Does Disney treat those who buy resale differently?

Discussion in 'Purchasing DVC' started by karebear06, Dec 26, 2012.

  1. Illini Al

    Illini Al Mouseketeer

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    3% isn't bad, especially if you're going to pay it off in two years. For the total amount we're talking, I'd still pay cash, but I understand that many can't.
    I'm generally against financing anything associated with a vacation, but I know lots do. Congrats on your purchase and have fun!! :thumbsup2
     
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  3. Dean

    Dean DIS Veteran<br><a href="http://www.wdwinfo.com/dis

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    If you'd like to share you're welcome to. I was simply trying to point out that most of the options people have used to try to purchase with less interest have risk, sometimes significant risk. Some CC are actually free for some situations, assuming you dot the I's and cross the T's and many have posted about doing so, esp the Disney CC. I think some of the options that people have used include CC, second mortgage or HELOC, car loans and secured loans against CD's or similar. All have risk but some more than others. However, even at 3% against a CD, it is still a poor choice, IMO.
     
  4. ELMC

    ELMC DIS Veteran

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    I think this is an important point you're making and it does tie back to leveraging debt. For example, a business parther of mine is involved in a great municipal bond fund. It returns 7% annually, tax free. For him it makes sense to take the money he would spend on DVC and instead invest it in the bond fund and finance the DVC purchase. This would net him 4%. Obviously it would be cheaper not to buy at all, but we're operating under the assumptions that we have all decided to spend some amount of our net worth on vacations, specifically DVC.

    My point is, if you have a next best alternative for the money that returns a higher interest rate than the interest you pay on the loan, financing a DVC purchase may make sense (assuming you factor in risk, liquidity, overall DTI ratio, etc.). But I will suggest that this is most likely applicable to a very small percentage of people's situations.
     
  5. Dean

    Dean DIS Veteran<br><a href="http://www.wdwinfo.com/dis

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    Clearly a 3% loan with little risk (not tied to house, car, etc) isn't a big deal for one that can "afford it" otherwise. To me the behavior in question is far more damaging than the simple dollars involved. Personally I'm not sure that any debt is good no matter what the likely return is, but that's esp true for an individual over a company.
     
  6. ELMC

    ELMC DIS Veteran

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    I agree. I am often taken aback by the nonchalant way many people talk about going into significant debt over a rapidly (actually immediately) depreciating asset. It scares me. The reason I worked so hard to get such a low price on my resale contracts is because I wanted the ability to completely change my mind a year from now and be able to get most (or all, or ever more) of my money back. I don't plan on doing that, but it's nice to have the option. I would be uncomfortable buying at today's direct prices and having absolutely no reasonable exit strategy.
     
  7. djwood24

    djwood24 Earning My Ears

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    I paid cash for my resale a few years back and do not regret it at all
    I like most say wouldn`t finance it as I hate paying interest on vacations
     
  8. Mickey'sApprentice

    Mickey'sApprentice Shamelessly demand, it works bette

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    We last stayed at WL Hotel in 2005. At previous trips had been in 1992, 1994, and 2002. We paid extra for a courtyard view and received the bottom corner room on the villas side that overlooked some trees. The room view really belonged on that thread for bad views.

    Fast forward to last week. We had joined DVC in 2006, bought APs starting in 2009 and had stayed many nights on AP rates at non-DVC hotels. We reserved using AP rates, and paid for a woods view. Well...our view and room was fabulous!! We had a 4th floor room overlooking the beautiful courtyard and Bay Lake.

    Plus, everytime we stay at Port Orleans before or after our DVC stays we get larger corner rooms.
     
  9. Disney  Doll

    Disney Doll DIS Security Matron

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    I've never been treated differently by any DVC person because of my resale.

    I have found the salespeople, when I have encountered them, to be lovely and conversant, like to talk about what you own, what you bought, how you bought and how you use it.

    Maybe you just hit someone having a bad day? Or you hit someone who isn't goign to work for Disney for long....
     

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