OK, Tell me how you'd spend my money!

[crisi]

Or, if what your really want is something difficult to get (like standard view at bwv or BLT, or BCV, save for a little longer, and buy that. If, indeed, money isn't tight, the cost difference between what you want and what you could get right now isn't really that much, it's just a little delayed gratification.

The best value isn't a value if it doesn't get you what you want. I think the satisfaction of owning DVC will wear off once you on it if you discover you would have preferred being an owner at a different resort.

 

[ssawka]

I think you make a lot of good points here, but I'd like to respectfully disagree with the statement in bold. This is a strategy that we have read about here on the boards often, and it makes sense...until you consider the alternatives. I agree with the statement that the difference in purchase price between the time the decision to buy was made and the time you are actually able to pay cash for the purchase can outweigh interest costs. However, what your strategy does not take into account is another alternative that might make even more sense. The fact is that during that period of time that you are saving for your purchase, resales for that resort will become available. If you wait and save long enough, the resale price will inevitably be lower than the direct purchase price you would have financed.

Not in our case, but we are probably the exception. We first started looking into purchasing DVC in the spring of 2009. We knew we wanted a home resort that had convenient transportation since we rarely rent a car at WDW. We first started looking at resale contracts at BWV and BCV. At that time the resale contracts were selling for about $80 PP. Then, we heard about BLT and called Disney to inquire about the price (BLT had not opened yet, so there were no resale contracts on the market). The promotion at the time was a free cruise, which you could exchange for a greater discount on the points. We also had a referral, so when all the numbers were run, the contract came out to about $95 PP. Thinking that an extra $4500 - $5000 was not a lot to pay for an additional 18 years on the contract, we decided to go ahead and have DVC send us a contract. Well, then DVC had there first webcast. We participated and wound up purchasing a contract at $92 PP. We financed the purchase for 10 years at 10.5% interest, but paid it off in one year. After taking a mortgage deduction on the DVC loan, we paid an effective rate of around 8%. Well during that year the price of BLT points increased 22%. Also, you are just now starting to see resale prices in the range that we paid, and that is for stripped contracts.

This is not to say that this approach would work out for anyone else, because I realize that when we purchased DVC it was a buyers' market. The economy had just crashed, DVC was continuing to offer the "free cruise" promotion, DVC was trying out the webcast approach, and BLT was selling relatively cheap because it was fresh on the market and the resort had not opened yet. I also realize that hindsight is 20/20 and at the time we purchased I had no idea the price out BLT would increase so much in one year, but still I am really glad we bought when we did instead of waiting.

 

[heynowirv]

Damnnnn ,
You boys sure go off onto tangents now don't you? All the woman wanted to know was what she should do with her inheritance .

 

[DizBub]

Damnnnn ,
You boys sure go off onto tangents now don't you? All the woman wanted to know was what she should do with her inheritance .

What you said!!

 

[WilsonFlyer]

You asked what we would do and my advice remains the same. You're free to do whatever you want. I don't get it when people ask for advice then are offended by honest and appropriate advice.

In your not so humble opinion.

If, dare I say most of us, lived by your advice, the rest of you would have a very exclusive club. Wait. No you wouldn't. DVC would have failed 12 years ago and you'd have OKW.

To the OP: Go for it, pal. If it weren't for debt owed and debt paid, I wouldn't have a thing. Been there. Done that. Paid it all back. Have at it if it's what you want. That's what we did and we're very happy about it.

 

[ELMC]

In your not so humble opinion.

If, dare I say most of us, lived by your advice, the rest of you would have a very exclusive club. Wait. No you wouldn't. DVC would have failed 12 years ago and you'd have OKW.

To the OP: Go for it, pal. If it weren't for debt owed and debt paid, I wouldn't have a thing. Been there. Done that. Paid it all back. Have at it if it's what you want. That's what we did and we're very happy about it.

I see the point you're trying to make, but I'm wondering if you are going to be there to bail them out should things go poorly.

