Creative Ways to Finance DVC

[Traveling on cc points]

If you are looking to use the free chase plan it and didn’t see it available to you, check your emails and accounts again.

I didn’t have it in my CSP last week but just got an email tonight that this card now quality’s if made by September 30th.

 

[SkampyOne]

If you are looking to use the free chase plan it and didn’t see it available to you, check your emails and accounts again.

I didn’t have it in my CSP last week but just got an email tonight that this card now quality’s if made by September 30th.

Same. It's like they're taunting me to buy direct

 

[SkampyOne]

Any thoughts on the best CC to open for a purchase? Thinking of either the Disney Premier or Chase Sapphire Preferred as we have those already and could get a referral bonus.

Disney - $300 sign up, $100 referral, $49 annual fee for net of $351 plus 0% for 6 months

Sapphire - $600 sign up, $150 referral, $95 annual fee for net of $655. Not sure if no fee My Chase Plan is available.

Both earn 2% on DVC. If the Sapphire card was guaranteed to have the free My Chase Plan, that would be the obvious winner. Can anyone who opened that card recently comment on the availability of the My Chase Plan?

Any better cards to open just for the purpose of paying for DVC?

From the threads elsewhere, there is a a LOT of support for the CSR and Discover IT. I got a targeted offer this morning for an Amex green card which is pretty similar to the CSR EXCEPT: CSR has better travel insurance: primary rental car insurance (covers more expensive cars too), trip delay insurance kicks in six hours before the Amex, and it offers baggage delay insurance. I figure if I'm going to do this, I might as well get some CC benefits out of this so also trying to figure out the best option. Leaning toward the CSR in the hopes of using the My Chase Plan for no interest/fees for 24 months.

 

[Traveling on cc points]

Same. It's like they're taunting me to buy direct

Haha! Me too!! We have until September to decide.

 

[Robbie Cottam]

Can I turn this thread around and ask why everyone is so adverse to buying direct with DVC financing?

It is very easy and simple process.
The interest rate is 9 or 10 percent,
That interest is deductible, you get a 1098 (might have the wrong form number) at the end of the year.

IF you can’t pay the cc off during the zero percent period what’s the interest rate there?

Just wondering

 

[Cfabar1]

Can I turn this thread around and ask why everyone is so adverse to buying direct with DVC financing?

It is very easy and simple process.
The interest rate is 9 or 10 percent,
That interest is deductible, you get a 1098 (might have the wrong form number) at the end of the year.

IF you can’t pay the cc off during the zero percent period what’s the interest rate there?

Just wondering

A few thoughts:
1. Yes it is simple, but so is putting it on a CC
2. Not terrible interest rate, but not great either
3. After the Tax Cut and Jobs Act of 2017 most people don't itemize statistically since they doubled the standard deduction.

Unsure what the interest rate would be - it will vary from consumer to consumer - but I would also point out for most people a balance transfer would reset the interest for the remaining balance around 3-5% which is still lower than Disney financing....

 

[SkampyOne]

Can I turn this thread around and ask why everyone is so adverse to buying direct with DVC financing?

It is very easy and simple process.
The interest rate is 9 or 10 percent,
That interest is deductible, you get a 1098 (might have the wrong form number) at the end of the year.

IF you can’t pay the cc off during the zero percent period what’s the interest rate there?

Just wondering

Others can chime in but in my case, it's not about financing at all - it's about optimizing CC benefits. So if a CC sign up will give me a bunch of points to use for future travel or cash back AND I get 2 or 3% for the purchase AND I can take X months no fees or interest to pay the whole thing off, that's a win. Personally if I had to finance, I wouldn't do it, but I also hate carrying any debt and the interest would skew the numbers to where it probably wouldn't make sense for me to bite.

 

[achinforsomebacon]

From the threads elsewhere, there is a a LOT of support for the CSR and Discover IT. I got a targeted offer this morning for an Amex green card which is pretty similar to the CSR EXCEPT: CSR has better travel insurance: primary rental car insurance (covers more expensive cars too), trip delay insurance kicks in six hours before the Amex, and it offers baggage delay insurance. I figure if I'm going to do this, I might as well get some CC benefits out of this so also trying to figure out the best option. Leaning toward the CSR in the hopes of using the My Chase Plan for no interest/fees for 24 months.

Does DVC get coded as travel for Amex?

