I told my trainer the other day I would like to start looking for a horse of my own. She asked me what my budget is. I thought for a second, and didn’t know where to begin to determine a specific number. How do you figure out how much you can afford? I would be doing full board at around $700. I mean, I can technically afford quite a bit if I am looking at my savings account, but how much of that is wise to spend on the purchase price? I mean, of course financially, the lower the price the better :). and I get that a bigger budget means more and better options. But where is the cutoff?
I don’t know that anyone can tell you what you’re cutoff is other than explaining their process for figuring out how much they’ll spend. No one knows your financial situation better than you, or how much you’re comfortable pulling out of savings and still leaving yourself a cushion for non-horse needs.
Some questions to ask yourself to help figure out that end range might be:
- Are you looking for unstarted or started under saddle? How far under saddle do you want them? Young, unstarted horses are generally cheaper.
- What are your monthly costs going to be? You’re paying full board, what about lessons? Farrier? Vet? Do you have room in your monthly budget to spend on things like supplements if the horse needs them?
- What kind of risk are you willing to take? Are you okay with a horse that has some known maintenance needs to be sound to ride? Therapeutic shoes? These horses are also often cheaper as their upkeep is more costly per month and they tend to be older with less room to “move up” in terms of athleticism.
- Where do you live? Are there lots of horses available for sale or are you going to have to travel a ways to find decent stock?
Honestly, bigger budget doesn’t always = better. If you have a good eye and are willing to take your time, you can find really nice horses at lower prices for all sorts of reasons: owner has family/health/economic issues, owner doesn’t have time for horse/horse is just sitting around, horse has mild findings on PPE that are inconsequential to you and what you’d use the horse for, horse has known maintenance needs that don’t bother you but make finding a suitable home harder. I’m picking up a 3 1/2 yo old working cowhorse-bred filly in two weeks whose breeding would normally put her WELL above what I’m willing to pay for young stock, but she’s unbroke and largely unhandled due to lack of time on the owner’s part. The owner doesn’t have time to start her and she’ll continue to sit and cost money to feed. Owner wants to move her on to make room for horses that don’t cost them money each month. I’m a trainer and have the skills to get her started, handled and on her way to being a really nice horse, so none of those things bothered me, so I’m getting her at easily half what her probably worth is based on breeding alone.
Start with a list of what you want and perhaps have your trainer help you come up with a reasonable budget based on those qualities. The best advice I can give you there is look for SOUND and SANE first, especially if this is your first horse. Don’t get caught up in color, breeding, etc. Look for a horse that can ride at the level you are at now with some room to move up as you move up: don’t go for the schoolmaster that you can’t ride now and won’t be able to anytime soon. And don’t go for the young, green horse unless you have the skills to work with that horse without your trainer present already.
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@Abbie.S gave you some great information. Your trainer should also be willing to sit down with you to review your needs and budget. Pay her for a lesson and schedule a time to talk all this through. And remember, a horse’s purchase price is the tip of the iceberg. A free horse costs the same to house, clothe, feed, vaccinate, medicate, train as a $100,000 horse!
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How much you’ll need/want to spend may also depend on where you live. Some areas in the country have just (from my point of view) insanely high prices even for very modestly accomplished horses. It’s worthwhile, as Lusoluv said, to talk to your trainer about what kinds of horse might be appropriate for you and what the costs for various types of horses would be (hypothetically).
Don’t forget to have a conversation with your trainer about the degree (and potential) cost of her participation in your search. Best to know that upfront.
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That’s a pretty broad question. one we could answer a lot better if we knew a general idea of what you’re shopping for.
Looking for a trail horse? Eventer? Reiner? Finished? Green? Prospect? Are you good with some maintenance? Etc etc.
Your trainer will probably be able to give you a good approximate budget if you tell her what you’re looking for and also ask her what type would best suit you.
You might find a prospect cheap but you will
put more $ in every month training it. Some people are totally cool with that and would rather have the recurring expense than the initial out of pocket.
regardless, remember that the cheapest part of horses is buying them!
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What are you looking for and to do? If you have a healthy savings you are willing/able to tap into, that may also dictate budget. Your trainer should be able to help you determine the budget you would need to find your perfect horse- and you either have it to spend, or you dont, and you modify your search criteria accordingly. The more training and show milage a horse has, regardless of the discipline, the more it will cost. Costs vary significantly by discipline as well.
Do you plan to show in your chosen discipline? At what level? Are you happy just going out and competing, or are you looking for a competitive horse you can win with? All of these things factor into the purchase price of a horse. Then you just need to balance these wants against your financial reality. Again, your trainer should be a good resource to help you figure out the answers to these questions. Also factor in $ for PPEs, which can easily approach or go into 4 figures- with no guarentee your chosen horse will “pass.”
