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Old 07-12-2013, 10:51 AM   #16
ellab
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I had an offer accepted at $103. We are waiting on ROFR. I'm really nervous because I've seen/heard Disney take ones at $99 and $100.
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Old 07-12-2013, 10:54 AM   #17
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I had an offer accepted at $103. We are waiting on ROFR. I'm really nervous because I've seen/heard Disney take ones at $99 and $100.
103 is a great price! Good luck to you!
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Old 07-12-2013, 11:07 AM   #18
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While not a fan of financing since it normally increases your total costs, here is a simple example where financing could work to your advantage.

Assumpition is you want to buy VGF direct. Take VGF at opening price of $145/point, assume you are going to finance at 10% and then pay off the loan in a lump sum after 1 year (say you plan to come into a large sum of money). For simple math the financing charges are $14.5/point. So your price per point was $145.00+$14.50 = $159.50

So if you think the price of VGF after one year will have increased more than $14.50 (your interest charges) it makes sense to buy and finance. If I had to bet, I'd say that VGF will increase in price more than $14.50 in its first year of sales, so given this very limited example, financing would save you money over waiting till you had the cash.

The danger would be your big lump of cash doesn't come through or you decide to spend it on something else instead of paying off your loan.


ANd yes, resale prices have been climbing like crazy lately....
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Old 07-12-2013, 11:12 AM   #19
kapicka
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disney got it

We tried to buy 160 points at $98 per point (though the seller was only asking for $88) and Disney grabbed it. I wish now I'd gone $103 but it was already hard offering a bunch over asking.
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Old 07-12-2013, 11:20 AM   #20
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We tried to buy 160 points at $98 per point (though the seller was only asking for $88) and Disney grabbed it. I wish now I'd gone $103 but it was already hard offering a bunch over asking.
When was this?
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Old 07-12-2013, 11:23 AM   #21
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And that's why financing makes sense to me . The inflation is quite ridiculous . Waiting and saving money to purchase , the inflation just doesn't offset the interest you will pay.
Inflation goes up and down and is fairly unpredictable especially in today's rocky economy. The interest you will lose on finance is however entirely predictable.
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Old 07-12-2013, 11:26 AM   #22
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regarding - disney got it

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When was this?
We got news from Disney on June 6th that they purchased the 160 points we were trying to buy at $98 per point for VGC.

Looking ever since but of course prices going up quickly. (A loaded contract of 100 points just went for $125 per point!!)
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Old 07-12-2013, 01:31 PM   #23
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Originally Posted by Kauinohea
Wow....I started looking about 8 months ago and I swear the asking was about 100.....anyone have idea of what is seen as a fair offer for VGC?
Fair is a subjective term that can mean different things to different people. In today's market, $120 for vgc is a fair price. That being said, think that today's resale market is completely overinflated and is being propped up by abnormally high ROFR activity mixed with a bit of buyer hysteria. I would not recommend buying in today's market.
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Old 07-12-2013, 05:09 PM   #24
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You got a great deal at $55 though.

The increase argument is logical, although if you invested rather than financed you would have MADE money. Say you had 2,000 as a down payment and you invested rather than financed.

The S & P 500 returned 15% in 2010, 2% in 2011, 16% in 2012, and currently 13% in 2013.

You can do the math, but its obvious what the results are.

Anywho, back to topic. GVC at $120 is steep IMO.
Just out of curiosity why did you not put in what the S&P returned in 2008 and 2009? of even 2000-2010? I personally would be very hesitant to take out a loan at 10+%. I would be equally hesitant to expect returns in the S&P in the double digits for the next few years.

Just sayin....
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Old 07-12-2013, 08:30 PM   #25
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Just out of curiosity why did you not put in what the S&P returned in 2008 and 2009? of even 2000-2010? I personally would be very hesitant to take out a loan at 10+%. I would be equally hesitant to expect returns in the S&P in the double digits for the next few years.

Just sayin....
I know what you're saying...but there was a reason. He bought his resale in 2010, so I wanted to show the same years in comparison. He spoke about resale prices going up since he got a great deal....I wanted to show that the stock market did as well.
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Old 07-12-2013, 09:16 PM   #26
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Offer Accepted

My second offer was accepted! Signing the contract and sending in tomorrow
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Old 07-13-2013, 10:48 AM   #27
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I'd like for you, just once, to support these claims of yours with some hard math.

I'm sure you have the numbers to back this up, or do you just "feel" this way?

I'm really curious since you post the same claim in many, many threads, yet never explain how you reached your conclusion.
I was looking at buying direct VGC in Oct 2010. Direct price was $120 but with incentives and some specials going on it would have brought the price down to $95 point (had a special on the last day we were at VGC where we got an extra $1 off....for some reason I remember that ). If we had pulled the trigger and financed the 350pts (did not as the economy was still shaky and didn't want to use our on hand cash) with 20% down. The price would have been $33250-$6650=$26600 out the door (no closing costs then). The interest the past 3 years at 10.5% would have been $7609($22). So about $117($95+$22) per point today.
Much cheaper than the $165 DVC direct price and in line with resale prices today. I would have gotten 4 years use of the contract also. Now this analysis would probably not work for every resort but in my case I would have been ahead by financing instead of buying direct at $130 now. Buying resale at $115 with closing would still cost more than buying and financing 3 years ago. YMMV
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Old 07-13-2013, 11:33 AM   #28
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My second offer was accepted! Signing the contract and sending in tomorrow
For how much and how many VGC points? Good luck on passing ROFR!
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Old 07-13-2013, 11:44 AM   #29
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For how much and how many VGC points? Good luck on passing ROFR!
Sorry, so excited I forgot to add that part...175 points at $115 per point. We really wanted to stay at 110, but there aren't many contracts out there for the amt of points we wanted and the price seems to steadily climb!
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Old 07-13-2013, 12:00 PM   #30
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I was looking at buying direct VGC in Oct 2010. Direct price was $120 but with incentives and some specials going on it would have brought the price down to $95 point (had a special on the last day we were at VGC where we got an extra $1 off....for some reason I remember that ). If we had pulled the trigger and financed the 350pts (did not as the economy was still shaky and didn't want to use our on hand cash) with 20% down. The price would have been $33250-$6650=$26600 out the door (no closing costs then). The interest the past 3 years at 10.5% would have been $7609($22). So about $117($95+$22) per point today.
Much cheaper than the $165 DVC direct price and in line with resale prices today. I would have gotten 4 years use of the contract also. Now this analysis would probably not work for every resort but in my case I would have been ahead by financing instead of buying direct at $130 now. Buying resale at $115 with closing would still cost more than buying and financing 3 years ago. YMMV
Thanks for sharing your experience. I think that this is the exception that proves the rule as there were a number of factors in play that are not repeatable currently. VGC is an outlier in all respects, and there is no parallel at WDW. Also, to get $25 off initial offering prices is a crazy good deal.
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