Have you heard of anyone opening CSR or CSP recently and getting the no interest/fees My Chase Plan? That would be my preference if I knew I could get 0% for at least 12 months. Discover wouldn't be bad since there's no fee and 0% for 15 months but no sign up bonus.

 

[Traveling on cc points]

Can I turn this thread around and ask why everyone is so adverse to buying direct with DVC financing?

It is very easy and simple process.
The interest rate is 9 or 10 percent,
That interest is deductible, you get a 1098 (might have the wrong form number) at the end of the year.

IF you can’t pay the cc off during the zero percent period what’s the interest rate there?

Just wondering

10% interest is a lot of money.
Like thousands upon thousands of dollars depending on how long you hold the loan. The price per point would skyrocket with finance charges.

Most people wouldn’t put this huge amount money on a cc if they didn’t have the money somewhere to pay it off.

We technically have the cash on hand to pay it off immediately but would have deplete our checking account and dip into the emergency account which we aren’t comfortable doing.

If we decide to add on, we would probably split the payment into 2 charges. Pay the first one off immediately and do the free plan it with chase for 24 months for the second half.

 

[PolyRob]

Does DVC get coded as travel for Amex?

Have you heard of anyone opening CSR or CSP recently and getting the no interest/fees My Chase Plan? That would be my preference if I knew I could get 0% for at least 12 months. Discover wouldn't be bad since there's no fee and 0% for 15 months but no sign up bonus.

No, DVC does not code as travel with Amex or Citi. Only Chase from my experience.

 

[Robbie Cottam]

10% interest is a lot of money.
Like thousands upon thousands of dollars depending on how long you hold the loan. The price per point would skyrocket with finance charges.

Most people wouldn’t put this huge amount money on a cc if they didn’t have the money somewhere to pay it off.

We technically have the cash on hand to pay it off immediately but would have deplete our checking account and dip into the emergency account which we aren’t comfortable doing.

If we decide to add on, we would probably split the payment into 2 charges. Pay the first one off immediately and do the free plan it with chase for 24 months for the second half.

If you have the cash on hand the interest doesn’t really matter then, right?

 

[Traveling on cc points]

If you have the cash on hand the interest doesn’t really matter then, right?

I’m not sure you are are being sarcastic or are really asking.
In our situation if we paid in full, we would have very little liquid money left for at least a year and we wouldn’t feel comfortable doing that.
The only reason we are considering adding on direct is because of the “cheap” cost per point right now of $161 per point. If we were to pay interest charges @ 10%, that price per point would be in the $190 per point range.

I could be completely wrong but I am fairly confident that if we buy now at $161 per point, we can use the points for 10 to 15 years then sell the contract and break even or at least close to even.

 

[davidhr]

No, DVC does not code as travel with Amex or Citi. Only Chase from my experience.

It does. I use my green for that reason. Loan payments don’t.

Edit: There’s a datapoint of this not working last year but it does for me. So this might be a YMMV.

 

[Robbie Cottam]

I’m not sure you are are being sarcastic or are really asking.
In our situation if we paid in full, we would have very little liquid money left for at least a year and we wouldn’t feel comfortable doing that.
The only reason we are considering adding on direct is because of the “cheap” cost per point right now of $161 per point. If we were to pay interest charges @ 10%, that price per point would be in the $190 per point range.

I could be completely wrong but I am fairly confident that if we buy now at $161 per point, we can use the points for 10 to 15 years then sell the contract and break even or at least close to even.

In this rare case I’m sincerely asking.
Playing devils advocate if you will.

You make the claim that 10 percent interest is a lot of money….

But then the follow up claim that you would have the cash on hand in either case to just pay off the debt. So you are not looking for a creative way to finance a Dvc purchase at all. You are just looking for a way to get CC points.

Now on the other hand I still say that most interest on a direct purchase should be tax deductible.

However, placing that much money on CC has some risk even at 0 percent assume you don’t pay it off in the introductory period….

In today’s volatile economy, things happen.
What happens if you can’t pay this large purchase off In 6 to 12 months.

Your credit card fees maybe equal or more than Disney’s 10 percent, with no ability to deduct a cc charge from your taxes….

Worst case and you default on the CC charge the issuer MAY file a claim to recover plus damages and attorneys fees, or they may write it off as bad debt, in which case you would owe taxes and penalty’s …

Now personally if I were going to add points right now,

I would:
Pay Disney there 10 percent up front,
plan on renting the points every other year, over the life of the contract, (yes I know it has its own liabilities)
Let someone else pay for my vacations for the next 25 or so years,
While I use my other points to fill in on years I have rented out these…

This has worked, and as long as Disney doesn’t keep the ship going sue south here will continue to work….

