I bought my second horse from a kind seller who let me make payments (and have the horse after paying a deposit). I know several people who have done the same, and those situations also turned out well. It’s a risk to the seller, yes, and if you can’t live if you don’t get paid in full / on time, don’t do it, but I know several cases that worked out just fine. It certainly allowed me to have a nicer horse than I could have afforded up front (while paying for training in an expensive area), and I am grateful to the seller for taking a chance on me. Personally I would rather have to chase after payments than have a horse injured in my care while waiting for payments… if you don’t want to accept payments, just don’t, but I disagree with the posters saying that you should keep the horse that whole time.
I bought a horse on payments once. My trainer sold him to me. We had a written contract that required him to live at her barn and I paid board on top of monthly payments. I was responsible for farrier, vet bills, etc. I think I had six months to pay him off, but I did it early.
Maybe I didn’t really need my own horse at the time - it was when I was just starting my own law firm, so money was tight - but I’m glad my trainer made it possible for me to own my own horse. I had my own farm, so once he was mine I just moved him home.
But even as well as she knew me, I’m sure she would not have allowed him to leave her farm until he was paid for. And I would never have expected her to. That’s just bad business.
I bought a horse on payments way back in 1989. I was very glad the seller was willing to work with me on this. I had a good job and a place to board but what I didn’t have was $2500. I was vouched for by a couple of people, and held insurance on the horse until he was paid in full. I always paid on time and in fact was able to complete the payments early. The horse retired with me and is buried here on my farm.
Times have changed since then and I don’t think I’d buy on payments now, or sell on payments.
Edited to add: The horse was already off the seller’s farm and at a stable where he was being shown to buyers. I moved him to my boarding stable of choice upon paying a deposit.
Be sure your contract includes what happens in the event of a default. Notice, process, who keeps what, etc. It is really important to have language dealing with the deal going sour as it is with the deal itself. I am on board with others in that the horse stays until paid in full. I’ve seen horses get injured in new surroundings or getting care from their new owner that creates issues. I do a fair number of sales a year and I answer all sorts of questions post sales. Most recently I had one who bought a lovely mare last December and said horse is now lame. She decided to use a barefoot farrier who ruined her feet. The horse will recover, but growing feet takes time. I wish people wouldn’t radically change what was working, but it happens even with the nicest, best intended folks.
I was in the process of selling a horse a few years ago. It was going to be a great home but the buyer didn’t have enough “cash” for the full purchase price. She was asking for payments. A friend of mine then made a great suggestion…have the buyer take a cash draw on her credit card. That’s what she did and no payments necessary.
This buyer has her own farm, her horses are well-fed and cared for. She hadn’t been planning on buying another broodmare, it came up in conversation that I was moving towards selling this mare who as it turns out has bloodlines she’d be interested in adding to her breeding program, but as she hadn’t budgeted to buy another horse she wants to pay over time. Just because someone doesn’t have x number of dollars at their disposal does not mean they can’t properly look after the horse. If the situation was reversed, yes I would arrange financing either through my credit card or my bank rather than with the seller, but obviously I’m not the first person to consider taking payments on a horse 
I have given this some thought over the last few days and I’m leaning towards a lease to own situation where the horse stays with me. She is already insured in my name and I feel like leaving her as my horse until she’s paid for simplifies matters. I will even continue to pay for her upkeep, I am not in a boarding situation so it doesn’t cost me as much to keep her as it would be if I was boarding, and my hay supply accounts for her not getting sold.
EVERYTHING IN WRITING—ALL THE “TERMS”…BUYER MUST CARRY FULL MORTALITY AND MEDICAL ON HORSE WITH YOU/OWNER ALSO ON THE POLICY UNTIL PAID IN FULL…YOU KEEP THE REGISTRATION PAPERS UNTIL PAID IN FULL…1ST PAYMENT MISSED GO AND GET THE HORSE IMMEDIATELY…AND KEEP UP WITH THE HORSES…EYES ON IT
Because banks check tne borrowing history of anybody who wants to borrow money from them. They don’t loan to applicants with a history of slow pay, charge offs and defaults.
Now, once in awhile you can get a person who has a reasonable explanation for the -225 credit score but the best indicator of future behavior is past behavior. Banks know this and so do deadbeats who sweet talk their way into your heart the vanish with your “loan” or property Usually safer to figure if the banks don’t trust them, you shouldn’t either. No matter how nice, sweet, good looking, glib or how deeply you believe they would never do that to you. Yes they would. Doesn’t matter if the intend to pay but they get lost in a fog of issues and just forget or they set out to scam you… End result is the same, you lose you money/property to them.
You only think you know them, you really don’t. Never trust anybody and verify everything.
Yes I’ve done it, first time was buying myself, I was short the asking price of a horse in an ad and told them my budget is X and seller offered to finance the last 5k. So I flew down to see horse and left deposit. Came to pick him up with check minus the 5k about 5 days later. The contract was a good one, I took horse and complete control, horse insured for full amount with seller on insurance as co owner. 6 months to time with two installments. Think I paid him off in 4. It was one of the best decisions I’ve ever made and so glad they were willing to work with me. (Not a cheap horse)
Second time I was the seller, same type of situation, she had X to spend and I offered to finance 10k for her over 6 months.(also not a cheap horse) Great home, knew the trainer so I did it. I reused the original contract as I liked it so much and just modified for NJ state law. Buyer was fabulous and paid in full.
Obviously there is risk, but everything with horses is a gamble money wise and horse health wise, life is short, take the horse or money and enjoy life. Can it be a headache if buyer doesn’t make good, yes. In my contract case, not paid in full let seller repossess horse and all money’s paid forfitted.
