About to Join the Club

[princesspooh323]

My husband and I will be purchasing either 160 or 175 points through Disney on Monday at $115 per point for 30 years for BCV's. We have have two DS's 8 and 3 years old, so we have many more Disney years ahead of us. We usually travel in August, but we will want to go in October at least once and possibly in the spring. We know we can save a bit going through resale, but we would like to go through Disney and use their financing. I have done a great deal of research, and I have frequented these boards for years. I just wanted to ask if there is anything that I am overlooking with this deal.

Thank you!


Pop Century/ BLT Aug. 2012
Polynesian/Caribbean Beach Aug. 2011
All Star Music/ Port Orleans French Quarter 2009
Disney Wyndam 2002

 

[Dean]

My husband and I will be purchasing either 160 or 175 points through Disney on Monday at $115 per point for 30 years for BCV's. We have have two DS's 8 and 3 years old, so we have many more Disney years ahead of us. We usually travel in August, but we will want to go in October at least once and possibly in the spring. We know we can save a bit going through resale, but we would like to go through Disney and use their financing. I have done a great deal of research, and I have frequented these boards for years. I just wanted to ask if there is anything that I am overlooking with this deal.

Thank you!


Pop Century/ BLT Aug. 2012
Polynesian/Caribbean Beach Aug. 2011
All Star Music/ Port Orleans French Quarter 2009
Disney Wyndam 2002

$70 a point vs $115, I'd reconsider your choices. But then again I'd buy less points and not finance or not buy now if financing were in the equation.

 

[zmanandshan]

$70 a point vs $115, I'd reconsider your choices. But then again I'd buy less points and not finance or not buy now if financing were in the equation.

I agree. We bought resale 2 years ago. Granted it was before the new rules, but we wouldnt use our membership for those other things, anyway.

 

[princesspooh323]

We understand that using the points for the other options is not the best use of points, but we do still like having that option available. In regards to waiting until we don't need to finance, I understand that, but in the meantime we will be spending $2000+ per year to stay at a deluxe resort or to rent points.

 

[Dean]

We understand that using the points for the other options is not the best use of points, but we do still like having that option available. In regards to waiting until we don't need to finance, I understand that, but in the meantime we will be spending $2000+ per year to stay at a deluxe resort or to rent points.

Your choice of course. Dollar wise you'll pay A LOT more in the long run if you finance, all else being equal. If you truly wanted to buy but wanted to save up a couple of trips, you could compromise on the accommodations by staying at moderate/value or off site or even skip a year. Or as you say, renting which is likely your best on property option.

If you paid 20% down, you'll pay around $11-12K in interest over the life of the loan. Assuming your numbers of $2000 a year for a deluxe, comparing to a DVC studio (about all you'll get yearly for those points) and the almost $1000 a year you'd pay in maint fees alone, I feel you're still better off waiting and saving up the money.

 

[Crazy4Disney06]

If you really feel the need to bye now you can still finance through resale and still save a ton. We are in the process of buying resale and waited until we could pay cash.

 

[eyor44]

Do you belong to a credit union? We are financing ours through our credit union at 1/2 the interest rate that Disney is offering. And then we will pay it off way before the end of the loan.

I am like you. I have found what works for us and did research and crunched numbers for about 4 years. I will come out much cheaper doing it this way.

 

[Dean]

Do you belong to a credit union? We are financing ours through our credit union at 1/2 the interest rate that Disney is offering. And then we will pay it off way before the end of the loan.

I am like you. I have found what works for us and did research and crunched numbers for about 4 years. I will come out much cheaper doing it this way.

While overall that's a better choice, do remember that the interest is not tax deductible done in that manner.

 

[disneynutz]

Your choice of course. Dollar wise you'll pay A LOT more in the long run if you finance, all else being equal. If you truly wanted to buy but wanted to save up a couple of trips, you could compromise on the accommodations by staying at moderate/value or off site or even skip a year. Or as you say, renting which is likely your best on property option.