I have paid off my SSR and BLT points using this strategy,

Someone paid Dor my DVC membership…and the interest ….

 

[Sandisw]

I’m not sure you are are being sarcastic or are really asking.
In our situation if we paid in full, we would have very little liquid money left for at least a year and we wouldn’t feel comfortable doing that.
The only reason we are considering adding on direct is because of the “cheap” cost per point right now of $161 per point. If we were to pay interest charges @ 10%, that price per point would be in the $190 per point range.

I could be completely wrong but I am fairly confident that if we buy now at $161 per point, we can use the points for 10 to 15 years then sell the contract and break even or at least close to even.

With the changes that DVD has made and the power they have to influence the market with those changes, I would not go back not any DVC purchase assuming your buy in cost will be recouped.

There will always be a buyer who will pay more than $0 but the fact that DVC has held its value may be a thing of the past.

Just look at what happened when they introduced VGF last year…prices went down.

DVD has essentially stopped ROFR in 2023…and the resale prices tankard for most resorts. A CCV passing at $119? The market adjusted with that piece gone.

Plus, the pricing and program now being offered has sparked some very strong sales. It makes you wonder if what DVD is learning is that lots of options and better incentives is what helps them sell.

10 -15 years from now, we could have several new resorts and resale contracts will lose access to 5 resorts, 3 at WDW.

That could potentially mean having only 7 to swap between. Resale buyers may not want to pay as much as they once did.

All this to say that it might be advantageous to assume any money back from sale as a bonus.

 

[Robbie Cottam]

With the changes that DVD has made and the power they have to influence the market with those changes, I would not go back not any DVC purchase assuming your buy in cost will be recouped.

There will always be a buyer who will pay more than $0 but the fact that DVC has held its value may be a thing of the past.

Just look at what happened when they introduced VGF last year…prices went down.

DVD has essentially stopped ROFR in 2023…and the resale prices tankard for most resorts. A CCV passing at $119? The market adjusted with that piece gone.

Plus, the pricing and program now being offered has sparked some very strong sales. It makes you wonder if what DVD is learning is that lots of options and better incentives is what helps them sell.

10 -15 years from now, we could have several new resorts and resale contracts will lose access to 5 resorts, 3 at WDW.

That could potentially mean having only 7 to swap between. Resale buyers may not want to pay as much as they once did.

All this to say that it might be advantageous to assume any money back from sale as a bonus.

I don’t want to disagree with you, in part because I think I have been saying for a few years that Disney is going to control resale…. One way or another…

That having been said I think, or I hope the collective “Disney Group”, know the value in DVC, and what has made it different than ever other Florida time share is the ability to get out…

50 years is a big commitment long than most buyers will live. Things change.

My first SSR contract was 69 dollar per point.
My first BLT contract was about 100.

The value in those contract went up because DVC was charging 180 and 250 a point for those same properties maybe this time last year.

I think Disney understands, they cannot charge those prices and expect to sell out properties if the resale market is there to give buyers a way out….

It is a lot harder to convince a weary
Spouce that DVC is a good deal, with out an exit plan….

Sure a retired couple from colder climates MAY not care, but your average 20/30 something couple that is looking at colleges, and homes purchases, isn’t going to want to risk 40-60k dollars with no exit plan…

Resale gave Disney the exit plan, at really no cost to Disney. If anything resale allowed Disney to charge more.

Disney has change the resale market slowly for at least a decade now, they will most likely continue to reshape it. Will they close it? no it is not in Disney best interest to kill it completely.

Disney as a whole has placed them self in a corner in the last 3 to 5 years. It has cost them a lot of money…. They will figure it out… it might take 3-5 years to do so….

Once they do demand will return.
DVC owners and want to be owners will want point at the sold out resorts,
Dvc will resume ROFR, if for no other reasons than to protect there product,
Resale prices will follow the trend back up,
Ask/selling price will trend up,
Rinse and repeat…

At one point I think my collection of points had more than doubled in value….

Do I think we will see that again, maybe
Do I think we will see points hold value, yes

If DVC continues to deed restrict new resorts
Demand for direct contract at those resorts will increase… Disney may find themselves in a position where they can’t get enough Supply from ROFR alone….

Will Disney institute a buy back program?

