Probably a stupid question - The DIS Discussion Forums

Sparrow624 · 09-21-2012, 07:51 PM

My wife and I go to Disney every 2 years or so and have figured that over the last 8 years, we have spent at least $20,000 (shocking to think about).

So, we have been considering DVC.

Here is my stupid question: How do people afford the initial $20,000? Is it on some loan plan or something or straight up payment?

Sorry, new to this and just curious.

crisi · 09-21-2012, 08:02 PM

Some people finance, some people pay cash.

We used a bonus from work.

jthomas1 · 09-21-2012, 08:04 PM

there are no stupid questions.. particularly when I don't have an answer

Kidanifan08 · 09-21-2012, 08:21 PM

If you purchase directly from DVC, they can finance your purchase for 10 years. Unfortunately the finance charge is obscene -- 11-14%. We used DVC financing for our initial purchase, but made an effort to pay it off in 2 years.

You can save a considerable amount of money buying resale, but with that, you need cash or your own financing. I have seen other posts indicating that there are places that finance timeshare purchases, but I don't know the details of the rates, etc. with those programs. Some will take a home equity loan to purchase DVC, but it may not be wise to leverage your home for a luxury purchase.

Our last 3 purchases were small resales and we paid cash for each with bonus money.

You could always consider starting with a small contract so you might be able to pay cash and then just add points when you get another chunk of change.

Dean · 09-21-2012, 09:21 PM

Quote:

Originally Posted by Sparrow624

My wife and I go to Disney every 2 years or so and have figured that over the last 8 years, we have spent at least $20,000 (shocking to think about).

So, we have been considering DVC.

Here is my stupid question: How do people afford the initial $20,000? Is it on some loan plan or something or straight up payment?

Sorry, new to this and just curious.

If you have been staying at deluxe resorts and you compare to studios, DVC will likely save you money if you cont your current trend. However, there are compromises like no daily housekeeping. You have to be willing to stay at the DVC resorts only to see the savings. DVC doesn't have to be $20K, to get the same sleeping capacity as you've been getting (assuming 1 deluxe room only) for EOY, you'd only need roughly 75 DVC points, FAR less than $20K resale. As for how to get the money together, it depends on your circumstance but in general I would strongly suggest not financing. Since those 8 trips averaged around $2500 per, you could squeeze the money out of that alone with a little effort.

Nomad70 · 09-22-2012, 07:53 AM

We just became member's last week and are financing through Disney. Yes, it is a 10 year contract, and yes the interest is high, but we are going to be able to pay it off in about 2 years w/out penalty.

Dean · 09-22-2012, 07:55 AM

Quote:

Originally Posted by Nomad70

We just became member's last week and are financing through Disney. Yes, it is a 10 year contract, and yes the interest is high, but we are going to be able to pay it off in about 2 years w/out penalty.

Add to that list that the price is much higher as well compared to resale.

CarolynMink · 09-22-2012, 08:11 AM

Our first purchase, we financed with Disney over just one year. Back then, the interest for that was only 4%. (I have no idea what is current). After that all add ons whether direct or resale, we waited till we could pay cash. This kept us to small contracts which, I am very happy with.

CarolynMink · 09-22-2012, 08:14 AM

Quote:

Originally Posted by CarolynMink

Our first purchase, we financed with Disney over just one year. Back then, the interest for that was only 4%. (I have no idea what is current). After that all add ons whether direct or resale, we waited till we could pay cash. This kept us to small contracts which, I am very happy with.

I forgot, we did have to put 50% down.

rcchello · 09-22-2012, 08:15 AM

If I were buying in today, I would buy resale and get a secured loan from my Credit Union. Currently secured loans are running under 3%.

Sandisw · 09-22-2012, 09:13 AM

When we bought BLT in 2009, we were going to go through Disney and finance. We went through the numbers and decided that buying and financing was no more than we were currently paying for our room costs for our yearly Disney trips so didn't mind the high finance charges, especially when we knew we would not need the full 10 years. We factored the interest into the equation and still felt owning DVC was a better option than staying cash guests--and we weren't comfortable with renting DVC reservations so that point was moot for us.

We ended up figuring a way to pay it off in 6 months and ended up using the Disney Visa which gave us 0% for that time period.

Our last contract, BWV, was purchased resale in 2011, we had saved enough money to pay cash, which saved us a great deal.

Lots of different options available and lots of different situations that have happened!

