Excerpt from the April issue of Heels Down Magazine.
Sometimes a rider would like to purchase a horse but they do not have the lump sum readily available. While not every seller offers this option, some allow a buyer to purchase a horse using a payment or installment plan. Essentially, the buyer and seller will agree that the buyer will make payments on the horse over a period of time.
If a seller agrees to a payment plan, there are steps to be taken for protection and to avoid any issues while the buyer is making payments.
First, there should always be a written agreement in place. The contract should contain quite a few things but most importantly, it needs to include any down payment the buyer makes, the amount of that down payment, when it was paid and how it was paid. Next, the contract should outline how and when the subsequent payments will be made. It should delineate how much the payments will be and how the payments will be made. Additionally, it should state what will happen if the buyer is unable to make the subsequent payments or what will happen if the buyer misses a payment or is late on a payment. Will there be a late fee? If the buyer can no longer make the payments, will he or she get the payments already made back?