Buying to sell

L

Laura2013

Well-Known Member
Joined
1 September 2013
Messages
56
Visit site
Apologies if this has been covered before- it would be useful to have some up to date thoughts.

I'm thinking about buying a project early 2014 to ride over the summer and sell on in the winter. I am not looking to make a profit as such, but hoping that after selling the project I will end up with a bit more money to spend on the next horse, if that makes sense.

I am hoping to find something under £1000 ideally, I could spend a bit more.

I would look for something young/ green and needing schooling and mileage rather than anything with obvious issues (or rather issues due to bad handling rather than lack of handling)

13.2 - 15.2hh and probably a native or cob cross type as would probably keep it living out.

Is this the sort of horse where I would sell it on for a few grand more than purchased for?

I am also wondering from people who have done this before what they have done about saddles?

I am also wondering at what value you would start thinking about vettings and insurance (for vets fees). At under750 I doubt I would bother but if I went for £1500....?

Interested in people thoughts on the whole topic!
 
To be honest I think you'll be really lucky if you can triple your money after just a summer, especially if selling going into the Winter. It depends a lot on your riding abilities and also how good you are at picking out a diamond in the rough.

A cob/native type should be perfectly happy to live out all Winter if they have access to good grazing, so if that's what you're going for and have access to cheap grass livery I'd be tempted to buy going into Winter when they are cheaper, keep out and crack on with schooling and training, hacking at weekends etc, then get out and about competing early spring with the view to sell in the June time when holidays are about to start.
 
The issue with vetting isn't so much what you pay for it but the amount you hope to sell it for. I know a vetting is only good on the day of the vetting so there will always be risks, but if you sell for £2k, your buyer would most likely want a vetting. You could then be stuck with it if your buyer's vetting picks up something that could have been picked up earlier? If you're going to put a lot of work into it (which you'd have to to turn it around so quickly) you also want to know it's up to doing that work.
 
Ponies that sell for thousands have miles on the clock, the best selling ponies are those that have been around and get well known for their ability and temperement.

I wouldnt pay much for a 'potential' all rounder with not much history

I would however pay more money for a pony with potential in one particular discipline such as a pony that shows a great natural clean and high jump
 
I did this for years and never actually LOST money (which was largely due to luck), but also only occasionally really made enough money to make it properly pay. The key is a quick turnaround; the longer you have to keep it the more you'll have to get for it when you sell on. Being able to pick out the right type of horse is essential; no pity-buys, or really crazy messed up other-people's-mistakes; look for something the right age (5 - 8yrs), height (14.2 - 15.2), with good conformation, a nice colour and SOUND. I'd also be buying in the autumn/winter when horses are being offloaded and plan to sell on in the spring when people are looking for horses and the market is livelier. And I wouldn't even think of doing this in today's economic climate, good luck!
 
OP I'm not sure that not intending to make a profit and hoping to sell for "a few grand more than purchased for" given your intended purchase price of £750 to £1500 are quite compatible! :D
 
Bought exactly what you described earlier this year, they are surprisingly hard to find, I will let you know when he sells whether it was worth it financially.
14.2, smart looking but not flashy, bay gelding, 6 years backed and ridden lightly, same home since a 2 year old and registered part native, he ticked all the essential boxes, he has proved to be genuine, has a tidy jump and is a nice person to deal with so hopefully will go on to be a useful PC allrounder, which is the market he will be aimed at when he is put up for sale.
 
Interesting thoughts! Quite different responses than from similar posts from a few years ago but as someone mentioned it is not surprising given the economy and why I wanted to ask the same kind of question.

Also to clarify- by not being in it for profit I meant not looking to make more than I spend. So if the horse cost a grand and i spent the same on feeding and housing it, I would be looking to sell for 2k. But maybe even that isn't realistic?
 
Laura2013 said:
Interesting thoughts! Quite different responses than from similar posts from a few years ago but as someone mentioned it is not surprising given the economy and why I wanted to ask the same kind of question.

Also to clarify- by not being in it for profit I meant not looking to make more than I spend. So if the horse cost a grand and i spent the same on feeding and housing it, I would be looking to sell for 2k. But maybe even that isn't realistic?
Click to expand...

It's not impossible, but you have to be prepared to cut your losses and doubling the value of a horse is going to take some doing unless you either A. Buy in VERY cheap B. Turnaround as quickly as possible and keep your costs to an absolute minimum C. are incredibly clever, knowledgeable and LUCKY.
 
I'm going to disagree with most here. I have pretty much always found August the best time to sell, the latter part of it too. I have found people want to buy at the end of summer when they have finished with their previous ned to then get to grips with their new ned over winter, prepare to compete whether locally or at a higher level in the spring/summer.

Get a nice native cob type marked well going nicely and have some results under its belt you should get a nice amount for it :) Good luck, always fun!
 
