Called about financing today....

[jdb0822]

called to see if I qualified for disney financing today. Approved for 10% down and a rate of 14.25

ouch.

 

[disneygal2007]

i know it's crazy. If we were to do it I would have to get a job just to pay the fees. NOT READY TO LEAVE MY KIDS YET!!!!!!!!!!!!!

 

[3DisneyKids]

a rate of 14.25

just say no....

 

[CarolA]

WOW! That's a high rate.

I would probably wait if I were the OP. The standard rate is 10.75% which is high, but better so perhaps if the OP waits a year or so, his/her credit score might get them a better rate.

 

[MinnieGirl33]

Or see if a larger down payment would reduce the rate???

Otherwise, I would wait or find my own financing.

 

[PinGirl]

called to see if I qualified for disney financing today. Approved for 10% down and a rate of 14.25

ouch.

Or maybe buy a smaller resale account and do add on's as you can afford it with cash - thus avoiding any finance charges? This is how they really make their money as with the financing - it of course adds on to your overall cost for the timeshare over years in addition to your maintenance fees.

Maybe save and buy a litter later than you were planning to - it will be harder - but save you the extra money in the long run.

 

[Luv2trav]

We worked out the financing on just the 10.75% that we qualify for. So let's say we bought 200 points for 17,000.. We would be paying 12K in interest over 10 years... OUCH... I just say NO way to finance charges. I will wait until we can afford to pay cash..

 

[utahkennedys]

Yikes, sounds like the OP would be better off renting than paying those kind of crazy interest rates! I really like our small, cash purchase at OKW! Now we can add on again with cash and even though we don't have as many points as we'd like, they are "ours"!

 

[PinGirl]

Yikes, sounds like the OP would be better off renting than paying those kind of crazy interest rates! I really like our small, cash purchase at OKW! Now we can add on again with cash and even though we don't have as many points as we'd like, they are "ours"!

We did they same thing with Boardwalk - We thought it was more cost effective!

 

[flyerron]

Please don't get too hung up on the rate. It should be a factor but the real issue is cash flow. If 14.75% is the best you can do & if the monthly payment works--don'let it stand in the way.the difference in monthly payment may only be a few dollars. Again it is the cash flow that is most important.

 

[Mtnman44]

This sounds like a car salesman...

Please don't get too hung up on the rate. It should be a factor but the real issue is cash flow. If 14.75% is the best you can do & if the monthly payment works--don'let it stand in the way.the difference in monthly payment may only be a few dollars. Again it is the cash flow that is most important.

 

[mgriff75]

Certainly cash flow is a major consideration. If you don't have the money to pay the bill you will be in trouble. But you really need to run the numbers and see if makes since for you when paying the high interest rate. Just because you can doesn't mean you should. If you have been going to disney every year, twice a year sometimes, and staying at the deluxe resorts, or cash for a DVC resort, then it might make sense to pay the 14.75%. (I find it hard to believe but it might make sense) But it is going to take a very long time to start saving any money at that rate. For me timeshare in general makes sense to save money and enjoy a high level of comfort while on vacation, if I can't do both I'm not interested. If your going to use DVC financing for a year or two, and then refi out with a home equity loan that might work. The $2000+ a year in interest would pay for a good number of nights in a value or midlevel resort Disney resort. Of course for you timeshare might not be about saving money, maybe its just about comfort, if that is the case and you have the cash flow go for it.

 

[flyerron]

This sounds like a car salesman...

Nope I'm a doctor. I did run the numbers & financing $13,376 which is 160 points less 10% down & $10 incentive credit--at 10.75% 5 yrs is 289.16 per month at 14.25% $312.97 per month. For the 10 year financing $182.37 at 10.75% and $209.70 for 14.25%.
Obviously there is a difference but if there is a credit history that requires a higher % & it is affordable then so be it. The real question is whether a better dael can be reached through the bank at home or even if possible a home equity loan. chances are a better deal can be had. My point is if thats the best deal you can get & you want it & can afford it go for it. Look at the cash flow as the most important thing!!!

 

[ZekeKelso]

$13,376 which is 160 points less 10% down & $10 incentive credit

Pardon a brief moment of geekiness

[($104 - $10) x 160] - 10% = $13,536, not

[($104 - 10%) - $10] x 160 = $13,376

Yeah, I know, you're a doctor, not a banker. (Feel free to call me Jim).

But, otherwise, excellent analysis.

 

[jdb0822]

yeah, we are gonna have to think hard on it.

The issue at hand is that we currently stay in a value resort, but because there is 7 of us, we require 2 rooms, so at $99 a night, its about $225 a night with tax. So, I am thinking instead of paying $225 a night on value, how about just pay a bit more for DVC, and have much larger accomodations.

 

[El&Asmom]

yeah, we are gonna have to think hard on it.

The issue at hand is that we currently stay in a value resort, but because there is 7 of us, we require 2 rooms, so at $99 a night, its about $225 a night with tax. So, I am thinking instead of paying $225 a night on value, how about just pay a bit more for DVC, and have much larger accomodations.

I too suggest the resale route with a small contract. We just paid for a small HH contract cash, and will be adding on through Disney as we need, and can afford to pay cash. Look for a contract with banked points that you can use for this years trip with borrowing. Then you can use the next year to save for more points with the money you save in financing.

 

[flyerron]

Pardon a brief moment of geekiness

[($104 - $10) x 160] - 10% = $13,536, not

[($104 - 10%) - $10] x 160 = $13,376

Yeah, I know, you're a doctor, not a banker. (Feel free to call me Jim).

But, otherwise, excellent analysis.

Jim, Those numbers are a direct quote from the Disney Financing chart. I didn't work up the financed amount. Their number is $13,376

 

[Tigger1]

Do not forget the cost of maintenance per month. We did a home equity loan to pay for ours. That dropped the interest to about 6.5 %

Tigger

 

[crisi]

Nope I'm a doctor. I did run the numbers & financing $13,376 which is 160 points less 10% down & $10 incentive credit--at 10.75% 5 yrs is 289.16 per month at 14.25% $312.97 per month. For the 10 year financing $182.37 at 10.75% and $209.70 for 14.25%.
Obviously there is a difference but if there is a credit history that requires a higher % & it is affordable then so be it. The real question is whether a better dael can be reached through the bank at home or even if possible a home equity loan. chances are a better deal can be had. My point is if thats the best deal you can get & you want it & can afford it go for it. Look at the cash flow as the most important thing!!!

Or, completely ignoring the time value of money, an extra $2857 on the contract over $10 years. You may have an extra $2857 in your budget, but not everyone does. That's making the contract 21% more expensive.

There are a lot of things I'd like to do with $3000 than pay Disney for using their money.