DVC Financing Approval

Best advice here is don't buy direct and finance, rent for a few years and save the difference to eventually buy a resale contract when you have the cash.

This is all about reducing your financial risk in case something bad or unforeseen happens.
 
I am for financing - we financed our purchase of DVC - didn't view it any different than when I financed my Rodeo for 10 years from Bank One at 1.9% Interest rate in 2003. That said - I didn't worry about DVC approval.

If your credit's questionable with utilities and a Macy's card I think you have an answer. :sick:
 
I am for financing - we financed our purchase of DVC - didn't view it any different than when I financed my Rodeo for 10 years from Bank One at 1.9% Interest rate in 2003. That said - I didn't worry about DVC approval.

If your credit's questionable with utilities and a Macy's card I think you have an answer. :sick:

Three questions.

First, by "Rodeo" are you referring to the car? You financed a car for 10 years?

Second, what was the rate you got when you financed your DVC purchase? I'm guessing it was higher than 1.9%.

Third, didn't you say in another thread that paid more than you needed to when you purchased your DVC contract?

Financing timeshares is a dangerous game with pretty significant consequences. I would be very careful about recommending that people do it.
 
There's been a lot of good advice given - one additional cost you should think about is in addition to the potential $700+ per month to finance the purchase and MF's you are going to want to actually use your points - which means travel costs, food, and park passes, etc. This can put an additional significant strain on your budget and increase your costs significantly.

Unfortunately a lot of folks have purchased DVC based on emotion and the availability of relatively "easy" financing - then have struggled to make the payments or have been unable to use their points because they can't afford the additional travel costs. If you end up struggling and want to sell your new AKV points - you will be upside down (owe more than it is worth) for many years given the lower resale prices for AKV. 260 points is a lot of points - if you have made up your mind and want to go through with it I would rework the #'s and think about getting a smaller # of points.
 

Thanks everyone for your opinions. We do have the cash to be able to pay the 620 a month that it will cost, and I know it is not ideal to finance it, we just don't have the 33,800 outright. It is something we really have always wanted to do, and I know we are paying way more than we should, but like one person said, it was an emotional decision. I was just asking if it is hard to be approved that's all. We sent in all our paperwork on friday.

I appreciate all your input, we have gotten it from others too. It wasn't a popular decision by some of our family members. We wanted the 300 points because my brother has 300 and he likes to talk about us and he would have said "they couldn't afford what I have." So that's why we got the 300 points.

Keep the great input coming, really do appreciate all the opinions.
 
Thanks everyone for your opinions. We do have the cash to be able to pay the 620 a month that it will cost, and I know it is not ideal to finance it, we just don't have the 33,800 outright. It is something we really have always wanted to do, and I know we are paying way more than we should, but like one person said, it was an emotional decision. I was just asking if it is hard to be approved that's all. We sent in all our paperwork on friday.

I appreciate all your input, we have gotten it from others too. It wasn't a popular decision by some of our family members. We wanted the 300 points because my brother has 300 and he likes to talk about us and he would have said "they couldn't afford what I have." So that's why we got the 300 points.

Keep the great input coming, really do appreciate all the opinions.


Good luck and hope it all works out okay for you.
 
Thanks everyone for your opinions. We do have the cash to be able to pay the 620 a month that it will cost, and I know it is not ideal to finance it, we just don't have the 33,800 outright. It is something we really have always wanted to do, and I know we are paying way more than we should, but like one person said, it was an emotional decision. I was just asking if it is hard to be approved that's all. We sent in all our paperwork on friday.

There's a state-mandated 10-day cooling off period, during which you can change your mind about your purchase. I suggest you look long and hard at all your options.

Why not figure out a way to pay less for the points so you're not hopelessly out of options if you need to get out. Or pay less so you have more money to spend on your travel expenses.

Paying less could include buying resale instead of direct or buying a smaller number of direct points to start with.

I appreciate all your input, we have gotten it from others too. It wasn't a popular decision by some of our family members. We wanted the 300 points because my brother has 300 and he likes to talk about us and he would have said "they couldn't afford what I have." So that's why we got the 300 points.

