Horse Trailer Financing Guide

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Tanya is a professional horsewoman who has worked with horses for over 25 years. She spent 5-years birthing down some of the world's finest racehorses in Newmarket, the home of horse racing, and currently lives in Spain, where she enjoys hacking in the hills.

In this guide, you can learn:

What is horse trailer finance?
The best way to get horse trailer finance.
What you must provide to lenders to secure finance.
The best horse trailer finance options

Bottom Line Up Front

When you buy a horse trailer, you must make many decisions. You must choose the right size and style, and you must consider your payment options. You can get a loan from your bank to finance a trailer, apply for finance with the manufacturer or dealer, or you can use a home equity loan.

It’s easier to get finance for a horse trailer if you have a good credit score and low debt to income ratio, and the interest rates vary depending on the loan amount and your financial circumstances. I recommend going with a broker who specializes in horse trailers rather than your bank, but make sure you shop around to find the best offer.

How Do You Finance A Horse Trailer?

Horse trailers cost thousands of dollars, ranging from $5,000 for a small bumper pull trailer – to $30,000 for a top-of-the-range trailer with living quarters. So, it’s understandable why many owners turn to horse trailer finance.

Horse trailer finance allows you to take out a loan to pay for your trailer and then pay it off each month in installments, with interest. To finance a horse trailer, you can get a personal loan from your bank, go through a trailer finance company, or take out a home equity loan.

If you want to know more about how to secure funding for your dream horse trailer, I’ll tell you more about the different financing options below.

#1 – Get A Personal Loan

The most obvious way to finance a horse trailer is with a personal loan from your bank or an independent credit provider. Personal loans are pretty straightforward, but the problem is that generic lenders class horse trailers as luxury recreational vehicles. This means they are considered high-risk loans and have strict acceptance criteria and hefty interest rates.

#2 – Get A Loan From A Horse Trailer Dealer or Manufacturer

Many horse trailer manufacturers and dealers offer financing on their products. Loans from horse trailer manufacturers are the same as personal ones. The difference is that they work with brokers who understand that horse trailers are working farm equipment rather than luxury items.

Most loan providers don’t realize that horse trailers hold their resale value, unlike cars, so they insist on loans with a shorter payback period.

The loan providers who work with trailer manufacturers understand trailers last for a long time, so they usually offer loans over a longer period. You will get the best deal on trailer finance if you work with a broker who specializes or has knowledge of horse trailers.

#3 – Get A Home Equity Loan

A home equity loan is when you secure the loan for your horse trailer against the equity of your property. You need at least 15 percent equity in your home to apply, and the application process can take longer than personal loans.

The benefit of a home equity loan for horse trailers is that you usually get a lower interest rate, but the risk is that you can potentially lose your house if you don’t keep up with payments. Home equity loans are a good option if you have a poor credit rating.

What Do You Need To Get Horse Trailer Finance?

When you apply for horse trailer finance, you must show proof of income to prove you can cover the loan payments. Loan providers also need proof of your address and official ID, and they will also carry out credit checks. You won’t be able to get a loan if you don’t provide these things.

To give you the best chance with your loan application, I’ll talk you through the things you need to provide to lenders below.

#1 – Proof of Your Income and Employment Details

Your proof of income and employment details are the main things a loan provider will consider on your application – to ensure you have the funds to repay the loan.

If you’re employed, you must provide your employer’s details, pay stubs, tax returns, bank statements, and W-2s and 1099s forms. If you are self-employed, you must provide details of your bank statements, 1099s, and income tax returns.

#2 – Identification and Proof of Address

You must provide the lender with official documents to verify your identity and address to get horse trailer finance. You won’t be accepted for the loan if you can’t provide proof of your ID and address. Loan providers will also need your contact details, bank information, and social security information.

Here are some of the documents you can provide to verify your address:

Bank or credit card statement.
Utility bill.
Lease or rental agreement
Mortgage statement
Property tax receipt.
Voter registration card.

Here are the documents you can use to prove your identity:

Birth certificate.
Passport.
Drivers license.
Military ID
State Issued ID
Social security card

#3 – Your Credit Score

Before they offer you a loan, providers will carry out a hard pull on your credit score. You need a credit score of 620 or above to get a personal loan for a horse trailer, but all lenders are different. Some require a higher score, like Double D trailers – they ask for a minimum score of 730. You might still be able to find a deal if you have a lower score than 620, but the interest rates will likely be higher.