If you paid 20% down, you'll pay around $11-12K in interest over the life of the loan. Assuming your numbers of $2000 a year for a deluxe, comparing to a DVC studio (about all you'll get yearly for those points) and the almost $1000 a year you'd pay in maint fees alone, I feel you're still better off waiting and saving up the money.

Between financing and buying direct, that's $20,000.00.

Bill

 

[Sandisw]

We understand that using the points for the other options is not the best use of points, but we do still like having that option available. In regards to waiting until we don't need to finance, I understand that, but in the meantime we will be spending $2000+ per year to stay at a deluxe resort or to rent points.

I have to say, this was part of our thinking when we were deciding on DVC. We felt that if we were going to continue to go every year anyway, we might as well see if we could own DVC for no more than we were currently paying.

We looked at the Disney financing and compared what it would cost us to buy this way (MF's too) to what we were spending on our room at deluxe. We figured if it didn't come out to more than what we were spending anyway, then we would buy.

While it may not be the savings it could be, we felt that in 10 years, when the payments were over, we would be in a better position than just paying cash. For us, whether we spent the money on a cash ressie through CRO or for DVC payments, the money was vacation money that would be spent.

We ended up working things out, using our Disney Visa, and getting 0%, 6 months interest free, and paying it off in that time so we didn't end up financing, but would have done it had things not worked out the other way.

The only other piece to make sure is that you are choosing a UY that fits with your travel plans. With August and fall trips, hopefully, you have been encouraged by Disney to take a June or Aug UY as traveling in the beginning of the UY allows the most flexibility in terms of what to do with points if you have to cancel or change.

As long as you recognize how financing and paying Disney's high prices plays into the overall scheme of things, then, IMO, you are making a decision that is an informed one for you.

I will mention, though, that the perks you get from Disney for buying direct over resale (ie: using for cruises, Disney collection, etc.) are JUST perks and that Disney can take those away from you, even as a direct purchaser, at any time. Those are not guaranteed as part of the deal.

I just caution any new member to not use perks to make or break your decision because at the end of the day, what you are buying and guaranteed is the right to stay at your home resort only--be sure to read through all the documents you get during your 10 day rescind period!

Good luck!!!

 

[Dean]

Between financing and buying direct, that's $20,000.00.

Bill

Exactly, if you invested the difference up front and interest, you'd be closer to $25000 by the end of the usual 10 year financing. When this issue comes up often someone jumps in and reminds us that vacations in general are expensive and it's cheaper to stay home, which is true. However, assuming one wants to go to WDW most years, DVC CAN be (but often isn't) a money saver compared to deluxe's and roughly break even compared to moderates. The approach of overpaying and financing removes much of the value of owning for most situations. Off property and exchanging can be even cheaper, my stays are usually in the $300-400 range (lodging) per week for Orlando including direct and indirect timeshare costs.

Obviously there are many factors and personal preferences. When the difference was maybe 20%, DVC didn't charge closing and the RTU was longer, I felt like it was reasonable to go either way in many circumstances. I no longer feel that way other than the fixed week option for HI and possibly BLT/VGF. Now it's possible this will change if DVD can differentiate the retail product sufficiently but to date, NOTHING that's restricted resale removes value, if anything, it protects members from themselves.

 

[amypetecar]

Here's another vote for re-sale. I can appreciate wanting the options to use your points for more than just disney dvc, but consider the math.

One example. A week at the Poly by trading points is somewhere around 350 points plus $95 fee.

Cash reservation is somewhere around $400 per night. 6 nights equals $2400 cash. Rent your 350 points for $10 per point and earn $3500. Saves you $1200 in your wallet (including the $95 fee) compared to trading points.

It's all rough math, and numbers can vary. But even in addition to the 10K on principale costs, you'll still save by buying resale and renting the points for other vacation options.

By the way, you'll NEVER have trouble renting Beach Club points. They are in high demand.