DVC Financing Approval

[AJA]

Here's one option you might want to consider. If you have the ability to pay $610/month, then that is equal to $7,440 in one year.

For the first year, rent 300 points from someone here at $11/point which will cost you $3,300. And give you your vacation for the year.

That leaves you $4,140 left in savings. Take that money and look for a 100 point contract at OKW or SSR on the resale market. Make sure it comes with banked/free points. If you pay around $55/point and rent out the banked points the contract comes with you'll be able to own your 100 point contract free and clear in the first year. This is totally possible as I've bought 4 SSR contracts all working out to about $32/point after renting out the points the contract came with.

So after 1 year, you've been on vacation and you own 100 points and you don't owe any money.

Repeat this for two more years and you'll own your 300 points and you will not be debt.

The first step though is to cancel your contract with Disney. Take some time and think about this option. Disney will still be there a week from now to sell you direct points if you decide you don't want to go to the resale market.

I also think this is great advice!

For the part regarding your brother, you could purchase 100 point Animal Kingdom Lodge contract, next year (get same use year) purchase 100 points at Saratoga Springs, next year 100 at Old Key West. -there you now own the same amount of points as your brother but own at 3 different resorts! With banking and borrowing you will have 300 points each year at each of these resorts. You have 3 home resorts, he only has 1!

I know you're an adult and don't need disboard approval for your own financial decisions, BUT, can you imagine how much your brother will gossip about you for paying all that interest!!! You'll more than likely be the "joke" of the family for such a poor decision if you go through with what you're planning.

 

[Mtnman44]

OP, this is great advice. I hope you reconsider your decision. Remember, when you finance, you don't really own your points till they are paid off (10 years). The idea presented below gives you full ownership in only about 3 years with a near ridiculous amount of money saved.

People here are figuring out from some things you said that you might not be in the best situation right now, and have some credit and collection issues. We've all been through tight times, no one is judging. However, based on the details given, there is a high degree of likelyhood that we see someone making a bad decision based on emotions that will only lead to being in a deeper hole.

Good Luck.

Here's one option you might want to consider. If you have the ability to pay $610/month, then that is equal to $7,440 in one year.

For the first year, rent 300 points from someone here at $11/point which will cost you $3,300. And give you your vacation for the year.

That leaves you $4,140 left in savings. Take that money and look for a 100 point contract at OKW or SSR on the resale market. Make sure it comes with banked/free points. If you pay around $55/point and rent out the banked points the contract comes with you'll be able to own your 100 point contract free and clear in the first year. This is totally possible as I've bought 4 SSR contracts all working out to about $32/point after renting out the points the contract came with.

So after 1 year, you've been on vacation and you own 100 points and you don't owe any money.

Repeat this for two more years and you'll own your 300 points and you will not be debt.

The first step though is to cancel your contract with Disney. Take some time and think about this option. Disney will still be there a week from now to sell you direct points if you decide you don't want to go to the resale market.

 

[dwight16]

some of us are lucky to already be owners here and some of us might actually be able to afford to own this. i work with money everyday built a business telling people what to do with theirs. now every situation is different but i consider myself an expert when it comes to the all mighty dollar.

i get it i love everything Disney i am sitting under a framed stock certificate. i wanted this time share so bad i could taste it. I went on the resale market secured short term financing with money in my house at 4% and had a plan to pay it off in a year and stuck to my plan. do you realize how insane it is to prepay for vacations at 20% plus interest or whatever your paying. you can honestly just book an amazing trip each year with 1/2 to 3/4 of that money. you are going to be trying to dump this thing for 50 cents on the dollar in three years when you realize paying all that a month is nuts. it wont hit you right away. you sign on the dotted line book that trip. you might even feel rich like you just got a deal. trust me after 8 months of not being down there paying that fee every month your going to be like what did i do. **** i bet you can get someone on here to lend you the money at half the rate considering the 10 year is at 1.50% now.

 

[bakenatj]

I'm reading the OP comments and I got to say one thing. This has got to be made up. No way someone pays that much a month for a timeshare just because their brother doesn't think they can afford it. My guess is he is just trying to

If this is true, I feel sorry for the OP. How about you give me half of what your monthly payment would be and I will give you a week a year in a 1 br unit. That way we both win!

