# Buying a trailer with damaged credit



## Alwaysbehind

You are going to have to check with your lending institution.

I doubt they will consider a horse trailer enough of a necessity item that they will consider it worth the risk without you putting quite a bit down.


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## LetAGrlShowU

Just a thought, but if you make really good money, could you set aside the "payment money" each month and then buy cash?


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## crimsonsky

Alwaysbehind said:


> You are going to have to check with your lending institution.
> 
> I doubt they will consider a horse trailer enough of a necessity item that they will consider it worth the risk without you putting quite a bit down.


sounds about right to me.

also - can you find trailers in your area that have what you're looking for (3-4 horse with LQ for under 10k? i know around here that's not possible ime.

good luck!


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## WickedNag

Talk to the owner doing a "contract for deed" I have heard of this more than once when buying a trailer. Sure not everyone is going to do it but all it takes is one  If you get a tax refund there is your down payment.


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## usandpets

When we bought our trailer, we bought it from a dealer. They were able to get us financing thru a credit union. A dealer may work more with one lending institution which helps them get people financing. Definitely check into the credit unions.
_Posted via Mobile Device_


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## PaintHorseMares

usandpets said:


> When we bought our trailer, we bought it from a dealer. They were able to get us financing thru a credit union. A dealer may work more with one lending institution which helps them get people financing. Definitely check into the credit unions.
> _Posted via Mobile Device_


I agree. If you belong (or are eligible to belong to) a credit union, that's the way to go. They are usually a lot more flexible and willing to work with you than a commercial bank.


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## Saddlebag

Good luck finding the trailer you mentioned for $10K or less. I see them in the $20K range unless it needs major repair.


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## Skipsfirstspike

The problem with banks and credit unions is that they need collateral. While you many find a trailer you like for 10K, it will prob be more than 4 yrs old. Therefore the 'book' value on it may be much lower, say 5K. The banks will not give you 10K for a trailer that in Their books is only worth 5. 
It is far easier to get financing for a newer vehicle/trailer, because if you default, the bank can recoup their money easily.
I know this because I went through the ringer buying my 'new' truck, an '05 chev silverado. No one wanted to finance me, because the vehicle was 'too old'. The price was 15k, but the book value was 7K. 
That doesn't mean I could buy it for that price, that is basically the repo price should I default. Not good enough.
They wanted me to buy at least an '07, so it could be its own collateral.
My monthly payments would have been the same, but I would have been paying for 2 years longer, and almost 10K more.
I held out for the '05, but had to go through the dealership and got a poor percentage rate.
It is not easy to get financing on an older model.
Perhaps if you own your home, they may take that into consideration as collateral, with a cosigner.


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## Alwaysbehind

The other issue (other than value vs. loan) is (which I did not explain well in my previous post) that with a bad credit history banks/credit unions find you to be a risk. 

When you buy a car the collateral on the loan is the car. The theory is that you need that car so your are very unlikely to simply stop paying for the car because it means you will lose your car and be with out one. So even though you are a poor credit risk they are willing to loan you the money for a car (for a higher interest rate than someone with good credit) thinking that you will be making the payments.

A horse trailer is a luxury item. Not something you NEED. It is something you want. Something for you to enjoy. Not the top priority when the funds get tight. If you have to decide between paying for your car and your trailer most likely your car will win out. 

For this reason most lending institutions will not give a person who has really damaged credit a loan for something like a horse trailer unless the person has enough funds to put a worth while down payment on it. With the larger down payment it is assumed the person will be less likely to default because they have more of an investment of their own monies in the item.


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## Macslady

I have a good friend at a bank that works in the loan dept. Their bank will not lend to people with less than 700 for a credit rating and stated this is now the norm. I agree with others, a horse trailer is a luxury item and banks just aren't lending money like they used to. BTW if you find a trailer with LQ for less than 10 grand let me know. We looked and looked and even the oldies weren't that low. 

Do you have a bank or credit union and possibly a cosigner with sparkling credit? 

It never fails to impress me how the banks that allowed the entire market to end up in the crapper by putting out substandard loans to anyone who could take a breath and higher ups who just needed money to **** away now have no leeway regarding people who's credit they helped put in the crapper. Talk about a catch-22.