It’s a good idea to check your credit rating before you apply for horse trailer finance. If your score is low, you should take some time to improve it before you apply for horse trailer finance.

#4 – Debt to Income Ratio (DIR)

When you apply for horse trailer finance, the lender will also check your debt to income ratio. The debt to income ratio is the percentage of your gross monthly income that you currently pay towards debt.

If your debt to income ratio is more than 36 percent, you might struggle to get finance for a horse trailer. If it’s over 40, you will likely get a refusal. Each loan provider has its own specifications on the DIR allowance. Like your credit score, if you think you have a high debt to income ratio, improve it before you apply for horse trailer finance.

Horse Trailer Finance Tips

Since the financial crisis of 2008, it’s much harder to get loan approvals because companies are much stricter on their selection criteria.

To improve your chances of securing a horse trailer loan, be realistic with your budget and use a loan calculator to give you an idea about what you can afford to pay back each month. Shop around to find the most suitable provider for your financial circumstances and make sure you have a substantial down payment.

For the best chances of securing finance for your perfect horse trailer, take a look at my top tips below:

Shop Around – There are many loan providers out there, and you should investigate a few of them before you make a final decision. Interest rates vary between lenders, and if you shop around – you will get a better deal.
Use a Loan Calculator – Use an online loan calculator to get a clearer idea of interest rates and payment plans. With a loan calculator, you can establish how much you need to pay back each month over different loan durations.
Look For Trade-In Deals – If you have an old trailer, some providers offer trade-in deals, where you can swap your old trailer for a discount on the price of a new one. Some companies also let you trade in cars or boats to help finance your new horse trailer.
Be Realistic With Your Budget – Have a clear idea about your budget. Write down your income and expenditure to see how much you can afford to pay each month, and select a trailer that is within your budget.
Avoid Loans With Prepayment Penalties – Loans with prepayment penalties often have lower interest rates, but the problem is you are locked into the rate for a set period. Loans without prepayment penalties allow you to pay off the loan in advance, which will save you money on interest.
Apply With Your Partner – If you apply with your legal partner, you might have a better chance of getting the loan because you will have a higher income. You should apply with your partner if you usually take out credit together – otherwise, all the debt will appear in your name during a credit check and reduce the chances of you getting approved.
Be Wary Of Cosigning For a Friend – If you cosign a loan for a friend or family member, you will be responsible for the debt if the person stops paying. It will also appear on your credit history, increase your debt to income ratio, and you might not be able to take out loans for yourself in the future.
Consider Your Down Payment – You have a better chance of getting a loan if you can make a large down payment toward your trailer. You can usually get a better interest rate with a substantial down payment and a smaller loan. Some horse trailer finance companies offer zero-down deals, but you must have an outstanding credit rating to take advantage of these deals.
Be Careful With Excessive Credit Scoring – Be wary of too many lenders searching for your credit score because too many deep credit checks will reduce your credit rating. If you apply for finance with a trailer manufacturer or dealer who works with multiple brokers, ensure they only send it to the suitable ones for your circumstances.
Don’t Make Payments on Your Credit Card – Credit cards have interest rates, and if you use a credit card to make payments on your trailer, you’re effectively paying double interest on your loan.

What Are The Best Horse Trailer Finance Companies?

The best way to get a deal on horse trailer finance is by choosing a trusted, well-reputed loan provider. I’ll tell you about some of the best horse trailer finance companies, below.

I chose these providers because they either specialize in or have a good understanding of horse trailers. They all have a straightforward application process and outstanding customer service and will strive to find the ideal loan for your needs.

#1 – Double D Trailers

Double D Trailers are based in Wisconsin and are a trusted equestrian trailer brand. They have a large selection of high-quality, durable, bumper-pull and gooseneck horse trailers, and they can arrange finance for your purchase. Double D works with several brokers specializing in horse trailers and will only pair you with the most suitable ones to find you the best deal.

Double D have tighter credit score requirements than most personal loans – they advise a credit score of 730 to apply for their finance. You can apply for Double D trailer finance online or speak to their agents over the phone.

#2 – Cool Horse

Cool Horse is a nationwide equestrian company that provides finance for many equestrian items, including horse trailers. They have a selection of trailers from multiple brands, but most of their trailers are large gooseneck ones – they don’t sell small bumper pull trailers.

It’s easy to apply for Cool Horse finance, you simply fill out an online form, and you can get approval in a few hours. They do all the complex paperwork for you and work with many brokers to find you the best deal.