First, have a good look at your finances (with your spouse if applicable) and figure out how much money you could afford to lose. Not that you’d be happy about it, but you’d be ok. It wouldn’t affect your ability pay your bills, eat, retire, etc. Once you have a range in your head, go on sites like Dreamhorse and Equine.com and see what is available near you in that range. Then expand the search radius and see whether traveling opens up your options. Generally speaking, horses are most expensive on the coasts. Next, think about what your goals are for this horse and write them down. Do you want to compete? What discipline? What level? It that a reasonable goal given where you are currently? Most people who want to advance up the levels in their discipline will need multiple horses along the way. What sort of temperament do you need?
With your homework done, you’re ready to talk to your trainer. Ask him/her what type of horse/training level they think would suit you best. Ask them what they would expect to pay for that horse. Ask them how they normally source horses for their students. Ask them what commission they charge for their services. See how you feel about this information, and how it aligns with what you were thinking. Then talk to trainer about your proposed budget. What different types of horses do they think you can find with that amount. Talk about the pros/cons of a younger horse that will need more training rides, and an older horse that will need more vet care. Take time to think on it, and come back to trainer with a second round of questions.
I’d be looking to do low level dressage schooling shows and just working on improving my riding. I don’t need anything fancy and prefer around 15hh as I am petite. Also a horse that does not need to be worked every day to continue to be sane. OK with a bit of maintenance as long as it’s nothing too crazy. Prefer a horse on the younger side, preferably under 10. Would be OK if it would need occasional tuning up as I have a trainer to work with. Prefer QH, Appy, paint type but not that important. I am on the East Coast, and I have noticed prices for everything are sky high. I might wait until Covid has died down as I understand prices are higher than normal right now.
@Abbie.S thank you for the reminder of safe and sane, that is #1. Also I have a pretty healthy savings and prefer to spend more upfront and less for maintenance. So no hard keepers.Thank you so much, lots of great info here to go discuss with my trainer.
Oh and the other thing is, I have no kids and past that age, so I guess whatever I would spend on a child can go
towards my horse, right? 
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Along with the PPE costs, don’t forget that you’ll need to buy tack & blankets and other pretty things for the horse and you need a vet emergency fund. So even once you’ve decided how much of your savings you are willing to spend, you’ll need to account for those factors beyond the purchase price.
That’s my philosophy. Whenever non-horsey people express surprise at how expensive boarding a horse is, I just say it’s a lot cheaper than day care or college.
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Someone’s horse budget should be whatever $$$$ they can roll-up into a wad, throw a match and watch it go up in flames.
Horses predilection for injury and/or illnesses can take whatever animal you purchase, for whatever price… into an expensive manure factory.
My answer to someone who starts by asking me “what is my budget” is to walk away. I have been “back stage” in horse pricing discussions where the price for the horse majically changed (up) to match the buyer’s “budget.”
If someone starts by asking me what is my “budget,” I usually reply with another question…“So I don’t waste your time, what is the price of your horse(s) and I will decide if I can afford them.”
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OMG, that, a million times that! Be clear if you are buying a horse from your trainer or if your trainer expects a commission or expenses or if they’re happy to help for free or what. All of these (and endless variations) are possible, and all can work out, but knowing who the trainer is working for (and thus what their motivation is) is imho very important.
I personally am extremely wary of any arrangement where I’m not negotiating directly with (and directly paying) the seller. Some trainers however expect to maintain a sideline income brokering horses to their students, and while I can see some value in that I’ve heard way too many horror stories.
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@Posting Trot@amb Good point, I will be sure to ask my trainer that. I did not get the impression that she would be taking a commission but it’s definitely good to confirm this.
I am kind of an ace in the hole person. A buyers budget can magically change a sale price in a millisecond. Horses are like antiques and are worth what someone is willing to pay for them. I also agree with the what are you willing to lose. So find a comfortable number that you could lose without eating pet food in retirement or having to go to therapy. After you have that number, ask your trainer what she thought it would take to get you the horse that would get you to this goal or that. So here is my math:
Trainers says you could get a horse to take you to Point A for no less than 10K, you could live with 20K at risk, so using a 75% ratio say you are willing to look at horses under 15K. You will generally be shown horses with asking prices of 18K, that can be negotiated to 16K. The issue here is that you need to plan that your purchase price is not done at selling price, PPE is on you, travel for you/trainer and transport for the horse is on you. Commissions, consultations, tips and finder’s fees are on you. The horse comes home with a halter and now needs a wardrobe. So plan on blankets, wraps, halters, lead ropes, brushes, sheets, saddle pads, boots, etc, all on you. But if you are a first time horse owner, these value added fees and costs will now equal your $20K. These are just example numbers.