Keep the great input coming, really do appreciate all the opinions.

Frankly, your brother is right. You can't afford 300 points. And buying that many just to keep up with the Joneses may be the biggest mistake you're making.

DVC is a fun purchase, but it's a long and costly commitment. You really need to reassess your decision and not just say it's out of your hands because the paperwork has been sent in. You have options, lots of people on here have given you very good advice on this thread. You should listen to them.

Good luck! :goodvibes
 
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We wanted the 300 points because my brother has 300 and he likes to talk about us and he would have said "they couldn't afford what I have." So that's why we got the 300 points.

I'm usually not this judgmental, but I have to say that with all due respect, this is an awful reason to make the purchase that you did. Probably one of the worst I've ever heard. You're going to jam yourself up with $700 a month payments for the next ten years just so you can stick it to your brother? My goodness. And imagine your disappointment when he throws it back in your face that he paid for his in cash but you had to finance yours. This is a terrible purchase with a terrible rationale and most likely terrible repercussions (although I certainly hope not).

You're still well within your ten days to cancel, and I urge you to consider cancelling your contract. Did you know that it is very possible to buy the same contract via resale for roughly $18,000 as opposed to the $62,900 that it is costing you?
 
Thanks everyone for your opinions. We do have the cash to be able to pay the 620 a month that it will cost, and I know it is not ideal to finance it, we just don't have the 33,800 outright. It is something we really have always wanted to do, and I know we are paying way more than we should, but like one person said, it was an emotional decision. I was just asking if it is hard to be approved that's all. We sent in all our paperwork on friday.

SNIP

Keep the great input coming, really do appreciate all the opinions.

Hi, not sure if you're already aware of this but just wanted to mention that the part I bolded "$620 a month" isn't the only re-occurring costs that you will have. There's also the yearly maintenance fees. Not sure what resort you bought at (AKV?) but 300 pts x $5.43 per point = $1629.

And that's before you even get there. I posted somewhere on another thread that after I worked the numbers for airfare (coach not first class), food, park tickets (only, no souvenirs) we will be spending more than a quarter of a million dollars for WDW vacations in 30 years.

The initial buy in, whether it's few thousand dollars or a lot more, is actually the cheap part of DVC. I'm only mentioning this because you still are in the cooling off time and it's good to have as much information as possible to feel comfortable to move forward. Run ALL the numbers while you still have a choice.

Good luck!
 
We do have the cash to be able to pay the 620 a month that it will cost

Yipes! $620 a month for a timeshare? Holy cow, now I don't feel bad about my $80 a month. :)

To put it in perspective, a lot of people spend that much on their mortgage payments on a house or condo. That's pretty close to my mortgage payment, in fact. On a 3 bedroom condo in a really nice building.

Take the money, put it aside towards buying a home. That'll impress and/or shut up your brother way better than throwing away tens of thousands of dollars on a timeshare loan will.
 
Thanks everyone for your opinions. We do have the cash to be able to pay the 620 a month that it will cost, and I know it is not ideal to finance it, we just don't have the 33,800 outright. It is something we really have always wanted to do, and I know we are paying way more than we should, but like one person said, it was an emotional decision. I was just asking if it is hard to be approved that's all. We sent in all our paperwork on friday.

I appreciate all your input, we have gotten it from others too. It wasn't a popular decision by some of our family members. We wanted the 300 points because my brother has 300 and he likes to talk about us and he would have said "they couldn't afford what I have." So that's why we got the 300 points.

Keep the great input coming, really do appreciate all the opinions.

I try not to be judgement about this subject, because I financed my DVC too and I don't disagree with it in most situations. We bought resale and financed through Timeshare Lending.net...I was feeling pretty guilty about the $175 a month for 5 years. But $620 for 10 years is a month is ALOT of money just for a glorified hotel room! :eek::eek: And I'm actually shocked that someone would make a financial decision that huge just to keep up with someone else in their family. :confused3 But I digress...

