Are these incentives good? I have to make a decision by tomorrow

[tootsiemolly]

Tomorrow my 3 days are up. I want to purchase. My husband wants to wait. I feel like he is right we need to build up our savings. But, I don't want to pass up a good deal. So based on the incentives do I purchase or wait?

Thanks So much for all of your help. Tomorrow I have to get back to the DVC agent. I am wondering if the incentives are good, or if I can wait to purchase later. Will all of you experienced DVC owners please help me.
1. Right now SSR is 89.00 a point. They will knock off 5.00 a point at let me use it towards the down payment.

2. That gives me $750 toward my down payment.

3. If I purchase 150 pts I will need to pay $1950 out of pocket. He told me I would ne 20% down. Can I pay 10%?

4. 9.75% APR
5. No interest on loan until May 1, 2004
6. No annual Dues until June 7, 2004
7. No Loan payment until June or July 1st.
8. No closing cost.

So, are these incentives the usual deal? or are they great? Can I get better if I wait? please let me know

Thanks



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[pirateparrot]

Right now I believe that is the best deal you are going to get direct from Disney.

Originally posted by tootsiemolly

1. Right now SSR is 89.00 a point. They will knock off 5.00 a point at let me use it towards the down payment.

Up until 10/31, the discount was $10 per point as the resort was no where near completion. Other promotions they have offer in previous years were called Magical Beginnings and you could get the discount but you had to forfeit your first year points back.

3. If I purchase 150 pts I will need to pay $1950 out of pocket. He told me I would ne 20% down. Can I pay 10%?

I don't think that is negotiable. I think they will give you an additional 15 - 30 days to make the rest of the downpayment as long as you put at least $500 down.

4. 9.75% APR?

Don't think that is negotiable. Most people on these boards will recommend a home equity loan for a much better rate. I think the rate is lower if you finance for a shorter period of time or put more money down.

5. No interest on loan until May 1, 2004
6. No annual Dues until June 7, 2004
7. No Loan payment until June or July 1st.

I don't think this is much of a benefit because you can't even use it until sometime in June anyway so they are not really giving you anything.

8. No closing cost.

Regular deal when you buy through Disney. You can also buy resales at a lower price per point and for other DVC resorts that are currently sold out but the closing costs are around $400 so that adds significantly to the per point cost of a resale.

BTW - You can use your points at any of the DVC resorts but you will get an 11-month booking period for your home resort but only 7 months at the other resorts.

So, are these incentives the usual deal? or are they great? Can I get better if I wait? please let me know

I think that is the best deal you are going to get from Disney for quite sometime unless sales really drop off or they open another resort. I would not expect that for several years.

I really have issues with Disney forcing you to make a decision within 3 days once you take the tour. I was fortunate because I did everything by phone and they did not put those limitations on me. Also remember you have 15 days to cancel (no sure if that is after you make a deposit or after you sign the papers) so you can get out if you have a change of heart.

As for going with a resale, the general advice on these boards is buy where you want to stay most often.

Hope this all helps. If you have any questions just ask, there is a wealth of knowledge here.

 

[manning]

The important question is, CAN YOU AFFORD IT? If not, then it is not a good deal.

The other question might be where do you want to be financially in the future, and what will it take to get there.

Only you and your husband have those answers.

Take the emotion out of it and examine the pros and cons.

 

[Cruelladeville]

Don't let them force you to do anything you are not sure of. This is a much higher type of pressure than Disney usually does, and hey, if you don't care where you stay, tell them no. You can always rent points for a year or two to see if DVC is for you, or you can buy a resale at one of the other resorts. Resales are running about $72 a point now, and you pay closing of about $450, and you need to find your own financing, but it may be a better fit for you than paying $84 at SSR.

 

[dianeschlicht]

Don't let them force you to do anything you are not sure of. This is a much higher type of pressure than Disney usually does, and hey, if you don't care where you stay, tell them no. You can always rent points for a year or two to see if DVC is for you, or you can buy a resale at one of the other resorts. Resales are running about $72 a point now, and you pay closing of about $450, and you need to find your own financing, but it may be a better fit for you than paying $84 at SSR.

