10-15 year DVC Financing - "Its a trap!" - Admiral Ackbar

[maui22]

I can only imagine how cheap the monthly payment would be if Monera offered 15 or 20 year loans... $100 or less a month

After reading your post…it dawned on me. 2042 expiration less than 17 years away. No finance company is going to give someone a 20 year loan when they know the product will be worth 0 and owned by Disney in 16.75 years.

Clock is ticking on resale mortgages for HHI, VB, OKW, BWV, and BCV sales.

 

[disneydad7281231]

How Many people upside down on a high interest loan thought they’d pay it off early ? I get what you’re saying but life doesn’t work that way. Also if that 0 percent credit card blows up on you you’re talking about a financial disaster .

I am 31 and have financed and paid off many things early and I am in line to pay off my DVC in 3 years instead of the 10 years I financed for. I use 0% credit cards ALL the time especially Home Depot and never miss a payment.

Think it is more so how financially responsible you are. If you miss payments or rack up credit card debt then obviously it is not for you. If you go upside down on a loan or a 0% credit card blows up that a completely different issue.

Guess my point was renting points for years to save is comparable to interest on a loan in my eye (someone that is financially responsible).

 

[Brian Noble]

Pro tip: Whenever I start a post by saying "I'm not <XXX> but" I am reminded of this sage advice from the 12&12:

Nothing pays off like restraint of tongue and pen.
-Anonymous

 

[davidhr]

Pro tip: Whenever I start a post by saying "I'm not <XXX> but" I am reminded of this sage advice from the 12&12:

Nothing pays off like restraint of tongue and pen.
-Anonymous

Or like I say, nothing good comes after a “but”

(Not a 100% rule, but I like to always check just in case / see what I did there? )

 

[sethschroeder]

So it’s kind of mixed. Wouldn’t your credit score get screwed anyway if Disney took back your timeshare?

I dont think Disney reports foreclosure of their timeshare to credit reports but I could easily be wrong. The loan doesn't even show up on your credit report I dont think. Things could have changed as its been a while since I have seen it posted about.

 

[Girlstar30]

After reading your post…it dawned on my. 2042 expiration less than 17 years away. No finance company is going to give someone a 20 year loan when they know the product will be worth 0 and owned by Disney in 16.75 years.

Clock is ticking on resale mortgages for HHI, VB, OKW, BWV, and BCV sales.

I Better jump on BCV while I Can

 

[Girlstar30]

I dont think Disney reports foreclosure of their timeshare to credit reports but I could easily be wrong. The loan doesn't even show up on your credit report I dont think. Things could have changed as its been a while since I have seen it posted about.

Resale loans don't show up on credit report at all, not sure of Direct

 

[Mouseforward]

Resale loans don't show up on credit report at all, not sure of Direct

Pretty sure it will if they send it to collections.

 

[maui22]

Every month we still see a trickle of direct sales for 2042 expiring resorts. Some of the time, a mortgage is taken out. Won't these 15 year mortgages start running into hiccups a year from now?

Someone buys February BCV in January 2026 with a 15 year mortgage. If they don't pay it off early. Borrow 2041 all 2041 points into 2040 and take a trip Feb 1 to use them all up. They have mortgage payments for another 10-11 months, plus dues, but will never get more points to use.

I could see people using the loophole to escape paying what they agreed to. These loopholes were heavily exploited in the 2007-2008 years and caused Disney some pain.

I don't see many doing this because it would be 14 years of high rates. However, the closer we get to 2042, this loophole may become a problem for the house of the mouse.

 

[disneylandtour]

I am 31 and have financed and paid off many things early and I am in line to pay off my DVC in 3 years instead of the 10 years I financed for. I use 0% credit cards ALL the time especially Home Depot and never miss a payment.

Think it is more so how financially responsible you are. If you miss payments or rack up credit card debt then obviously it is not for you. If you go upside down on a loan or a 0% credit card blows up that a completely different issue.

Guess my point was renting points for years to save is comparable to interest on a loan in my eye (someone that is financially responsible).

If you can get this at 0%, then this sounds great. I did one introductory CC offer where I financed the entire resale purchase at 0%. I could've paid it off, but it was financially better to make the even monthly payment and then finish in two years without any interest. Also, i started buying DVC when I was older, and looking back, I probably should've done something like this when i was your age (31) as back then I simply booked hotel room (often Pop, though sometimes CB or Port Orleans) for cash. it was probably a mistake. But also back then, I didn't know that I'd keep going regularly for years and years.

 

[Brian Noble]

the closer we get to 2042, this loophole may become a problem for the house of the mouse.

There are several ways to deal with this.

First, I suspect they will not write a loan that goes into the last several years of the deed, shortening the possible loan window.

Second, something that other timeshares have done: You cannot use next year's assets until you pre-pay the (estimated) fees. For example, I own a fixed week I use as a trader. I cannot deposit it to an exchange until I have pre-paid the fees for that year of use. So, if I deposit 2026 before the annual fees are billed, they will collect an amount equal to the 2025 fees as a credit towards the 2026 amount. When the budget is finalized, I am billed for the remainder.

