? about dvc purchase

[jngff]

we are looking into a dvc purchase hoping for some insider knowledge. first are there any hidden cost such as document fees ect? also downpayment is 20% norm? are most applications accepted? if not for what reasons? also if they buy back first years points does that mean you need to wait a yr to use new points or do you have to borrow points? any help is appreciated
thanks

 

[justcruisin]

Hi,
When you purchase through Disney there are no extra or hidden charges. I don't recall the amount we put down, if anything at all.
Yes, I believe if you sell back your first years points you do need to wait or borrow.

We've been really happy with our decision to buy and have added on 30 points and I'm tyring to figure out how to buy more!

I hope I've answered correctly, but I'm sure someone else will be able to help if I'm wrong.

 

[ErinC]

I'll try to answer a couple of your questions. If you purchase through disney they pay the closing costs. I can't remember any document fees, but I could be wrong. Most all of the discussions we've had on this board, I don't think we've ever heard from anyone who was not approved for financing. I think there were a couple of cases of some folks being asked to put a larger down payment down, but not denied totally. They seem to be pretty easy going about your credit history. If you choose to sell back your first years points, you can either wait a year to go or borrow from the next year's allotment. You generally get a use year that dates back somewhat, so you might not have to wait a whole year if you didn't want to borrow.(Ex. When we purchased in late July , we received a Feb. use year)Hope these answers help. Erin

 

[Happy Birthday Cat]

are there any hidden cost such as document fees ect?

No, Disney is upfront about costs.

downpayment is 20% norm?

You can put down 10% but expect to pay a higher rate of interest. 20% seems to be the norm.

are most applications accepted?

Yes but they sometimes ask you to put down more than the 20% if you have something in your credit history they don't like.
I have heard 30% mentioned on these boards. It also doesn't show up on your credit report.

also if they buy back first years points does that mean you need to wait a yr to use new points or do you have to borrow points?

That gets into the whole use year issue. If you have a February use year and sell back February 2003 points but make your first reservation for February 2004, then they are not borrowed. It all depends on when your reservation is for. I would imagine you could get something with 2002 points and sell them back. That way you would not wait a full year.

 

[Sharper]

People try to be helpful, but sometimes the information is outdated or incorrect.

As of this moment, the current Disney incentive is that you get the 2002 points, paying no maintenance fees, but Disney will buy them back at $10 per. That means that you will still get your 2003 points, so you would be able to take a trip in 2003 without necessarily borrowing. It just depends on when your use year is, e.g., if you have an August use year, and sell back your 2002 points you would not get 2003 points until August 1, 2003.

The really great thing about buying from Disney is that there are NO hidden costs. Basically you pay the price per point and pro-rated maintenance fees for 2003 and that's it. No closing costs whatsoever. Quick and simple.

 

[jngff]

thanks to all of you for the answers it does help out this is a wonderful site

 

[pstepka]

Is there a general lenght of financing? Or does it vary depending on how many points you're buying?

Pam

 

[Luvdisney]

I believe they had 3 lenghts for payback. 1 yr, 3 yrs or 10 years. Minimum down was 10 % but if you wanted a better rate had to put 20% down and be willing to allow for auto withdraw from a bank account. I think the rate when we bought was 11.9 at 10%down and 10.9% at 20% down. Had them go through the financing, but paid it off in full before the first payment was due. I got a better rate with a home equity loan.