If you are set on buying and financing, you could do it through resale (Timeshare Store or Fidelity) & Timeshare Lending for a lot cheaper. Here is a little analysis:

300 pts @ $69/pt = 20,700
If you can put 10% down ($2,070), you will finance at 13.9% you will only pay $7,000 in interest (still ALOT, but significantly less than the $29k quoted above!), and the payments will be only $425 (plus dues) for FIVE years instead of 10.

Once you factor in yearly dues and the life of the contract, each year of DVC will cost you $2,207.38 and will cost you almost $100,000 over the life of the contract. If you can get deluxe accommodations for $2,207.38 a year, it makes no financial sense whatsoever.

I am not against financing in the right situation - like I said, we are financing a relatively small amount ($7,000) over 5 years, and are definitely paying a bit of a premium to do it (our DVC contract will cost of $2500 more than it would if we paid cash...), but WOW $29,000 in interest is truly staggering. Best of luck with your decision, I highly suggest you look at resale.
 
Here's one option you might want to consider. If you have the ability to pay $610/month, then that is equal to $7,440 in one year.

For the first year, rent 300 points from someone here at $11/point which will cost you $3,300. And give you your vacation for the year.

That leaves you $4,140 left in savings. Take that money and look for a 100 point contract at OKW or SSR on the resale market. Make sure it comes with banked/free points. If you pay around $55/point and rent out the banked points the contract comes with you'll be able to own your 100 point contract free and clear in the first year. This is totally possible as I've bought 4 SSR contracts all working out to about $32/point after renting out the points the contract came with.

So after 1 year, you've been on vacation and you own 100 points and you don't owe any money.

Repeat this for two more years and you'll own your 300 points and you will not be debt.

The first step though is to cancel your contract with Disney. Take some time and think about this option. Disney will still be there a week from now to sell you direct points if you decide you don't want to go to the resale market.
 
Here's one option you might want to consider. If you have the ability to pay $610/month, then that is equal to $7,440 in one year.

For the first year, rent 300 points from someone here at $11/point which will cost you $3,300. And give you your vacation for the year.

That leaves you $4,140 left in savings. Take that money and look for a 100 point contract at OKW or SSR on the resale market. Make sure it comes with banked/free points. If you pay around $55/point and rent out the banked points the contract comes with you'll be able to own your 100 point contract free and clear in the first year. This is totally possible as I've bought 4 SSR contracts all working out to about $32/point after renting out the points the contract came with.

So after 1 year, you've been on vacation and you own 100 points and you don't owe any money.

Repeat this for two more years and you'll own your 300 points and you will not be debt.

The first step though is to cancel your contract with Disney. Take some time and think about this option. Disney will still be there a week from now to sell you direct points if you decide you don't want to go to the resale market.

Although this is a little more work, it is great advice. And it gives you the 300 points you think you need in a matter of three years. Plus, they're paid in full as opposed to having 7 more years of payments. It's great advice.

The only objection to doing it this way is if you absolutely positively have to have your 300 points right now. But "I have to have it now" is a reason for buying a sandwich, not a $60,000 timeshare.
 
Although this is a little more work, it is great advice. And it gives you the 300 points you think you need in a matter of three years. Plus, they're paid in full as opposed to having 7 more years of payments. It's great advice.

The only objection to doing it this way is if you absolutely positively have to have your 300 points right now. But "I have to have it now" is a reason for buying a sandwich, not a $60,000 timeshare.

Renting 300 points this year gives them the use of 300 points right now. And a point is a point wether you own it or you rent it.

Then in year two they rent 200 points and use 100 points they own for a total of 300 points. In year 3 they rent 100 points and use 200 points they own for a total of 300 points. And finally at the end of 3 years they will own all 300 points.

This should cost them less then $20,000 over 3 years, let them vacation using 300 points each year and end up having them own 300 points at the end of 3 years.
 
Good luck and hope it all works out okay for you.

I wish the OP the same!


Here's one option you might want to consider. If you have the ability to pay $610/month, then that is equal to $7,440 in one year.

For the first year, rent 300 points from someone here at $11/point which will cost you $3,300. And give you your vacation for the year.

That leaves you $4,140 left in savings. Take that money and look for a 100 point contract at OKW or SSR on the resale market. Make sure it comes with banked/free points. If you pay around $55/point and rent out the banked points the contract comes with you'll be able to own your 100 point contract free and clear in the first year.

