Alpacas for Sale
Alpaca Infinity
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About Alpacas:
Alpaca Description
Published by the Alpaca
Owners & Breeders
Association (AOBA)
1. Introduction
2. Who Buys Alpacas?
3. Supply & Demand
4. Alpaca Values
5. Capital Requirements
6. Hands-On Ownership
7. Financial Observations
8. Tax Consequences
9. Financing
10. Creating a Herd
11. Purchase Contracts
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Financial Aspects of Alpaca Ownership
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Methods of Financing Your Alpaca Purchase
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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
2. Down payment
3. Three installments of $4,500 each
4. Balance at delivery
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$22,500
<-9,000>
<-13,500>
-0-
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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.
The above text is an excerpt from the AOBA Breeder's Guide article: Financial Aspects of Alpaca Ownership.
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