Can you trade in a horse trailer?

In today’s article, we will answer the following question: Can you trade in a horse trailer? We will explain how in four simple steps you can get a good deal for your used horse trailer. We will also discuss whether it is better to trade in or sell your horse trailer for cash. 

Can you trade in a horse trailer?

Although not common, it is possible to trade in a horse trailer. Not many dealers are interested in taking in a used horse trailer, but it will all depend on the trailer’s conditions and of course, on your negotiating skills. 

Here are four steps that each owner must follow if one wants to trade in a horse trailer and get a good deal:

  1. Calculate the trade-in value of your horse trailer: How does a horse trailer trade-in work? The first step in the trade-in process is knowing how much your vehicle is worth. There are several free online tools available that can give you a rough assessment. 

Take the results into account to determine if they offer you a reasonable price later at the dealership. It is important to accurately include and identify the features of your horse trailer and to be honest about its current condition, otherwise you may get the wrong idea.

  1. Clean it, but don’t overdo it: Many experts have different opinions when it comes to this step. Some will say that cosmetic upgrades and repairs can greatly improve the value of a trade-in. Others say that it will not change the value much because dealers can fix the failures for less than you would invest.

Still, everyone agrees that cleaning it inside and out is a necessary starting point. Our advice: clean the exterior and interior well and fix everything that is crucial. Save yourself the hassle of buying expensive cleaning chemicals, giving your horse trailer a new paint job, or getting your tires renewed.

  1. Get offers from more than one dealer: Have your trailer evaluated by more than one dealer so you can compare offers. Visiting three or four different places can be helpful. Call the used horse trailer manager at the dealerships to schedule an appraisal appointment. Bring maintenance records if you have them and the printed value of the vehicle from your investigation in step one.
  1. Close the deal: You can try negotiating your trade-in price, but keep in mind that a dealer’s mindset is different from a private buyer. If you have a similar offer from two dealers, it will probably be easier to go where you intend to buy your next horse trailer.

Do you think you deserve more money for your horse trailer?

If you think the offers you are receiving are too low, there are a few options:

  • For starters, you can keep it, or you can try to sell the vehicle privately. It involves more work but in the end, it could be more profitable. This is especially suitable for older or high-mileage vehicles.
  • You can also try selling your vehicle to a third party like horse trailer traders. Many of these types of retailers offer free evaluations.
  • Or you may just need to lower your expectations. The trade-in price offered to you by a dealer can vary depending on many factors. These include your trailer’s condition, that dealer’s current inventory, the horse trailer’s saleability, where you live, and more. It is possible that the offers you are receiving are simply the current market value of the horse trailer.

How to trade in a horse trailer for which you still owe money

It is common to give up an older trailer as part of payment when purchasing a new horse trailer, even if it is not fully paid for. This exchange is what is a trade-in!

How does it work?

Make no mistake, the original loan must either be paid in full to remove the lien on the horse trailer but the new dealer will usually take the horse trailer of this as part of that trade-in process. so you will need to know all the information about the loan in order to evaluate the horse trailer and determine its real cash price.

For example, suppose you owe $7,000 on your loan on that horse trailer you are going to deliver and the new dealer of the horse trailer you are going to buy will give you $ 9,000 in that trade. The dealer will take your current horse trailer, pay your current lender, and give you the remaining $2,000 to keep or use toward your new vehicle purchase. This is an ideal scenario.

However, the following scenario can happen: Let’s say you owe $9,000 on your loan and the dealer offers you $ 7,000 for the trade-in. Now, you are responsible for the difference of $ 2,000 and this must be taken into account in your payment plan for the new horse trailer.

This scenario is more complicated. Naturally, the price of a horse trailer decreases over time due to different factors such as the wear and tear they suffer, the increase in mileage, etc. So it can happen that, if your horse trailer is financed, the amount owed on that loan is greater than the actual price of the vehicle at a certain time, this is known as negative equity.

When this happens, can I still deliver it as part of the payment?

When faced with negative equity in a trade, you will need to weigh all your options before heading to a dealership. There are three main possibilities to consider:

  • Pay the difference – This is ideal if your negative equity amount is not too high and you have the cash. Not everyone will be able to do this, so make sure you can afford it without hurting your savings too much before switching.
  • Refinance – The next option is to transfer the negative equity to the new loan. Not all lenders are willing to do this, so be sure to ask if this is an option. The downside to transferring negative equity is that it will increase your new loan amount. In other words, you will continue to pay the negative equity along with the new loan.
  • Wait – The last option, and often the best, is to wait until there is no negative equity. Waiting until it is paid off or the loan reaches a point where there is equity will make your horse trailer purchase easier. You won’t have to worry about the old loan and you can prepare to finance a new vehicle.

Final thoughts

You can benefit from a trade-in if the horse trailer is paid for or if it has equity. If you have negative equity, it doesn’t necessarily mean that you won’t be able to redeem it. Just because one lender won’t let you redeem it doesn’t mean another won’t. You just have to look in the right place.

And remember, sometimes the best option is to wait until you at least have equity in your current vehicle.

Please feel free to ask any questions or to share your thoughts or concerns on the process of trading in a horse trailer.

FAQ on Can you trade in 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.

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. 

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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