The exchange rate between the US Dollar and currency of nations from which we frequently import / export horses is especially critical to a stable valuation of American horses. The Euro and Canadian dollar have all been higher than the US dollar in recent times, making horses in the United States less expensive to international parties. This is good for those in the US trying to sell their animals "north of the border" or "across the pond." However, it makes importing horses more expensive for US buyers. This is probably the most favorable time for US buyers to look within our own country for their next prospect. American farms have spent years importing the best performance and bloodstock from Europe. Take advantage of it and find a bargain in your own backyard. Shipping across the US is still less expensive than importation, even if you live near a major port or quarantine facility.
As an equestrian, you may be one of the lucky people at the upper end of the sport that is not terribly impacted by the financial situation of many. But, if you're like most of us, you ride, compete, or breed in the middle market, characterized by horses in the $25,000 to $85,000 range. This market has been significantly impacted by the tightening of the credit markets. Without easy access to home equity lines of credit or uncollateralized personal loans, including credit cards, equestrians in this realm find it harder to finance their next "dream" horse. We're seeing a rise in the number of horses donated to non-profits and schools because the tax benefits of the donation are greater than what the horse could be sold for in a reasonable period of time. Occasionally, the recipients turn around and sell these horses for a deep discount just to raise cash for their programs. We recommend that you contact some of the riding programs in your area or search on-line for horse rescue and adoption facilities.
Money Saving Tip:
Ask your insurance agent to review your equine insurance policy. It is possible with the decline in the middle market that your horse may be over-valued, and therefore over-insured. You could potentially be paying a higher premium necessary.Overall, our sense is that the horse market is still strong and interest in horses has not waned. While some may be cutting back on the distance they're willing to travel, there are still plenty of active equestrians and available horses. Sellers are also being more flexible, arranging payment plans or offering leases with the option to buy. If you are trying to sell a horse, consider how you can make it more affordable for a newcomer to get into this exciting sport. Maybe offering the first month of board free with purchase could help close a sale that would otherwise be lost when the buyer realizes the old adage, "The purchase price is the least expensive part of horse ownership." But, expect that you will hear from many potential buyers before your horse actually sells. This should not frustrate you (but it will); it should be a good time to polish your marketing and salesmanship skills.
Visit our website at http://www.equineappraisals.com/ and make sure to check out our Frequently Asked Questions page for the most up to date information and insights on the horse market. We welcome your feedback and questions on our opinions. Thanks for reading!
