Blows my mind that they convince people to finance these timeshare purchases at those rates. Unreal
Are they though? My advisor simply asked 'cash or finance', there was no attempt to convince otherwise.
Blows my mind that they convince people to finance these timeshare purchases at those rates. Unreal
Also this mindset is essentially saying “if you can’t afford to pay for your next 50 years of vacations in cash now, than you can’t afford to vacation.
Not always true... We bought OKW direct before the increase, and my guide was very resistant on this. They wanted full payment a couple weeks after downpayment. I ended up getting him to split it into two payments over a month because I didn't have quite enough room on the card.
I see this a lot, and while I don’t completely disagree the idea of it, there‘s much more to the equation than just paying cash. For example, we financed our resale through Lightstream because most of our discretionary cash was tied up in stock during a downturn in the market, I’d rather pay some interest than sell off stocks at a loss just so I could say I paid cash for a luxury item. And we ended up paying it off in about 5 months.
Also this mindset is essentially saying “if you can’t afford to pay for your next 50 years of vacations in cash now, than you can’t afford to vacation.” Sure, if you are retired and don’t have earnings coming in other than your retirement investments, I’d agree, you can’t afford to pay interest for a luxury item. But someone who is still working, earning money, might not have a lump sum of 30 grand in their account they can afford to just lay down for future vacations, but they surely can afford a reasonable interest rate that still will save them money over the long haul. Another example, were you to buy 150 points at RIV direct today, you’d get the $2250 incentive discount. On a Lightstream loan for 3 years at 5.99%, paid off in just over 2 years you’d pay a similar amount in interest to the incentive. If you saved for 2 years then bought, will the incentive be there? Mostly likely not. Will the current prices remain the same for those 2 years? Absolutely not. My point is, there are situations and math that can support that financing isn’t the bad deal everyone plays it up to be. If all things were equal, sure, pay cash, but they aren’t, so sometimes reasonable financing makes sense.
Two caveats, Disney financing is not reasonable, nor is paying it off over 10 years.
I‘ll add another vote for looking into Lightstream, super easy, they’ll send you the money the same day at reasonable rates. Also, remember, Disney will let you split up your direct payments over 90 days.
We put our entire RIV purchase on our Disney visa and have a high credit limit but not 40k like our purchase price. We had them spread the charges over a few weeks so I’d send 10k payment to the so there would be credit available to charge the next portion. That way we were able to get the Disney rewards dollars to help pay our dues. We left the last 10k to be paid over the 6 month time frame at 0%.Although I’ll just pay cash if I buy more points, I’m always curious when I read the recommendations to use your Chase Visa w/ 6 months free interest to buy DVC - if you want the minimum blue card 150 points at Riviera that’s $30,000 - do most folks have that amount of credit on their Chase Visa?
I had my most recent purchase (150 point add on) split into three charges on three separate weeks. I paid the first two charges off before the third one hit. The third one was the bulk of the cost. So most of my purchase is now at 0% for 6 months. I don’t like to raid my savings account for things that are frills. The 6 months at 0% allows me to feel better about not touching the savings.Although I’ll just pay cash if I buy more points, I’m always curious when I read the recommendations to use your Chase Visa w/ 6 months free interest to buy DVC - if you want the minimum blue card 150 points at Riviera that’s $30,000 - do most folks have that amount of credit on their Chase Visa?
Me neither. Although I broke that policy, and felt guilty until I built my emergency savings back up.I don’t like to raid my savings account for things that are frills.
Are they what? I don't understand the question.Are they though? My advisor simply asked 'cash or finance', there was no attempt to convince otherwise.
The biggest advantage to financing from Disney is it's a mortgage, but they hold the note. For some people, that mortgage interest is tax deductible. They also don't report to the credit bureaus other than the initial credit pull. Rates vary based on credit score. My direct finance from Disney was 8.99% with 20% down. I wanted to preserve my excellent credit score and knew I would pay it off much sooner than 10 years anyway so the ~2-3% interest I would have saved with a personal loan or HELOC didn't matter as much to me.
They also let you pay your loan with a credit card, which is unusual. So, you can potentially rack up credit card points and get another 24-30 days to make that monthly payment if you game it right.
I've also wondered if you use your Disney Visa to make a DVC loan payment, do you get 6 months no-interest financing on that payment? But, I've never tried it. You could potentially game that by making larger principal only payments to the loan and then paying them off over 6 months until you have the mortgage paid off.
For my resale contract, I used Monera, but recently paid it off. They were also easy to deal with and offered similar rates to Disney. In that situation, I saved quite a bit per point ($15 or more) by going ahead and purchasing resale at that time versus waiting until I had all the cash.
This is one of the biggest advantages to financing through Disney. My rate was 8.99 on 50% down. That is a few points more than the personal loan I was offered through my bank. But the Disney loan doesn't get reported to the credit agencies. I suspect that means I will save more than the interest difference long term by being able to get better rates on a more significant purchase, that I won't pay off as quickly.
I think scoobdoo is trying to say that Disney is not really trying to convince people to take the loan (tell me if I'm wrong). Disney simply presents it as an option. My guides (my first retired) have been very good at not pushing or even mentioning the loan as an option. I'm thinking the loan is a big money maker for them and allows for an easy fast close - but I think the guides seem to handle it very well. Has anyone else felt the guides push the loan?Are they what? I don't understand the question.
I think scoobdoo is trying to say that Disney is not really trying to convince people to take the loan (tell me if I'm wrong). Disney simply presents it as an option. My guides (my first retired) have been very good at not pushing or even mentioning the loan as an option. I'm thinking the loan is a big money maker for them and allows for an easy fast close - but I think the guides seem to handle it very well. Has anyone else felt the guides push the loan?
I think scoobdoo is trying to say that Disney is not really trying to convince people to take the loan (tell me if I'm wrong). Disney simply presents it as an option. My guides (my first retired) have been very good at not pushing or even mentioning the loan as an option. I'm thinking the loan is a big money maker for them and allows for an easy fast close - but I think the guides seem to handle it very well. Has anyone else felt the guides push the loan?
exactly right. My guide never mentioned the loan option, and certainly didn’t push it.