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business Tuesday 28 June 2022
How to pay for summer fun: Financing boats, RVs and more

By JACKIE VELING of Nerd- as collateral, interest rates
Wallet tend to be lower, and you
Summer is the season to hit can often qualify for a lon-
the great outdoors, and ger repayment term, some-
having a new toy, like a times up to 20 years.
boat or RV, is a dream for One of the best ways to
many people. But with in- get approved for a se-
terest rate hikes, spikes in cured loan is to provide a
the cost of oil and general down payment of at least
economic uncertainty, you 10%, says Michael Lax, ex-
may be hesitant to make a ecutive vice president and
big purchase right now. head of RV Marine Sales at
Financing options, such Bank of the West.
as a secured loan, can Credit history also matters.
make the purchase more If you've financed a similar
manageable by spreading purchase in the past, like
out payments. But borrow- with a car loan, it can go
ing isn't right for everyone. a long way toward making
Look at your budget and the approval process easi-
take into account other ex- er, Lax says.
penses, like storage, main- In this June 12, 2007 file photo, shoppers look at recreational vehicles for sale at a dealership in Unsecured personal loans
tenance and gas. Salt Lake City. are another financing op-
SHOULD YOU FINANCE A Associated Press tion and are offered by
BIG SUMMER PURCHASE? online lenders, banks and
Before deciding if and how a camper, says this dream "It doesn't matter if you're Both Nolte and Sandra credit unions. These loans
you should finance, check doesn't always pan out. a 25-year-old and you're recommend a test drive, don't require collateral,
in with yourself about why Maybe you rarely have saving for your first house like joining a boat club or so you won't risk losing the
you want to make the pur- time on the weekends to or you're a 50-year-old who renting an RV for the week- item if you fail to repay.
chase, says Jarrod San- hit the water, or the remote is settled in their financial end, to get your feet wet Lending decisions are
dra, a certified financial campsite you envisioned is journey. You have to make before committing to the based on creditworthiness,
planner based in Crowley, actually loud and crowd- sure, cash-flow-wise, you're purchase. income and existing debt,
Texas. According to San- ed. not going to do damage to FINANCING FOR BOATS, but annual percentage
dra, clients are sometimes For those sure they want to your monthly expenses." RVS AND SMALLER TOYS rates may be higher and
motivated by the idea of a buy, the choice of whether Nolte adds that just be- If you're going to finance repayment terms shorter,
boat or RV, not the reality. to borrow money depends cause you can afford the a large summer toy, you'll compared with a secured
"I think especially around largely on your overall fi- monthly payments on a probably need a secured loan.
toys, you get this 'American nancial picture, says Mari- loan doesn't mean you or unsecured loan. Some lenders let you pre-
dream feeling' of waterski- anne Nolte, a certified fi- should automatically get Secured loans are gener- qualify for an unsecured
ing behind the boat every nancial planner based in one. Make sure you're also ally the most affordable loan, which is a smart way
Saturday or being out in Fallbrook, California, and not forgoing larger goals, option and are available to check potential terms
the beautiful wilderness," an avid boater. like saving for retirement, at banks, credit unions and compare different
he says. "Everything comes back in order to cover the pay- and some dealers. Since loans without affecting
Sandra, who once owned to budgeting," Nolte says. ments. the purchase itself serves your credit score.q

Airline merger: Frontier sweetens offer for Spirit Airlines

By DAVID KOENIG sweetened terms, its board figure the budget airline's
AP Airlines Writer reiterated its unanimous planes into JetBlue's less-
Frontier Airlines on Friday recommendation that cramped layout.
added more cash and a shareholders approve the Frontier's stock-and-cash
larger breakup fee to its of- Frontier offer at a special offer would give Spirit
fer to buy Spirit Airlines, and meeting next Thursday. shareholders 48.5% of the
the Spirit board repeated JetBlue said its proposal re- new, combined airline —
its preference for Frontier mains better than Frontier's which does not yet have
over a rival bid by JetBlue with a higher value, more a name. That means inves-
Airways. cash, "more certainty, and tors willing to hold the stock
Frontier added $2 per share more regulatory protec- could come out ahead if
to its previous offer, boost- tions." the shares rise enough in
ing it to $4.13 in cash plus Frontier's move was the price.
1.9126 shares of Frontier for latest gambit in a fight be- Spirit's board has cited an-
each Spirit share. tween Frontier and JetBlue other reason for favoring
The Denver-based airline to see who gets the nation's Frontier, which, like Spirit, A line of Spirit Airlines jets sit on the tarmac at Orlando Interna-
also raised the amount it largest discount airline. On is an ultra-low-cost carrier tional Airport on May 20, 2020, in Orlando, Fla.
would pay Miramar, Flori- Monday, New York-based that charges rock-bottom Associated Press
da-based Spirit if antitrust JetBlue raised its all-cash fares but also many extra
regulators stop the deal — offer to $33.50 per share, or fees. JetBlue disputes Spirit's con- on one thing: Both say that
from $250 million to $350 more than $3.6 billion. Spirit has maintained that clusion. It bypassed Spirit's buying Spirit would make
million — matching Jet- At current value, JetBlue's antitrust regulators are very board and appealed di- them a stronger competitor
Blue's proposed breakup proposal is worth more. unlikely to let JetBlue buy rectly to Spirit shareholders to the nation's four leading
fee. JetBlue proposes to buy Spirit and remove its low to reject the Frontier offer. airlines, American, Delta,
Spirit said that, given the all Spirit shares and recon- fares from the market. Frontier and JetBlue agree United and Southwest.q