Do people really pay those Disney rates?

[redrosesix]

Given that interest rates are so low right now, I can't see why people would finance their DVC purchase at the standard rate, or even the preferred rate of 10.75 %. I have CC's with lower interest rates than that.

I can understand financing at those rates on a temporary basis, until you get a lower rate to cover that debt, or paying it off quickly. But I just don't see people paying those rates over 10 years.

Could somebody please enlighten me?

 

[wdw1972]

What I can't see is being in DEBT - especially for something as frivolous as DVC. Let's face it - it's a luxury, not a necessity. I bought all of my points for cash - buying them as I could afford them. I'd shoot myself before I'd ever buy points that I had o finance.

 

[jodifla]

What I can't see is being in DEBT - especially for something as frivolous as DVC. Let's face it - it's a luxury, not a necessity. I bought all of my points for cash - buying them as I could afford them. I'd shoot myself before I'd ever buy points that I had o finance.

Wow! QUite a comment.

We bought back in '96 and financed. Luckily, we didn't feel like shooting ourselves because we were taking GREAT VACATION after GREAT VACATION!

We were already spending lots of $$ on vacations, so we shifted those costs into paying off our DVC. Had it paid off in less than five years. And we paid about half of what DVC is going for today.

WORKED BRILLIANTLY!!!!!!!!!!!!!!!!!!!!

(And by the time we saved up all that money....the cost of buying the points would have leaped dramatically, WE'D STILL have spent a lot of cash out on rooms for WDW vacations...and the rooms wouldn't have been nearly as nice.)

 

[arthur06]

It is an easy finance, I think everyone is approved! Some people with past or current credit problems don't always have credit limits on there Discover card of $20,000 or more. And many places won't loan for a timeshare. That being said, I think that many people that have DVC should not, but that's not anything that deals with me!

I want to buy 70 point add-ons which makes my payment $100 per month and make $250 per month payments. Just because right now I don't mind a $250 per month payment, if I financed enough points to add 200 points, I would pay for 10 years.

 

[logan115]

Wow! QUite a comment.

We bought back in '96 and financed. Luckily, we didn't feel like shooting ourselves because we were taking GREAT VACATION after GREAT VACATION!

We were already spending lots of $$ on vacations, so we shifted those costs into paying off our DVC. Had it paid off in less than five years. And we paid about half of what DVC is going for today.

WORKED BRILLIANTLY!!!!!!!!!!!!!!!!!!!!

(And by the time we saved up all that money....the cost of buying the points would have leaped dramatically, WE'D STILL have spent a lot of cash out on rooms for WDW vacations...and the rooms wouldn't have been nearly as nice.)

Agree, and btw financing @10% is good if you have the money returning 20% elsewhere. I plan on paying about 60% cash, and I'm gonna put the balance on my credit card as I like the safety of having some cash in my bank accout. One other thing, the credit card piece will be put on a card that has 2% for life on this balance.

 

[Sandisw]

I initially started out with Disney financing, just to get the add on going and as a temporary solution until I could secure other financing that would carry a much better interest rate.

It took so long for me to get everything set, that I was able to take care of things before the Disney financing went into effect. I just called, cancelled the loan, and put the balance on my CC--to get my Disney points--and will pay that off with the other loan I secured.

I know that there are a lot of people who feel that financing DVC is not okay. My feeling is that if you can comfortably afford the payments, and your basic needs are being meet (housing, food, etc.), then go for it. We are fortunate enough to have a vacation budget and my DH and I decided long ago that this was a priority for our family.

My MF's and my loan payments are more than covered within this yearly budget, so financed or not, it is worth it to us (and our plan is to pay off in just 2 years--of course, I know I will love DVC so much that I will end up just buying more!!!)

But I do agree that there are other options out there that are much cheaper than Disney and everyone should certainly investigate that before deciding to just go the Disney route.

 

[CarolAnnC]

FYI financing through Disney may be tax deductible as mortgage interest. They send a statement each year for tax purposes. You cannot deduct on your taxes if you put it on a credit card, though.

Some people use Disney financing also as they will pretty much finance almost anyone since they hold the control of the points so to speak. They may ask a higher down payment of someone who say may have declared bankruptcy at some point or has less than stellar credit.

My initial purchase was financed and my only regret is that I did not do it sooner than I did. My husband only got to enjoy 2 1/2 years of DVC vacationing with his family before his unexpected death. These are memories his children hold onto as they have grown up since. That is priceless, and the interest I paid on that contract was some of the best money I have ever spent..

 

[redrosesix]

Wow! QUite a comment.

We bought back in '96 and financed. Luckily, we didn't feel like shooting ourselves because we were taking GREAT VACATION after GREAT VACATION!

We were already spending lots of $$ on vacations, so we shifted those costs into paying off our DVC. Had it paid off in less than five years. And we paid about half of what DVC is going for today.

WORKED BRILLIANTLY!!!!!!!!!!!!!!!!!!!!

(And by the time we saved up all that money....the cost of buying the points would have leaped dramatically, WE'D STILL have spent a lot of cash out on rooms for WDW vacations...and the rooms wouldn't have been nearly as nice.)

But...what interest rate did you pay back then. And would you finance today at today's prices? (it would be harder to pay it off faster at today's prices).

 

[oakmanner]

We had a few blemishes on our credit report therefore could only qualify for the standard rate of 14.25%. We did however put $3000 down in cash and pay a couple hundred dollars more than our monthly payment each month torward the principle.

We're planning to have it paid off in no more than four years. Bottom line for us is we were going to WDW at least once a year and would have paid more out of pocket for lodging than we are paying for DVC yearly even with maintenance fees.

