So I guess my question is, if you are paying for all the care, feed, boarding and a fee to the owner is it not cheaper in the long term to buy your own? I guess I am still missing something.
Posted via Mobile Device
The best way I know how to put this is through example.
I know of a girl who leases a very, very nice horse from an old barn of mine. The horse's name is Reo. We will call the girl ... Lisa. So, Lisa is starting to get pretty good, she's been taking lessons for a while, and she is starting to jump a little bit. About 2'. Reo has been her lesson horse for a while, and is the perfect horse for her to learn on - he is very well trained, and knows the ropes, but he's not a deadhead. Such a horse would cost Lisa a VERY large sum of money around here, one that her parents simply will not pay. They won't do this because Lisa is still young - it could be a stage - and they are not made of money. Plus, since Lisa is still improving, she will likely need something that can do a little more than Reo can in a year. Reo is getting older now, and has been used as a lesson horse for a while.
So they lease. The amount they pay is per month, and has an expiration date. I do not know what that amount is in this situation, though I know it is a year lease. I found that it would be extremely rude to ask what they are paying a month, and it's certainly none of my business. But anyway, the final amount that they would have paid at the end of the lease is still less than what Reo would have cost to purchase. In this situation, Lisa and her family must board Reo at the barn owner's stable (it's in the contract), so the price of board is slightly discounted, and worked into the lease payment.
Please note that I only know the details about this lease because I was with this barn for a long time, and became very good friends with the BO. She was actually the person who taught me all about leasing. I didn't just go up to Lisa's family and ask all these questions about their lease agreement ... would be a bit stalkerish ...
So that's pretty much why they leased Reo over buying him. Make sense?