DVC-How did you finance

[3DisneyNUTS]

Okay, this is the way we feel about DVC (or any timeshare, for that matter)...it's purely a luxury purchase. It should be purchased with money you have in hand and that you will never miss if anything should go awry in the future. It should be "pay it and forget it," money, not "expensive", month-to-month money. It shouldn't be on a credit card - of any kind. It shouldn't displace or be part of your home equity, 401k, IRA or other "important" savings for the future (like college or health care.) It should be money that you don't need now and won't need for anything else. Ever.

Yes, people need vacations, but there are cheaper vacation venues than Disney. DVC is great. But it is not a necessity. It is a desire, a very deep and immediate desire in many prospective buyers - and DVC's "easy financing" plays heavily on this point.

This is our view and paying cash was our choice. If other folks choose to do it differently, that's their business. And I honestly DO wish them luck, happiness and many years of enjoyment when they purchase DVC.

DisFlan

So have to disagree here. How does a 13k purchase with 0% validate a statement of It shouldn't be on a credit card - of any kind? My 13k made interest while I just had to pay a loan of 0% Why would it make sense for me not to make interest andtake the money out of the bank? I was given $400 worth of rental cars just because I used AMEX to pay for the transaction then I moved it immediately. I think it is foolish not to use credit cards to your advantage in situations like these. The credit card companies sure take advantage of the consumer on their ends. Why not make it a positive transaction on the consumers end?

 

[DisFlan]

So have to disagree here. How does a 13k purchase with 0% validate a statement of It shouldn't be on a credit card - of any kind? My 13k made interest while I just had to pay a loan of 0% Why would it make sense for me not to make interest andtake the money out of the bank? I was given $400 worth of rental cars just because I used AMEX to pay for the transaction then I moved it immediately. I think it is foolish not to use credit cards to your advantage in situations like these. The credit card companies sure take advantage of the consumer on their ends. Why not make it a positive transaction on the consumers end?

How you handled it work fine for you and I'm glad it did - but the stuff put on credit card(s), even with 0%, gets put on credit reports. We use Amex, too, and could have done the same thing, but we chose not to. Not everyone using a card can clear a large amount as quickly as we could or you did. If they had ANY unforeseen problems in the future, it could affect their credit report negatively. The card companies and the reporting companies are becoming pickier and tighter. We don't think a timeshare (even DVC) is worth the risk for most people. If you have the money to pay for a timeshare, just pay for it. If you don't have the money, a credit card isn't a good place to get it.

DisFlan

 

[3DisneyNUTS]

How you handled it work fine for you and I'm glad it did - but the stuff put on credit card(s), even with 0%, gets put on credit reports. We use Amex, too, and could have done the same thing, but we chose not to. Not everyone using a card can clear a large amount as quickly as we could or you did. If they had ANY unforeseen problems in the future, it could affect their credit report negatively. The card companies and the reporting companies are becoming pickier and tighter. We don't think a timeshare (even DVC) is worth the risk for most people. If you have the money to pay for a timeshare, just pay for it. If you don't have the money, a credit card isn't a good place to get it.

DisFlan

agreed. It is crazy to pay interest when purchasing something especially as big as this. Even for people who can't afford a cash layout upfront there are ways to use the 0% periods to finance without interest. There are a few finiancial planners that have an "Others people's money" strategy to make interest for yourself. While it is not something I would bother getting that involved in I would recommend it for people who have to finance. It takes alot of attention and planning but it can be done by finding cards that have 13 months interest/fee free and transferring the balance once a year.