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Purchase Price for AA - How does everyone do it?

Off Course
#41

Saving for a horse is really no different than saving for any other big ticket item. A car, down payment for a house, retirement, etc.

Together my SO and I would probably be considered upper middle class. However, I would never, ever expect any of his earnings to finance my hobby. We pay equally for household expenses and retirement, the left over goes towards our respective hobbies. I’m more frugal in the sense that I hunt for deals, I drive an old car, I don’t eat out. Every month I review my budget. I have automatic deposits to my retirement account (that’s non-negotiable). I also have automatic deposits to another account, right now that’s savings for a new car. Then I have a regular savings account that’s liquid for emergencies. If I have extra money at the end of the month I save it somewhere.

I’m lucky that my mom also rides, and my parents own a hobby farm. I made the choice to take a year off between my undergrad and my post grad. I had a sweet gig as a groom, saved a lot of money. I purchased a well bred yearling and kept him at my parents for a discounted rate.
I worked through my post grad and had a good job upon graduation. At that point I could afford to pay regular board and for a trainer to help me start him. I was able to do most of the work myself. We’ve since competed in the 3’6” A/Os and a couple of national derbies.

He’s with me forever. I’m ok with paying board on him for the rest of his life, even if he had a career ending injury tomorrow. If he died tomorrow I would be able to use the insurance money to buy a young horse to start over with.

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#42

My husband and I are middle/upper middle class and were originally discussing purchasing a horse in the 25-40k range. Like others said, as with any other large purchase, we were planning on saving the money up over a period of time. We have no debt except mortgage and one car payment - that car payment was included in our savings number as my husband wanted the car to be completely paid off. So we actually were planning to save horse’s purchase price + the balance of his auto loan before purchasing a horse. By our calculations this would have taken us around a year making no major sacrifices to lifestyle, and a small amount of money (around 15% of total) coming from an inheritance.

I, personally, would NEVER take out a loan to purchase a horse. I refuse to pay interest on things unless absolutely necessary, and I believe that you can’t really afford something non-essential (excluding house/car) if you need to take out a loan on it.

Ultimately, in my case, I accidentally fell in love with a baby TB on Facebook and scooped her up for low 4 figures instead of waiting to save up for a more expensive horse. I guess I’m just not that patient! But, I also plan to invest in her in the form of good (read $$$$$) monthly training board when she gets older, so it’s really just a matter of spending more upfront or over a long period of time.

#43

I’m so glad you brought this up because I’m kind of in the same boat as well! I am on a riding hiatus currently and just trying to save as much money as possible. Every day I stare at horse ads and just internally cry to myself wondering how does anyone afford this!!! It can be so daunting to think about for me, which I’m taking as a sign that I’m not ready and currently I’m just saving money with no specific goal in mind. Whenever I get back into it, maybe I’ll just look for a lease and put my savings towards that until the concept of owning my first horse feels a little less insane. Truly how do people afford it!!! this question keeps me up at night

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#44

When I started my career, I hoped to eventually get back into riding. And I saved for years to be able to do it. When I had to retire my first horse, I took another multi-year hiatus, and during that time, I started another horse fund, and paid into it monthly so that when I was ready to go back to riding, I would be able to afford to do it. And at times I did in-barn leases and half-leases to help my budget, so I could continue saving for an eventual purchase. So, I agree with the other people who say it is like any other big ticket item, you have to save and figure out what you can actually afford, and stick to your budget. It is never worth over-extending your finances for a hobby.

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#45

I polished a lot of poop and saved every single cent of it! Learning to live on a budget was very hard for a while. But it’s possible. Some of its luck and other is super hard work.

I was very lucky to be able to flip horses. I found a good little niche market getting nice, sane OTTers, both TB and STB, put some miles under their belt, take them out to a few small outings and sell them. I had a nice cheap and big paddock to spell the ones who needed it. Not everyone wants a world-beater and having the market for those people who want something to pop over a few tiny jumps, do maybe an Intro dressage test, and then be able to go trail riding with was a good one. I never paid over meat money and after a while I had some contacts with trainers who would send stable favorites to me to find a good home for. I always went for those horses who had a fair few starts under their belts. The “old track warriors” who retired sound after 30+ starts always made amazing performance horses because they’d been there and seen that and weren’t fazed about much at all.

Some I made good money on and others I broke even. All this money ticked over into saving for a nice younger Warmblood to train up myself. I was still on a budget and had to settle for a few behaviors I could deal with for a really good mover, but I love him dearly. If we get our act together, we should be 4th level by next year.

Before my husband and I got together, he brought in an unpopular neighborhood at the time for a steal of a price. Built a nice house and had it rented out for years. The unpopular neighborhood turned into a thriving suburb and he got a lot more money than he anticipated when we finally sold after back to back renters from hell. Combined with that and the savings from me still doing the occasional flipper, working our asses off in decent-paying jobs, I was able to go to Spain and buy my dream horse.

