Help me understand the benefits of leasing vs buying?

[cherham]

I don’t want to make this sound like a sales ad but I have a very nice hunter for sale, Champion in her division on the A circuit last year and have had all sorts of enquiries whether she is available for lease but it seems few people are interested in an outright purchase.

Lease prices are not cheap on this quality of show horse to the point that three years of lease fees almost covers the cost of the full purchase price.

This is a completely new phenomenon to me having come from the “old school” where only horses that would not vet, were in their mid teens having been there done that or have some other sort of issue that makes them hard to sell were routinely leased.

Now it seems everyone wants the very top quality winning horses
on leases too…???

[SnicklefritzG]

A lease might be ideal for a junior who needs a horse and doesn’t want to purchase before going to college.

Other than that, I don’t know why people would do it for a longer lease. I could see a couple months or so if someone is looking for something to ride while they look for something to purchase outright.

Or maybe people want a nice horse to lease without having to worry about long term care if the horse goes lame, needs major rehab, etc.

[Hawks_Nest]

A longer term lease, while expensive, still means that at the end of it you can give the horse back. If the horse gets older, or the rider outgrows it or goes off to college, they don’t have to sell it or find a place for it.

Either way, a lease is a good way for a junior to gain experience without the cost of buying and then eventually selling a horse

[vxf111]

It’s really up to you and your situation. The benefit of the lease option is that you keep the horse. If you see yourself wanting to breed/ride the horse down the line-- you retain control. You also ensure she is managed the way you want. Potentially, you might earn more by leasing than selling if she is young and increasing in value rather than decreasing.

The benefit if selling is getting money in your pocket now and washing your hands of risk. If she breaks the day after you sell her, that’s someone else’s problem and not yours. You are free to buy another horse or move on without worrying about her coming back at some point.

Why do people want to do leases? The flip side of the above coin. They either foresee only needing a horse for a specific period and don’t want to be stuck with the horse/the risk of loss (i.e. the parents of a junior with 2 years before she ages out and goes on to college where she will not be riding/showing enough to justify owning a horse). Or they want the flexibility to shuffle things around (i.e. lease a 3’0 horse for a few years but then be able to give it back no strings attached when it’s time to move up and get a 3’6 horse). Or maybe they have the funds but not in a lump sum and leasing fits into their budget better.

Lots of reasons from both sides. For everyone’s sake… have an iron clad contract!

[Dewey]

GM used the opportunity of Michael’s fall, regrettable as it was, to give a good speech to the spectators about boldness.

[RugBug]

@Hawks Nest;7347057

A longer term lease, while expensive, still means that at the end of it you can give the horse back. If the horse gets older, or the rider outgrows it or goes off to college, they don’t have to sell it or find a place for it.

Since you asked from the lessee’s perspective, I would say the above answer sums it up. There is less risk all around.

I’m an adult and I would lease in a heartbeat. I’ve experienced the heartbreak in owning too many times. I love my horses, but the stress of dealing with an injured horse or the difficulties in selling one when it’s time to move up make leasing seem very attractive to me.

[LDavis104]

As a current horse owner I WISH that I did not own my horse and had decided to lease instead. Navicular disease & navicular bone fractures, two knee chip fractures, a torn suspesory, and 2 surgeries have left me wishing that I could give him back. If he doesn’t come back sound for riding again I am stuck with a 9 year old retired horse. I also can’t jump him anymore. This is just one of the reasons people want to lease vs. buy.

[sunshinestate]

Not sure this will help but it seemed informative:

http://www.ratemyhorsepro.com/news/horse-leases-what-you-need-to-know.aspx

[cherham]

Excellent information sunshinestate and I thank you for taking the time to post this…if I do decide to go the lease route it will be something I will reference for sure.

It does seem though upon speaking to more people that the horse owner is taking most of the risk here…I will have to seriously give this more thought.

[MissAriel]

Yes, leasing leaves much of the risk with the horse owner, and maybe some lease because they don’t have the lump sum for the purchase, but can afford the lease/upkeep. One downside to leasing is you will have to follow the owner’s directions for the horse, rather than making your own decisions, and sometimes they won’t be in agreement.

[Elouise]

OP,

I used to be a traditional buyer. Always used to buy. After getting taken badly on the last purchase (and I blew the bank) and a bunch of disappointing purchases and huge losses; I am leasing now A) so I can get on and start spending my time and money showing rather than on an assortment of vets. B) so that I can make sure that this horse is the right fit C) So I can give him back since I have a few that I have bought and retired (read part above about an assortment of vets and disappointments).
I actually leased one last year and sent it back after two months because it was not a good fit for me. Some of the people I know want a lease with option to purchase so that they know that the horse is a good fit.

As far as being an owner of a horse being leased…I have heard horror stories on both sides on leasing. Only deal with people your really really trust. I could tell you stories that would make your hair stand up. Money changes a lot of people. As the old saying goes…“you never really know someone until you have to split an inheritance with them.”

[comingback]

[QUOTE=Elouise;7350729]
A) so I can get on and start spending my time and money showing rather than on an assortment of vets. [/QUOTE]

At this point in my life, this is the reason I lease. I have the means to buy a horse, but the risk of it injuring itself and me incurring potentially large vet fees and/or having a pasture puff is too much of a risk for me at this time.

My husband keeps asking why we just don’t buy a horse. I try to explain the purchase isn’t necessarily the $$$ part, but the maintenance is