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pony leases?

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  • pony leases?

    ok, so I know the old adage, that a yearly lease fee is about 1/3 of the horse's value, but lately I am running across people wanting to lease their ponies for 40-50% of their purchase price. What gives? Is this just me running into situations where the seller is really not motivated to lease, or is there a different rule in the world of small/medium ponies?

  • #2
    It's called greed.

    Comment


    • #3
      I dont think it is greed so much as a desire to sell. The market is not strong and many people are wanting to lease instead of buy. So some sellers are bumping their lease fees up to try to encourage a sale instead of a lease.
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      • #4
        You're getting closer and closer to pony finals! Expect to pay at least 40%, more if they aren't for sale, are already qualified, and are good candidates. Just how it goes...

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        • #5
          Also, leasing is a little risky to the owner. The horse is insured for mortality and medical, but loss of use is very expensive so many are not insured for this. One wrong step while lunging at a show could be the end of the pony's career, with the owner left holding the bag. I don't think 40-50% is unreasonable. Leasing is a wonderful option, but both sides need to be protected.
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          • Original Poster

            #6
            I understand that leasing isn't an option for everyone, but my point is why is it a higher percentage for a pony than a horse? These are not pony finals qualified or caliber ponies, these are short stirrup to children's pony types. I guess I'm answering my own question, that they really want to sell not lease.

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            • #7
              It is easier to lease a pony rather than sell a pony. Kids grow so quickly it's hard to get buyers to plop down $75K on something the kid will outgrow in a year, but they will lease (it really does make more sense from a buyer standpoint). Most sellers would much rather sell, so they say fine, you can lease, but we're going to inflate it because we would rather you just buy the dang thing. The point is still to sell the pony when it comes back, but there are 12 months of unknown situation, and another year of age on the pony, that now stands in front of that.

              Kids are far more likely to get 3 years out of a bought horse, which makes the purchase (rather than lease) seem far more reasonable to the buyers. Thus horse sellers don't feel the same pressure as pony sellers. For many pony sellers it ends up being lease or nothing, and they're charging for the accommodation.
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              • #8
                Quicksilver -- Thanks for clarifying. The owner's preferring to sell rather than lease never occured to me. And I much prefer think good of pony-people. Example: never thought of a pony coming back from a lease not having been cared for, trained, or ridden properly either.

                Comment


                • #9
                  Many people don't want to buy an expensive pony that will be outgrown in a few years (or less). So, the owners charge more for a lease because parents are willing to pay more to avoid buying. The owner will likely have more trouble selling a s/m than a horse owner would (people don't outgrow horses as easily) so, the pony owner charges more for a lease. It's not greedy to ask for what the pony is worth.
                  .

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                  • #10
                    Originally posted by quicksilverponies View Post
                    I dont think it is greed so much as a desire to sell. The market is not strong and many people are wanting to lease instead of buy. So some sellers are bumping their lease fees up to try to encourage a sale instead of a lease.
                    absolutely agree!!!

                    Comment


                    • #11
                      Originally posted by quicksilverponies View Post
                      I dont think it is greed so much as a desire to sell. The market is not strong and many people are wanting to lease instead of buy. So some sellers are bumping their lease fees up to try to encourage a sale instead of a lease.
                      The same can be seen in the housing market. More people are having to rent/lease and because of it, it has driven the rental fees up.

                      Just wanted to add that we actually prefer to lease our ponies. The same kind you are describing. Children's ponies/SSponies The tried and true kind!!
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                      • #12
                        Short term leases are more expensive that long term leases. For example, a six month lease isn't going to be 1/2 of a twelve month lease (which is what I think you are looking for), particularly at this time of year. No owner really wants the type of local pony you're looking to lease to come back right before winter -- so the owners are going to price the lease to factor that in.
                        "I always remember you as quite the desk chair contrarian." - APirateLooksAtForty

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                        • #13
                          I've got a horse for sale right now (not pony). I will lease him for 1/3 of his value. That value is probably not what he would actually sell for these days in south GA, but it is definitely what he's worth to the right home. That lease would be 1/3 of how much I think he's worth/I would like to get if I sold him, but it's probably closer to 40% of how much he'd sell for these days...
                          Call me greedy
                          Y'all ain't right!

                          Comment

                          • Original Poster

                            #14
                            I am personally open to a year lease, 6 months, 18 months whatever...It depends on the pony and the situation.

                            But I'm speaking specifically about a year lease at this point and it not correllating to the 1/3 sale price. Sounds like the pony market is a little different because it's a more active leasing market.

                            Comment


                            • #15
                              Originally posted by BeastieSlave View Post
                              I've got a horse for sale right now (not pony). I will lease him for 1/3 of his value. That value is probably not what he would actually sell for these days in south GA, but it is definitely what he's worth to the right home. That lease would be 1/3 of how much I think he's worth/I would like to get if I sold him, but it's probably closer to 40% of how much he'd sell for these days...
                              Call me greedy
                              good point
                              .

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