Our joke is always our house is now sitting in the paddock happily eating hay.

But she’s also, unfortunately, had a career-ending injury. I was adamant about buying a stallion but more than happy I came home with a mare. So she will breed me some amazing babies. They’ll become my next generation of superstars (hopefully). I’ve also got project one started for the money to start saving to go back to Spain.

It’s hard. There are days coming home from work that I don’t want to ride. I always find the worst part is starting again and see the tiny bank balance and feeling like you’re never going to get anywhere. But time and patience always pays off.

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#46

Young, green, off-breed and/or quirky. I’ve never been great and finding deals, but reasonably good at diamonds in the rough. So that’s what I do. Even though my husband and I earn enough now to theoretically save up for that 5 figure horse, I would have a hard time paying that something that can canter across the pasture and snap it’s leg. Yes, insurance (and I have it even on my cheapies) but still…

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#47

Right? This really resonates with me. I can’t say it’s sticker shock cause I know how much good horses go for, but at the same time it’s very different when it comes to actually putting down that amount of money.

I started this whole savings idea with “I’ll just pretend I’m paying board for a year, and see if I need to make any other compromises in my lifestyle” and it’s turned into really questioning what I want and whether I can do that where I’m currently riding at.

Best of luck to you. I’ve learned a ton about how I want/don’t want things while leasing, so I highly recommend that as a first step before you buy.

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#48

Remember that you don’t have to bring a greenie along solo. Enlisting your trainer to do training rides 2-3x/week for a year or so will usually produce a really nice animal, if you have the right trainer.

That said, in the end, you’ll probably be spending the same amount of money. But it’ll be over time, not all at once.

#49

I’m in my early 30s with an upper middle class income for the area I live. My husband and I don’t want to have children and bought a 30 year old <1000 sq ft house very well within either one of our incomes. I could afford a horse in that price range with 1-2 years of saving. I don’t think I would though.

I fell in love with a free horse instead last fall. She had been sitting in a field and hadn’t had any under saddle work. I have the same aspirations as you, BN/N, maybe training eventually, and she shows every sign that this will be within her reach. I got lucky in that she has an incredible mind, and if she didn’t work out she would be happy with any number of other jobs. And you can’t beat free when going to resell. But she is a 15.1 chestnut mare with no papers, so free was a pretty fair price for her when she knew nothing! And I enjoy the process of teaching and training.

”‹”‹”‹”‹I’m now saving for the truck and trailer in the 15-25k price range in a 1-2 year time frame. I would never dream of taking out a loan to buy a horse. I’d like to retire in my late 50s and am planning my lifestyle accordingly. I likely will finance part of the truck, but plan to pay it off in 2-3 years and then pile savings away so 10+ years later I can pay cash for my next vehicle.

Before the mare fell into my lap, I was planning to buy an OTTB with 30-60 days training. Mid to high 4 figures. Would have been saving for just under a year.

As a teenager I rode a few OTTBs to put miles on them for their owners so it still felt within my capabilities with the right mind and my instructor. Talk to me in 20 years and I don’t know that I’ll feel that way- a stepping down the levels horse will likely sound much better then. The ground already looks a little harder than it did 10 years ago :smiley:

”‹”‹

1 Like
#50

I feel you! Horse prices are crazy.

In regard to your comment about wondering when to stop saving, I would recommend you don’t stop. Keep putting money in. When you find the right horse, take whatever is leftover and use it for your vet/emergency fund.

I insured one of my TBs decades ago and had so many exclusions that it would have been mostly useless if I’d tried to use it. He was dropped two years later when he turned 15. Since then I’ve self-insured via a savings account and been much happier.

1 Like
#51

I’ve always had horses; so, I was way beyond my first horse when I went horse shopping as an adult. I’ve always bought young, never been backed or barely started stock, a few OTTBs and other bargains that required me putting the training on them. Personally I love the process of starting and training horses up through the levels. Later I started breeding to create my ‘purpose-bred’ mounts. Again, I was putting the training into them from the get go. I in no way could or can afford the purchase prices that are frequently seen today as the ‘norm’ for my discipline as an AA. I found ways to get good bloodlines with decent minds to breed that did not cost me a fortune. I owned stallions and mares and did the majority of my own vet work though not all. I was very lucky to have known some very good breeders who were open to bartering, mare lease/foal share arrangements and the like, all to be able to afford my passion. Of course I too now how to be frugal when it comes to outfitting for show, schooling and multiple disciplines. Where there is a dedicated will there is usually a way.

#52

^ I second this. I saved up a year’s worth of horse upkeep (lease/purchase price, boarding/training/care, etc.) before diving into the market so that once I acquired a horse, I wouldn’t have to worry about how to pay its bills. That being said, I prefer to pay whatever monthly horse bills I can from my regular paycheck and keep that savings in the bank as a horse emergency fund or, if I luck out, a purchase fund for a future horse.