ThoroughbredStar said:
I'm going to disagree with most here. I have pretty much always found August the best time to sell, the latter part of it too. I have found people want to buy at the end of summer when they have finished with their previous ned to then get to grips with their new ned over winter, prepare to compete whether locally or at a higher level in the spring/summer.

Get a nice native cob type marked well going nicely and have some results under its belt you should get a nice amount for it :) Good luck, always fun!
Click to expand...

I agree, the market at the end of the summer is pretty good and often for the reason above, the more serious owners know they can spend the winter getting ready for the following season, my pony will be advertised in the next few weeks but if not sold then half term week in October is usually the next best time, otherwise it is Easter before the market picks up a bit providing the weather is good but a good one will sell at any time of year.
 
So, I'm just wondering, is it the time frame that is the issue or the idea of increasing a horses value altogether? Not thinking any profit- purely selling the horse for more than you bought it for?
 
No issue- do what you feel is right. At the end of the day, the horse's price needs to reflect its conformation, way of going, manners, what its done etc etc. If you can turn it round quicker i.e. have it going really well and out to a few shows etc bonus! Just see how it goes :) Some people may be put off by the length of time you had it some wont, as long as your honest about it.......
 
I normally do several projects a year and always have had great sucess, I buy very cheapily - budget always no more then £250, I could turn around 5/6 ponies over a summer and usually sold for £1000 plus with the off exceptional one selling for lots more, best profit was 4 years ago when I brought for £150 and sold for nearly £4000 8 weeks later once backed and riding away with few comps unders it belt and I am still in touch and he is now BSJA and PC teams. I rent my own land so no rent per pony which is big save, they always live out and kept barefoot etc, however in last 3 year the market has collapsed! Ponies that I sell on always hack alone and in company, have done a few local shows, a dressage test and XC schooling before I advertise.
I currently have a fantastic 13 hand 4 year old NF pony, 3 + years ago I would have sold him for £2000 easily, he jumps everything, I can't shift him for £500 at the moment! I have now advertised him for full loan as need him gone pre winter!
I won't be doing any projects next year and won't until market picks up you, good luck with your project but it is tough at the moment!
Also be prepared to shift, quickily give the pony a few weeks to start making progress and if not making any, sell and get cost back, there is no point chucking good money after bad. Sounds cold but if you do it to make money you have to look at it as a business.
 
Also to clarify- by not being in it for profit I meant not looking to make more than I spend. So if the horse cost a grand and i spent the same on feeding and housing it, I would be looking to sell for 2k. But maybe even that isn't realistic?
Click to expand...
Ah, that's different, I've done that! But not made thousands of clear profit although I have covered lesson and entry fees as well as keep and tack.

Also I only paid a couple of hundred for the animals to start with.
 
Depending on your costs - livery? tack? lessons and competing? vet/teeth/back? general disasters? on top of basic keep - I'd suggest the best plan from a financial point of view is to buy nothing and whack the costs in a savings account for the next horse. If you're going to spend £250 a month keeping this horse, your initial £1000 investment would grow over eight months to £3000, and there's no risk of being stuck with something.

If you want to buy something for the sake of working on and improving a project, I don't think there's anything wrong with that but I would do it for its own sake - I wouldn't bank on making any more, or even on covering costs or recouping your original outlay!
 
Agree with Theocat - if you want to do it because you enjoy the process / challenge go for it. I periodically take on projects but would never spend more than I could afford to lose. By the time I've paid livery and all other costs I probably don't breakeven but it makes the hobby I enjoy rewarding and affordable. I wouldn't have them vetted and always take my experienced second opinion along with me (sometimes it takes some imagination/courage to see the potential). I agree that really you don't want anything younger than 5 as that affects saleability. I would set my budget for a green 5 year old as £500 but this will vary by area.
If your main motivation is to raise funds for the next horse I'd find an alternative method (extra job / extra shifts / saving) which would almost certainly be more lucrative.

Regarding saddles I keep a couple of adjustable thorowgoods along with the associated gullets. That way I only have to pay for a fitting confident in the knowledge that I should have something that will give a reasonable fit on a pony that will no doubt change shape dramatically.
 
At one point I worked full time I bought three year olds backed them got them started little bit of this and that , light hunting sold them at six when they where ready to go and I had no time then to do anything except local stuff .
I enjoyed it , it fitted my lifestyle at that time I don't think I made money but I sold them all well enough.
 
It's not as easy as you think my friend and I do a little with ponies. He has a large yard and contacts and I have a child rider, I run it along my daughters own pony as a 2nd ride and he pays the keep which as he has a yard isn't as much as if you have to pay livery. We're trying to sell a genuine 12.2 that's been to pc rallies competitions nearly every week sine february and been on pc teams. And for a relatively low price compared to similar ponies on the market and were still struggling to sell!! Luckily it's not the end of the world how long he stays and it's nice for my daughter but that's not always the case for people.
 
You must log in or register to reply here.
Top