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H. Methods of Financing Your Alpaca Purchase

by AOBA (Alpacas Owners Breeders Association) www.alpacaowners.com
Most alpacas are sold for cash. Many buyers convert other assets to purchase their first alpacas. Some people have a line of credit for investment purposes; others use their equity in real estate to secure funds. Some breeders offer financing for your purchase. It is typically short term and involves paying for the animals before you take delivery of them. For instance, many breeders will accept the following arrangement:

1. Purchase price $22,500
2. Down payment <-9,000>
3. Three installments of $4,500 each <-13,500>
4. Balance at delivery -0-

For a financed sale, a breeder may require that the purchaser obtain insurance for the animals with the seller listed as a co-insured party and insurance proceeds distributed first to pay the remainder of the lien.

Related Articles:

 A. Introduction
 B. Who Buys Alpacas?
 C. Alpaca Supply and Demand
 D. Alpaca Values
 E. Hands-On Alpaca Ownership
 F. Financial Observations
 G. Tax Consequences of Owning Alpacas
 H. Methods of Financing Your Alpaca Purchase
 I. Creating a Herd
 J. Alpaca Purchase Contracts
 
 View the Complete List of Articles



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