#53

My Mom paid $225 and $800 ($3,200 today) for my horses when I was a teen and I paid a $250 adoption fee and other than that all my horses have been free. Now you get what you pay for but most Amateurs have to be a bit creative in finding a horse and usually that means getting a less polished horse to train or an older horse with limited mileage ahead, free leases, etc.

#54

My Mom paid $225 and $800 ($3,200 today) for my horses when I was a teen and I paid a $250 adoption fee and other than that all my horses have been free. Now you get what you pay for but most Amateurs have to be a bit creative in finding a horse and usually that means getting a less polished horse to train or an older horse with limited mileage ahead, free leases, etc.

#55

Personally, I buy the young and green.

However, my current show horse is only 11 (and I ride dressage so theoretically he should have a lot of years left in him) and I’m already putting $350/month in savings. That savings may have to go toward something else before I’m in the market for another horse, but another horse is in the back of my mind someday (though I still want young–just more purpose bred).

I also don’t buy a bunch of un-needed tack and equipment. I have friends who collect expensive saddle pads or bridles or bits etc. I invest in one good saddle and one or two nice bridles. I also only have two schooling pads and two show pads. I will then recycle those show pads to schooling pads. I have a used truck and trailer. I wouldn’t mind financing a truck but I’ve purchased my horses and trailers straight-up. If I’m in debt over my hobby that takes it one step closer to stressful rather than enjoyable.

Overall, my husband and I are firmly middle class, not upper-middle. So I don’t see myself ever spending more than $10,000 on a horse. I’d rather sink my money into my property or my barn since those things won’t break in a pasture accident.

1 Like
#56

Oh I am definitely that person - I have a saddle pad addiction. Hopefully I’ll get over that once I’m paying board and expenses, not just a lease fee. But we’ll see.

#57

Spread the word to local Pony Clubs. Some good reliable horses can be found. Kids graduate high school all the time… and some of the more experienced riders will be making up resale projects.

By the same token ask your vet, farrier, feed and tack stores. Not everyone is selling thru their trainer or even actively advertising.

#58

I too, always wondered how in the WORLD people afforded these fancy horses. Now that I am hopefully about to buy my dream horse, I see that there are many ways (and some not always glamorous) to do so.

For me, a combination of luck and heartbreak got me in this position.

I am in my late 20s and my dad passed away last year after a decade with cancer. Because of this, my SO and I sold our home and moved in with my mom to help her and provide support. We are using some of the money we made from the sale of our home to fund my horse purchase, with the intent that I will put at least half of the amount back in our savings over 2 years. Since we live with my mom, have no kids (and not planning to), we have minimal bills, which allows me to both pay back said horse purchase, and ride/show at the level I want. I also went to many years of schooling to get a MS in a field that is in demand and pays well, so I am fortunate in that regard as well!

This is not a choice that would be appropriate and feasible for all, but it is a choice that my SO have both agreed on and is beneficial for all.

But like I said, heartbreak, has put me in this position. I hope my Dad will be pleased!!

Additionally, as others have said, there are worse fates than a horse that goes pasture pet lame or dies (have currently freaked about both happening to said horse as he as far more $$$ than I EVER thought I would spend). A horse that is not quite right for me or is unsafe and hard to sell, would be far worse than spending the money to get what I REALLY want and really get along with. The luck part comes into play here, as I have had the opportunity to ride this horse many times and know he is a perfect fit!

Good luck OP!

4 Likes
#59

A lot depends on your goals and priorities as well.
My horse is 11, if he ended up a pasture ornament overnight I would be ok with that. Would it be heartbreaking and devastating? Absolutely. But losing him would be so much worse.
I’d rather have a horse that I can go brush, spoil, and call my own, than a picture on the wall and some insurance money. Even if it meant a lengthy riding/showing hiatus. He’s part of the family.

If that scenario gives you a panic attack than consider leasing.

1 Like
#60

I would consider my SO and I upper-middle class, and even so I also bought young and green, and by green I’m talking unbroke with questionable ground manners but athletic with good breeding. Now that she is back in training, things are starting to come together but it really did seem like a long shot when she became comfortable and her true colours shined through! I truly own a very sassy, dominant mare and I wouldn’t change a thing.

It really is true when they say you either spend more up front for the training/show experience, or you “pay as you go”. I’ve accepted the “pay more as I go”, as training isn’t cheap, some shows will be a wash (but a gain in experience) and some days may not go as planned. It also depends on your timeline, how fast you want to achieve said goals, and how much blood, sweat and tears you’re willing to pour into an animal. If it wasn’t you, it was someone else, and that’s where the big dollar signs are reflected!

I have had friends who have taken out loans, purchased horses on their lines of credit or have taken out a lean on their house to purchase a pricey animal. I personally hate the idea of financing something that could be gone or worthless tomorrow, but it works for some. I have also had a friend who’s parents re-mortgaged their home to buy her a fancy warmblood, crazy to most but totally logical to others! All depends on how much you want it and what you’re willing to do to get there.

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