Riviera is a test case and perfect example…
(Yes I know new points are still available)

I like RR more than say the poly.
I would not buy resale points at RR because I like to be able to keep my options open.

I would call my guide and get on a waiting list for RR. (Assuming it was sold out) and pay extra for direct points.

I don’t believe I’m alone.

All this to say,
Disney is changing the face of resale, and most likely the price of resale,
I don’t that they will completely kill the resale market. And if they do something will have to take its place

Disney can’t sell a 50 year product that has NO value after the first year or two most people would not buy it

 

[Sandisw]

I don’t want to disagree with you, in part because I think I have been saying for a few years that Disney is going to control resale…. One way or another…

That having been said I think, or I hope the collective “Disney Group”, know the value in DVC, and what has made it different than ever other Florida time share is the ability to get out…

50 years is a big commitment long than most buyers will live. Things change.

My first SSR contract was 69 dollar per point.
My first BLT contract was about 100.

The value in those contract went up because DVC was charging 180 and 250 a point for those same properties maybe this time last year.

I think Disney understands, they cannot charge those prices and expect to sell out properties if the resale market is there to give buyers a way out….

It is a lot harder to convince a weary
Spouce that DVC is a good deal, with out an exit plan….

Sure a retired couple from colder climates MAY not care, but your average 20/30 something couple that is looking at colleges, and homes purchases, isn’t going to want to risk 40-60k dollars with no exit plan…

Resale gave Disney the exit plan, at really no cost to Disney. If anything resale allowed Disney to charge more.

Disney has change the resale market slowly for at least a decade now, they will most likely continue to reshape it. Will they close it? no it is not in Disney best interest to kill it completely.

Disney as a whole has placed them self in a corner in the last 3 to 5 years. It has cost them a lot of money…. They will figure it out… it might take 3-5 years to do so….

Once they do demand will return.
DVC owners and want to be owners will want point at the sold out resorts,
Dvc will resume ROFR, if for no other reasons than to protect there product,
Resale prices will follow the trend back up,
Ask/selling price will trend up,
Rinse and repeat…

At one point I think my collection of points had more than doubled in value….

Do I think we will see that again, maybe
Do I think we will see points hold value, yes

If DVC continues to deed restrict new resorts
Demand for direct contract at those resorts will increase… Disney may find themselves in a position where they can’t get enough Supply from ROFR alone….

Will Disney institute a buy back program?

Riviera is a test case and perfect example…
(Yes I know new points are still available)

I like RR more than say the poly.
I would not buy resale points at RR because I like to be able to keep my options open.

I would call my guide and get on a waiting list for RR. (Assuming it was sold out) and pay extra for direct points.

I don’t believe I’m alone.

All this to say,
Disney is changing the face of resale, and most likely the price of resale,
I don’t that they will completely kill the resale market. And if they do something will have to take its place

Disney can’t sell a 50 year product that has NO value after the first year or two most people would not buy it

Well, there are plenty of timeshare developers out there who sell a ton of direct points that are worthless in the resale market,

DVC always has one thing others don’t...being located onsite at WDW. That alone will always make it have value of some sort on resale.

I do not think DVD cares about buyers resale value…they don’t tout it, they make sure you don’t buy expecting anything and I contend that many, if not, most new buyers have no idea that resale exists, let alone that people have actually sold for more, myself included.

So, they will be able to sell in-spite of what happens resale.

I just don’t think anyone should go in with the assumption that the purchase price will be recouped based on the past and history.

If you go in and assume $0 back when you sell, and you still feel it works, then you are ar a much better spot than doing it because you assume a return will happen.

Now, I don’t think it will ever be worthless but i definitely think the days of getting your money back are gone. Possible? Sure, Likely? No.

 

[Robbie Cottam]

No one should ever buy anything and assume they will get there money back.

The mid to late 2000s taught us that.

It will be interesting to see what happens moving forward….

My more people will want to rent DVC than own so they can keep their options open.

 

[PolyRob]

It does. I use my green for that reason. Loan payments don’t.

When did you have it code as travel? Mine has not over the years. This is from the past year:

 

[davidhr]

When did you have it code as travel? Mine has not over the years. This is from the past year:

View attachment 779213

Mine coded as lodging this week.

I put another contract on a different card to use the Plan It offer that’s only available for travel purchases and it also worked. Don’t know if it’s something new recently or if it’s just my account. So I’m going to change my statement to YMMV just in case as it didn’t work for you.