Good luck!

bdoleary · 09-22-2012, 09:18 AM

If you have a home equity line or access to low cost loans - 0% credit card offers, etc. that's a much cheaper option than other types of financing. As mentioned before Disney offers financing but the point cost of buying direct from Disney is high and interest rates are high as well - I think the Timeshare Store - also has connections with a lender that offers financing - the good news is the actual purchase cost by buying through the Timeshare Store or another resale broker will be lower than going direct - the bad news is that the interest rate is probably higher than Disney's

nolanboys · 09-22-2012, 10:48 AM

We saved up and bought a contract through resale. You should take a look at the resale sites to get an idea of what points cost at the various resorts. Remember everything is negotiable. 3 years ago we purchased 200 SSR points for $4000 less than 160 AKV direct. You might be able to buy a smaller contract for an amount that you could purchase without financing. Take a look and good luck!

DannysMom · 09-22-2012, 11:07 AM

Resale will definitely be less upfront costs. This summer I purchased 200 BCV points for about as much as I could have bought 120 AKV points direct when they we running the buy 100 get 20 extra promotion!

Sent from my iPad using DISBoards App, please excuse any typos.

kkmauch · 09-22-2012, 11:47 AM

Since you are new... REALLY important to remember that buying resale restricts your use of those points to ONLY DVC locations. You cannot use it for DCL or withing the Disney collection. You also cannot trade it out or use at any other affiliated locations.

May not be a big deal if you only plan to stay at DVC locations, but just keep it in mind as you decide between resale and direct.

09-21-2012, 07:51 PM	#1
Sparrow624 "I believe as many as six impossible things before breakfast." Join Date: Jun 2011 Location: Durham, North Carolina Posts: 195	Probably a stupid question My wife and I go to Disney every 2 years or so and have figured that over the last 8 years, we have spent at least $20,000 (shocking to think about). So, we have been considering DVC. Here is my stupid question: How do people afford the initial $20,000? Is it on some loan plan or something or straight up payment? Sorry, new to this and just curious. __________________ 2003 - Off Site - 2 nights 3 days 2006 - Grand Floridian 8 nights 9 days (Honeymoon) 2009 - Boardwalk - 3 nights 4 days 2011 - Grand Floridian - 7 nights 8 days (5 year Anniversary)

09-21-2012, 08:21 PM	#4
Kidanifan08 DIS Veteran Join Date: Feb 2011 Location: Indiana Posts: 1,267	If you purchase directly from DVC, they can finance your purchase for 10 years. Unfortunately the finance charge is obscene -- 11-14%. We used DVC financing for our initial purchase, but made an effort to pay it off in 2 years. You can save a considerable amount of money buying resale, but with that, you need cash or your own financing. I have seen other posts indicating that there are places that finance timeshare purchases, but I don't know the details of the rates, etc. with those programs. Some will take a home equity loan to purchase DVC, but it may not be wise to leverage your home for a luxury purchase. Our last 3 purchases were small resales and we paid cash for each with bonus money. You could always consider starting with a small contract so you might be able to pay cash and then just add points when you get another chunk of change. __________________ POP 2004, POR Oct '08, SSR Jan '09 (first DVC trip!), AKV-K June '09, ASM Oct '09, CBR Jan '10, AKV-K Dec '10, CSR Feb '11, OKW Aug '11, Kidani/BLT Oct '11, BWV/GF Mar '12, Jambo-CL/BLT May/June '12, Kidani Dec '12, BWV Apr '13, BLT/Kidani July '13

09-22-2012, 07:53 AM	#6
Nomad70 Mouseketeer Join Date: May 2012 Location: Southern US Posts: 279	We just became member's last week and are financing through Disney. Yes, it is a 10 year contract, and yes the interest is high, but we are going to be able to pay it off in about 2 years w/out penalty. __________________ New DVC Members as of September 2012!!! WOOHOO!

