Can you refinance a horse trailer?

In this blog post, we will answer the following question: Can you refinance a horse trailer? We will discuss what options you have for horse trailer purchase and some essential things to know before financing a horse trailer

Can you refinance a horse trailer?

Fortunately, there are several ways to refinance the purchase of a horse trailer with monthly payments that fit within your budget. Buying a horse trailer, whether new or used, can be a major purchase. The amount you are able to finance, the number of payments and the interest rate will be determined based on factors such as the cost of the horse trailer and your credit rating.

Here are the steps you must follow to refinance a horse trailer:

  1. First, find out if the company or individual selling the horse trailer offers financing. Many horse trailer dealers do, although it is a good idea to compare the terms with a loan from a bank or credit union to make sure you are getting the best deal. 

Dealers may be able to offer to refinance even if you have bad credit. Private sellers may accept payments for used horse trailers, but many will not allow you to take possession of the trailer until the final payment is made.

  1. Apply for a loan through a bank or credit union. Many financial institutions that offer car and boat financing also offer horse trailer financing. Find a financing plan with a simple interest, not a compound. 

Horse trailers are considered recreational vehicles; As such, loans may have a higher interest rate than home or car loans. Some lenders may require a minimum loan amount of $ 5,000 or more.

  1. Consider putting the purchase on your credit card. This option may not be available if you buy from a private seller. Only use your credit card if other financing methods are not available. Credit cards usually have higher interest rates and are compounded monthly.

How hard is it to finance a horse trailer?

Buying a trailer can be a huge investment. While it is a certainty that doing your homework makes it much easier to acquire a good trailer suited to your needs and at an affordable price, many people buy them without considering the entire towing device.  In this article, we reveal the important points to take into account before making your purchase.

If you can’t manage the entire purchase with your savings, getting a trailer loan is the same as financing a car, getting a student loan, or getting a mortgage.

When you get the right funding, you have the option of setting up a fixed payment that will be made each month over a specified period. The interest rate at which this loan will be subject will likely depend on your financial history. You will be able to use the trailer or any other equipment while continuing to repay the entire loan.

Choosing a good horse trailer is essential. There are generally two types of trailers among consumers: utility type trailers and closed type trailers. Utility type trailers are open and have a section reserved for transporting the waste, lawn equipment, all-terrain vehicles (ATVs), etc. Closed type trailers offer the possibility of locking your equipment, as well as an accessible mobile storage space.

Another important point to consider with the type of trailer is its size. The size of enclosed trailers or utility trailers ranges from 4 feet by 6 feet to over 20 feet. The type of trailer to be purchased will depend on the nature of the work as well as the equipment to be transported. Hauling the scrap will require a smaller trailer than starting your own lawn care company with a riding lawn mower and other equipment.

A good understanding of your towing vehicle is the next step. Finally, the transport capacity of the towing vehicle will condition your trailer. This is when knowing the capabilities of your towing vehicle will save you a lot of trouble and knowing if your truck, SUV or car is capable of towing the trailer you want.

Entrust the inspection and repair of your towing vehicle to an approved facility to be sure it is capable of towing a trailer. For more information on the towing capacities of your vehicle, please refer to the owner’s manual or seek advice from an authorized dealer.

Spare parts and accessories to include in the refinance deal

The most important parts that come with the trailers are safety chains, ball mount, hitch and wiring adapters. All of these parts play a very important role in the efficient and safe operation of the trailer.

  • The hitch ball: The hitch ball is one of the essential elements for the secure connection of a trailer to a towing vehicle. It is attached to the ball support and is the attachment point for the trailer hitch. There are different sizes of hitch balls with general diameters of 1 7/8 inches, 2 inches and 2 5/16 inches.
  • The ball support: It is a removable hitch that can be locked into the hitch and serves as an attachment between the hitch ball and the trailer. These brackets allow you to stand at the same level as the trailer for towing. There are ball bindings that already have a ball attached.
  • The wiring adapter: When connecting the lights of a trailer to the towing vehicle, an adapter is often necessary to ensure that they all function properly. There are a number of options available to you depending on the type of trailer you are towing.
  • The security chain: In order to keep the trailer attached in the event that the hitch and the hitch ball separate, it is necessary to connect the trailer to the towing vehicle with a safety chain crisscrossed so as to form an X. It acts as a safety. integrated.
  • Ramps: The vast majority of trailers have an access ramp that can be folded down, providing easier access for loading the trailer. However, in the event that a trailer does not have an access ramp, various types are available on the market to meet your needs.

After purchase: Registration of the horse trailer

In the vast majority of states in the US, the registration process is almost similar to that of a car. When purchasing a trailer, you are issued a title deed, and you will then need to follow your state’s next steps to complete the registration. The registration process is not the same in all states. So consult local laws and regulations to understand all the ins and outs.

The bottom line

When negotiating financing or refinancing a horse trailer, consider the amount of the monthly payment or instalment. If you want, you can use this monthly spending plan worksheet as a guide.

The only appropriate time to consider taking on additional debt is when you spend less than you earn. The extra burden of debt you decide to take on shouldn’t affect how much you set out to save for emergencies or other overriding life goals or priorities. 

If you have more questions or comments about the content, please let us know.

FAQ on Can you refinance a horse trailer?

Is it important to get pre-approved for financing before buying?

Pre-approval gives you the confidence to negotiate with a seller or private broker knowing you have a pre-approved limit.

How can interest rates vary from lender to lender?

Interest rates can vary widely. A rate of 5.99% for a specialized secured trailer loan for new utilities and those less than six years old could be increased to 12.95% by an unsecured bank loan for the same vehicle, or to 17.95% by a non-bank lender for a personal loan.

Can you finance an older trailer?

It is not that easy to finance a trailer older than 15 years. If this is your case, you will have to either get a personal loan or a loan from a credit union. The score credit for an RV loan should be at least 700, and there are few lenders who finance an older trailer or someone with a low credit score.


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