DVC... Cash vs Financing

[MickeyBabe]

Okay, I know this is silly, but as I was day dreaming about winning the Powerball, I immediately thoguht about adding on to my DVC.

We paid cash and bought a resale contract in January. I have been reading about people who financed a contract through Disney.

I am just curious, who paid cash up front and who financed and what the benefit or drawbacks may have been.

Still dreaming....

 

[spiceycat]

I brought back in 93. First I was going to save up and pay cash.

then I did the numbers - the free tickets were a BIG savers for my family.

I am pretty glad I did it then even financing because in 1995 they did away with the free tickets.

 

[Y-ASK]

Paid cash for our 1st purchase into DVC. Financing means paying interest that you will never see but if you know how to invest (I personally don't) you might be able to off set that interest by investing that cash somewhere else. The hard part is making sure that the monthly payment is not going to strap you down. The only other alternative I can think of is to pay yourself the interest by taking out a 401K loan for the purchase. Can be risky if you're not sure about employment over the duration of the loan.

Y-ASK

 

[bbowers]

We partially financed through a home improvement loan, but paid it off super-quick because that interest thing drives me crazy. We COULD have paid cash, but I hate draining the savings. I consider what interest we did pay insurance against having some other emergency come up that we needed our cash for.

 

[Disney Doll]

Financed the first one through Disney. Paid cash for the second one via resale.

Didn't regret either purchase. I love the DVC!!!!!!!!!!!!!!!!

 

[RichAyers]

We initially purchased and financed thru disney.....Last year we recd a credit card offer for a "1.99% until paid off" balance transfer from my credit card company. Nothing beats that! So we did it. Best move we ever made. I am NOT suggesting this for everyone, but it is perfect for us.....My wife and I are good at managing money so it was a no-brainer...We set up an autopayment monthy to the credit card from our checking account so we never forget it......

RichAyers

 

[WDWLVR]

Financed our main 300 point contract through Disney. Paid cash for our 100 point add-on at Vero.

 

[ceejay13]

One contract financed and the other 3 were paid for in cash.

 

[lovwdwalot]

Paid cash for our 200 BCV contract, we also didn't want have to deal with interest on a large purchase.

 

[Beca]

We did a little of all three choices. We paid about 1/2 up front (we have several contracts). We financed 1/4 thru DVC and about 1/4 via Tammac. However, we paid of all of the loans within one year...so, we didn't finance for very long.



Beca

 

[crisi]

We bought resale. I said cash up front, but there was a home equity loan involved for about ten days while a check arrived and cleared.

 

[rantnnravin]

we financed through Disney-- the interest gives us a tax-break, so...no harm, no foul.
can't wait to go home for the first time...

 

[JimC]

Paid cash for resale and add-ons and borrowed from Disney for one year on first contract from them. Did not want to drain cash balances too low, so carried it for a year.

Edited to note that we used our Disney Visa for the add-ons so we could get the points which pay for meals when we are at Disney. Still paid cash when the bill came but why give up the points?

 

[Cruelladeville]

The first contract was financed thru Disney, the second thru home equity loan, the 3rd and 4th were paid for with cash, and a 50 pt add-on was paid for by credit card with 0% financing.

 

[DrTomorrow]

We financed through Disney for the ease and convenience. However, after closing (we bought SSR before it opened) we paid off Disney with a home equity loan.

 

[DVC-Don]

We did both ways of finance. The first one we financed through DVC, then paid off a year later with a Home Equity Line of Credit. The second one we financed with the HELoC. They were both paid off in full after two years.

 

[DisneyPhD]

We bought before Disney Visa but our rep had us put in a down payment and then spread the balance out over three months on our "other" credit card with a rewards program. We paid the card off each month and later used the rewards to buy our plane tix on a future trip.

 

[crazywig]

we paid cash for our initial 170pts (used airmiles cc and paid off immediately), we actually financed our addon so we could grab it before the price went up. we'll pay that off in less than a year.

 

[cobbler]

We financed, but I plan to have it paid off withing 5 years instead of the 10. Financed because plan on staying deluxe from here on out, would be spending the money anyway, gave a great incentive and wanted to be locked into a price per point and chart thing now than in the 4-5 years it would take for us to save for it.

I know I won't regret it

 

[DisZip]

Paid cash for both our initial purchase though Disney (210pts BCV) and our add-on via resale (150pts VWL).