Why are horses so overpriced?

Question

Some horses are more expensive than cars? My two were 25,000 and 40,000. What gives?

Answer 1

Go price some race or cutting or reining prospects with proven sire and dams. They start at that or more as yearlings. Heck I get close to that for embryos. Just depends on many factors and the market. Yes the economy is bad but the people who show in the upper levels of their disciplines and like to show in the aged events will pay top $$ to get a prospect that can win. Then add in the training and all the fees that go into getting a foal to the show ring. You will have another $35K+ into them in just training. Might as well start with the best prospect possible to hedge your bet.

Answer 2

The value placed on a horse is not random. I will give you a breakdown on how prices are established.



1. Stud fee. (average $1500-$3000.... it can go higher) Semen has to be shipped or breeding may take place at barns with skilled handlers.



2. Mare care (through pregnancy). Ultrasounds and routine check-ups to make sure the mare carries full term. (average varies so we'll say $1000)



3. For this reason, when the foal hits the ground his starting value is double the price of the stud fee (as a general rule). That is because you will have invested this much into him already. Bare in mind---- the basic upkeep (feed, hoofcare, etc.) is not even considered into the equation.



4. It is ideal for breeders to sell horses young so that they have less money tied up in the horse. A double edged sword for the buyer because if they buy young, they get a deal but they also have a horse they have to maintain for years prior to reaping any "benefits".



5. At 2-3 years of age the horse's value increases if it has now advanced into training. This is where bloodlines come into play because good breeding should produce horses with great trainability and performance. (On average it costs $1000 a month to send a horse to a reputable trainer. You might be able to find some that are cheaper... say $600 a month.) On average it takes three months to green-break a horse. Ideally, the more training a horse has the more his value should increase. Unfortunately, this is not always the case unless the horse is well bred and even then it varies.



6. Horses are valued about like cars. A reliable used car will cost you about $4000 bucks. It does the job pretty good. A car cheaper than that is going to have issues and will probably start nickel and diming you. A $25,000 car has a lot more amenities. In the instance of a horse, this means the horse is a luxurious partner with push button sensitivity or he is high performance.



I hope this helps. There is a video of a horse who's owner turned down a $300, 000 offer. I agree with the owner's decision and actually consider $300, 000 almost insulting. The horse proves his worth as a stallion, a partner and an athlete. To see an example of this incredible specimen, google "Orpheo Merlin" and draw your own conclusion.

Answer 3

Even with the economy being the way it is horses that don't have as much training or experience are being sold real cheap but the horses with alot of training that are competitive on the big breed circuits are being SOLD for a good amount of money. The horse market is down for the lower end of horses but in some areas horses are still going for a lot.

Answer 4

Not all horses are really expensive. A lot of horses go for only about $500 or less. (Especially at the auction). We're actually having a down turn in the price of horses due to the recession and the flooding of the horse market with back yard bred horses and horses with crappy conformation and bad blood lines.

Basically the only reason your horses were so expensive is that they are probably well bred and well trained. (They're warmbloods aren't they, or registered something or others).

Answer 5

Where abouts in the world are you?



Our two horses cost £1,500 (but it was about 10 years ago so it was more money back then and he was waaay overpriced) and our new TB x colt cost £1000 after some negotiating.



Over in the USA you can pick horses up from auction for just $25 so it just depends on what country you're in and the breed/training ect of your horse.

Answer 6

It depends on breed and the level of training a horse has. The better the bloodlines and training, the higher the price. My TB is very well trained. She's 10 years old and was still $10,000. Show horses tend to be much more expensive than pleasure horses.

Answer 7

Well I see lots of good horses out there for way less than that. Especially since the market took a dive.



I guess it just depends on how much training and experience and what you want the horse to be able to do.



I only paid $1,000 for my horse 3 years ago, but I only have him for fun. I don't need a fancy show horse.



:)

Answer 8

It depend on the age, breed, training, bloodlines, etc. of the horse. Say you have a very well trained hunter-jumper national champion pure breed Arabian or Thoroughbred or something like that. That horse would probably be from $30,000 to $100,000. A different example is a poorly trained mixed breed horse with no "official papers" or such. That horse would probably be from $400 to $800.

Answer 9

Lets face it. Horses are just a rich mans hobby. An expensive one XD haha but i totally understand. and the 1k a month for board? Some people pay cheaper for their house rent!

Answer 10

run of the mill, common, untrained or little-trained horses are going pretty cheap. "Trail" horses are going cheap.



Highly-competitive horses like top-notch reiners, jumpers, cutter, WP, etc are still going to be able to be priced high. Generally, the types of people who are going to be looking for horses of that caliber are ones that are going to not be too affected by the sucky economy, so their prices are still going to be relatively high.

Answer 11

you were just lucky that your parents bought you two hopefully well trained, talented, registered horses. I am guessing from those prices they are probably imports that were finished with the training here. so why do think they were so expensive. when you take the actual cost of bredding, raising, training, importing, more training and then the middle mans cut of the action that is why you wind up with a price tag like the one you describe.

show horses with tons of mileage, class, training, a proven record, and potential to do more go for those kinds of prices.

consider yourself lucky!

Edit>>>>>>>>>> I Once worked for a man who bought a 2 yr. old in training at a tb sale. she was modestly bred, and he paid 5,000$ for her. Out of 36 starts she won 32 stakes and allowance races, her total earnings were 2.5 million, in 2 years. he sold her as a broodmare to a syndicate in KY for 2.3 mill.

he bought an 80 acre spread and built 3 houses, one for each son and one for him and his wife:)

Answer 12

heck, here in the US horses are going for cheaper than ever, I got my TB mare for $580. she should have been over $1000. I'm also getting a mini horse for free because things are getting worse... sorry about where you are...

Answer 13

that's just a matter of priorities. you can spend a heck of a lot more than 40k on a car too.



Think of it this way (at least I hope): you bought a high performance horse, just like a high performance care costs more than 20k haha.

Answer 14

horses are only as expensive as people are willing to pay



you cannot be willing to pay a price then complain about it.

Answer 15

well right now because of the economy, a lot of horses are going for really cheap.

Answer 16

i didnt think they were overpriced.....the only ones that are over priced are the ones im selling...lol....

Answer 17

You spent that kind of money? Wow, you got taken....