 

[Disneydad14]

If you can get this at 0%, then this sounds great. I did one introductory CC offer where I financed the entire resale purchase at 0%. I could've paid it off, but it was financially better to make the even monthly payment and then finish in two years without any interest. Also, i started buying DVC when I was older, and looking back, I probably should've done something like this when i was your age (31) as back then I simply booked hotel room (often Pop, though sometimes CB or Port Orleans) for cash. it was probably a mistake. But also back then, I didn't know that I'd keep going regularly for years and years.

0 percent financing isn’t the Great deal it sounds if it causes you to spend more than you would have originally . Disney is making month both on the purchase and the financing . Most times that happens they offer you a good rate like with new car financing .

 

[disneylandtour]

0 percent financing isn’t the Great deal it sounds if it causes you to spend more than you would have originally . Disney is making month both on the purchase and the financing . Most times that happens they offer you a good rate like with new car financing .

It's not Disney that's offering 0%. I believe that people are looking at introductory pay-over-time 0% (typically with a two year limit) on cards.

 

[Disneydad14]

It's not Disney that's offering 0%. I believe that people are looking at introductory pay-over-time 0% (typically with a two year limit) on cards.

I know but it’s a horrible idea . The only way it’s not a horrible idea is if you literally have the exact amount in cash already and have it in some time of guaranteed investment like a cd

 

[Sandisw]

I know but it’s a horrible idea . The only way it’s not a horrible idea is if you literally have the exact amount in cash already and have it in some time of guaranteed investment like a cd

Except it’s your opinion it’s a horrible idea. And, of course, you get to have that opinion.

But, not everyone has to view financial decisions the same way as you and if someone wants to finance things, whether it’s 0% or more, it’s okay to do it.

Which is why these threads tend to go downhill pretty fast because you have some who feel financing is bad and if you do it, you don’t understand how financial situations work.

No one knows someone else’s situation. The best we can do is help make sure people consider pros and cons and go from there.

 

[Disneydad14]

Except it’s your opinion it’s a horrible idea. And, of course, you get to have that opinion.

But, not everyone has to view financial decisions the same way as you and if someone wants to finance things, whether it’s 0% or more, it’s okay to do it.

Which is why these threads tend to go downhill pretty fast because you have some who feel financing is bad and if you do it, you don’t understand how financial situations work.

No one knows someone else’s situation. The best we can do is help make sure people consider pros and cons and go from there.

With all due respect not really . It’s not a scientific fact I’ll give you that but no responsible financial advisor or person would tell you to finance luxury vacations . It’s not just a difference of opinion it’s irresponsible to tell people it’s ok to finance luxury items they can’t afford .

 

[BeachClub2014]

With all due respect not really . It’s not a scientific fact I’ll give you that but no responsible financial advisor or person would tell you to finance luxury vacations . It’s not just a difference of opinion it’s irresponsible to tell people it’s ok to finance luxury items they can’t afford .

....in your opinion.

Others may feel differently.

I haven't seen anyone suggest that financing DVC is a great idea, but instead, embracing the concept that there's no added value in shaming others who manage their money how they choose. If people want to finance DVC, then have at it!

 

[atthebeachclub]

With all due respect not really . It’s not a scientific fact I’ll give you that but no responsible financial advisor or person would tell you to finance luxury vacations . It’s not just a difference of opinion it’s irresponsible to tell people it’s ok to finance luxury items they can’t afford .

As a blanket rule, I agree with you. HOWEVER…blanket rules don’t fit all scenarios. There really are exceptions occasionally, and some people do fit them. I think everyone should map out how much interest they will pay if financing and compare to alternatives. But some people will find financing to be the best choice for them. It’s not for me, but they may have a different situation than I do.

 

[Brob2132]

I know but it’s a horrible idea . The only way it’s not a horrible idea is if you literally have the exact amount in cash already and have it in some time of guaranteed investment like a cd

The original poster started out by saying that financing DVC for 15 years is not a good financial decision. It's not, point blank. But people do it because they want the product and some people don't live on spreadsheets.

But financially your opinion about not breaking up payments for free over two years not only comes across as sanctimonious, but financially it's incorrect.

Money now is worth more than the same amount of money in two years. Therefore, taking advantage of "free money" is actually financially wise.

Now if you put money on a credit card that you can't pay back and is over your budget, then of course that's not wise. That's true for anything.

 

[atthebeachclub]

As a blanket rule, I agree with you. HOWEVER…blanket rules don’t fit all scenarios. There really are exceptions occasionally, and some people do fit them. I think everyone should map out how much interest they will pay if financing and compare to alternatives. But some people will find financing to be the best choice for them. It’s not for me, but they may have a different situation than I do.

Adding to my controversial opinions: a lot of people have a lot of opinions and feelings about HELOCs, too. And using HELOCs or similar to buy timeshares. *If* the HELOC offers the best rate *and* you can afford it *and* you were going to finance anyway *and* you have over 50% equity, I actually don’t even take issue with financing DVC via HELOC or similar financial product.

No, it isn’t for everyone. But for some people in the right scenario in states with strong laws protecting homeowners, it might be reasonable.

I’d even consider it myself in the right short term scenario if the loan was small and the math worked in my favor. I have 100% equity in my home and sometimes feel that percent is quite unreasonable for someone my age, given low borrowing costs and high market returns in previous years.