Although many dealers are honest, some are interested only in making a profit. It may be impossible to tell the difference. To stay in business, a dealer must buy horses cheaply enough to pay for their feed and care and still make a profit. If you buy from a dealer, first learn something about him. Check with other horsemen who are acquainted with him or who have bought from him.
Good dealers have good reputations and are willing to stand behind their sales.
In general, buying at auctions is risky. Don't assume that all sellers are honest. Even an experienced horseman can't tell for sure if he will be satisfied and whether a horse has faults or unsoundnesses when it can be observed for only a few minutes before the sale and in the ring. There are several types of auctions, ranging from private auctions to breed sales, consignment sales and public auctions. Usually, no guarantees are made and horses cannot be returned or exchanged.