Disney ROFR question

[arthur06]

I was looking at an OKW 25 point contract with a Feb UY at $70 per point, and $620 closing and admin fees. Meaning that I would be into my 25 point contract for realistically for $95 per point. It has 21 points available for this year and all of next.

I want to get a small contract so that I can get the preferred interest rate on future contracts and pay no future closing costs. I want all my contracts to be 100 points or smaller so they are easier to sell or leave for my kids in the future.

My biggest concern is that at $70 per point and not being a member is Disney more likey to use there ROFR to make sure that I don't get in at 25 points? Or am I just over thinking???

 

[5forDiz]

Doesn't cost you anything to try; you make offer & pay deposit and if you don't make it through ROFR deposit is returned to you. I don't think $70 is unrealistic but jmho I'd look at a contract that's larger because of the closing costs you've mentioned - - I don't know if I personally think paying that on 25 is worth it. We had paid approx $300 on a 50pt contract in 2007.

Btw, different resale brokers have different closing costs/fees so research all ( GMAC tends to run approx $150 higher than some others ) and also I believe you can decline title search ( or insurance ? - not 100% sure I recall correctly what or which so you may want to ask on this ) to save some money.

Good luck

 

[CMOORE185]

I was looking at an OKW 25 point contract with a Feb UY at $70 per point, and $620 closing and admin fees. Meaning that I would be into my 25 point contract for realistically for $95 per point. It has 21 points available for this year and all of next.

I want to get a small contract so that I can get the preferred interest rate on future contracts and pay no future closing costs. I want all my contracts to be 100 points or smaller so they are easier to sell or leave for my kids in the future.

My biggest concern is that at $70 per point and not being a member is Disney more likey to use there ROFR to make sure that I don't get in at 25 points? Or am I just over thinking???

Where are you looking that closing costs are $620. That is really high, Try the timshare store, your closing costs will not be nearly that high.

 

[chalee94]

I was looking at an OKW 25 point contract with a Feb UY at $70 per point, and $620 closing and admin fees. Meaning that I would be into my 25 point contract for realistically for $95 per point.

ROFR means that disney can step into your shoes as the buyer. if you are paying $95 per pt total, i'm sure disney realizes that it will also cost them $95 per pt total. (OTOH, if that OKW resale expires in 2042, DVC can buy it and extend it to 2057 for virtually nothing...something you as a resale buyer cannot do.)

 

[arthur06]

Where are you looking that closing costs are $620. That is really high, Try the timshare store, your closing costs will not be nearly that high.

I got an e-mail from Rachel Thompson at GMAC "the estimated closing costs and admin fees comes to $620..." I really don't mind the closing costs being such a large percentage of the sale, because I wont have to pay any closing cost thru Disney on add ons, plus I will get the prefered rate.

I did get an email from **** saying he had a 25 point contract at SSR for $2000 with $375 closing cost 0 - '09 points.

 

[5forDiz]

I got an e-mail from Rachel Thompson at GMAC "the estimated closing costs and admin fees comes to $620..." I really don't mind the closing costs being such a large percentage of the sale, because I wont have to pay any closing cost thru Disney on add ons, plus I will get the prefered rate.

I did get an email from **** saying he had a 25 point contract at SSR for $2000 with $375 closing cost 0 - '09 points.

Shop around. There are several resale brokers. On a contract with no 2009 UY points available I would not pay $620 closing costs/fees or 2009 MFs
( you can make an offer of whatever you like and ask that seller split costs with you too - read the first stickie on this board regarding The Timeshare Store's buying resale brochure, read FAQ's etc. ). GMAC tends to be quite a bit higher than most.

Just fyi, at the present time and HOPEFULLY it will remain this way for all members current and future, Disney is not charging any additional fees for add-on contracts purchased through them. Nothing with Disney is every guaranteed though and can change.

Good luck on your search for the contract that best fits your needs

 

[WilsonFlyer]

I want to get a small contract so that I can get the preferred interest rate on future contracts and pay no future closing costs. I want all my contracts to be 100 points or smaller so they are easier to sell or leave for my kids in the future.

Don't believe I've seen this mentioned so far in the replies but...

