It pays to buy privately!
Most successful and profitable breeders usually prefer to purchase all or most of their breeding stock privately. In a private sale, a vendor is more likely to stand behind their product, than at auction. Pound for pound, buying privately beats auction most of the time. At auction, many vendor’s are “anonymous” and realise that a buyer rarely has the same opportunity to go over a prospective purchase as thoroughly as they could in a private sales situation, hence, a vendor might be more likely to put through a horse with “issues.” At auction you are also more likely to “overpay” for your purchase, as you can get caught up in a bidding battle with another “over anxious” party or even the vendor. If you are a commercial breeder, overpaying for your stock at auction can significantly inhibit your chances of making money.
If you have never made a private purchase before, click here to visit the First Time Buyer’s Guide page.
Advantages of buying privately
- You can sometimes get very good deals. We have a constant supply of new listings. Sometimes a bargain will come out of nowhere.
- The purchaser usually has plenty of time and opportunity to do their homework on a prospective purchase. The horse may be inspected by themselves or they can organise to have the horse inspected by someone of their behalf.
- You are less likely to overpay for your purchase.
- If you have purchased a horse to trade, it can sometimes be beneficial that the general public is unaware of what you have paid for the horse. Hence, when you go to sell your horse back through a public auction ring, the “uneducated” members of the buying bench do not have a point of reference from which to value the horse and because of this you can get overs on your sale.
- A purchaser can employ the services of an independent veterinary surgeon to give a full report on the horse if required. At an auction, it is not always possible for a vet to give you a complete report on a broodmare, broodmare prospect or racing prospect.
- RBA can provide you with good sensible advice before and after making your purchase.
- RBA has stock for sale all the time. There is no need to wait for the next auction to come around, which sometimes can be two to three months away.
- Post purchase, RBA can assist you with organising transport, insurance and agistment, plus if required, can even play an ongoing role in the management of the horse.
Advantages of selling privately
- A private sale can take place immediately and settlement will usually occur within one to seven days. If you are selling a horse at auction, entries can close approximately 4 to 8 weeks prior to the sale and settlement usually occurs 4 to 6 weeks after the sale, which means it could take up to 14 weeks from the time of entry to the time of payment.
- No auction entry fee is required. This can represent a saving of between $200 to $2,000/horse.
- No transport costs to move horse to auction venue. This can represent a saving of between $100 to $1,000/horse.
- No stabling costs at auction venue. This can represent a saving of between $30 to $150/horse.
- No consigner sales costs (accommodation, meals, flights, hire cars, etc). This can represent a saving of up to $2,500/horse.
- No need to take time away from work or business commitments to attend the auction, plus save on costs of travel required to attend the auction.
- Not having to travel to and from, or stay for days at a time at the auction grounds is far less traumatic on the horse, especially in the case of a pregnant mare or mare with a foal at foot.
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