Horse Trailer Financing: What You Need to Know


When it comes to securing horse trailer financing, it’s essential to explore your options. This guide will take you through the variety of ways to finance a horse trailer, including personal loans, specialized lenders, and home equity solutions. Whether you’re a seasoned equestrian or just starting out, understanding your financing choices can help you make the best decision for your needs.

If you’re in the market for a new horse trailer, you’re probably aware that it’s an important investment. And transporting your horses safely is a top priority for any equestrian, so a quality horse trailer is a necessity not a luxury. However, new (or even used), trailers can be expensive. This guide will walk you through the best ways to secure horse trailer financing.

How to finance a horse trailer

There are numerous options available to secure financing for your new trailer. A good idea is to start with the bank or credit union where you already have an account. Whether you decide to go this route or not, it can give you a starting point as you begin looking into other lending options. It can also provide some leverage as you negotiate with other lenders.

Horse trailer dealers

Another good option is to check with the place where you plan to buy your new or used trailer. Some horse trailer dealers may offer in-house financing or, more likely, have relationships with third party lenders who can finance your purchase. Some of these smaller lenders that specialize in horse trailer financing may be able to give you more favorable interest rates than other financing choices.

Personal loans

When it comes to financing a horse trailer, personal loans are a popular choice. The right loan for you depends on factors such as your credit score and the amount you need to borrow. A key benefit of personal loans is that you have a variety of lenders to choose from you. As mentioned, your existing banks or credit union can be a great resource. However, don’t forget to compare online lenders who can sometimes offer better deals than you’ll find with brick and mortar banks.

Pro Tip

It’s essential to compare several financing options, including personal loan lenders and smaller lenders or suppliers that specialize in horse trailer financing, before making a decision. Be sure to compare interest rates, loan terms, and any hidden fees like prepayment penalties.

What you’ll need to secure a horse trailer loan

Every lender has its own requirements, but if you’re considering financing a horse trailer, you’ll likely provide the same basic information to any lender. Typical lender requirements include:

  • Social Security number
  • Verified income
  • Bank account details
  • Basic contact information
  • Your driver’s license or other government-issued identification

Lenders use this information to determine eligibility, which is also based on your credit history/credit score and debt-to-income ratio. While there are horse trailer loans for bad credit, most lenders prefer a satisfactory credit score, typically around 620 or higher, and a low debt-to-income ratio, usually below 36%.

Other ways to finance a horse trailer

While personal loans or dealer financing are popular choices, they are not your only alternatives for financing a horse trailer. For example, you may want to consider leveraging your home equity instead. Two common ways to access the equity in your home are to apply for a home equity loan or a home equity line of credit (HELOC).

Home equity loans and HELOCs

Home equity loans and HELOCs both allow you to tap into your home’s equity to access funding for your horse trailer. The primary difference is that a home equity loan is disbursed in a one-time lump-sum payment, and a HELOC allows you to draw from your line of credit as often as needed up to your limit. In either case, your home is used as collateral for the loan, meaning if you default on the loan, you could lose your house.


Some benefits and drawbacks to consider.

  • May have lower rates than unsecured personal loans or other lending options
  • More accessible for borrowers with home equity because your house secures the loan
  • Can use the money however you choose
  • Your home is used as collateral
  • HELOC’s variable interest rates can be higher than home equity loan rates
  • Have to budget for an additional monthly payment (i.e., a second mortgage)

Home equity investment

Another option is to consider a home equity investment, also known as a shared equity agreement. This might be a better choice if you don’t want an additional monthly payment or can’t meet the credit and income requirements needed for other equity lending. Because a home equity investment isn’t a loan per se, there are no monthly payments and no interest, making this an attraction alternative for some.

Bottom line

Horse trailers are essential for many horse owners, but they can be expensive. Personal loans, horse trailer loans, and vendor financing are popular ways to finance a horse trailer. However, you can also turn to home equity loans and lines of credit for funding. Regardless of your choice, it’s crucial to shop around and compare your options before making a decision that fits your needs.


Can I finance a horse trailer with bad credit?

There are financing options available for those with less-than-perfect credit. Smaller lenders, horse trailer dealers, and specialized financing companies may be more flexible in their lending criteria.

How long does it take to secure a horse trailer loan?

The time it takes to secure a horse trailer loan varies depending on the lender and your creditworthiness. Some lenders offer same-day approvals, while others may take a few days or more. The timeframe for approval often depends on your credit score, income, and type of employment.

What should I consider when comparing financing options?

When comparing financing options, consider the interest rates, fees, repayment terms, and any additional costs involved. It’s essential to choose a financing option that aligns with your budget and financial goals.

Key takeaways

  • Explore multiple financing options for your horse trailer, including personal loans, specialized lenders, and home equity solutions.
  • Consider your credit score, budget, and overall financial situation when choosing a financing option.
  • Compare interest rates, fees, and repayment terms to make an informed decision.
  • Shop around and explore multiple lenders to find the best financing package for your needs.
View Article Sources
  1. Difference Between a Home Equity Loan and a Home Equity Line of Credit — Consumer Financial Protection Bureau
  2. Homeowners’ Equity Remains High — Federal Housing Finance Agency
  3. About the National Association of Trailer Manufacturers and Dealers