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Discussion Starter · #1 ·
Hello Everyone!

I am looking into getting a horse, and I am trying to figure out what is standard when using a payment plan for a horse. The last horses I had, I paid in full, so this wasn't an issue at all. The horse I'm interested in is more expensive than my other ones were, and it's freaking out my husband a little bit!

When I think of a payment plan, I think of something similar to a car payment, where the cost is split up over a certain amount of months.

For example-

$6,000 horse: 6 months of $1,000 payments.

The owner of the horse I am interested in offered this as a payment plan:

50% paid up front, and the rest within 30 days. Using the same $6,000 example, that's $3,000 up front, and $3,000 30 days later.

To me, that doesn't really sound like a payment plan, and I might as well just pay the $6,000 up front. I would think that most people's finances don't change so much over the course of 30 days that they would be able to take two hits of $3,000, but yet they weren't able to just pay the $6,000 up front.

I would like to hear anyone's thoughts on this. If this is actually the standard when buying a horse on a payment plan, that would be good to know too...got to convince the husband somehow!
 

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My understanding is that you don't really do "payment plans" on horses. If you want one, just go to the bank and take out a loan. You'll up your credit score and get your horse.

Having said that, I did a payment plan on my 500 dollar horse, out of necessity, I had nowhere to put him. I paid half up front, then the other half plus trailering costs and the cost of feeding him for an extra month when they trailered him to his new place.
 

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Discussion Starter · #3 ·
Thanks for the response. The owner offered the payment plan to me, and she was/is a breeder, so I assumed it was something she did frequently.

I actually have known several people that did payments on their horses, but I never thought or asked them about the specifics of it.

Getting a personal loan from the bank would make sense, but I'm curious if anyone has made a deal directly with the seller.
 

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My sis did a payment plan on a horse that was done in 3 payments. The horse was only $500 dollars, but we (my sis and I) had just bought hay and had a decent size vet bill to pay. It just so happened that the perfect horse came along at that time (isn't that the way it always works :p) so we got him on payments. Anyway, it was $200 up front and then $200 at payday, then another $100 the next payday.

50% paid up front, and the rest within 30 days. Using the same $6,000 example, that's $3,000 up front, and $3,000 30 days later.To me, that doesn't really sound like a payment plan, and I might as well just pay the $6,000 up front. I would think that most people's finances don't change so much over the course of 30 days that they would be able to take two hits of $3,000, but yet they weren't able to just pay the $6,000 up front.

I agree. I would think that the person who could come up with $3000 up front and the other $3000 in just thirty days has a really good job and wouldn't need the so called payment plan anyway.
 

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Hello Everyone!

I am looking into getting a horse, and I am trying to figure out what is standard when using a payment plan for a horse. The last horses I had, I paid in full, so this wasn't an issue at all. The horse I'm interested in is more expensive than my other ones were, and it's freaking out my husband a little bit!

When I think of a payment plan, I think of something similar to a car payment, where the cost is split up over a certain amount of months.

For example-

$6,000 horse: 6 months of $1,000 payments.

The owner of the horse I am interested in offered this as a payment plan:

50% paid up front, and the rest within 30 days. Using the same $6,000 example, that's $3,000 up front, and $3,000 30 days later.

To me, that doesn't really sound like a payment plan, and I might as well just pay the $6,000 up front. I would think that most people's finances don't change so much over the course of 30 days that they would be able to take two hits of $3,000, but yet they weren't able to just pay the $6,000 up front.

I would like to hear anyone's thoughts on this. If this is actually the standard when buying a horse on a payment plan, that would be good to know too...got to convince the husband somehow!
I'm sure they're probably are some people that would take payment plans What happens if the horse gets seriously ill or injured while in your care and the horse has not been paid in full? is the contract going to cover this? are you still willing to finish the payments even if you've just had, to let's say put the horse down? it's a catch 22 and to be honest, I have had people ask me if they would take a payments on a horse I've sold (that I was asking a substancial amount of money for), and I have turned them down.

It's to risky. With the market being what it is, a lot of people can't stay up to date with the upkeep. I would suggest saving up money and then looking for a horse. Horses aren't selling. I'm sure if you bring it up, some sellers might be willing to make some form of arrangement. You have nothing to lose :)
 

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Ask to have a longer payment plan...and that the horse remains with them until he/she has been paid off. For a $6,000 horse I can see why (just saying) why a person would want a larger amount up front. I'd definately consider making a bigger "good faith" deposit. And then asking for "X" amount of months to pay him her off. I was lucky, on all three of my horses the breeder was willing to take payments.

Example:

Good faith deposit or down payment (whatever you want to call it) $2000 and then something like $1000 a month until he/she is paid off.
 

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Discussion Starter · #7 ·
Thank you guys for your responses!

The seller doesn't release the horse until the horse is paid in full. I suppose it's actually more like putting down a deposit to hold the animal, which I know is common with other animals, I have run into that frequently.

So I guess what confused me is that it probably should just be called "putting a deposit on the horse" instead of an actual "payment plan".

