Monthly Payment

[JennyMominRI]

For those who have bought 160 points at the VAK, how much is the monthly payment with dues? Is it around 200? We are not DVC owners,so we would be paying full price.

 

[blueroses]

Hi Jenny,

I can't give you exact numbers, but I can extrapolate from the paperwork I got back in March. My AK contract says estimated dues for that property are $4.62/pt. That comes to $61.60/month for 160 points.

Someone here can correct me, but I think the $8/pt incentive for AK is about to go away, which means if you put 10% down and finance for 10 years, you're looking at ~<$190/month. So it's more like $250/month for 160 points.

There's probably someone out there who can tell you to the penny though!

 

[hellerjw]

I guess I'm the first to tell you to the penny

Assuming you are financing through Disney for 10 years w/ 10% down, you get the preferred financing rate of 10.75% and the $8 pt incentive is still valid your monthly cost for 160 pts would be $186.73/month.

Your annual dues (based on this years $4.6186/pt) would be $738.98 or $61.58/month. Thes dues are not part of the financed total and are paid separately.

There are also closing costs of approx. $320 for a financed contract, which can be rolled into the financing so you don't have to pay it out of pocket.

Hope this helps.

 

[ckmoore]

Does anyone know if the discount is truly going away soon? I know I have heard that the discount for current DVC owner is going away, but I haven't heard of anything else.

I would appreciate feedback because we are in the decision process and this would probably hurry us along. I was under the impression we would have more time since the Saratoga incentive didn't go away and the size of the AKV would allow it to go on. Maybe my thinking is wrong. Let me know your opinion you seasoned vets. THANKS!!!!!!

 

[hellerjw]

What I've heard is that the incentives will go away the first part of June. I've seen different dates (June 4th, June 6th, etc) but don't know if any are valid or not.

I don't think anyone will really know until after those dates. Disney could decide to extend it but I haven't heard anything to that effect yet.

 

[Zoom]

Hi! I own at SSR with 160 pts, reading this thread made me look at my monthly dues statement. SSR's dues are 4.1229. Total of $659.67/year and if i divide it to 12 mons. It should be $54.97. Then how come they're charging me $65.97/mon., there's an $11 difference. Am I missing something? Should I call MS Acctng. to check?

 

[JennyMominRI]

Thanks for the info everyone..Unfortnately,I have to wait until august or so to buy...I have some medical bills I want to get out of the way before I buy a luxury item.

 

[hellerjw]

SSR's dues are 4.1229. Total of $659.67/year and if i divide it to 12 mons. It should be $54.97. Then how come they're charging me $65.97/mon., there's an $11 difference. Am I missing something? Should I call MS Acctng. to check?

I suspect if you bought recently and got some 2006 points in addition to 2007 points then that $11 difference is the pro-rated dues for those 2006 points.

I assume you don't own any other small add-on contracts?

 

[marciagms]

We bought 160 points for Saratoga Springs in March 2005. We pay $54.97 a month for yearly dues and $159.02 monthly financing for 10 years. Look at it this way you will have a week or more a year at a wonderful resort at Disney, you are just paying monthly instead at check-in. After 10 years of payments then you will have an additional 40 years of wonderful Disney resorts stays without any charge. We were so happy with our decision. Our first 4 trips to Disney we stayed at he All-Stars and our first DVC trip was last June at the Boardwalk. What a difference? We are so spoiled now. I am now trying to plan our next trip. I hope this helps.

 

[hellerjw]

After 10 years of payments then you will have an additional 40 years of wonderful Disney resorts stays without any charge.

Other than the yearly dues you mean. Over the life of the contract the yearly dues will cost far more than the initial contract price. Its just after you payoff the initial contract the only expense is the yearly maintenance fees.

 

[marciagms]

That's right! I did not forget about the yearly dues. Thanks

 

[dianeschlicht]

Frankly, I would wait until you can pay for the contract in full. I see no real reason to pay interest on a luxury item like a timeshare.

 

[Mtnman44]

I totally understand what you are saying, but I think there is more to the debate than simply a black or white decsion. What if a family spends and will continue to spend say, $3,000 a year on Disney Hotels anyway? Now they don't borrow that annual vacation money, but they would have to borrow the $20k or whatever for a DVC contract purchase. In a case like this, I can see where borrowing might be a worthwhile idea in the long run. That money would be spent anyway each year, but with DVC it's also being invested in future vacations. After a certain number vacations, the amount of the initial purchase will have been "saved" and then subsequent vacation stays will come in at a very low price. In some situations, that is an acceptable value against the cost of financing.

Frankly, I would wait until you can pay for the contract in full. I see no real reason to pay interest on a luxury item like a timeshare.

 

[JennyMominRI]

I totally understand what you are saying, but I think there is more to the debate than simply a black or white decsion. What if a family spends and will continue to spend say, $3,000 a year on Disney Hotels anyway? Now they don't borrow that annual vacation money, but they would have to borrow the $20k or whatever for a DVC contract purchase. In a case like this, I can see where borrowing might be a worthwhile idea in the long run. That money would be spent anyway each year, but with DVC it's also being invested in future vacations. After a certain number vacations, the amount of the initial purchase will have been "saved" and then subsequent vacation stays will come in at a very low price. In some situations, that is an acceptable value against the cost of financing.

We go 3 times a year, usually to a deluxe resorts with an AP rate.. I've probably spent 12,000 in the past 4 years on rooms..I'd rather use that one something permanent...I'm going with AP rates in July for 8 days and paying 2100$ for that..With another trip in Dec I will pass 3000...This year I'm also 1 trip short of normal because DH spent much of the last 4 months in the hospital ..I'm going to get a 10 year contract but my plan is to pay it off in 5...As a disabled veteran I have a guaranteed income that only goes up every year and will never go away..If I didn't have incme security I might do it differently

 

[hellerjw]

There is no "right way" to buy into DVC. It just depends on each members individual resources and what they want to gain from DVC.

Given that DVC is a luxury purchase, it would probably be best to pay cash for it upfront. However, my feeling is if you are already going to WDW frequently and shelling out $3000+ trip why not apply some of that money toward DVC and lock-in your lodging costs for the next 50 years.

I tend to go for longer terms on financing, knowing up front that I plan to pay off the balance in 1/3 or 1/2 the overall term. I get the benefit of having a lower payment each month should I have some lean months and the interest paid is far less than if I went the full term.

At least with financing through Disney it doesn't show up on your credit report and you get a small tax deduction in the process.