Selling a horse on payments suggestions...

[CornerstoneAcre]

I have two horses up for sale. I have a gal and her friend wanting to buy both and offering to make payments on them. They won't be able to take them until about April when the one gal can get fence posts in the ground and get a barn up. (They each already have one horse at the other gals house, but can't have more than two there). Anyway since I'll be holding them for AT LEAST 4 months, maybe more, is it fair to tack on a small boarding fee like $50.00 a month? I guess if I make payments on a house or a truck I have to pay the "lender" a little extra for that priviledge. If they pay off early - should they have rights to come out and ride it from here?
Also is there anything specific I should put into the agreement?

A couple of things I know I'll put in there:
monies paid non-refundable
must be picked up by XX-XX-2012

[mesa123]

Most people will advise against doing a payment schedule for the sale of a horse, and that would be good advice.

However, I did do payments for one mare I sold. Insurance is a necessity, with you being the beneficiary. I required this of the person I sold to. I insured the horse for the purchase price, she tacked on the insurance premium with the first month's payment to reimburse me, and I was the beneficiary. If the horse were to die in the middle of the payments, you would still paid. And title/paperwork/registration would not transfer until you are paid in full.

I also think it's more than fair to charge a boarding fee. I would think at least $100 would be more reasonable. Don't undercut yourself out of kindness.

Also, it is also a good idea to send monthly statements and charge late fees for late payments. It's best to make it as official as possible. It will stand up in court better that way too.

I would also not allow them to ride at your place unless you are very well insured. If they want the horses badly enough, they'll figure out another way.

I did eventually get all money I was owed, but it took much longer than I expected and cost the girl a lot in late fees. I doubt I would do it again.

[malinda]

Yes, a boarding fee would be perfectly reasonable. And $50 per horse is mighty cheap (especially for winter), most places around here charge $75-100 for just pasture board, and other parts of the country can be much, much higher.

The above is great advice. I would make out a sales contract which spells out the payment terms, and also make a separate boarding contract, which spells out the boarding agreement, just as if you were a boarding stable.

If they buyer doesn't want to pay for board, you would be free to continue advertising the horses and free to sell them to another buyer.

[olivehill]

Make sure your contract states all payments are non-refundable and puts a deadline on both the final payoff and on making payments. If the payments get 30 days behind you're free to sell the horses.

[oregon woodsmok]

I recommend against it. I've sold horses twice on payments and it was miserable trying to get paid.

If you decide to do it, charge full rate board for each horse for the time they are still at your place. Whatever the going rate is in your area, and enough to cover feed, water, and your time.

My feeling on the matter is that if someone doesn't have the purchase price for the horse, they can't afford it. If they can't afford the horse, what are they going to do if they have an unexpected vet bill? I don't want any of my animals going to a home where they won't get adequate care.

[GrannyCarol]

Under no circumstances let the horses leave your property until paid in full, it can very easily be hard enough to get the money if they are there. The other advice is good.

If it's any consolation, we made a couple of payments on Star, much more informally. We put half down and the rest the first of the next month when we came to get her (two weeks) and everything was fine about that.

Not everyone is a deadbeat, but these are hard times, I would charge board and I would set it up to get them paid off in 2 - 3 payments.

[Molly Mckee]

I wouldn't do it. If the bank won't lend them the money to buy the horse, I sure don't want to. I might consider maybe two payments before they get possession but most sales like this that I've heard about end up with big problems. I don't need problems. If they really want the horses and can afford them, they will find the money,

[6e]

We have bought horses on payments years ago and we have sold horses on payments. The deal was the horse doesn't leave the property until paid in full. We never charged board, but the payments did not go on as long as yours is going to. Mostly they were a month or two maximum. When we sold the horse on payments, we had a contract that all money paid was non-refundable. That it was to be paid off and picked up by a certain date. And that if the horse is killed or injured during that time, past money paid is still non-refundable and any vet bills are their expense.

It used to be that people were extremely honest and deals like this went on all the time, in the last few years though, we have stopped taking payments for any animal as we have had more people either stop making payments in the middle or want us to hold an animal for whatever amount of time and then never follow through. It gets extremely frustrating.

[ShyAnne]

Selling a horse on payments is difficult , depending on the buyer. A friend of mine is selling his right now, the horse is at their property, and he has been paid late, and payments are not full amounts.
Horse was sold to a friend too, which makes matters worse.
If you do decide to sell on payments, be sure to get a contract, and let them know upfront the contract will be honored. Best of Luck.

[bergere]

I used to do payments and allow the horse to leave the property, in so long as they had full insurance on them and in my name.
Had a two page, very detailed contract.

However, I did a lease one time about 10 years ago and that turned into a night mare.

So when I "rarely" have a horse for sale... its now ..payment in full, no lease options. Just like you would buy other items.
Though my last sale, was a bit of a nightmare...
Feel for anyone having to deal with Joe Public now a days...

If they need to float a loan that is their choice but I am not a bank. Not willing to take a chance now a days of getting ripped off.

[malinda]

I sold one horse on payments and it went really well. Granted, he was an inexpensive horse (only $800), so she wasn't making payments forever. The horse wasn't worth getting insurance on as most companies don't insure horses that are valued at less than $5000. Also, the buyer was a friend of a friend and only lived about 15 miles away. She paid $200 down, took the horse, and made $200 monthly payments until he was paid in full. I never had to remind her of a payment, they were always on time. Everything went swimmingly, in my case.

[1sttimemom]

I've sold on payments a couple times and both times was a real pain. Late payments, excuses, etc. I would be very careful about doing it. Both times I had contracts and the horses say here until paid off, etc.

[Qhorseman]

Its my policy not to sell on credit. Its says Farm on the gate not bank.

[haypoint]

What happens if a horse dies? Do you still get paid for the horse the bought from you? What do you do if the horse dies and they want their money back? Who pays Vet bills?
Will they be allowed to come to your farm and ride "their " horse? Who pays if they get injured while riding the horse that you still hold "title" to?

In my experience, if I'm broke now, I'm still broke in three months.

[lathermaker]

Don't do it. Period. There's all kinds of bad things that can happen in this situation. You'll end up with no horse and no money.

[Lazy J]

Originally Posted by lathermaker

Don't do it. Period. There's all kinds of bad things that can happen in this situation. You'll end up with no horse and no money.

This is the best advice I could give, follow it and you'll be better off.

Jim