Not sure where the myth above came from but just for point of clarity, being a current owner does not guarantee any particular rate as far as I know. Your credit worthiness based on industry standard credit scoring determines your interest rate from Disney each and every time you take out a loan with them, just like with any other lender.

If you're on the border between "standard" and "preferred" rate by Disney's standards and have a good paying history with them on an existing loan, would it get you preferred instead of standard? Probably. Just like with any other lender. The converse is true as well. Merely being an owner paid in full with no credit history with Disney won't help one way or another. That's the point I guess I'm trying to make sure you understand.

I certainly don't mean to rain on your parade but better you know now than feel deceived later on. You may get preferred rate but it will be based on your credit history as of that day.

 

[Tozzie]

Don't believe I've seen this mentioned so far in the replies but...

Not sure where the myth above came from but just for point of clarity, being a current owner does not guarantee any particular rate as far as I know. Your credit worthiness based on industry standard credit scoring determines your interest rate from Disney each and every time you take out a loan with them, just like with any other lender.

If you're on the border between "standard" and "preferred" rate by Disney's standards and have a good paying history with them on an existing loan, would it get you preferred instead of standard? Probably. Just like with any other lender. The converse is true as well. Merely being an owner paid in full with no credit history with Disney won't help one way or another. That's the point I guess I'm trying to make sure you understand.

I certainly don't mean to rain on your parade but better you know now than feel deceived later on. You may get preferred rate but it will be based on your credit history as of that day.

Actually you are wrong, once you are a member if you add on again they do not do another credit check and as a member automatically get the Disney preffered rate. I just add on and they didn 't check my credit again I automatically got the preffered rate and this is also what my guide told me.


As for the original poster, shop around for a contract GMAC has tons of hidden fees, I purchased a 50 point add on via resale and only paid $285 in closing costs. Don't pay if you don't have to.

 

[WilsonFlyer]

Actually you are wrong, once you are a member if you add on again they do not do another credit check and as a member automatically get the Disney preffered rate. I just add on and they didn 't check my credit again I automatically got the preffered rate and this is also what my guide told me.


As for the original poster, shop around for a contract GMAC has tons of hidden fees, I purchased a 50 point add on via resale and only paid $285 in closing costs. Don't pay if you don't have to.

I have seen several threads on here saying exactly the opposite. I've even seen people comment that their add-on was at standard rate and not preferred.

Help me understand why those folks would be dishonest about this? Better yet, as a banker in another life, help me understand why you would believe being an owner entitles you to any particular interest rate.

You keep believing they're going to give 10.45 (or whatever it is today) to someone with a 470 beacon.

EditAdd: I know for a fact that they run another credit check when you do an add-on because my guide asked me for my SSN again and I asked him why and he told me straight out that they always run a credit check anytime they finance, new member or existing. EndEditAdd

 

[WilsonFlyer]

http://www.disboards.com/showthread.php?t=2117083&highlight=add-on+standard+rate&page=3

 

[JimMIA]

I got an e-mail from Rachel Thompson at GMAC "the estimated closing costs and admin fees comes to $620..." I really don't mind the closing costs being such a large percentage of the sale, because I wont have to pay any closing cost thru Disney on add ons, plus I will get the prefered rate.

I did get an email from **** saying he had a 25 point contract at SSR for $2000 with $375 closing cost 0 - '09 points.

Those closing costs are ridiculously high. I'd sure check around with other brokers. I believe TTS's minimum is under $300.

 

[JimMIA]

I got an e-mail from Rachel Thompson at GMAC "the estimated closing costs and admin fees comes to $620..." I really don't mind the closing costs being such a large percentage of the sale, because I wont have to pay any closing cost thru Disney on add ons, plus I will get the prefered rate.

I did get an email from **** saying he had a 25 point contract at SSR for $2000 with $375 closing cost 0 - '09 points.

One reason why these costs are so high is that GMAC charges an "administrative fee" of $195 on top of all the other normal costs. It's a fee for nothing.

 

[twinklebug]

I have seen several threads on here saying exactly the opposite. I've even seen people comment that their add-on was at standard rate and not preferred.

Help me understand why those folks would be dishonest about this? Better yet, as a banker in another life, help me understand why you would believe being an owner entitles you to any particular interest rate.

You keep believing they're going to give 10.45 (or whatever it is today) to someone with a 470 beacon.

