Can I pay off DVC faster?

[TorontoGirl]

Hi - If I do buy direct from Disney and op for financing from them - can I pay it off faster than the agreed upon term? I don't think I can do it in a year but I know I can do it faster than 5 years. TIA

 

[han22735]

Yes you can pay it off quicker.

 

[jeepnjudy]

Their financing is at a ridiculous rate...you would be better off to refinance to a lower rate which would assist with paying the DVC off much quicker as well!

 

[TorontoGirl]

Whoo Hoo! Thanks!

I plan on getting it refinanced as soon as my credit rating improves with my local Canadian bank...Recently debt free but with crappy credit and we go down at least 2 times a year for 4-7 nights each time, not having kids but plan on going to Disney for a long time...DVC makes sense for us but we want the perks of direct once it has paid for itself. PS - I'm sick of values and my DH doesn't see the advantage to Mods - we really want to move up to deluxe!

Am I crazy?

 

[bumbershoot]

Absolutely. They make it very very easy.

We finally got tired of the dvc mortgage and threw the last 3 grand at it to be done with it.

 

[bumbershoot]

Whoo Hoo! Thanks!

I plan on getting it refinanced as soon as my credit rating improves with my local Canadian bank...Recently debt free but with crappy credit and we go down at least 2 times a year for 4-7 nights each time, not having kids but plan on going to Disney for a long time...DVC makes sense for us but we want the perks of direct once it has paid for itself. PS - I'm sick of values and my DH doesn't see the advantage to Mods - we really want to move up to deluxe!

Am I crazy?

You might be. Owning dvc doesn't help your credit rating because Disney doesn't report to the agencies. (Not sure if that is something that affects you anyway, being Canadian) But it gets you what you want and that's a positive.

Do consider waiting and just saving up, though. That's the best way to do it, most likely.

 

[kniquy]

I agree w/ a previous poster -- DVC rarely makes sense to finance because it it eats into any potential savings. You don't even need to buy direct you can buy resale and save upwards of 40%. Please take your time with this financial commitment and research all your options. If you finance your monthly "mortgage" is not the only payment -- you will have increasing yearly maintenance fees. Consider putting off then next couple of trips to have a decent down payment or even better being able to buy a resale contract with no need to finance. There is a ton of information on her about resales so definitely consider this route

 

[rg35]

OP also wants to finance and buy direct to take advantage of the "perks." I am not sure if paying at least 2x principal + interest for access to a member lounge at Epcot is worth it, but to each their own.

Yes, I know there are other perks - I am just being hyperbolic.

 

[Lynne M]

Whoo Hoo! Thanks!

I plan on getting it refinanced as soon as my credit rating improves with my local Canadian bank...Recently debt free but with crappy credit and we go down at least 2 times a year for 4-7 nights each time, not having kids but plan on going to Disney for a long time...DVC makes sense for us but we want the perks of direct once it has paid for itself. PS - I'm sick of values and my DH doesn't see the advantage to Mods - we really want to move up to deluxe!

Am I crazy?

Just make sure you've thoroughly looked at the math. Buying direct and financing means you will be paying the maximum possible price for DVC - many thousands more than someone buying resale for the same number of points, and not financing.

Be sure that those perks are worth those many thousands. And also consider that none of the perks are part of your membership even if you buy direct, and are given at the whim of other divisions of Disney or other companies. Every one of them may go away at the stroke of a pen.

 

[bwang123]

Hi - If I do buy direct from Disney and op for financing from them - can I pay it off faster than the agreed upon term? I don't think I can do it in a year but I know I can do it faster than 5 years. TIA

yes

 

[KAT4DISNEY]

Am I crazy?

Perhaps not crazy, but perhaps not making the best financial decision.

You'll be paying thousands more for direct plus all the financing charges. Buying resale will save a lot - and pay for a lot of AP's if that's the direct perk you're looking for. Or buy the majority resale and then do a small 25 points add on.

Have you checked out any of the DVC options to see if they really give you what you are looking for?

 

[Dean]

Whoo Hoo! Thanks!

I plan on getting it refinanced as soon as my credit rating improves with my local Canadian bank...Recently debt free but with crappy credit and we go down at least 2 times a year for 4-7 nights each time, not having kids but plan on going to Disney for a long time...DVC makes sense for us but we want the perks of direct once it has paid for itself. PS - I'm sick of values and my DH doesn't see the advantage to Mods - we really want to move up to deluxe!

Am I crazy?

If you're debt free, your credit rating might not improve and it might worsen since credit scores are based mostly on borrowing and paying back money. I would not buy with the plans to refinance. I always suggest paying cash but it's likely there will be limited refinance options for DVC. Could you save up and buy resale at say SSR then do a retail add on of 25 points when you could save some additional? If you do decide to buy and finance, light stream has generally been the cheapest general option the last few years but it won't be deductible on taxes like a mortgage would be though the difference is normally more than the deduction would be in the US, not sure about CAN.

 

[luvdisneyland]

OP also wants to finance and buy direct to take advantage of the "perks." I am not sure if paying at least 2x principal + interest for access to a member lounge at Epcot is worth it, but to each their own.

