I have been thinking about investing in a lorry with a friend for a while. It seems like a reasonable thing to do, mainly because a horsebox is not something that is used all of the time, and a lot of the time it just sits around doing not very much. I figured, if two of you own it and split the cost, well it will get used more and stay better mechanical shape and be more economical.
I was thinking about how to do this aside from actually finding someone who will invest with me. It seems that doing this in the caravan industry is fairly normal, so why not for a horsebox?
I think to buy a half decent horsebox the cost will be between 10k and 15k GBP, if you spend anything less than this you risk getting something that is going to cost a fortune in upkeep and repairs.
I will need a contract that sets out the details of how the relationship would work, these are probably the main things that need to be covered:
1) The purchase price, that it is split 50/50
2) That all expenses (except diesel) are split 50/50 including all mechanical expenses, tax & insurance costs;
3) That who ever finishes with the box last must leave it clean and with a full tank of diesel;
4) A fair way of booking out dates;
5) Insuring the lorry / damage issues / payment of excess / accident / theft / horse damage;
6) What happens if one party wishes to sell/transfer, consider a minimum term of 12 months, what if the other party cannot find someone to transfer their half to - would you just have to sell the box? How does each party get out and how do both parties get out?
7) Valuation upon sale - how will this be decided?
8) Where it will be kept and who deals with taking the vehicle for maintenance, repairs;
9) Can you take friends in the lorry;
10) That it cannot be used for making a profit;
11) The other party has a lame horse or sells their horse so cannot go out, will they continue to pay all costs?
12) Breakdown costs;
13) Sale notice provisions;
14) Consider weight restrictions - When you get the weight certificate subtract that weight from 3.5 tons & that will give you payload. Assuming each horses weighs about 600 KG - that doesn't leave much for tack etc / water etc !
15) Who has responsibility for getting repairs done / MOT / Tax;
Quite a lot to think about but may perhaps be worthwhile, after all, the horseboxes seem to sit there 90% of the time! I think the key would be finding a good buying partner who is safe and reliable and who is happy to commit to at least 12 months, come rain or shine. Its a great idea but could potentially be dodgy if anything goes wrong, that is why a watertight agreement would be needed. But first to find the right person.......
I was thinking about how to do this aside from actually finding someone who will invest with me. It seems that doing this in the caravan industry is fairly normal, so why not for a horsebox?
I think to buy a half decent horsebox the cost will be between 10k and 15k GBP, if you spend anything less than this you risk getting something that is going to cost a fortune in upkeep and repairs.
I will need a contract that sets out the details of how the relationship would work, these are probably the main things that need to be covered:
1) The purchase price, that it is split 50/50
2) That all expenses (except diesel) are split 50/50 including all mechanical expenses, tax & insurance costs;
3) That who ever finishes with the box last must leave it clean and with a full tank of diesel;
4) A fair way of booking out dates;
5) Insuring the lorry / damage issues / payment of excess / accident / theft / horse damage;
6) What happens if one party wishes to sell/transfer, consider a minimum term of 12 months, what if the other party cannot find someone to transfer their half to - would you just have to sell the box? How does each party get out and how do both parties get out?
7) Valuation upon sale - how will this be decided?
8) Where it will be kept and who deals with taking the vehicle for maintenance, repairs;
9) Can you take friends in the lorry;
10) That it cannot be used for making a profit;
11) The other party has a lame horse or sells their horse so cannot go out, will they continue to pay all costs?
12) Breakdown costs;
13) Sale notice provisions;
14) Consider weight restrictions - When you get the weight certificate subtract that weight from 3.5 tons & that will give you payload. Assuming each horses weighs about 600 KG - that doesn't leave much for tack etc / water etc !
15) Who has responsibility for getting repairs done / MOT / Tax;
Quite a lot to think about but may perhaps be worthwhile, after all, the horseboxes seem to sit there 90% of the time! I think the key would be finding a good buying partner who is safe and reliable and who is happy to commit to at least 12 months, come rain or shine. Its a great idea but could potentially be dodgy if anything goes wrong, that is why a watertight agreement would be needed. But first to find the right person.......
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