Selling on Payments

[Candleliteranch]

Has anyone had experience selling on payments. Was it a good or bad idea? The horse would remain on site until paid in full. Am I looking at a big headache here? Any input will be appreciated.

 

[Leeana]

I've never had any trouble selling on payments, as long as both parties agree on the payments and it is all laid out flat in the contract you should be fine. I never hesitate to let a horse go on payments, all registration papers are of course held until the horse is paid for in full. If your really in doubt of the buyer coming through on their part then trust your senses.

 

[StarRidgeAcres]

From both the seller and the buyer perspective I think payments are important. Personally, I would rarely, if ever, have $10k lying around so to purchase a quality horse I've got to buy from someone that will accept payments. As a seller, I think it opens me up to a larger pool of potential buyers if I'm willing to take payments. I've been fortunate (knock on wood) as I've not had a bad experience with either making or receiving payments. I try to be extremely flexible with buyers and offering payments is just one way.

Contracts are important. I don't always require one, but I should.

 

[Matt73]

I sold my one filly on payments. Had a contract, retained the papers until payed in full. BUT...she was close by

 

[maestoso]

I bought my colt on payments. I took him home after half was paid, and did a lease, When paid off, I got the papers. If payments weren't an option, I wouldn't have been able to get him.

 

[End Level Farms]

Basically all of mine have been on payments. I have been very fortunate. I have had things pop up and been unable to make a payment or two. But I have been up front with the seller as soon as I knew I didnt have the payment.

For the most part I have been able to take the horse immediately. Theres only been one where I have had to have her half paid off before taking her home. All papers were retained by the sellers until the horses were paid in full. I did have leases on anyone I intended to show.

We just CLEARLY laid everything out.

I have purchased on payments from as far away as Southern California. And been able to take the horse home immediately.

Some sellers want to have the buyer carry insurance for the full purchase price others had had it stated in the contract that should anything happen to the horse I would still be liable to pay the entire sum of the agreed upon purchase price.

I wouldnt hesitate to sell on payments but feel the person out talk to them. And if you get a funny feeling ask for personal and professional references from those individuals.

And remember just because someone wants the horse doesn't mean you have to sell the horse too that person.

 

[LC Farm]

I sold a colt this year on payments and it worked great for both of us. I am also buying a mare on payments. She will be payed off in March and I can't wait for her to come home. I also get four driving lessons with the purchase of her. I am thrilled with that bonus.

 

[sfmini]

I used to sell on payments AND allow the horse to leave. Never again, I will take payments, but the horse will now stay on our property until paid off. I sold one to a state kind of far away, and the person's business income went down and the payments stopped coming for quite a while. I had to contact the person and push for explaination and payment, since nothing was forthcoming to explain the situation. Because of that I am extremely gun shy and really don't like to take them, but will with references and retaining the horse. Naturally I have contracts, did with the person that slowed down payments as well.

I sold a gelding last fall to a wonderful family, they weren't planning on adding a horse but saw him and fell in love. He was leased out at the time in New England, and I did agree to take payments but he stayed with the lessor until he was paid for. She was very understanding and gracious about it. I am looking forward to seeing him with his new family at the AMHA World Show this year.

 

[kaykay]

we have done it for years and have all good outcomes. If I know the person well and they live fairly close I let the horse go but no papers until paid in full. Im really thankful too for the farms that have let me buy this way

 

[SHANA]

I have sold on payments with no problems. Have sold a number of arabians this way, though the horse stayed here until paid for. Though did make a exception with two mares. One was to a good friend of mine and he lived close by, the other was to a lady about 3 hours from me. I let the horse go before fully paid for, never had a problem. I actually sold 2 in December 2008 on payments. One paid 1/3 down on December 13, the rest on January 1st. This was to my cousin though. I kept the paperwork to register the colt though until he was paid for. The other I sold on December 20th. He paid 1/4 down and is paying me the remainder tommorow(Saturday). I kept the paperwork on that horse as well. Will give it to him when the horse is 100% paid for. He is a friend though. I am willing to take payments on my horses with a contract stating the day the horse has to be paid for in full and how much the payments are, etc. I have bought a few minis this way. Actually just bought three from Saber(forum name). She let me pay so much down and I had until this spring to pay for them and was doing monthly payments, needless to say they are 100% paid for now and I only got them in November. Sold my arabian mare, Melody, to pay for the balance owed on them.

 

[Becky]

I sell on terms and am more than happy to do so. BUT, the horse remains at my farm unless the buyer is in state or close surrounding states. After a really bad experience a few years ago, I won't let a horse leave again that goes a great distance.

I sold a horse a few years ago to a buyer in AZ. Well over 1000 miles from me. I had previously sold this same buyer a horse for cash a few years previously, so I didn't hesitate to sell her one on terms. I had a good contract and a deposit and sent the horse on. All was well for a while and she sent payments regularly. Then she started complaining about the horse and the payments stopped coming. I contacted her a few times about payments and she basically refused to pay. I even went as far as hiring an attorney to send her a letter letting her know she had breached the contract. Still no response. I could have taken her to court, but I would have been out more money. I finally offered to buy the horse back for the payments she had made as I figured as it was, I would never get the balance due me and the horse was worth more than what she had paid. She agreed and I arranged to have a shipper pick the horse up. I held my breath until the shipper called me that the horse was safely on his trailer. What a nightmare and that is the reason a horse won't leave my farm until paid for.

 

[REO]

I sell on payments

But because I've been too trusting and been screwed so many times in the past, I now insist on the horse being paid for in full before leaving. And if the horse is to stay here for months and months, I think insurance is a very good idea. For all involved.

I'm very flexible, understanding and work with people. I know what it's like to want a horse and be treated well and that's how I do it.

