Finding the right horse trailer financing can seem intimidating for first time buyers. If you are in the market for a new horse trailer; you will probably need to purchase it through a financing company. Unless you are independently wealthy, you will have to choose which financial package offers the best deal at the best rates for your individual credit rating and monetary budget.

Financing a horse trailer means first contacting different lending companies to find out what options are available as far as loan packages.

Find Out What Type of Financing Is Available

Here is a general guideline of the steps you can take to gather information on horse trailer financing:

  1. Call Your Bank- Sit down with your back representative and see what terms your bank can offer you. Depending on your individual standing with the bank and your credit rating, your bank may be able to offer you the best financing package for your needs.
  2. Compare the bank financing package to the one being offered at the dealership.
  3. Find the financing plan that offers the best interest rates. Ask questions about hidden fees, early payoff penalties and whether the interest is simple or compounded interest.
  4. The temptation can be great to finance your horse trailer through the use of your credit card. If you do, be prepared for higher interest rates that can compound every month.

Horse Trailer Financing Typically Has Higher Interest Rates

Finance companies consider horse trailers as vehicles that are used for recreation and hobby. This means that finance charges are higher when purchasing items that fall into this category. Other factors that may increase your total loan amount:

  1. Taxes, tags, registration and license fees. Ask your lending company if these fees can be included in the total loan package.
  2. Your overall credit score

Choosing a Loan Package

The best loan package is the one that is the most suitable for your budget. Any loan is only as good as your ability to pay it off. Make sure you can easily handle the monthly payments on your loan. Depending on the loan company policy, you may be able to get a horse trailer loan with lengthy payment terms of more than 10 years. It always pays to read the fine print on any contract to avoid unwanted surprises down the road.

By using common sense and asking a lot of questions, you can get the perfect horse trailer financing and enjoy your trailer for years to come.

Published on March 9, 2011