Sigh. Where were you when we were deciding to finance? :) (eta: OH yeah, I wasn't talking about it on the boards, knowing what the replies would be, LOL)

While I will say that our decision to do it was the second to last step in our path to getting a financial clue, and I will state that it was a GOOD thing we did it b/c otherwise we wouldn't have realized just HOW close to the edge we were, I think that financing when you shouldn't and buying a timeshare when you shouldn't is generally NOT going to have a happy ending.

And doing something to spend lots of money in hopes that it will show you the mistakes you are making isn't really a great thing, LOL.

Plus, with us we were only talking 226...not 620!



But still, your advice, Doug, is GREAT, and you've said it in a wonderful, kind, way.
 
Although this is a little more work, it is great advice. And it gives you the 300 points you think you need in a matter of three years. Plus, they're paid in full as opposed to having 7 more years of payments. It's great advice.

The only objection to doing it this way is if you absolutely positively have to have your 300 points right now. But "I have to have it now" is a reason for buying a sandwich, not a $60,000 timeshare.

Renting 300 points this year gives them the use of 300 points right now. And a point is a point wether you own it or you rent it.

Then in year two they rent 200 points and use 100 points they own for a total of 300 points. In year 3 they rent 100 points and use 200 points they own for a total of 300 points. And finally at the end of 3 years they will own all 300 points.

This should cost them less then $20,000 over 3 years, let them vacation using 300 points each year and end up having them own 300 points at the end of 3 years.

I think the problem for OP with these plans is they don't have the up-front cash to rent points (hence the needing a monthly payment plan).

I made the suggestion earlier in the thread that the OP set up a savings account and make payments to himself to save up enough cash to rent/buy resale without having to finance.
 
:) I think your family member brings up his 300 points becasue he has shortfalls in other areas....but that is really none of my business.

We too financed our purchase in 2009. We purhcased 210 AKV points at $93 a point. We pay $237 a month in mortgage and another $80 a month for MFs. But dang, $620 a month is huge....I feel better about our decision to finance already.

Just imagine how your brother will feel if you have to give up the new purchase for some reason. He would love that. Why not rent the points, and then laugh about how he is in the timeshare for another 40 years. Please reconsider your decision and don't talk to your brother about DVC.

DVC has caused :thumbsup2 us to purchase APs the last 2 years, a TIW card the last 2 years and 2 trips each year the last 2 years. Outside of the point purchase it is very expensive anyway because you need to use yoru membership effectively.
 
Renting 300 points this year gives them the use of 300 points right now. And a point is a point wether you own it or you rent it.

Then in year two they rent 200 points and use 100 points they own for a total of 300 points. In year 3 they rent 100 points and use 200 points they own for a total of 300 points. And finally at the end of 3 years they will own all 300 points.

This should cost them less then $20,000 over 3 years, let them vacation using 300 points each year and end up having them own 300 points at the end of 3 years.

Good advice - I did something like this too. I made sure my contract had all 2011 and 2012 points and plan to rent them out and put the nearly $4000 back into my contract.
 
Good advice - I did something like this too. I made sure my contract had all 2011 and 2012 points and plan to rent them out and put the nearly $4000 back into my contract.

A very smart thing to do to reduce your initial buyin costs. :thumbsup2
 
:) I think your family member brings up his 300 points becasue he has shortfalls in other areas....but that is really none of my business.


Just imagine how your brother will feel if you have to give up the new purchase for some reason. He would love that. Why not rent the points, and then laugh about how he is in the timeshare for another 40 years. Please reconsider your decision and don't talk to your brother about DVC.

My evil, competative side would simply buy 300 points resale and rub it in my brother's face that I got what he has for HALF PRICE. :laughing:
Better yet, get him to take you on vacation on his points.

Seriously, there are far better ways to do this, it just might not involve instant gratification. Save your money and look into resale and buy small contracts (they are easier to sell later if you need to) and build up to your 300 points. This whole discussion is just freakin' me out!! :scared:
 



















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