 

[EAD Minis]

I have bought all my horses on payments, except for Fighter.

From the buyers view it went very well in all cases. I get very stressed out about the payments if I think I am going to be short. Thankfuly I have a few options if I do come up short one month. My suggestion is to ask them if they can see any months that may be a problem for them. For example I am paying off a broodmare right now, I gave the seller lots of notice about January being my 'paperwork' month and so the payment for that month may be a little less. Of course I also try to give them a little extra in the months to follow until that month I was short is paid back.

I am very forunate to have dealt with some very nice breeders

Hope this helps!

Forgot to mention that the horses stayed with the breeder until they were paid in full. I actualy prefer this as I think it avoids problems in the long run.

 

[Tenltraining]

I have also sold numerous horses on a payment plan. Almost all of them have gone well, I have a contract and the buyer is responsible for putting mortality insurance on the horse for the balance due to me. I have been fortunate

in that most of the buyers have been honest people and have also taken care of the horses well. Ive been pleased with all but one farm on payments.

I only had one really bad experience to a farm that had purchased horses from several people and would default on all of them, It was awful and we all had to get a lawyer to get them back. Several large and small farms were taken by these people who were good at conning people. This person claimed bankruptcy and calculated it perfectly on the timing before we could get it to court. The horses then become involved with the bankruptcy trustee, it was a mess but I did get all my horses back except for one. I was told the best mare had died and so was the other owners, their best mare had died supposedly too, but no vets in the area had record of treating them within a 250 mile radious.

I guess my advice to you is to trust your instincts and perhaps ask for references as well if possible. If the horse is located not too far away from you makes it a bit better too rather than out of state. You will also want a good home for the horse being sold as well and we all hope they are well cared for when sold.

Always have contract just to make sure everything is in writing and that way there is no misunderstandings about anything, it will just keep things clear for both seller and buyer.

 

[Anne ABC]

We also accept payment plans on horse sales.

We do require that the horse and registration papers stay on our farm until paid in full, we furnish copies and a written contract.

We do not set up exact payment amounts (unless asked to) and dates of payments but, we do set up a definate payment end and pick-up date.

The horse must be paid in full and picked up by a certain date or the sale is terminated.

The customer will be issued credit for the amount paid towards a future purchase within a reasonable period of time.

This policy has worked well for us and we have only had one person default, if my memory serves correctly.

 

[Reble]

First time doing payments this winter, and so far so good.

Horse went to his new home, which this helped us for room and feed, glad we did being this winter has been so cold and long.

Again they live close, but if they where a distance, horse would stay till paid in full.

No papers untill paid in full and yes a contract.

Good Luck

 

[Charlotte]

We have had very good results selling on terms. Actually have two out on terms right now and very far away, but both are return clients/friends and very responsible. They have the horses and leases for showing/foaling purposes and our contract guarantees them the registration paperwork all in order and delivered to them when paid in full.

If you buy on terms be sure to get a written and signed contract stating that all paperwork is in order and the registries involved are listed. Also stating that the paperwork will be sent to you immediately upon your final payment. This protects the buyer in the event that the seller dies in a car wreck or something.

We have only had one bad experience selling on terms which, unfortunately, resulted in a ruined horse which we now have placed in a good permanent home but we will be paying for vet care for many years to come. A very bad experience, but the only one and we are more careful about the buyers now.

Except for the one case, selling on terms has worked well for all involved.

Charlotte

 

[CheyAut]

I've never bought a horse on payments, but I will sell them that way. I am right now.

Horse stays with me and remains in my name until paid in full. And I require a non-refundable deposit. That way if they back out, I've lost time on selling the horse and potential buyers, so I have something to make up for it a little. And it keeps the buyer wanting to get it paid off to not loose their deposit? I would think anyhow

Jessi

 

[Coventry Lane Farm]

We have sold on payments in the past and still do to qualified buyers and all the papers are held until paid in full and the check clears, remember Teaca

Just make sure you have everything covered in the contract in case they do not make their payments or if the horse dies before paid in full also, them having insurance on the horse, ect and if they are late in making payments, a late fee possibly added which I have amended my contracts as well for different reasons that has come up in the past that I never had happen before and have been presented in a contract from a seller that I have purchased from with details.

Over the years I think I have heard ever excuse in the book but not everyone is a bad egg you could say and you just have to go with your gut feeling. I always get the excuse that "the check is in the mail" and they forget that when the envelope is mailed, there is a post marked date on the envelope and you can pretty much sum things up if it was actually mailed when they said they did. Overall, I have basically good customers making monthy payments and I won't let a few odd ones spoil it for the rest of possible buyers out there.

I am making payments on horses as well here and usually everyone is good on their terms required from the contracts that I have seen over the years. Our sold horses I usually let the horse leave with a 20% non refundable deposit, but no papers until paid for first and the check clears the bank, I have had a person give me two bad checks and they are on money order only and they only live 5 miles away from me.

And as far as the payments being offered, that is the only way that people can afford horses anymore it seems so we offer non interest terms to approved buyers with references and I let them pick the date for their payment due to be made every month with a minimum amount due.

Hope this helps.

 

[Miniv]

We've been both sellers and buyers with payments ON CONTRACT. Overall we've had good experiences.

I WILL say that - First a contract for BOTH parties is a must.......Second, as a seller, I feel the same as others who have already posted in regard to letting the horse leave the farm before the pay-off. If we don't know the buyer personally and/or the buyer is out of the area, we will no longer allow the horse to leave while payments are still being made.

And yes, insurance on the horse is an excellent idea..... I think REO (Robin) mentioned that. We've purchased from some larger breeding farms where that is a requirement.