You must have a minimum credit score of 620 to apply for Cool Horse finance and a minimum 10 percent down payment. Most of their lenders request a 20 percent down payment, but if you have an excellent credit rating, you may get financing without a down payment.

#3 – Lightstream

Lightstream is a mainstream loan company that will offer you a fantastic deal on horse trailer finance. They have low interest rates, from 5.73 percent APR, and are suitable for people with good credit ratings. The Lightstream application process is quick, simple, and easy, and you can repay your loan early because there are no prepayment penalties. You can apply online or over the telephone, and they have an outstanding reputation in customer service.

#4 – Transwest

Transwest is a major horse trailer dealer in the USA, and they have a range of bumper pull and gooseneck trailers in all sizes. They are experts in trailers and finance and offer insurance, protection plans for tires and windscreens, and breakdown cover from Coach-Net. Transwest has a part exchange deal, and you can trade your old trailer, car, or boat as part payment for a new trailer.

Transwest finance offers zero-down on their trailers, but these deals incur a higher interest rate. They work with multiple brokers to help you get the best deal and do the title work for you. Transwest offers same-day approvals, incredibly competitive interest rates, and you can apply for finance over the phone or call in to one of their offices in Missouri or Colorado.

#5 – NTS Trailers

NTS Trailers is the result of a merger between NRS and P&P trailers, and they are the largest full-service dealership chain in the USA. They have an enormous selection of high-quality bumper pull and gooseneck trailers and offer incredibly competitive finance rates from some of the country’s leading lenders.

The fantastic thing about NTS trailer finance is that they provide finance for trailer parts and accessories. They also have zero-down loans available if you have a high credit score and offer affordable payments tailored to your needs. You can apply for NTS finance through a simple online application form or in person at one of their ten dealerships across six states in the USA.

FAQs

Question: How does horsebox finance work?

Answer: Horse trailer finance is when a loan provider gives you a loan to pay for a trailer, and you pay it back with interest over a set period. Horse trailer loans can last between 5 and 15 years – depending on the loan amount and your financial circumstances. In most cases, you must make a down payment of 10 to 30 percent towards the trailer to get approved for finance.

Question: How hard is it to finance a horse trailer?

Answer: If you have a good credit rating, over 630, and a debt to income ratio lower than 36 percent, most lenders will approve you for horse trailer financing. You will find it hard to get horse trailer finance if you have a poor credit rating and high debt to income ratio, and the interest rates will be much higher.

Question: What is the interest rate on a horse trailer?

Answer: The interest rate on a horse trailer differs for each lender and will depend on your financial circumstances. You can expect to pay between 5 to 35 percent interest on trailer finance.
Your interest rate is calculated on the loan amount, the size of your down payment, the duration of the loan and your credit history. Home equity loans generally have the lowest interest rates, but you can potentially lose your home if you don’t keep up with payments. If you have a poor credit rating – you will generally pay a high interest rate on horse trailer loans.

Conclusion

A horse trailer will dramatically improve your life as a horse owner, but they are expensive, and the best way to purchase one is with horse trailer financing.

To get the best deal on horse trailer finance, choose brokers who specialize in horse trailers rather than your bank and shop around to find the best deal. Before applying for finance, ensure you have a credit rating above 630 and low debt to income ratio. You will also get a better deal on interest rates if you can provide a down payment on the trailer.

Resources

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Lobb, Jennifer. “Horse Trailer Financing: Where to Find Funding.” LendEDU, 1 Mar. 2022, lendedu.com/blog/horse-trailer-financing.
—. “Horse Trailer Financing: Where to Find Funding.” LendEDU, 1 Mar. 2022, lendedu.com/blog/horse-trailer-financing.
Miles, Ed. “How to Finance a Horse Trailer in 2022.” Crixeo, 23 July 2022, crixeo.com/personal-loans/how-to-finance-a-horse-trailer-in-2022.
Perez, Jeanette. “Horse Loans: Find Equine Financing.” LendEDU, 1 Mar. 2022, lendedu.com/blog/can-you-use-personal-loan-to-buy-horse.
Taylor, Don Cfa, PhD. “What Documents Are Required for a Personal Loan?” Bankrate, 28 May 2022, www.bankrate.com/loans/personal-loans/documents-required-for-personal-loan/#:%7E:text=Employer%20and%20income%20verification&text=Paystubs,Bank%20statements.