Many people wish to have their own horse. For some it is the first horse, while the others have been successfully active in equestrian sport for years. The purchase price depends on what services the horse should bring. A leisure horse is of course cheaper than a sport horse, which can cost as much as a new car. There are no upper limits to the purchase price – so it makes sense to take out a loan for a horse.
The amount of the purchase price depends on various factors: breed, age, training, breeding animal, small or large horse. At auctions, at breeders or dealers usually only the net prices are given. Here, as a rule, 19 percent VAT is charged again when the purchase is made. Transport to the stable must also be taken into account if you do not have a car with a towbar or a horse trailer.
Many riding clubs rent their trailers for around 50 USD, but there are also special horse forwarders who take care of the transport but are also a lot more expensive. In addition, the initial equipment must also be financed: new cleaning supplies, a saddle (with accessories), blankets, a bridle, halter, lead rope, treats, bandages and gaiters. All together there are from 500-600 USD, the price knows no limits up here. In addition, there may also be the initial equipment for the rider, if nothing is already available.
As soon as you know how expensive it will be to finance your dream, you can make an appointment with your house bank or do business online. Every financial service provider requires corresponding collateral for the loan for a horse. The monthly surplus is determined based on a household bill. The surplus is said to carry the rate for the loan.
The amount of the loan and the monthly rate determine the term and the interest rate. The better your credit rating and the more you can repay on a monthly basis, the cheaper the effective interest rate will be. It is always worthwhile to obtain and compare different offers, because the conditions drift widely apart.
At the moment, the average interest rate for four-year financing of 5000 USD is around 6.25 percent. The cheapest provider only charges 3.7 percent, while the bottom of the list demands 11.5 percent. A regular income is a basic requirement for a positive credit decision.
To borrow a horse
First of all, you should know exactly what the costs will be. Also consider veterinarian costs before buying to find out about animal health. After that, nothing stands in the way of a loan for your horse.