Everybodys situation is different and to be honest I find it insulting that people critiscize how others pay for DVC. Thats great some have cash to pay for it but we look at it that our kids will only be young so long and the memories and great vacations we enjoy are well worth paying a little interest.

Dennis-

 

[In Luv with Disney]

Everybodys situation is different and to be honest I find it insulting that people critiscize how others pay for DVC. Thats great some have cash to pay for it but we look at it that our kids will only be young so long and the memories and great vacations we enjoy are well worth paying a little interest.

Dennis-

Dennis, I totally agree with you.

 

[arthur06]

Dennis, I totally agree with you.

I'm with the both of you as well!

 

[M5ward]

Agree, and btw financing @10% is good if you have the money returning 20% elsewhere. I plan on paying about 60% cash, and I'm gonna put the balance on my credit card as I like the safety of having some cash in my bank accout. One other thing, the credit card piece will be put on a card that has 2% for life on this balance.

You're getting 20% back on an investment? Now? In this economic climate? I want in!!!

 

[bumbershoot]

IMy feeling is that if you can comfortably afford the payments, and your basic needs are being meet (housing, food, etc.), then go for it. We are fortunate enough to have a vacation budget and my DH and I decided long ago that this was a priority for our family.

Dennis, I totally agree with you.

And I agree with both of you.

 

[stopher1]

My initial purchase was financed and my only regret is that I did not do it sooner than I did. My husband only got to enjoy 2 1/2 years of DVC vacationing with his family before his unexpected death. These are memories his children hold onto as they have grown up since. That is priceless, and the interest I paid on that contract was some of the best money I have ever spent..

Everyone's reasons for the way they purchase are different - but this right here, is an excellent reason to not get so hung up on whether or not financing (through Disney or anyone else for that matter) is worthwhile. Sure it may cost some extra money, but in the end - no one is guaranteed tomorrow. Sometimes it's just better to seize the day and enjoy the here and now, especially if the basics of life are taken care of.

 

[SeedsLuvDisney]

I would finance it with Disney at 10.75% before putting it on ANY credit card, not only is it locked in its also tax deductible. Would also not use any form of home equity, not going to use our home to secure a vacation.

And there are times that financing DVC is a good choice, such as in our case we are going to Disney on a yearly basis..

 

[Brian Noble]

I find it insulting that people critiscize how others pay for DVC.

I didn't see anyone insulting anyone else. The OP asked a question, and got several different opinions in response. Not everyone needs to agree on whether or not financing is a good idea, and that's why Baskin Robins has 31 flavors.

For the record, I do not finance luxury purchases. Others might be fine with that, and that's okay, because they are not buying DVC with my money.

 

[SeedsLuvDisney]

One other thing, the credit card piece will be put on a card that has 2% for life on this balance.

What if you lose your job and miss a payment????

 

[WilsonFlyer]

From a previous post in an old thread about this very topic...

I'll throw something out there that I bet some others of you would like to say...

While, as a BANKER; I certainly understand what people mean when they say you shouldn't finance DVC or you shouldn't use your 401k to finance DVC or you shouldn't generally go in debt to buy into DVC. Technically, they are all right... BUT.. and this is a BIG but...

I, for one, would have never had a damn thing had I not begged, pleaded, borrowed, cried, struggled and everything else to get what I have today and I've done pretty good by most standards.

I've had tough times making payments and I'll have them again, probably, BUT I'll do whatever it takes (legally, of course) to give me and my family the things I want us to have. Period. NO exceptions and NO excuses. If I feel DVC's important enough to go into hock, that's MY business and MY decision.

Yes. That paragraph goes against virtually everything that promotes a healthy financial status. I DO know that but as human beings, we are emotional creatures with desires and wants and sometimes even needs that exceed our CURRENT ability to obtain. People have creative ways to get what they want. Don't criticize those of us that stretch to the limit as long as we do the right thing and pay our bills. It's really nobody else's business.

Some of you folks need to get off your high horses about if you can't pay for it in cash, you shouldn't buy. If I had the cash available that YOU have, I would pay for it outright but it's not your place to tell someone they shouldn't have it just because they had to buy it on credit. Credit makes the world go 'round.

Whew... I've been wanting to get that off my chest for about 10 threads like this now. I'm glad I finally did.

 

[rcortese711]

Subscribing.

I really dont want to get in the middle of this. We did finance our points. We're grad students so we really didn't have the money on hand and knew that in the future, we'd never have $20,000 in a bank (not with all the student loans we have! ).

So, we'd rather not finance but for grad students like us, it was our only option. Kudos to those who have the money to pay upfront. But for students and younger couples, it's simply not an option.

 

[arthur06]

I'll get in this!!! Many people that own DVC, or other luxurious items probably shouldn't! That being said...nobody has the right to tell others how to spend there money.

While both my wife and I make a very comfortable living, we often wonder how others do it on less. But I have no control over them. I was always raise with the belief that the "world needs all kinds". I don't want to work fast food for a living, but I see many people my age that do! How would I order from the dollar menu if everyone thought like me!

We leave for WDW in under 3 weeks, (with NO kids ) and a friend of mine said "don't do too much..." "...we want to go in 5 years and would like you guys to come with us..." I told him that we will probably go next year and the year after, he rolled his eyes. (this from a guy who spends $200+ per month on Emmitt Smith football cards on Ebay!) And he acts like I am this spoiled person! It drives me NUTS!

If you want to finance DVC, go for it! If you want to pay cash, good for you! Who cares what ways people pay, just as long as they do!