If you plan to finance a new or used horse trailer, there are many options available through trailer dealerships and manufacturers, as well as banks, credit unions and other lending institutions. Here are some basics to keep in mind when choosing a financial package that meets your needs:

1. Contact your lending institution first to find out what’s available to you. That way, during sales negotiations you’ll know how various dealership financing plans stack up against what your bank can offer.

2. Look for a financing plan that offers simple interest (not compounded) and one that has no penalty points for early pay-off.

3. Don’t use a charge account as a financing option. Credit card interest rates are high and typically compounded monthly.

4. A horse trailer is considered a recreational vehicle, not a necessity (like a home or car). As a result, expect a slightly higher interest rate.

5. If you need help financing the tax, license and registration fees of a new trailer, make sure the financial institution will include these fees in the cost of your financing.

6. In order to get an accurate picture of what loans you qualify for, a lending institution must run a credit check on you. An abundance of credit checks can negatively impact your overall credit rating.

7. Stay away from predatory lenders who offer deals that seem too good to be true. Make sure there are no hidden fees that will catch you by surprise down the road.

8. When evaluating a loan’s terms, calculate how much interest you’ll be paying over the life of the loan to get an accurate picture of just how much the trailer is really costing you.

9. Choose a loan package that fits your budget. If the monthly payments look like they’ll be hard to make, they are too much for you. Find out if the lending institution can spread the loan out over a greater period of time. Some institutions offer loan terms as high as 15 to 20 years for horse trailers.

10. Before signing on the dotted line, read the fine print and don’t let yourself get pressured. If necessary, take the loan paperwork home for review. If you have friends or family members who have a good understanding of the borrowing process, ask them to review the paperwork with you. You want to walk away from a deal feeling like you got the best financing possible!