I think this is very sound advice. It sounds like you are uncertain you can afford this at this time. I think renting and then planning a resale purchase when you can better afford it would be excellent things for you to try. It also give you the flexibility of staying at each of the DVC resorts once, to know where you want to own.

 

[burnsoc]

One other thing to consider is that the price won't get any cheaper. We purchased in April of 2002 when it was $79 a point, with the $5 discount we paid $74. Less than two years later there has been two increases. I wouldn't pressure yourselves into buying now, but if you think you might get a better deal later it isn't going to happen. DVC is an easy sell, so Disney doesn't need to offer large discounts. If you're going to wait, resale might be the way to save some money.

 

[stacy6552]

Here's the cool thing to consider, if you finanace now....

no payments until June means that you can buy and set up the loan. Then you have until June to investigate other loans, like tying it into your home with a lower interest rate. When June rolls around pay it all off with your better loan.

 

[CarolMN]

With all due respect, I think you should listen to your husband. Based on your post here and on another thread, it is my opinion that DVC is not right for you - at least not now.

DVC is a prepaid vacation program. Funds for DVC (and other timeshares, vacation clubs) should come from discretionary funds - those left over after you have paid for the truly essential. If you've just come out of bankruptcy, my guess is funds might still be tight. Good to hear that your DH has found a good job and things are looking better for you.

Again, it's just my opinion, but there are lots of other things that should come ahead of DVC. Those include saving for a secure retirement and college for your children. Do you already have an emergency fund of 3 - 4 months of living expenses set aside? Do you have credit card balances or other loans that should be paid off? Do you and your DH each have sufficient life insurance? Does your family have adequate health insurance?

DVC is really only a good deal for those who travel regularly to Disney (at least every other year) and stay on site, at a moderate or deluxe hotel when they do. DVC takes care of lodging only. It does not take care of the other expenses of a WDW trip - such as airfare or gas to get there, food and drink while you are there, local transportation and souvenirs. Admission to the parks is a big expense all by itself!

There are lots of ways to spend quality family time together that are much less expensive than Disney. Don't lock yourself into something just because you might "miss out on a good deal." There will be other opportunities to buy into DVC - please don't let "DVC cheerleaders" entice you into persuading your DH to join against his better judgement. Better to wait.

Best wishes!

 

[tootsiemolly]

Thanks so much for everyones input. Today came and went and so did the incentives. We decided to wait. We don't have any credit card debt. We do have two car loans though, and feel like we would like to have at least one paid off before we purchase. We also have 4 months of savings. I think after you experience financial failure like we did. (Our flooring buisness went south after 8 yrs.) the economy killed building in Park City, and we moved our store out South of Salt Lake and we couldn't sustain it on retail only. We are both very afraid of getting into something or using a substantial part of savings toward this right now. And yes we have great life insurance and Health Insurance. I am just afraid of anything that is risk right now. After my past experiences I would like to have paid off cars and enough saving in the bank to pay off my house if I needed to. So, we will wait. If my husband keeps making great money that won't take to long. Its just all the what if's that cause me to be uncertain. I never want to experience what I have been through ever again

Thanks for all of your help!!!!

 

[manning]

A very wise decision!!!

 

[pmcpmc]

Buy a small resale of 50pts.or so and add on when you can

 

[burnsoc]

Definitely a good decision right now. I hadn't read your other post and was unaware of your financial difficulties earlier. There is no need to add unecessary financial stress to your life. My DW and I had wanted to buy in when we were on our honeymoon, but wisely waited until we had bought a house and could pay cash for DVC. I look forward to giving you a welcome home in the future!

 

[Richyams]

wimp....

 

[burnsoc]

Fascist...

 

[TheRustyScupper]

1) I think you made a sound choice.
2) It is best to get a nest-egg, then purchase.
3) If you want DVC vacations, simply rent points until you buy.

 

[Scratch42]

Don't Do It!

m2w!

Scratch