 

[ELMC]

I think that we have to believe that the people who come on here looking for advice are genuine.

The general consensus of the responses is that this sounds like an ill advised purchase. I myself came out very strongly against it with some solid mathematical arguments against entering into this deal. But we all know that many times buying DVC is not a mathematical situation, it is an emotional one. "I'll worry about it later" is enough of a justification to do whatever it takes to get that membership card. Unfortunately, the joy of that card wears off, rather quickly when one is burdened by the monthly costs associated with DVC.

Despite our best intentions, I think that Doug was the only one who actually offered an alternate plan, which is probably what the OP needed to hear the most. It seems what he/she needs is another option to get what he/she wants in a more reasonable and economically sound way.

OP, I think we would all appreciate it if you could check back in and let us know where you are in this process. I hope you read the advice and realize that it is from people who have a lot of experience and really want to see what is best for you. Feel free to PM me (or Doug as I'm sure he'd be willing to help) if you want some help executing the plan he laid out. Good luck.

 

[DougEMG]

I sent the OP a PM a couple of days ago and never heard anything back from them. Hopefully we didn't scare them off and they are instead just taking their time, lurking here and learning more about buying resale.

I spent over 2 years lurking about here, learning everything I could before I made my first purchase.

 

[snackyx]

If they really insist on going through with this, I would suggest buying 301 points...then you win.

 

[cfw213]

If they really insist on going through with this, I would suggest buying 301 points...then you win.

 

[ELMC]

If they really insist on going through with this, I would suggest buying 301 points...then you win.

I was thinking the same thing...but this didn't really go along with the advice I was giving in my previous posts.

 

[mcwarriors2012]

Hey everyone,

I apolgoize for the delay. We got our acceptance letter from DVC yesterday so we are completely THRILLED. I understand fully that our option is not the cheapest way, and hell its probably not the smartest way to go about it... But it is the way WE did it. We did the 10 year plan because it is lower than the 5 year plan. We totally plan on paying it off in less time than that as we will put extra money on it when we can.

All your suggestions were duly noted and I appreciate all of you taking the time to help. This was something we always wanted to do and it is what we did. We just didn't have the 33,000 right now to buy it directly but we will definatley have it paid off in way less than 10 years. We also have the maintenance fees rolled into that 620 a month. The contract is for 490 a month. That is why it is higher.

 

[DizBub]

Hey, Thanks for coming back with the update!!

Welcome!!

 

[AllieV]

Sounds like you got a much better rate than 15% then. I'm not yet a member (still in rofr) so I don't think I can officially say "welcome home" but the sentiment is there.

Have many years of fun

 

[ELMC]

Thanks for the update and I hope everything works out for you. Thank you also for your honesty. Good luck.

 

[glvest]

Welcome home. Hope everything goes well for you.

 

[Shazzasmd]

Congratulations! Only you know what works best for your family, and it sounds like you're happy

 

[bdoleary]

Congratulations on your DVC approval and purchase - I hope it brings you many years of happiness.

 

[gray52]

I'm not buying this story. 300 points only because "brother" said they couldn't afford it... And with creditors calling for payments they're going to add an additional $620/mo in debt at 15%... and pay it off early? Really? $620/mo for a vacation and you haven't even stepped foot in the park... Sorry folks, I ain't buying that one!

 

[DougEMG]

I'm not buying this story. 300 points only because "brother" said they couldn't afford it... And with creditors calling for payments they're going to add an additional $620/mo in debt at 15%... and pay it off early? Really? $620/mo for a vacation and you haven't even stepped foot in the park... Sorry folks, I ain't buying that one!

But does it really matter one way or the other if this was a legit post or not? Made for some interesting discussion.

 

[gray52]

It certainly is a new spin on the "is DVC right for me?" conversation.

 

[mcwarriors2012]

I can't even believe someone is actually doubting the fact that we are members now. I mean I would really make up this whole story... NOT A CHANCE. ALot of people here have said our way wasn't the smartest, and ok maybe it wasn't. And maybe it wasn't the cheapest either... But it is the way WE did it. And we are happy that's all that matters isn't it??? But to say that it was totally made up? Come on now, I have better things to do than to make up a long story about a time share.