EditAdd: I know for a fact that they run another credit check when you do an add-on because my guide asked me for my SSN again and I asked him why and he told me straight out that they always run a credit check anytime they finance, new member or existing. EndEditAdd

My GUIDE ( <fact>Guides know all, right </fact> ) told me that if I ever chose to do an add on it would be at the preferred rate. Now I know better. It makes no business sense whatsoever for a bank to take it on good faith that someone will pay them back. Of course they run a credit check & of course, off that the rate will be determined.

Anyway. You asked where the myth came from and that's where: the DVC sales office itself.

 

[arthur06]

So, with all of this discussion, does anyone know for a fact if add ons are done at the preferred rate?

 

[work2play]

I am purchasing a contract through GMAC right now. Since the fees are higher there, my offer included splitting the closing costs with the seller. The buyer usually pays closing costs at TSS. Half the closing costs at GMAC are about equal to the closing costs at TSS. GMAC had the contract I wanted and the use year I wanted so my offer took that into account.

 

[princessfionasmom]

I went thru GMAC and part of my offer was that the seller pay half the closing costs. I would put in your offer of $70 with seller paying half closing costs, the worst that can happen is they say no and you move on.
As far as the preferred rate, I wouldn't know that but I wouldn't count on it. With the credit market the way it is even if they did do it before it could certainly change with the current economy.

Good luck!!!!

 

[JimMIA]

I am purchasing a contract through GMAC right now. Since the fees are higher there, my offer included splitting the closing costs with the seller. The buyer usually pays closing costs at TSS. Half the closing costs at GMAC are about equal to the closing costs at TSS. GMAC had the contract I wanted and the use year I wanted so my offer took that into account.

Every aspect of any resale transaction - with any broker - is subject to negotiation. Whenever you talk about resale, you have to remember that one central fact.

It's also helpful to realize that very few DVC resales are exclusive to one broker. Frequently, multiple brokers have the same contract listed for sale.

I'm sure there is little, if any, difference in the number of split closing costs from one broker to another. And if there is -- shame on us.

A few years ago, when we first bought (resale through TTS) the standard practice was for the purchaser to almost always pay the closing costs. However, a trend started later of splitting the cost in some cases. The primary reason for splitting closing costs was to pass ROFR -- the buyer would pay a higher per point cost, and make some of it back by having the seller pay part of the closing costs. The seller got the same net proceeds and the buyer got a benefit. (Whether that strategy actually helped deals pass ROFR is anybody's guess! )

Who pays what is really immaterial. You have to look at the total cost of purchase, no matter which categories the costs fall into.

You also have to remember that the initial purchase price is only a small portion of the cost of DVC ownership over the term of the contract. If you find a contract that you love, whether you pay $1-2 more per point, or pay higher closing and administrative costs, is really irrelevant in the grand scheme of things.

 

[mickeymit]

GMAC's closing costs are higher; it really makes a differnce if you are buying a small contract - $600 for a 25 point contract is $24 per point in closing costs; $600 for a 300 point contract is 2 per point in closing costs. Maybe you could find a seller who has multiple smaller contracts to sell at one time and the broker could wrap them together in one transaction and reduce the closing costs.

 

[Jason@dvcstore]

Where are you looking that closing costs are $620. That is really high, Try the timshare store, your closing costs will not be nearly that high.

At The Timeshare Store, Inc.® for a 25 to 50 point contract (not Hilton Head) the closing costs are $322, for a 51 to 75 point contract (not Hilton Head) the closing costs are $359 and for a 76 to 100 point contract (not Hilton Head) the closing costs are $397.

Jason

 

[SFD998]

I have made two resale purchases through the TimeShare Store with the most recent being a 50 pt contract. Like the PP says the closing costs were $322 (assuming you are the Jason I think you are I bought them both from you). The mistake I made was not having the seller pays the closing fees or at least trying.

The main point was that I didn't pay $600 for closing. However, another poster mentioned that some additional costs now to get the contract you want is probably worth it. At the time I wanted a small contract to get my foot in the door at AKV. The price was worth it.

On another note I just added on to my AKV contract directly through Disney (sorry Jason). I decided to finance and there was no initial credit check. It was automatic approval. There are no closing costs and the rate was in the 10's. I don't know what the preferred rate is, but that is what it was.