Did you finance your DVC?

[eliza61]

I'm just wondering about people who did in fact finance their DVC. I think when the time comes, my hubby and I are most likely going to finance in the beginning-I just know we won't have the cash for it at the point (unless we were to win the lottery ) So, I'm just wondering if you financed or not? What did you think about it? I know that the rate is high, and it will end up costing more than if you were able to pay it in full, but I'm just curious! Thanks!

Yes I financed through my credit union. I had no problem with it but I try real hard not to pass judgement on how people spend their money. If you worked for it, you have the right to blow it as you see fit. We got a 7 year loan and paid it off in 5.

Not one regret.

 

[Tiger926]

Hubby is a banker, so we get a ridiculously low credit line interest rate (right now it's 1.75%). We paid off within a few years, then did our add-on at AKV last year, which was at-par. We have pretty much paid most of this (it's hard to know exactly at the moment as hubby just rolled our house into this line, so he doesn't have the exact details at the moment). DH figures we only spent a little bit of interest, so it was well worth it to us. We already had trips to Disney planned, so we put that money towards our DVC contracts.

We were just looking to add-on, but after speaking to our guide yesterday, and pouring over resales, we realize that it is not a good time for us. We don't want to add anymore to our credit line/mortgage at this time, as we paid off our van 9 months early, and still have a bit more accumulated debt to pay off from my 2 maternity leaves which cost a ton o' cash. All extra cash is going on our house, as this is all that we owe on, besides the small amount from mat leaves.

It really depends upon the person's financial situation, as to whether financing is a good move or not. We did it because we hardly paid any interest, and knew it was only for a few years - we paid weekly on it, and then added big chunks when DH got his bonuses.

Tiger

 

[Kdisney]

We did finance at the preferred rate. We have savings but most of it is tied up and in long term investments and real estate. We don't have any other loans except my tiny student loan. I think the tax write off is nice and I'm not currently working full time (we have a toddler) but when I do return to work full time, any little tax write off will help.

Disney also gives you the option of paying it off in one year with a 4.5% interest rate. We bought a car like that once by financing through my husband's 401k. I think it charged no interest but we paid it off in one year. It was early in our marriage and we were just starting out so it was a tough year but nice to have it over with so quickly.

 

[liznboys]

Yes, we financed our very first contract and then paid it off in about 2.5 years. Shortly after paying that off, we added on (LOL) but paid cash that time.

 

[supersuperwendy]

We financed and are glad we did. We thought about buying for years, but never had the cash to do it. We decided enough was enough and after paying thousands and thousands for packages, we bought in last year and are financing through Disney. It works out so well for us! The fact that there is no prepayment penalty is great. If we want to pay it off all at once in the future we can!

 

[SLM]

We didn't take the DVC tour until we were 50-so with DD out of college, grad school and married, we were able to pay cash. If we had been younger when we learned about DVC we might've financed for a short term because we only had our mortgage and never more than one car payment. It's hard to say from this perspective. Even with scholarships and summer jobs, college is expensive and her education was always our first priority.

 

[Louiepipbgeeco]

After many cash ressies trips and years of roller coastering about whether or not to purchase, we FINALLY purchased DVC with cash. However, we bought a small 100 pt. contract to start.Otherwise, we would have had to do the loan. We will begin to save again and add on as we have the cash available. If I do finance the add on -- I will pay it off quickly to avoid the interest.

 

[JasonDVC]

... As much as i appreciate the people that wait until they have the cash, my feeling is my kids won't wait to grow up.

Well said.

Financed as well. Will have it paid off soon.

 

[Coach81]

We are financing our DVC currently. We got 150 pts at SSR, and I pay about $100.00 per month on the note, and I try to send a few extra payments here and there to help pay it off. We're hoping to pay it off in the next few years.. then we can add on

 

[Kris10luvsDisney]

We bought 240 pts at SSR and put about 1/4 down and financed the rest. The plan is to pay off the balance next month. My DH hates paying interest (we always pay our cr. cards in full each month). Once this contract is paid, I can start working on him to do an add on

While I don't like the thought of financing our vacations, we have been able to take 3 wonderful trips since joining DVC (BCV, an ABD in Italy for our anniversary, and BWV), I don't regret it one bit!

 

[BEASLYBOO]

As much as i appreciate the people that wait until they have the cash, my feeling is my kids won't wait to grow up.

It took me two years of Income tax refunds to be able to pay cash for my DVC, personally I can't justify financing vacations. I've always saved for our vacations and though we didn't own DVC yet, we still went on vacation to Disney and other spots we love.

 

[jodifla]

YEP! And so glad we did. Used the Disney financing...and way back when, it was very reasonable. I read time and time and time again about all the people who waited and waited and waited before they bought DVC.

Now, the price is almost double what we paid, and many of these folks paid out many times over the cost on other vacations.

We bought within a month of touring the first time. We knew we wanted children down the line, and we loved the idea of vacationing with family and friends. We just shifted the money we would have been spending on vacation to paying off DVC.

 

[Greysword]

We are one of those crazy families that financed our 165 pt buy-in at SSR in 2004. After 5 years, several awesome vacations where we hosted friends and family, and with only half of this initial contract paid off, we financed a 100pt buy-in at VCG and 100pts at BLT this past July. As a result, we are going to be able to take my in-laws to BLT, staying in a dedicated 2BR, for seven nights!

Pricing the BLT room on WDW website, rack rate was about $7013 for the stay. Thus, we are definitely getting our money's worth out of it even with the full finance charges. The memories are priceless for us, so the extra cost from interest is incidental in the larger picture.

From a practical standpoint, it is unlikely we would have saved enough to outright purchase the contract given other perceived requirements for our money, thus this option allows us to participate. Due to Disney financing, the monthly payment (and dues) for the contract are very reasonable for our budget. As mentioned, we are able to write off a portion of the interest on our taxes. Also, DVD financing does not show on our credit report, unlike using a credit card or home loan.

Bottom line, I am personally willing to pay the extra interest on financing as a surcharge to have the privilege of using the resorts earlier then if I saved and paid cash. In the end, the first-class accommodations are worth the extra cost compared to staying in coach (or not at all).

Just my thoughts, good luck with your decision!

- Chris

 

[Harlemgirl720]

My mom and I just bought into Kidani Village for 160 pts. I initially put down $500 while we were there and had two payments of $646 for the entire down payment of $1792 With the great offer of $19 off each point, and DVC adding more money to our initial down payment, which totaled approx. $4400 it brought our financing portion to $13,416. So Mom decided to pay it off. So after October 1st, which is the last payment of $646, it will be paid off in full.

I think I will purchase more points with my tax refund in February.

 

[dis2cruise]

no, we didn't finance.