The New Horse Market, Part 1: The Buyer

Getting great value in today's horse market
by Allison Trimble

In every arena and on every trail across America, talk about the state of the horse market is buzzing. With the rising costs of hay, bedding and supplies combined with the status of the slaughter horse market, there are more of our expensive four-legged friends running around than ever. People are giving away horses left and right just to avoid feeding through another winter. For many years I have made my living selling horses. I have also bought many horses to add to my program. I would like to share with you some of what I take into consideration when buying or selling a horse. This month we will focus on the buyer’s perspective, specifically in the performance horse field.

Why?
The days of buying a horse for no reason are long gone; the cost of ownership is just too high. Outlining your needs as an owner will help you weed out the horses that do not fit. Do not consider any horse because it is a “good deal.” There is a reason that someone else does not want to spend an average of $400-$500 a month caring for a horse, regardless of its ability or use. The cost of owning a show horse is significantly higher, so it is very important to find a horse that will fit your performance needs.

Where?
The Internet is the horse shopping mall of today’s marketplace. This is a great place to start looking, but it can also allow you to waste a lot of time looking at a bunch of horses you don’t know anything about. This can lead you to the right horse, but can also lead you very far astray. There is a strong chance that you are not getting the whole story and can end up with a horse that is a black hole of problems.

It is always best to buy a horse that you have some connection to, whether it is through a friend, recommended by a trainer, or is a horse you have seen in the show pen. Unless you are very experienced, stay away from going to horse sales. Horse sales at special events, such as the futurities, can showcase exceptional horses, but most local and regional horse sales are the last stop for a horse that someone has not been able to sell through other venues. It is also very easy to get caught up in the sale atmosphere and buy a horse that you don’t really want or need.

Price
You know your budget, but these are times when you need to really assess your price range carefully. People often have a preset notion of what they are willing to pay for a horse. Experience has taught me to take in more than just the purchase price when making my decisions. This is a good time to shop in a price range higher than normal for many reasons. If you shop carefully for the right horse, every month that you don’t buy some three-legged donkey you are adding $500 to your purchase price (based on savings in feed and care). It is also a time that many people are more flexible on their asking price --every month they don’t own that horse, they save $500. If it is a show horse in training, monthly costs can be as much as $1000. That is a $1000 swing in your price range each month. Buyers are in the driver's seat in the market right now, so instead of buying a $3500 horse for $1500, take your $3500 and shop in the $7500 range. You may end up paying $5500 in the end, but you have jumped up significantly in the quality of horse you are riding.

Particularly with performance horses, if the price sounds too good to be true, it probably is. With all the money that goes into training and showing a horse, if someone says they are selling a dead broke, finished cowhorse for $6500, that equation is out of balance. Before you start shopping, do an analysis of the market. Look through the Internet sites for horses that you think would fit your needs, including any that have recently sold, and then find a median price for those horses. This will give you a good feel for the market value for a horse of a particular caliber.

Purchase Tactics
There is a limit to how much a seller will take off the asking price. You will have to feel out how motivated each seller is. Remember that sellers may be standoffish at first because most people are window shoppers. Don’t talk price until after you have done the test driving and research. Instead of asking “What is your bottom price?” or “Is your price firm?” decide the price you are willing and able to pay. If a horse you really like is advertised at $10,000 and there is nothing other than the price at issue, a good approach is, “I will give you $8000 for Molly and I can get you a cashier’s check and pick her up in two days.” If the seller says, “Boy, $8500 is really our bottom price,” then you have the option to stay firm or meet that price. Generally, people are more willing to take less if it happens in a very timely manner.

Most of us do not have large amounts of cash lying around. Don’t let this stop you from having the show horse of your dreams. This is also a market in which people may consider taking payments on a horse when they normally wouldn’t. If there is a strong contract, insurance on the horse, and a large down payment, many people will be willing to get out from under their monthly expenses. I will caution that if you are in a payment situation, you should not expect the seller to take any amount off the asking price.

With all of the uncertainty in the economy, it is easy to feel apprehensive about being a horse owner. My advice is to look at it from another angle: this is the best time in history to buy a really nice horse at a fraction of what it cost to make it!