Probably a stupid question

[BestDadEver]

Originally Posted by Sparrow624

All,

Thank you for the help. This thread has gone WAY off track. I was simply asking about the financing and if it were possible. Thanks for exposing me to resale. As for the rest, I don't think a financial debate is necessary.

Well I agree . I am sorry . Most of my opinions arent the norm and for sum reason this site is the only one I need to defend my opinion with ten extra posts .

[JimMIA]

I think the problem you are having with this is that you think you have to "win" by convincing others to agree with you.

That's not going to happen -- not just for you, but for any of us.

If you and I disagree on a particular point, I'm not likely to convince you by simply saying something over and over. You have your point of view, I have mine, and neither of us are likely to change our minds.

BOTH points of view are valuable to readers. Your point of view might match the situation of one family; mine might fit someone else.

For most of these questions, there is no ONE right answer. And therefore, noone is going to "win."

For that reason, you will see a lot of posters who simply state their opinions on a particular subject and move on. If someone disagrees...GREAT! That's what discussion boards are for -- DISCUSSION.

If you are defending yourself 10 times...you're posting the same thing 9 times too many.

[z28wiz]

I agree!

Originally Posted by JimMIA

I think the problem you are having with this is that you think you have to "win" by convincing others to agree with you.

That's not going to happen -- not just for you, but for any of us.

If you and I disagree on a particular point, I'm not likely to convince you by simply saying something over and over. You have your point of view, I have mine, and neither of us are likely to change our minds.

BOTH points of view are valuable to readers. Your point of view might match the situation of one family; mine might fit someone else.

For most of these questions, there is no ONE right answer. And therefore, noone is going to "win."

For that reason, you will see a lot of posters who simply state their opinions on a particular subject and move on. If someone disagrees...GREAT! That's what discussion boards are for -- DISCUSSION.

If you are defending yourself 10 times...you're posting the same thing 9 times too many.

[gray52]

Personally, if we had any other debt other than our home, we would have never purchased DVC. We purchased 100 pts at OKW a few years ago and another 100 at BWV after we had our second child... Paid cash for both. Having a monthly payment on a hotel room would, for me, be a little unsettling. I will say that for the first time since we became members, it feels like DVC has embraced owners (annual pass discount & D23 membership) and are working with us, not against. And yes, I'd purchase DVC again today without hesitation... Paying cash, of course.

[cfw213]

I've only read a few pages of this thread but I thought I would add my take, which is the opposite of most people. I did resale and I was able to finance through Timeshare Lending.net. Yes, the interest rate is high. However, I am still saving money over buying direct from Disney AND paying cash. If you're going to finance (obviously better to pay cash, but that's not the choice we made...) here is what we did.

We purchased 160 points at SSR for $55 a point. We had two years in banked points which we were able to rent out for $3500...this went directly toward the purchase price. So we financed $7,700 over 5 years at 12.9%...total purchase price including interest is $10,488. Spread over the remaining 42 years of the contract=

10488/42 = $250
+MF points - roughly $750 per year...assume any increase will also see a corresponding increase in hotel rooms.

=$1000 per year. 160 points can get me 12 nights a year in an SSR studio during value season. Cheapest hotel room on property=$1008 + tax for 12 nights.

A lot of people do not want to finance, which I totally understand...but it's simply not true that financing negates all possible savings. Now buying direct and financing is a whole 'nother animal!

[k3chantal]

Originally Posted by BestDadEver

No you are missing the point . There are no other options . I agree with your point . But the fact remains that disney is smart, and know that no one is going to finance potential buyer for less . So they charge what they charge .

I am guessing none if you ever bought a brand new car either.

FYI I live my life in the now . And any interest payed is well worth the money vs the wait .

I believe what the other posters are trying to share is that you must be very careful with your credit. The more you preserve those scores by not taking 'risky' loans (i.e. high percentage rates) the more you can do in the future.

And for the record, I have purchased two new cars. One had a three year loan that we paid off in a year and the second we paid for with a bonus. Ten years later we still have those cars and will take care of them until we can afford to purchase without taking out long term loans.

DVC purchase paid on Amex (to get the points for airfare) and paid off the next month.

Both of our houses with loans well under 4%. We could purchase the second house BECAUSE we have been careful and waited.

So no, any interest paid is not worth the money. The stress involved by knowing the money is essentially being thrown away is too great. And this is from a person who paid for her DVC points direct. I don't regret that decision because of how we use our points at times. But at no time will I threaten my credit scores because of my decisions.

[Missyrose]

Originally Posted by k3chantal

I believe what the other posters are trying to share is that you must be very careful with your credit. The more you preserve those scores by not taking 'risky' loans (i.e. high percentage rates) the more you can do in the future.

And for the record, I have purchased two new cars. One had a three year loan that we paid off in a year and the second we paid for with a bonus. Ten years later we still have those cars and will take care of them until we can afford to purchase without taking out long term loans.

DVC purchase paid on Amex (to get the points for airfare) and paid off the next month.

Both of our houses with loans well under 4%. We could purchase the second house BECAUSE we have been careful and waited.

So no, any interest paid is not worth the money. The stress involved by knowing the money is essentially being thrown away is too great. And this is from a person who paid for her DVC points direct. I don't regret that decision because of how we use our points at times. But at no time will I threaten my credit scores because of my decisions.

Very well said!