09-22-2012, 08:11 AM	#8
CarolynMink Mouseketeer Join Date: Sep 2005 Location: Ohio Posts: 212	Our first purchase, we financed with Disney over just one year. Back then, the interest for that was only 4%. (I have no idea what is current). After that all add ons whether direct or resale, we waited till we could pay cash. This kept us to small contracts which, I am very happy with. __________________ 1/13 AKV, 6/12 THV & AKV 2012 added pts BCV, BCV 8/11, AKV, DCL & VWL 8/09, AKV & BWV 1/09, OKW,VWL,SSR 2/08 add pts VWL, SSR 12/06, ASMo 12/05 *joined DVC - SSR, Dolphin 3/01, FW cabin 5/00, OKW 5/98, Disneyland 6/96,off property WDW '90, '87, & '81

09-22-2012, 08:15 AM	#10
rcchello Mouseketeer Join Date: Mar 2008 Location: Piscataway, NJ Posts: 439	If I were buying in today, I would buy resale and get a secured loan from my Credit Union. Currently secured loans are running under 3%. __________________ Bob OKW - SSR Next Trip - OKW Grand Villa Just because it worked for me or worked this way in the past or is part of the great Dis lore is no reason it will work this way in the future. Depending on the CM you get, new interpretation of the rules, changes in rules, weather over the Himalayas, your results may be different.

09-21-2012, 08:02 PM	#2
crisi DIS Veteran Join Date: Feb 2002 Posts: 20,561	Some people finance, some people pay cash. We used a bonus from work.

09-21-2012, 08:04 PM	#3
jthomas1 Earning My Ears Join Date: Sep 2012 Posts: 11	there are no stupid questions.. particularly when I don't have an answer

09-22-2012, 09:13 AM	#11
Sandisw Moderator Join Date: Nov 2008 Location: Syracuse, NY Posts: 9,032	When we bought BLT in 2009, we were going to go through Disney and finance. We went through the numbers and decided that buying and financing was no more than we were currently paying for our room costs for our yearly Disney trips so didn't mind the high finance charges, especially when we knew we would not need the full 10 years. We factored the interest into the equation and still felt owning DVC was a better option than staying cash guests--and we weren't comfortable with renting DVC reservations so that point was moot for us. We ended up figuring a way to pay it off in 6 months and ended up using the Disney Visa which gave us 0% for that time period. Our last contract, BWV, was purchased resale in 2011, we had saved enough money to pay cash, which saved us a great deal. Lots of different options available and lots of different situations that have happened! Good luck! __________________ Sandi

09-22-2012, 09:18 AM	#12
bdoleary Mouseketeer Join Date: Mar 2012 Location: Boston, MA Posts: 103	If you have a home equity line or access to low cost loans - 0% credit card offers, etc. that's a much cheaper option than other types of financing. As mentioned before Disney offers financing but the point cost of buying direct from Disney is high and interest rates are high as well - I think the Timeshare Store - also has connections with a lender that offers financing - the good news is the actual purchase cost by buying through the Timeshare Store or another resale broker will be lower than going direct - the bad news is that the interest rate is probably higher than Disney's

09-22-2012, 10:48 AM	#13
nolanboys DIS Veteran Join Date: Mar 2010 Location: Wauconda, IL Posts: 1,532	We saved up and bought a contract through resale. You should take a look at the resale sites to get an idea of what points cost at the various resorts. Remember everything is negotiable. 3 years ago we purchased 200 SSR points for $4000 less than 160 AKV direct. You might be able to buy a smaller contract for an amount that you could purchase without financing. Take a look and good luck! __________________ DWDH:DS(13)DS(13)D S(11)DS(8)

09-22-2012, 11:07 AM	#14
DannysMom DIS Veteran Join Date: Jun 2007 Location: Central NJ Posts: 1,950	Resale will definitely be less upfront costs. This summer I purchased 200 BCV points for about as much as I could have bought 120 AKV points direct when they we running the buy 100 get 20 extra promotion! Sent from my iPad using DISBoards App, please excuse any typos. __________________ --Valerie & DH ,Danny -- 9 YEARS OLD, mild CP, & a Disney fan & twins, Dylan & Katie --3! DVC BCV owners!

09-22-2012, 11:47 AM	#15
kkmauch "Kindly do not attempt to cloud the issue with facts!" Join Date: Mar 2004 Location: Ham Lake, MN Posts: 1,197	Since you are new... REALLY important to remember that buying resale restricts your use of those points to ONLY DVC locations. You cannot use it for DCL or withing the Disney collection. You also cannot trade it out or use at any other affiliated locations. May not be a big deal if you only plan to stay at DVC locations, but just keep it in mind as you decide between resale and direct. __________________ Upcoming trips: - Mar 2013 Disney Fantasy Eastern Caribbean - Aug 2013 CBR Recent trips: May 2012 SSR-THV - Nov 2011 OKW GV and Disney Dream - Sep 2011 AS-Sports - Dec 2010 SSR - Oct 2009 POFQ

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