Buying A Horsebox On Finance - How Does It Work?
Looking to purchase a horsebox? Not sure on your options regarding finance and whether it’s the right choice for you?
Purchasing any vehicle is a big decision and buyers will often search far and wide to find something that meets their specification. When buying a horsebox, there’s a lot more to it than simply finding the right make or model in your chosen colour with low mileage – a horsebox will become a second home for the buyer and their horse whilst they’re on the road, so it’s important that it meets both parties’ needs. This can make it a very costly purchase.
With this in mind, let’s explore the benefits of taking out finance on a horsebox and why it could be the right purchase option for you.
Taking out finance on a horsebox allows you to...
Spread the cost of the purchase – Financing allows you to pay off the cost in manageable instalments over a reasonable period of time. Most lenders don’t require a deposit, but the more you pay upfront and the longer the term you take the finance over, the less you will be required to pay monthly, so this can be a good way to make your repayments more manageable.
Get the perfect model for your needs – Taking out finance on a horsebox, rather than paying for it in one lump sum, gives you more scope in terms of what you can afford. Naturally, newer, higher spec models are going to be more expensive but taking out finance enables you to consider a wider range and allows you to use what you initially thought was your full budget to pay a larger deposit on a more desirable model and pay off the rest slowly.
Keep some savings for other investments – In these uncertain times, there are plenty of reasons you might want to keep a bit of money back for your day to day needs, whether business or personal, or for unexpected vets visits (even if they never feel that unexpected!) Financing your purchase means you don’t have to make a decision between keeping some savings and investing in your dream horsebox.
Have more flexibility in your purchase – At the end of the fixed finance term, you will have a lot more flexibility in terms of your options. You will be able to choose between settling your balloon payment and either keeping or trading in your existing horsebox for a newer model at a lower rate (as you will have an existing relationship with the lender) or refinancing your balloon payment, allowing you to keep your existing model at an affordable rate of repayment.
What is a balloon payment?
A balloon payment is the term used to describe the outstanding amount that is left to pay at the end of the finance term.
The size of the balloon payment will vary based on factors such as the size of the deposit paid initially, the length of the finance term, how much the monthly payments were and the estimated value of the horsebox at the end of the term. A larger balloon payment will mean that you will have lower monthly payments throughout the finance term.
What are my options for dealing with the balloon?
If, at the end of the term, you wish to keep your existing horsebox, you can pay of the balloon payment in one lump sum in order to own the vehicle outright, or refinance the balloon so you can continue to make affordable monthly payments to pay it off completely or reduce the size of the balloon. If, however, you want to change or upgrade your horsebox, you can choose to sell the vehicle to pay off the balloon and invest in a new purchase or finance contract.
If finance sounds like it might be the right option for you then why not apply today?
You don’t even need to have found the horsebox you want in order to apply; you can get your finance in place beforehand so that when you do begin your search, you already know what you overall budget is.
10 Reasons to take out finance with What Credit
- We offer Horsebox finance for good and bad credit profiles alike
- We arrange flexible Horsebox finance packages to specifically suit you
- We have many low rate Horsebox finance deals from just 7.9% APR
- You can choose a Horsebox from any UK dealer or private seller
- You get access to thousands of Horseboxes nationwide
- Applying for Horsebox finance with us is quick and simple
- 95% of our Horsebox finance applications are approved
- Horsebox finance terms from 12 months to 10 years
- No deposit or small deposit options available
- Fixed monthly payments
We have specialist teams on hand to ensure you get the best possible finance package, whether you’re looking to purchase a new or used Horsebox. In most cases, higher credit profiles will lead to lower rates but our teams have access to many lenders to help you get the finance you need, regardless of your credit history. The team will also check the horsebox dealer or seller and the vehicle will go through rigorous checks to ensure it’s up to standard.
Find out more about our Horsebox finance options or apply for free without affecting your credit score at https://www.whatcredit.co.uk/horsebox-finance. You can also contact us by phone on 01622 200 150 or via email on [email protected].
*Images courtesy of I.C.E. Horseboxes