Understanding Horse Trailer Financing

The dream of owning a horse trailer can be derailed without careful consideration of the industry limitations for this type of vehicle. To make the process of obtaining horse trailer financing go more smoothly there are several things you need to understand.

What information will I need to provide?

In order to obtain horse trailer financing you will need to complete the application process with the lender that you choose. The amount of documentation required may vary depending on the type of lender that you choose. In most cases you will need to provide a copy of the front and back of the vehicle title and copies of your driver's license and proof of insurance. Most lenders will also ask you to provide contact information for the seller and any information on lien payoff if applicable.

How important is my credit score in obtaining horse trailer financing?

All lenders will consider your credit score in determining whether or not you are a good candidate for horse trailer financing. Typically a credit score of 660 or higher is recommended. It's a wise idea to check your credit score yourself prior to purchasing your horse trailer. Identify any negative items on your credit report and take action to correct them if possible before applying for financing. Consumers with less than desirable credit scores may be able to obtain financing but will usually pay a higher interest rate. If this applies to you, refinance once your credit score improves.

Where can I get horse trailer financing?

Horse trailer financing may be available from a wide variety of lenders including traditional banks, credit unions, dealers and companies that specialize in horse trailer financing. Each lender will have different requirements and may have restrictions on the type of horse trailer you can finance. In most cases dealers and specialty financing companies can provide more flexible financing packages, but pay careful attention to the details like interest rate, term length, and fees so that you have an accurate picture of your total cost.

What kinds of terms are available for horse trailer financing?

In most cases, a horse trailer is considered a recreational vehicle and as such banks and other traditional lenders tend to limit term length of loans to five to seven years. Some lenders will finance new trailers with living quarters for a loan of $25,000 or more at a term of 15 years. Trailers without living quarters may be limited to a term of ten years or less. Dealers and companies that specialize in horse trailer financing often have less restrictions, offer terms of up to twenty years and offer financing for a broader range of horse trailers including used trailers.

Careful selection of a horse trailer that is a good fit for both your needs and your budget is crucial to obtaining horse trailer financing. The best way to get the horse trailer financing that you need is to know what your budget is and to shop around to find a lender that can offer the best package for you overall.
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