I think the point that Dean was trying to make (and if it's not then I'll make it) is that the pattern of buying first and paying second has had some very disastrous consequences for many American families. As our reliance on debt continues to grow, our ability to achieve financial independence is compromised. I can see how this can appear to be a conversation surrounding haves and have nots, but that's really not the case. The crux of our argument is that delayed gratification is a more financially prudent strategy for any major purchase, especially a luxury one such as DVC. Delayed gratification, not no gratification.

I'm glad your strategy for acquiring the things you want has been working for you. But for many, that strategy keeps people in a perpetual cycle of having to borrow to buy the things they want. Think about it this way...if you spent the early years of your life as a saver and got to a point in your mid life where you had no car payments, no mortgage and no debt, think about how much money you would have on a monthly basis to indulge yourself on things like vacations, DVC and the like. I'm not suggesting that there are people out there who should not own DVC. What I am suggesting is that some people (like me when I was in my 20s) should delay these types of purchases until they are on a more stable financial footing (like me in my 30s). I'm sorry if these opinions are offensive to anyone, as that is not my intent. There is a continuum that has complete financial responsibility on one side and complete enjoyment on the other. It's important for people to figure out where they lie on this continuum and make decisions accordingly. As long as they are well informed and prepared to live with the consequences, it makes no difference to me what decision they make. My only goal is to add a different perspective to the conversation and help point out some potential pitfalls. I'm certainly not here to judge and I apologize if it comes across as if that's what I'm doing.

 

[ssawka]

I see the point you're trying to make, but I'm wondering if you are going to be there to bail them out should things go poorly.

I think the point that Dean was trying to make (and if it's not then I'll make it) is that the pattern of buying first and paying second has had some very disastrous consequences for many American families. As our reliance on debt continues to grow, our ability to achieve financial independence is compromised. I can see how this can appear to be a conversation surrounding haves and have nots, but that's really not the case. The crux of our argument is that delayed gratification is a more financially prudent strategy for any major purchase, especially a luxury one such as DVC. Delayed gratification, not no gratification.

I'm glad your strategy for acquiring the things you want has been working for you. But for many, that strategy keeps people in a perpetual cycle of having to borrow to buy the things they want. Think about it this way...if you spent the early years of your life as a saver and got to a point in your mid life where you had no car payments, no mortgage and no debt, think about how much money you would have on a monthly basis to indulge yourself on things like vacations, DVC and the like. I'm not suggesting that there are people out there who should not own DVC. What I am suggesting is that some people (like me when I was in my 20s) should delay these types of purchases until they are on a more stable financial footing (like me in my 30s). I'm sorry if these opinions are offensive to anyone, as that is not my intent. There is a continuum that has complete financial responsibility on one side and complete enjoyment on the other. It's important for people to figure out where they lie on this continuum and make decisions accordingly. As long as they are well informed and prepared to live with the consequences, it makes no difference to me what decision they make. My only goal is to add a different perspective to the conversation and help point out some potential pitfalls. I'm certainly not here to judge and I apologize if it comes across as if that's what I'm doing.

ITA in terms of there being a financial continuum and everyone having to decide for themselves where they are along that continuum. Mine and others' point is that debt, when used effectively can be leveraged and it is not always about paying the least amount of money. The problem with always looking at the bottom line is that it ignores the intangibles. I also agree that many people get themselves in big trouble with debt, but it is also possible to get yourself into trouble without having any debt. It is all about choices and an understanding of what you can actually afford. The problem with this board is that when someone asks a question, the assumption is made that the person is financially irresponsible, which makes people answering the question seem like they are elitists. It sounds like, "I have mine because I am responsible and you are not."

 

[WilsonFlyer]

ITA in terms of there being a financial continuum and everyone having to decide for themselves where they are along that continuum. Mine and others' point is that debt, when used effectively can be leveraged and it is not always about paying the least amount of money. The problem with always looking at the bottom line is that it ignores the intangibles. I also agree that many people get themselves in big trouble with debt, but it is also possible to get yourself into trouble without having any debt. It is all about choices and an understanding of what you can actually afford. The problem with this board is that when someone asks a question, the assumption is made that the person is financially irresponsible, which makes people answering the question seem like they are elitists. It sounds like, "I have mine because I am responsible and you are not."

