Using a Horsebox Finance company is it for you?
Why would you buy a horsebox on finance?
Well there are several good reasons for this and we hope this article will provide some useful information if you want to use horsebox finance.
- Conserve Cash
You may have enough money to pay for the horsebox outright but are there any other items that you need for your business or in your personal like?
If it is for your business do you need to pay for advertising and marketing, facebook ads, magazine articles may be a trade show stand? You will need all of these in your business to attract customers or sell your product it could be horse transport or training whatever it is there are significant costs associated with advertising.
In addition to the advertising we have marketing, will you hire a marketing consultant or will you need to market your products in the various trade press to attract your potential clients?
If you need to hire sales staff, support staff or engineers you will have to pay for these salaries, national insurance payments, office furniture and IT equipment for them.
Do you have enough savings in your business to cover 12 months of working capital? If there is one thing the lockdown should have taught us is to expect the unexpected and any financial advisor will tell you to hold a large amount of working capital to cover for any eventualities.
2. Buying a more reliable and newer Horsebox
Using Horsebox finance and having a small monthly payment allows you to increase your budget and therefore allows you to purchase a much newer horsebox with less mileage that will be a more reliable purchase.
Horseboxes are a significant purchase, it can be tempting to buy a high mileage old one to help keep costs down.
However this can lead to higher maintenance costs, tyres for large vehicles are not cheap, mot costs could run into thousands and maintenance issues on boxes with accommodation can be significant.
It is possible to finance a much newer vehicle and keep these maintenance costs down to a minimum especially when you use ballon payments to keep the monthly payments low.
3. How do balloon payments work ?
At the end of your finance agreement you can choose to either pay the finance company the balloon amount, refinance it with the same company and pay for it monthly or if it is a guaranteed value you can hand the horsebox back providing you have made all the payments that were due.
4. Will I need a deposit?
Yes it is normal for the finance company to ask for a deposit and the vat to be paid upfront. The amount required depends on the vehicle and the finance company so make sure you check.
To conclude financing a horsebox is a very personal decision for more in-depth information please refer to our finance page here Horsebox Finance.
For some people is a great way to be able to afford a higher spec newer box that will require less maintenance than order boxes, but others may find an older box will suit their needs.