Did you take out a loan or pay cash?

[Misty89]

thank you all.

i guess it really would not make sense for me to pay off the van loan and then start up with another loan.
so i think the answer is clear - but time will tell. my gut tells me to save until i get the Disney itch again ( when we pay OOP it's every 4 to 5 years) and use that money to put a good chunk down on a resale..
it's nerve racking LOL but we did just come home from a wonderful 9 day vacation, so i am good for a while on my Disney Fix
thank you all, i still intend to hang out here on the DVC boards, and keep up to date. who knows, mabye things will work out differently over the next year than i am planning.


Tina

 

[dianeschlicht]

We purchased our first 230 point contract with a home equity loan and paid it off in one lump about 3 months into it. Our second 150 point contract was paid in full at time of purchase, as was our 69 point AKV contract.

 

[kerickson]

We put our original 225 pt purchase on our home equity loan and paid it off w/in less than 6mos. We saved up and paid cash for our VGC add on. It's possible that in the future we'll add on at VGC or Hawaii if they ever hit the resale market, and if so we'll pay cash. For now I'm saving up for future park tickets, character meals, etc.

 

[stampinshauna]

We financed through Disney but paid it off in less than a year. At first I wanted to wait and pay cash, but after looking at the history of price increases, we decided not to wait. We are going to pay cash for an add-on.

 

[sdlipton]

The OP asked readers to let her know if we paid cash or financed.

Misty - we paid cash for our intial 160 pts purchase at AKV Kidani and then again for our 100 pts add on at the Grand Californian.

Good luck with whatever you decide, and just a note - I had given serious consideration to financing our add on purchase either through a HELOC or through Disney for the tax advantage but ended up just writing the check.

 

[3 Hobbits 2 Disney]

Misty we financed our purchase; however, let me caveat that by saying we have a DD 8, who we have done a state university prepaid tuition plan for as well as being fully vested in our 401ks. We could do the payments but did not want to tie up the liquid assets. We do write off whatever our accountant allows us to and occasionally we rent our points out when we cannot use them.

We stayed in Hilton hotel this weekend in Washington, DC, and at the end of the trip I looked at my husband and said "We are spoiled -- I miss my DVC!!"

My $.02.

 

[pinnocchiosdad]

I personaly took a loan. But, I honestly believe after much number crunching, that the only way for DVC to realy payoff is to pay cash. Between MF's and the mortgage payment, my DVC costs me several thousand dollars a year. I could just use this money and make cash reservations. 10 years from now i will only have to pay annual MF's. In the mean time its HI HO HI HO its off to work I owe!!!!!

 

[Mom B]

So far, we've 1) paid cash for our original resale contract at Vero Beach; 2) paid cash for a second resale contract at OKW; and 3) paid cash for a small add-on at AKV thru Disney, all because of some "inheritance" money we were fortunate to come into. I wouldn't rule out the possibility of financing more at some point down the road, depending on what the future brings...but for now we're good!

 

[Malaguti Ball Clan]

DVC is a non essential luxury item, of which one truly has zero necessity to have...therefore I FINANCED....but its okay because my house has depreciated over 100k in the past 14 months and I don't really give a damn...why...CAUSE I am going to Disney three times this year.....

 

[OneMoreTry]

I understand it is a luxury item, but would'nt all disney trips be? - not just DVC?

sorry i edited my post, i tend to get a little testy

BOTH ARE LUXURY. I AGREE.

I wouldn't borrow for either one and wouldn't recommend anyone else do it either. That's why I've never recommended DVC to any friend/family who I knew would have to borrow to buy in.

We paid cash. And waited quite a few years to be able to do so comfortably.

 

[OneMoreTry]

DVC is a non essential luxury item, of which one truly has zero necessity to have...therefore I FINANCED....but its okay because my house has depreciated over 100k in the past 14 months and I don't really give a damn...why...CAUSE I am going to Disney three times this year.....

I hope you can continue to go.

 

[tecodis]

I also did both. Paid cash for the initial contract and then put the second add-on purchase on a fixed rate 4.99% credit card.

It's always a matter of personal choice and what the best option for your circumstance is. When you can't pay cash, it's nice to be able to borrow knowing there is a cost for that privilege.

 

[AnnaS]

We paid cash for our points.

 

[nwhitehead1214]

OK, I am following this thread as my DH and I are considering purchasing. This is directed at the financial people. I found a VWL for sale-- 300 points at 60 pp (went before I could make an offer). These prices seem to be dropping. At what point to you then think of this an "sort of" an investment. We go to Disney every year for a week at the Poly. We never bought as I couldn't see the benefits of purchasing. Now, with the economy, it looks like a great deal. What are your thoughts.

 

[mydogdrew]

You can make a case for financing DCV in a market of price appreciation. These days - no way. Save your cash and buy later at a lower price point.

 

[Malaguti Ball Clan]

I hope you can continue to go.

Kinda have to continue to go now as I bought in.....but as a dual military couple soon to be retiring (less than 90 days now..Woohooo) and moving into our second careers, I will miss the 30 days leave/vacation per year, one can only hope our next jobs have good vacation days

 

[Dean]

OK, I am following this thread as my DH and I are considering purchasing. This is directed at the financial people. I found a VWL for sale-- 300 points at 60 pp (went before I could make an offer). These prices seem to be dropping. At what point to you then think of this an "sort of" an investment. We go to Disney every year for a week at the Poly. We never bought as I couldn't see the benefits of purchasing. Now, with the economy, it looks like a great deal. What are your thoughts.

The thought process is no different now than it was before the downturn. The specifics may vary. I am one that feels DVC is a luxury purchase (and so are vacations in general) and that financing such a luxury is a poor choice but I realize some people do. Some people also put vacations and xmas on a credit card and pay it off (or not in many cases) over time. Assuming one is in a position where the finances make sense otherwise, I think now is a great time to buy a DVC resale and many other timeshares as well. I'd want to have my house paid off and go in thinking if my savings lost another 50% and I lost my job tomorrow, would I still be OK. One in between approach is to buy a lot less points than you think you'll need, that way you can still take advantage of the system but have far less commitment now, are more likely to be able to pay cash and if something happened, would have far less yearly dues as well as something likely easier to dump if needed.

 

[billybobblockhead]

We purchased the minimum through Disney. Before our first payment, we transferred $$ from our home equity and paid the entire amount off. We hope to add another 50 or so points in a couple of years so that we can have a bit of flexibility to our room size and length of stay.

 

[momto2girls]

We paid cash.

 

[Misty89]

OP here,

thank you everyone for your replies, and for all of the helpful info you have given me.
Over the past 2 weeks, i have thought this over long and hard, and have decided to push back our purchase even longer. Shooting for January 1st 2011.
also, since i am going to wait, i am going to "Buy where i want to stay" - BLT my dream resort it should be on resale by then ( i hope, and not for $100/pt LOL)
at that point in time, all " personal" debt ( and i mean all of it , except mortgage) will be gone. my goal of next July was just too soon. I was forgeting a numbers of influances that will keep my cash flow tight for the next year.
We have no Equity in our home right now ( only lived here 10 years), well not enough to refiance IMHO. (besides, i do not want to refi in this economy) so a savings will be put aside and when we are finally ready, we will have a good down payment, or all of it in $$ ( still sticking to the under
$7K mark, no matter when we buy) we can always buy more in the future.


thank you again, and i still intend to read and research here weekly and enjoy what you all have to report on DVC and your wonderful trips "Home"

have a great day

Tina