Could everyone possibly be paying cash for resales??

[erin1715]

I am on the verge of buying DVC but need to wait for a few more things in life to happen. But when I do pull the trigger, I will need to finance. I know people on here STRONGLY recommend against financing, but I can't believe that a majority of the people that are buying resales on this forum are all paying cash. Do people really have that type of disposable income at their fingertips to just keep adding on contracts? Maybe they do, but I'd be surprised....

 

[supersnoop]

I bet a lot of people paying cash also have other debt. It's a better idea to pay a 1.74% car loan than a 10.99% DVC loan. Generally speaking, financing a DVC purchase negates any savings of actually purchasing. If you have to finance, you're probably better off renting until you can save up the cash.

 

[_auroraborealis_]

Paid cash for mine. I wouldn't call it "disposable income," I'd call it "savings with a goal, then executed."

 

[crisi]

I can't speak for other people, but I have plenty of cash on hand to buy DVC contracts at this point in time and no other debt other than a mortgage which I have for leverage (I did float a home equity loan for two weeks when we bought fifteen years ago so I wouldn't need to cash out of the market and take a tax hit). Why would you think people don't?

But I don't keep adding on contracts. I have other things to do with the cash.

 

[Disneybuckeye]

We paid cash for all 154 of our points. No way would I finance a vacation, so I would not finance a time share purchase. We do have 1 car payment at .9% interest. We also have mortgage payments on both of our homes for tax purposes. We could easily sell both of them for more than we owe.

Granted, we could also sell our DVC for more than we paid, but I doubt that would be true if we financed.

 

[VillainFavs]

If you're paying 10% or more to finance a DVC purchase you're throwing away money. Better to save up until you can actually afford it.

 

[VillainFavs]

And if you don't even own a home yet, and are hoping to purchase one, you really shouldn't be looking to finance a timeshare purchase. That should be way down on your list of priorities.

 

[Stacy's a freak]

I wonder if people use a home equity loan to finance a DVC purchase. Even though it's not technically for your home, you can deduct the interest on a home equity and the interest rate is much lower - likely less than half of a DVC loan.

 

[suebeelin]

We paid cash. Would never finance a vacation. Did I end up taking it out of a fund that would otherwise be invested in stocks? Probably.

But we paid cash. I don't believe in financing luxury purchases.

I drive an odyssey. I guess I could have financed a high end car instead but I didn't.... I see dvc the same way.

It was only $12k to start bc I bought resale. That isn't a crazy amount IMO.

 

[erin1715]

Well, this thread goes to show me that everyone's financial outlook is different. Some of you own two homes, nice cars with payments, etc. And I don't know why it was assumed up-thread that I don't own a home? Perhaps you looked at my previous posts when I talked about buying a home. We own a home now and will sell and buy. If we were staying in our current home I may consider a home equity loan but it makes me nervous to finance against my home, so I think I'd rather a different type of loan even if the interest rate is higher.

One option I was thinking about is when we sell our current home, put aside about 5k that we make off our home to put towards a DVC purchase.

 

[Stacy's a freak]

Well, this thread goes to show me that everyone's financial outlook is different. Some of you own two homes, nice cars with payments, etc. And I don't know why it was assumed up-thread that I don't own a home? Perhaps you looked at my previous posts when I talked about buying a home. We own a home now and will sell and buy. If we were staying in our current home I may consider a home equity loan but it makes me nervous to finance against my home, so I think I'd rather a different type of loan even if the interest rate is higher.

One option I was thinking about is when we sell our current home, put aside about 5k that we make off our home to put towards a DVC purchase.

Good news is, it's your choice to do what you want But I bet Suze Orman (who I truly love despite her somewhat abrasive nature) would tell you that you should not use that 5k of hard-earned equity in your home for a vacation. You should put it into the next home so you do not pay interest on it. You should work your little tush to the bone and save up to buy things like vacations and non-essentials. But I repeat, it's your choice and no one here should judge you for it as long as you don't start up a go-fund-me for your vacation wants

 

[msjprincess]

I paid cash. I was thinking about buying DVC for over 15 years before I actually bought it. I was waiting until I had the cash. I bought a small 60 point resale and then added another 50 point resale. We haven't had a car payment in years. We rather pay cash for a used car. My only debt right now is my mortgage.

 

[KAT4DISNEY]

As others have mentioned it would be like taking out a loan to take a vacation in my eyes and I wouldn't do that. Back when I first had a tour and info on DVC we could not have paid cash. Once we could pay cash and decided it was an appropriate purchase for us to use then we did.

 

[erin1715]

We've been going to Disney every year for the past 10 years. If we bought into DVC then, it would have been more than paid off by now. I could kick myself...

 

[Stacy's a freak]

We've been going to Disney every year for the past 10 years. If we bought into DVC then, it would have been more than paid off by now. I could kick myself...

oh hindsight ... But I really wonder if DVC is a savings. I mean, you still have to pay that maintenance fee and your park passes. Mind you, I have only once stayed in a deluxe (AKL) and it was when I got a fantastic discount pin years ago. I don't think DVC would payoff for me when you factor in the maintenance fees. I mean, if you buy DVC, you're not getting X years of free vacations ...

 

[erin1715]

I don't look at it as saving money. I know that taking yearly vacations for so many future years is not saving me money. But if I plan on vacationing there anyway, and in deluxe accommodations, then it is a savings over a regular priced room. But I think that subject has been beaten to death around here.

 

[nluvwithdisney]

We decided to pay cash but have "loaned" ourselves the funds to do so. We are good at making payment plans to ourselves but this one of the bigger purchases but we think it is well worth what we paid.

 

[erin1715]

We decided to pay cash but have "loaned" ourselves the funds to do so. We are good at making payment plans to ourselves but this one of the bigger purchases but we think it is well worth what we paid.

Meaning you took it out of your savings?

 

[Minniesgal]

Yes absolutely we paid cash we wouldn't have bought if we hadn't the cash. We bought contract sizes we could afford and added on again later. I would never have financed this.

I also think borrowing against a house or using home equity to buy is too risky especially in this economy. If it were me I'd save until I could pay cash.

 

[Minniesgal]

We decided to pay cash but have "loaned" ourselves the funds to do so. We are good at making payment plans to ourselves but this one of the bigger purchases but we think it is well worth what we paid.

Yes we do this all the time. We have some savings for very specific purposes but we allow ourselves to borrow from them if we can pay it back within 1 quarter ie put more in savings than our regular payment to pay it back.