And that was the point I failed to make as eloquently. It seems every time this comes up here, this is where it ends up. All I'm saying is that some of us have become successful by leveraging debt and being responsible in leveraging it. It can be done.

 

[heynowirv]

I see the point you're trying to make, but I'm wondering if you are going to be there to bail them out should things go poorly.

I think the point that Dean was trying to make (and if it's not then I'll make it) is that the pattern of buying first and paying second has had some very disastrous consequences for many American families. As our reliance on debt continues to grow, our ability to achieve financial independence is compromised. I can see how this can appear to be a conversation surrounding haves and have nots, but that's really not the case. The crux of our argument is that delayed gratification is a more financially prudent strategy for any major purchase, especially a luxury one such as DVC. Delayed gratification, not no gratification.

I'm glad your strategy for acquiring the things you want has been working for you. But for many, that strategy keeps people in a perpetual cycle of having to borrow to buy the things they want. Think about it this way...if you spent the early years of your life as a saver and got to a point in your mid life where you had no car payments, no mortgage and no debt, think about how much money you would have on a monthly basis to indulge yourself on things like vacations, DVC and the like. I'm not suggesting that there are people out there who should not own DVC. What I am suggesting is that some people (like me when I was in my 20s) should delay these types of purchases until they are on a more stable financial footing (like me in my 30s). I'm sorry if these opinions are offensive to anyone, as that is not my intent. There is a continuum that has complete financial responsibility on one side and complete enjoyment on the other. It's important for people to figure out where they lie on this continuum and make decisions accordingly. As long as they are well informed and prepared to live with the consequences, it makes no difference to me what decision they make. My only goal is to add a different perspective to the conversation and help point out some potential pitfalls. I'm certainly not here to judge and I apologize if it comes across as if that's what I'm doing.

I'LL SAY IT ONE MORE TIME!!!!!!!!
She's NOT looking for a lecture.
She loves the world and visits often anyway.
Just wants to know how to get the most bang for her buck!!!!

 

[crisi]

I'LL SAY IT ONE MORE TIME!!!!!!!!
She's NOT looking for a lecture.
She loves the world and visits often anyway.
Just wants to know how to get the most bang for her buck!!!!

The factual answer is that the most bang for the buck is to not incur debt...unless your situation is unusual like ssawaka's.

The most bang for your buck is to stay offsite. Perhaps buy another timeshare. Maybe stay values. In oth words, she is currently getting the most bang for her buck.

 

[DizBub]

I'LL SAY IT ONE MORE TIME!!!!!!!!
She's NOT looking for a lecture.
She loves the world and visits often anyway.
Just wants to know how to get the most bang for her buck!!!!

Give it up They live for this stuff.

 

[heynowirv]

You're right Bub,and it's NOT very entertaining.

 

[ELMC]

Damnnnn ,
You boys sure go off onto tangents now don't you? All the woman wanted to know was what she should do with her inheritance .

I'LL SAY IT ONE MORE TIME!!!!!!!!
She's NOT looking for a lecture.
She loves the world and visits often anyway.
Just wants to know how to get the most bang for her buck!!!!

Give it up They live for this stuff.

You're right Bub,and it's NOT very entertaining.

Perhaps you have not followed the entire thread from start to finish, but the discussions taking place at this point in the thread are in reference to topics that have come up as a result of the OP's post and are not directly applicable to the OP.

If by "this stuff" you mean respectful debate about DVC purchases and the different methods of going through the process, then yes, it is interesting. I wouldn't go so far as to say that I live for it though. I'm sorry that you feel that you are being lectured, but quite frankly I think that might have more to do with your perspective as a reader than my intent as a writer. If you are comfortable with how you went about purchasing your DVC contract then that is all that matters. At this point in the thread, the conversation has evolved and taken a path beyond just speaking directly to the OP's questions. If we were still speaking to the OP's question then we would be quoting her posts and not the posts of others. I don't think that's unique to this thread. If you don't like the subject matter, please feel free to skip my posts or form a constructive argument that refutes the points I am trying to make. I welcome and respect your opinion just as I would hope that you would mine.