We are in that from following a supposedly reputable lawyer who led us the wrong way. I figure in another 3 - 4 years things will start clearing up and our credit will begin to build again.


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## churumbeque

crimsonsky said:


> sounds about right to me.
> 
> also - can you find trailers in your area that have what you're looking for (3-4 horse with LQ for under 10k? i know around here that's not possible ime.
> 
> good luck!


im in the midwest and no you cannot find an LQ for under 10k unless it's 30 yrs old


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## Saddlebag

A $3000 stock trailer, a comfy hammock hooked up in there for a bed, a Coleman stove on the tailgate. Hook up a quick set up curtain across the front of the trailer and you have a portapotty and change room. Horse trailers with LQ pull your gas mileage to about 3 mi per gallon, 5 if you're real lucky.


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## BugZapper89

If you are putting down a large deposit , then you will find someone who will write the note. However expect to pay a high interest rate. As an accountant I can tell you, when I do financial planning I make it clear , that kids are in their own for school. It's great if the patents can help, but its not the responsibility of the parents. I stopped with two children, so I can afford private school and they both have college funds. That was our choice and not a requirement. I worked my way through college as did my husband


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## Phly

Look into having one shipped from Indiana. I'm near Elkhart, yeah that's where they make em lol. I'm looking for one under 5k less then 5 years old. 

Screaming deals if you pick them up at the factory for new ones too. 

We looked at a trailer that listed for 37000 but if we paid cash and picked up at the factory was 22k :\


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## SummerShy

My friend has a really great 3-horse slant and she only paid 6k. Put your prospects a bit lower and then I would put down as much as you can. Someone WILL give you a loan, but they wanna see dat cash monies upfront first!


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## Dreamcatcher Arabians

Save the money and pay cash. You're already in debt up to your eyeballs, you don't need anymore debt. In fact, I'll go as far as to tell you to get a copy of Total Money Makeover by Dave Ramsey, read it, live it, and learn to be free of debt.


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## JCnGrace

Ummm...this thread is 3 years old.


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## churumbeque

Old thread then maybe they can update what the eneed up doing


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## Speed Racer

Pretty sure they won't be back. It was their first and only post, and made 3 years ago.:wink:


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## STT GUY

a credit union is going to be your friend. Go in open a small share account, sit down with the manager and explain your situation. If all of your credit dings are medical related it will be easy to spot and a lot of leeway is allowed for medical late pays and charge-offs.


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## Chasin Ponies

usandpets said:


> When we bought our trailer, we bought it from a dealer. They were able to get us financing thru a credit union. A dealer may work more with one lending institution which helps them get people financing. Definitely check into the credit unions.
> _Posted via Mobile Device_


This is true here in the Midwest also. A lot of dealers do their own financing too and will jump through hoops to help you. And it's true that credit unions in general are much more receptive to unusual loans. You could find a "demo" like-new trailer at the big dealers and sometimes they have great trade-ins too. You may have to settle for less of a trailer than you wanted but as your FICO improves, you can always trade it in for bigger and better later.

In the meantime, research online on how to improve your credit rating. There are some little known ways to increase your FICO score. For example, if you pay your utilities on time you can ask to have that reported on your credit report. Lots of little hints out there that people just aren't aware of!


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## tim62988

i know it's an old thread....but just my 2 cents for anyone else in this type of situation:

do as others have said: get a stock trailer, set aside the monthly payments till you can pay in cash, get Dave Ramsey Books...

I am impressed with the number of people willing to risk loosing the house, car, ect... just to pay for a hobby. I love my horse, but she was paid for in CASH as was everything else for her, my wife needs a new horse as hers is lame we set a CASH budget, bought our horse trailer in CASH

I know someone that took out a loan on 2 horses! so now they get to pay interest on something that could keel over tomorrow and they would still have to keep paying on that loan! and for those of you saying "but the payment is only $$$ per month" look at the amount of accrued interest you are paying to the bank, think of what you could do with those extra thousands of dollars


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## Saddlebag

People make the mistake of paying off the smallest loans. It's best to pay down the greatest with the highest interest. Sometimes interest rates are negotiable if one sticks to the payment schedule. My father never financed a thing as he didn't believe in paying people to use their money when his own would do.


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