Compare horse loans and equine financing

Overview

Buying your first horse is exciting but can also be expensive. Not only could a horse set you back a good few thousand but there’s also new tack, equipment, stables and paddocks to consider as extras.

As you begin the journey of becoming a horse owner, one thing is clear: it’s a commitment for life which will need a constant flow of money. If you don’t have the funds to purchase a horse outright, what other financing options can you pursue?

Is taking out a personal loan to fund the purchase of your horse a good idea? We explore the world of equine financing to help you make a decision.

What are your financing options to pay for a horse?

You have several options to consider. Before finalising a loan, be sure to check the fine print of your loan agreement so you know the exact costs and repayment terms. Keep in mind some lenders may be hesitant to lend you money to buy a horse because its value depreciates over time — and the horse could get sick or become injured.

• Personal loan. Unless the lender specifically sets restrictions, you can use a personal loan to buy your new horse. Some lenders even offer loans specifically for equine purchases.
• Line of credit. With a traditional loan, you get a set amount of money and immediately begin paying the loan back, regardless of when you actually use the money. But a line of credit lets you borrow the amount you need when you need it. With most lines of credit, you make repayments only on the credit you’ve actually used. This is similar to a credit card, but line of credit interest rates are usually lower and come with higher credit limits.
• Instalment contract. Some sellers accept monthly payments over a predetermined time. This may mean less money upfront, but be wary of entering into a contract without carefully reading the agreement.

How much does buying a horse cost?

Buying a horse means more than the purchase price. The real expense comes from the cost of care and maintenance.
Here’s a quick rundown of the potential costs and fees that come with owning a horse:

• Purchase price. Most pleasure horses — horses ridden for leisure only, cost between £1,000 and £5,000. On the other hand, a show horse for show jumping, hunting or dressage, could set you back as much as £100,000.
• Horse feed. A horse can consume up to 2.5% of its weight in a day. A healthy 450 kg horse requires fresh hay daily. The cost of feeding your horse can add up quickly at about £40 a bale.
• Boarding costs. Unless you’re lucky enough to live on a property that can accommodate your horse, you’ll pay for room and board at a local stable. Depending on the area, boarding costs range between £400 to £600 a month, but can be as high as £1,000 a month in metropolitan areas.
• Veterinarian fees. You want your four-legged pal to stay healthy and happy, which means veterinarian exams. Yearly vaccines, deworming and dental care can cost up to £400 a year. Costs for emergency veterinary calls vary depending on the visit.
• Farrier work. Horses’ hooves grow at a rate of ¼ inch monthly. Since they spend so much time on their feet, it’s important to take care of their hooves. Farrier’s often charge £30 to £40 for a trim and £80 for a full set of shoes.
• Tack and equipment. Unless you plan to ride your horse bareback, you’ll need tack and equipment, which includes a saddle, bridle, halter, fly mask, blanket, saddle pad, girth and grooming equipment. Saddle prices range from a few hundred to several thousand pounds.
• Horse trailer. At some point, you’ll likely require transportation for you and your horse. A basic horse trailer could cost between £3,000 and £20,000, depending on the size. A horse trailer with additional living quarters can cost up to £75,000 or more.

4 questions to ask to choose the best horse for you

Funding the purchase of your four-legged friend is only half of the equation. First, you’ll need to find the right horse that fits your needs.

1. Are you purchasing for pleasure or for show?

   Pleasure and show horses vary in cost. The average pleasure horse costs £1,000, while the average show horse costs £35,000. If you ride for leisure, a pleasure horse is your best bet. But if you’re interested in pursuing a career in jumping, hunting or dressage, consider investing in a horse that’s ready for show.

2. Do you want a horse or a pony?

   Ponies look similar to horses but are quite different. Ponies are generally smaller and sport more stubborn temperaments than horses. If you have experience riding both, decide which you’re interested in owning.

3. What breed are you interested in?

   Many pleasure horses are a mix of several breeds, while most show horses are purebred. Each breed of horse comes with its own unique set of personality traits and quirks. Research the horse breeds available in your area and decide which appeals to you.

4. What sort of riding experience do you have?

   If you’re an experienced horseman or horsewoman, you may welcome the challenge of training a green horse or pony. Newbies should look for a horse that’s broken in, friendly, patient and good natured. Most sellers are happy to let you jump on the horse you’re interested in for a test ride, so don’t be afraid to ask.

Bottom line

Purchasing a horse for the first time can be exhilarating, but comes with far more costs than the purchase price of the horse alone. Prepare for veterinary bills, boarding fees and the cost of keeping your four-legged friend well fed and watered.

To pay for your new horse look at personal loans, a line of credit or strike a special deal with the owner.

Frequently asked questions

• Can I get a loan specifically designed for equine financing?

  Yes, some lenders offer loans tailored for the purchase of a horse and the additional expenses that come with it, including veterinary bills, insurance and boarding costs. Once you find a lender you’re interested in from the comparison table above, you can contact its customer service to ask about horse-specific financing.

• How long does it take to apply for a personal loan?

  Some lenders allow you to apply for a personal loan online and offer loan approval in as little as one business day. Once your loan is approved, funds are often available in your account within one week.

• I want to buy a horse, but don’t know where to start.

  If you’re serious about purchasing a horse, check out your local riding stables and inquire about potential horses for sale. Browse online forums and websites specific to where you live. If you find a horse that fits your budget, arrange for an in-person meeting and test ride.

Written by

Chris Lilly

Head of publishing

Chris Lilly is Head of publishing at finder.com. He's a specialist in personal finance, from day-to-day banking to investing to borrowing, and is passionate about helping UK consumers make informed decisions about their money. In his spare time Chris likes forcing his kids to exercise more. See full bio

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