Yes, I know there are other perks - I am just being hyperbolic.

I would research said "perks", because you get most of them if you have a Disney CC or annual passes, and some are not restricted if you buy resale. It is not worth it at all (financially speaking) to pay double for perks that Disney can take away at anytime.

 

[kniquy]

as soon as my credit rating improves w

This quote would lead me to tell you that DVC should not be something that is the best option for you at this time. I would say work on improving your credit, saving some money to build up some savings and then consider purchasing when you have most or all of the money you need to pay in cash. I mentioned above, but if you can do limited travel for a couple years you could be in the situation to purchase cash and not have to worry about a monthly payment.

 

[mort1331]

Being from TO ourselves, you are better off if you have a home to get a line of credit on it. 1st the interest rate is a whole lot better. 2ndyou can pay it down when you want to. 3rd if purchasing direct and financing all your interest is in US$.
I would look at buying resale, then if the perks are that attractive to you, purchase direct an add on of 25points to compliment your resale.
With or dollar the way it is remember your adding on 35-40% to your purchase price.
Look at renting from these boards, or from Dave's (which is just down the road in London) for a few years till our dollar gets better.
My 2cents. Not that we have pennies anymore.

 

[sndral]

...
I plan on getting it refinanced as soon as my credit rating improves with my local Canadian bank...Recently debt free but with crappy credit and we go down at least 2 times a year for 4-7 nights each time, not having kids but plan on going to Disney for a long time...DVC makes sense for us but we want the perks of direct once it has paid for itself. PS - I'm sick of values and my DH doesn't see the advantage to Mods - we really want to move up to deluxe!

Am I crazy?

DVC's interest rate will also be higher if you have 'crappy credit.'
I'm a bit confused, is your plan to use Disney financing and then take out another loan at a better interest rate to pay off the Disney loan once your credit improves? Or is your plan to use Disney financing but pay off that loan early via making higher payments?
Most people have 'crappy credit' due to a lack of impulse control - they want something they can't yet afford and they want it now. Catastrophic medical expenses or job loss also causes credit problems.
Why not enjoy being debt free for awhile rather than immediately saddling yourself with debt for a luxury item?
Put away what would be your DVC payment for several months or longer. Meanwhile rent points for your WDW trips to 'test drive' the various DVC resorts so that you know which home resort you really want when you decide to buy. You may want the newest DVC currently offered for direct sales or you may find you like a DVC home resort only available via the cheaper resale route. By renting points you can stay deluxe @ a lower price while you are researching your future DVC purchase and ultimately chose the best home resort for you.

 

[dvcdream4fld]

I understand everyone's concerns with the OP posting, but if the OP has managed to be debt free and goes to WDW two times per year for 4-7 nights per trip, it seems that the OP may be currently fiscally responsible enough to purchase DVC.

However, I do echo what other have said. Why not consider resale and save yourself money today, instead of hoping for perks tomorrow?

 

[Dean]

I understand everyone's concerns with the OP posting, but if the OP has managed to be debt free and goes to WDW two times per year for 4-7 nights per trip, it seems that the OP may be currently fiscally responsible enough to purchase DVC.

However, I do echo what other have said. Why not consider resale and save yourself money today, instead of hoping for perks tomorrow?

I don't think we have much info for the OP in this direction. What we do know is they have a lower credit score as posted. You only get there by one of 2 ways. Being debt free, having no accounts while the score is heading to non existent or by having credit related issues. The term "Debt Free" is used differently by different people. In my view if you can't pay for it you can't afford it, esp for a luxury item, but I would agree there are different degrees of risk.

 

[mustinjourney]

Whoo Hoo! Thanks!

I plan on getting it refinanced as soon as my credit rating improves with my local Canadian bank...Recently debt free but with crappy credit and we go down at least 2 times a year for 4-7 nights each time, not having kids but plan on going to Disney for a long time...DVC makes sense for us but we want the perks of direct once it has paid for itself. PS - I'm sick of values and my DH doesn't see the advantage to Mods - we really want to move up to deluxe!

Am I crazy?

One other thought -- but my guess is each of your current trips ends up costing about $2500 to $3000 USD, including airfare, tickets, food, etc. If you just don't go to Disney for two years (and put the money you would have spent into a separate account), you will have $10-$12k saved up that you can then use to purchase a nice 100-150 point resale contract with cash. With any luck, the Canadian dollar might improve, which would add further savings for you.

I know delayed gratification is not the fun thing to do -- but in many cases, it is the smart thing to do. Taking on financial stress for a luxury good is not a great decision. The other thing I always tell people is to also build up your emergency cash reserves. You never know when some appliance or your car is going to need unexpected repairs.

 

[BestDadEver]

Hi - If I do buy direct from Disney and op for financing from them - can I pay it off faster than the agreed upon term? I don't think I can do it in a year but I know I can do it faster than 5 years. TIA

The answer is yes you an pay it off no prepayment penalty.

I'll leave the if you can afford it for you to decide your a grown person that can do as you wish .