I am sorry if you feel offended by where this thread has gone or that it is no longer entertaining you. If this thread is no longer to your liking, don't read it. But I don't think it's appropriate for you to lecture me (or others who have engaged in this debate) on our posting habits. Webmaster Doc does a superb job at monitoring the boards, and if something I have said goes against the terms of use I am sure he will let me know.

 

[DizBub]

If by "this stuff" you mean respectful debate about DVC purchases and the different methods of going through the process, then yes, it is interesting. I wouldn't go so far as to say that I live for it though. I'm sorry that you feel that you are being lectured, but quite frankly I think that might have more to do with your perspective as a reader than my intent as a writer. If you are comfortable with how you went about purchasing your DVC contract then that is all that matters. At this point in the thread, the conversation has evolved and taken a path beyond just speaking directly to the OP's questions. If we were still speaking to the OP's question then we would be quoting her posts and not the posts of others. I don't think that's unique to this thread. If you don't like the subject matter, please feel free to skip my posts or form a constructive argument that refutes the points I am trying to make. I welcome and respect your opinion just as I would hope that you would mine.

I am sorry if you feel offended by where this thread has gone or that it is no longer entertaining you. If this thread is no longer to your liking, don't read it. But I don't think it's appropriate for you to lecture me (or others who have engaged in this debate) on our posting habits. Webmaster Doc does a superb job at monitoring the boards, and if something I have said goes against the terms of use I am sure he will let me know.

Respectfully, I don't think anyone here would presume to lecture you.

I read your posts and you make some very good and valuable points and I understand that you only have the best of intentions, but you (and some of the other posters) can't save everybody from themselves as far as DVC goes. Clearly, some people bought their DVC in a way that you don't agree with but that doesn't mean it was the wrong way......for them. It also doesn't mean that those people aren't smart, responsible or successful with the way they did it.

That said, the constant drumbeat of zealous negativity here gets to be a little much.

 

[heynowirv]

Perhaps you have not followed the entire thread from start to finish, but the discussions taking place at this point in the thread are in reference to topics that have come up as a result of the OP's post and are not directly applicable to the OP.

If by "this stuff" you mean respectful debate about DVC purchases and the different methods of going through the process, then yes, it is interesting. I wouldn't go so far as to say that I live for it though. I'm sorry that you feel that you are being lectured, but quite frankly I think that might have more to do with your perspective as a reader than my intent as a writer. If you are comfortable with how you went about purchasing your DVC contract then that is all that matters. At this point in the thread, the conversation has evolved and taken a path beyond just speaking directly to the OP's questions. If we were still speaking to the OP's question then we would be quoting her posts and not the posts of others. I don't think that's unique to this thread. If you don't like the subject matter, please feel free to skip my posts or form a constructive argument that refutes the points I am trying to make. I welcome and respect your opinion just as I would hope that you would mine.

I am sorry if you feel offended by where this thread has gone or that it is no longer entertaining you. If this thread is no longer to your liking, don't read it. But I don't think it's appropriate for you to lecture me (or others who have engaged in this debate) on our posting habits. Webmaster Doc does a superb job at monitoring the boards, and if something I have said goes against the terms of use I am sure he will let me know.

Disrespectful no,offended no,nowhere in this posting or conversation is it about me.I just didn't understand and i've been reading the thread how the last 3 pages have been helping the OP. Maybe a new thread SHOULD have been started instead.IMHO.

 

[rojen]

It's the Dave Ramsey cult. Mention debt, or buying anything fancier than one ply toilet paper and they come out of the woodwork. It's pretty annoying. Financing isn't a great use of money for timeshares, unless you can do a cheap HELOC or something. But if you can pay it off without breaking the bank, that's all that matters.

If you can afford the monthly payments (initial cost+MF+interest), if you'll use the extra points, and if you intend to take that many Disney trips, go for it and enjoy it.

 

[WebmasterDoc]

It seems the OP has received and accepted a lot of valuable advice so this seems to be a good place to end this discussion before it's necessary to start dealing out infractions for the continued arguing and thinly veiled pseronal attacks.