I also agree with AMB make sure you know what your trainer participation numbers are before horse shopping commences.
The cheapest part of buying the horse is buying the horse…it is the rest of it that gets you.
Now, I just had an offer for a horse accepted today at 85% of asking price, and he was in the mid 4 figures on the east coast. No trainer involvement other than a phone / video conversation, which I will offer to pay lesson rate for., she is getting a boarder /training horse as well. Yes, prices are inflated in some areas and sellers are trying to capitalize, but deals are still out there. This is prime riding season in my area and horses are being flipped daily. Once the first winter storm starts, prices will settle and when the hay lofts start getting dented, prices will really start to level out. In my opinion you are starting at a good time…
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well I can honestly provide documentation that my wife’s dog eats food that costs many times more than what I spend on myself and her. Pet food is not cheap any more. (and that’s before considering the horses and goats as pets)
While on the subject of retirement, OP might be much better off sticking the money into a tax deferred savings for their retirement. We were just lucky that our horses paid for themselves, it sure was not by design or planning.
Very true! If someone had told me 20 years ago I would pay $25 bucks for a 8lb bag of dog food I would have called them a fool. So, who is the fool now…a fool over the stinking dog. I will say his coat is ever so shiny!
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I think it would be helpful to start looking at lots and lots of sale ads, and see what the prices generally are for horses that appeal to you. That should help you narrow down your budget. You are in luck that what you want tends to go for the cheaper end of the scale - 15 hands and QH/Appy types are generally not as expensive as tall warmbloods, for example. I got a great deal on my horse because she is only 14.3 hands, which is a very difficult size to sell to anyone.
A good rule of thumb is to not spend any more than you are willing to lose, meaning, there is absolutely no guarantee that you will get your initial investment back, let alone all the carry costs, etc… How much are you willing to lose if, for virtually any reason it doesn’t work out? Sure, mortality insurance will cover most catastrophic losses, and surgical will cover you for colic or other emergencies, but what if your surgery doesn’t solve the problem and your horse can no longer perform the intended job? Loss of use doesn’t pay out at full insured value AND it’s nearly impossible to collect AND it’s expensive. For those reasons, few people even purchase it. And then there is the value of the horse - if it’s had a major surgery or an injury, that impacts the value and also creates a non-insurable pre-existing condition, making future treatment of related issues out of pocket.
So, let’s put this together into a horse purchase: if you just dropped high-5s on Dobbin with the hopes of getting your dream AO horse, and Dobbin is injured and can only manage a lower height, or pasture life, or decided he doesn’t want to perform the intended job or whatever, at what price point can you not only tolerate that loss, but also continue to commit to maintain that horse? THAT is your purchase budget. The carry costs should be a separate budget as they are recurring.
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Similar to PP, my budget for a horse was fixed, but this meant that the asking price of horses I looked at varied depending on distance, extent of PPE I felt was necessary, etc. So I set my “what can I burn without it drastically effecting my life” and then the purchase price is just one number within that total that flexes as other expenses rise/fall depending on the specifics of the horse in question.
Example: Let’s say my max all in budget for horse start up costs was $20K:
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Horse 1: Located ~10 hours away, 3 years old, very lightly started. Maximum purchase price I’d be willing to pay for ‘right’ horse would be $12K so max asking price I’d inquire about was $15K. With the other $8K going towards PPE (~$1K), Shipping (~$1.5-2K), Tack + accessories (~$3K), travel costs for trials (~$500-1K) and then that leaves some financial flex for other necessities such as if vaccinations need updating, horse needs chiro after transport, frequent saddle fittings because so green, extra training rides / lessons since horse is so lightly started and theoretically only one trial ride given distance, etc.
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Horse 2: Located ~2 hours away, 8 years old, well started but not as fancy as horse 1 but proven citizen. Maximum purchase price I’d be willing to pay is ~$15K so max price I’d inquire about is $20K “flexible”. I’d probably budget a little more for PPE to do additional imaging and would probably budget roughly the same for tack + accessories but no shipping costs, no travel costs for me, and I’d feel more confident about not needing extra training rides up front as theoretically I could have tried the horse a couple times to ensure a good fit. But I’d still want a little bit of buffer for saddle fittings, chiro / vet work ups in those early months where you’re still getting to know horse so you tend to be more cautious about what’s an issue vs a quirk, etc.