I don't have any problem with paying in full, I'm just trying to figure out a way to soften the blow for my husband :D. He doesn't understand why an animal would cost what it does... but I don't understand why the random bits of engine he buys for his car cost so much!

I think my next strategy with him will be to explain how dog (in my avatar) cost $1,000, and she only weighs 5 lbs, so it could be said that logically we're getting a deal on an animal that weighs 200x that!

The seller is being very nice about it, and she definitely has patience. So hopefully it'll all work out.

Thanks again for the response :)
 

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Making/taking payments on a living thing is always dangerous. I would guess that is why they want the balance in 30 days. I do not think there is a right or wrong way as long as both parties agree and everything is covered in the contract.

The only people I have known that have made payments got a personal loan from the bank.


I would expect to pay board and insurance on the horse while it is not paid off and still in their care too.
 

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Discussion Starter · #9 ·
Ask to have a longer payment plan...and that the horse remains with them until he/she has been paid off. For a $6,000 horse I can see why (just saying) why a person would want a larger amount up front. I'd definately consider making a bigger "good faith" deposit. And then asking for "X" amount of months to pay him her off. I was lucky, on all three of my horses the breeder was willing to take payments.

Example:

Good faith deposit or down payment (whatever you want to call it) $2000 and then something like $1000 a month until he/she is paid off.
I actually did ask about something like this, but I don't think the seller was interested in doing that.
 

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It's risky. Who is reponsible for the horse's health during the payment time period? Who is responsible for the cost of caring and feeding the horse? Who retains ownership? When will you have the horse vetted? What happens if the horse becomes lame during the time period? A lease option might be a better way to go (i.e. draw up papers for a six month free lease, and a seperate agreement for payments to purchase at the end of six months). However, in the mind of the seller, I might be more interested in finding a buyer who offers me a little less, but has cash in end to close the deal.
 

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It's risky. Who is reponsible for the horse's health during the payment time period? Who is responsible for the cost of caring and feeding the horse? Who retains ownership? When will you have the horse vetted? What happens if the horse becomes lame during the time period? A lease option might be a better way to go (i.e. draw up papers for a six month free lease, and a seperate agreement for payments to purchase at the end of six months). However, in the mind of the seller, I might be more interested in finding a buyer who offers me a little less, but has cash in end to close the deal.
That's what difficult. If you can find someone who's selling a horse directly from their property you should be ok. There are no big expenses for them. The market being what it is, sellers might be more willing to work a deal out.

Good luck with your horse search!
 

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I am wondering how easy it really is to get a bank loan for a horse.

With a morgage its easy, if you default they take the house. For a horse- you might need a appraisal. And I dont know that a bank really wants to worry about trying to sell a horse if you default. Maybe you can get a home equity loan/ line of credit and borrow against that for the horse? If need be.
 

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I think my next strategy with him will be to explain how dog (in my avatar) cost $1,000, and she only weighs 5 lbs, so it could be said that logically we're getting a deal on an animal that weighs 200x that!
Cheeehehehehe.... try telling THAT to my husband! Lol, would never fall for it, ha, he got mad when I spent $175 on my dog!

I am wondering how easy it really is to get a bank loan for a horse.

With a morgage its easy, if you default they take the house. For a horse- you might need a appraisal. And I dont know that a bank really wants to worry about trying to sell a horse if you default. Maybe you can get a home equity loan/ line of credit and borrow against that for the horse? If need be.
Banks most generally don't loan on horses. Case in point: I took out a $3500 loan to buy my first horse. That was $2500 toward the horse, and $1000 to apply toward vet checks, farrier, wormer, feed, etc... everything to get started. I had to borrow against my car, and have a co-signer with a cd to borrow against.

However, it may be wise for you, and in good interest, go put your $6000 in a CD and borrow against it. This way you're earning interest (should be around 4 or 5 %..) AND able to soften the blow. It might spark his interest a little to know that the horse IS, in fact, making him some money in the cost of it all... and when you pay it back, say, $300 a month, and pay it off, you get that $6000 back for whatever you want it for, PLUS 4 or 5 % EXTRA, PER YEAR it took you to pay off the loan!

(This is the strategy husband and I used to pay for our latest addition. We ended up with an extra $2200 at the end of it!)
 

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With a morgage its easy, if you default they take the house. For a horse- you might need a appraisal. And I dont know that a bank really wants to worry about trying to sell a horse if you default. Maybe you can get a home equity loan/ line of credit and borrow against that for the horse? If need be.
It is called an unsecured personal loan. Higher interest rate and have to have good credit to start with.

On high dollar horses I am guessing they take the risk and there has to be an insurance policy with the lender as the beneficiary.
 

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Great information guys. Learning a lot from the above posts. Appreciate the time taken to type it up.

You know, you have nothing to lose. You can look around, ask the sellers and go from there. If they're answer is no, then probably start looking at a loan.
 

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It is called an unsecured personal loan. Higher interest rate and have to have good credit to start with.

On high dollar horses I am guessing they take the risk and there has to be an insurance policy with the lender as the beneficiary.
I know you can possibly get an unsecured loan, but Im wondering if banks still do this as much as they used to before. The best thing to do is get a secured loan, with a lower rate if you can.
 
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