there is good news. Whether you sell or purchase equipment, understanding tools like Section 179 deductions and flexible vendor financing programs can help protect margins, preserve cash flow, and maximize year-end tax savings.
While inflation has cooled, the Federal Reserve continues to take a cautious approach to rate cuts. The result: the cost of capital remains elevated across most industries.
That’s why many are locking in certainty in their capital investments: securing predictable payment structures and leveraging tax deductions to offset higher interest rates.
Each year, Section 179 of the IRS tax code allows businesses to deduct the full purchase price of qualifying equipment (up to $1,220,000 in 2025), as long as it’s placed in service by December 31.
Each year, Section 179 of the IRS tax code allows businesses to deduct the full purchase price of qualifying equipment (up to $1,220,000 in 2025), as long as it’s placed in service by December 31.
This deduction can create significant tax savings, freeing up capital that can be reinvested into the business. For dealers, it’s also one of the most effective tools for driving year-end sales and motivating customers to act before the deadline.
When presented clearly, Section 179 becomes more than a tax incentive: it’s a sales tool. Dealers who can estimate potential savings and explain them to customers can close deals faster and more confidently.
Try the Section 179 Calculator to estimate how much can be saved before December 31.
To determine how much you can deduct under Section 179:
Even used equipment may qualify, as long as it’s “new to you” and placed in service before year-end.
In today’s tighter lending environment, many buyers face delays or rejections from traditional banks. That’s where vendor financing programs can make all the difference.
A well-structured vendor financing program allows dealers to offer financing directly through a partner like MAZO Capital Solutions. This helps:
Dealers who adopt vendor financing often experience measurable improvements in both closing ratios and customer retention, giving them a competitive edge.
Learn more about Equipment Financing Solutions.
For both dealers and end-buyers, businesses that plan ahead will be rewarded..
The year-end landscape is complex, but the playbook is simple:
Dealers who lead with financing options—and buyers who act before year-end—can both benefit from this moment of opportunity.
The economy will continue to shift, but smart financing will always be a foundation for growth.
What is the Section 179 deduction limit for 2025?
Businesses can deduct up to $1,220,000 in qualifying equipment purchases for 2025, with a total spending cap of $3,050,000.
Can used equipment qualify for Section 179?
Yes. Both new and used equipment can qualify if it’s purchased and placed in service by December 31, 2025.
What is vendor financing for dealerships?
Vendor financing allows equipment dealers to offer financing directly to their customers through a partner like MAZO Capital Solutions. It helps dealers close more deals and gives buyers faster access to capital.
Why is financing important in a high-rate environment?
Flexible financing structures help control cash flow, preserve liquidity, and create cost certainty. These are critical advantages when rates are elevated or unpredictable.
About the Author
John Pfister, CLFP, is the Co-Founder and CEO of MAZO Capital Solutions. MAZO partners with equipment dealers and business owners to deliver flexible, transparent financing solutions that fuel growth across industries.
→ Try the Section 179 Calculator to see your potential savings before year-end.
