DVC Financing/Pay Back Questions....Help!!!

[snicker-doodle]

I'm currently considering (very, very seriously) buying into the DVC. I've done a lot of reseach over the past several months, read a LOT of discussion boards, the FAQ's and should be getting my DVC info package any day.

I know my info package will discuss financing...but I'd like some feedback from others who used financing (or does everyone out there have $12,000 up front??). Let's say I was to buy 150 points, what kind of downpayment is needed and what is the financing rate? Is it worth it to get financing through DVC?

Also...on average, how often do you need to visit Disney for the savings of buying into the DVC pay off?

Thanks, in advance, to all those experienced DVC members taking time to respond!

 

[Maistre Gracey]

Well, initialy I financed everything.
I currently am playing the "credit card game", taking advantage of the 0.0% teaser rates. I have paid a large chunck of my DVC this way, and plan to have my DVC paid off within 2 years (alot more than 150 pts). I am efectively paying an average (between DVC rate, and the 0.0%) of about 3% for 2 years.
As far as down payment on my initial contract, they asked for $500 plus Magical Beginnings.

Good Luck!

PS- WELCOME TO THE DIS!

 

[ZerasPride]

I'm not really an experienced DVC member (joined this past December) but I am financing my purchase and can give you an idea of how things worked for me and my family as we certainly did not have $12,000 lying around. At the time we purchased Disney had the buyback program for Hilton Head at $15 per point. We purchased 170 points and we had to come up with $500 out of pocket. We are financing for 10 years but plan on paying off our balance much sooner than that (famous last words, I know). Our monthly payments are $138.08 and dues are around $45 per month.

Hope this helps!

 

[Disney Doll]

We bought 200 points at OKW in 1997, for about $12,000. W#e financed it through Disney for 10 years, because that gave us the lowest loan payment amount. Our thinking was that it would be nice to have a low amount as our bare minimum payment, and in the months that we have extra, we pay extra on it to pay it off quicker.

 

[Mai Ku Tiki]

We bought 210 BCV pts in April. Gave 20% as down pymt ($3150) on credit card over phone (we get up to 2% cash back annually on this card). Then we increased our Home Equity line of credit and we are paying balance with that ($12000ish). Our interest rate is half of Disney's and that interest will be tax deductible. We still hope to pay it off soon (OK Fairy Godmother...now's your chance!!!) LOL

Seriously, I don't recommend putting up your home as collateral for purchase of a luxury item (even though to some of us Disney is as vital as oxygen) unless you have superior willpower to pay back loan on time. We always use our HE line for major purchases, so for us it was a logical step.

Hope this helps

 

[eva]

DVC financing is now requiring 10% upfront either with cash or credit card. So for 150 points at $80 a point you would need $1200 upfront. They used to let you use the Magical Beginning incentive towards the 10%, but no longer do. You can still put MB towards the downpayment, but you still have to come up with $1200 yourself. We just bought an add-on at Vero for 100 points at $75. There was a $10 MB incentive at the time and we could put it towards the downpayment. But we still had to pay $750 by cash or credit card too. But because the total downpayment was more than 20% with MB we were able to finance at a bit lower rate. So I guess that the answer is that you will need to put down at least 10% of the amount with cash or credit card if you finance with DVC.

 

[bongo59]

we just bought in june of 02 and put 50% down on 400 points and used disney financing for the balance........we got a better rate but we are looking to pre pay it off in about two years.....the interest is tax deductible but having debt is contrary to my being........but my family is worth this exception it is really a lifestyle choice you have to make......just dont overextend yourself........not even disney is worth that.........

 

[jdpk]

The info packet will explain everything. I beleive the rates are discounted by 1% for direct debit and 20% down. We did 170 points, 20% down on a card (FF Miles you bet) and one of the loan plans they offer. Not cheap rates, these are not home equity or first mortgage rates. (10-14%.) Although if youv'e got the equity line there, its alot cheaper. (they also did a half-down one year at 5% when we got in before the increase...May-June 2002.
Good luck and we hope to welcome you home soon!!!
JDPK