DVC-How did you finance

[Daitcher]

Now you have hit one of my pet peeves - people who misuse the word Politically correct because they don't understand or really know what the word means. There are a few more words out there like that, but we won't go into those...

"Politically Correct -
Of, relating to, or supporting broad social, political, and educational change, to redress historical injustices in matters such as race, class, gender, and sexual orientation. "

My friend, you are so grossly misusing the word politically correct right now it isn't funny. No it isn't a politically correct opinion because that word doesn't apply to this conversation. There is nothing in this conversation that is dealing with a political topic of change nor addressing the historical injustices. A politically correct statement might be calling someone an African-American instead of using the word black. The statement I gave above was politely expressing an opinion; it has nothing to do with being politically correct.

This has nothing to do with being wishy washy or "telling it like it is." One can "tell it like it is" and still be polite. But your statement above of "tell it like it is" makes it seem that you feel your "opinion" is fact and the only correct way for someone to go.

Let us look at what you wrote:

"Hold off the purchase until you can pay cash. If you can't pay cash for the buy in, you cannot afford it. Not a popular stance on here but it is the truth."

If only our Government would stick to this statement. But that is not the topic at hand. You state that if you can't pay cash, you can't afford it... you say it is the truth. That doesn't really come off as an opinion, but as a fact. But it isn't... I couldn't pay cash for that entire purchase, because if I did my cash savings would be gone and if something happened I would be in trouble. But I make more than enough to pay the monthly payment plus extra. So I can easily afford it without depleting reserves. As seen by others this is the case with many. Here are a few more statements...

"If you can "afford DVC" then why can't you pay cash? If you aren't saving or have no savings to speak of then you have no business buying into a timeshare....It should only be for those with disposable income."

"Your post is a good one but false on one account. You are wrong in the assumption that people will pay more by waiting."

These all come off like your statement is the ONLY correct thing. They don't come off as an opinion.

And please remember polite and politically correct are not the same thing. Don't disparage a word if you do not know the words meaning.

Sorry, didn't realize that these boards were English 101. The mastery you have of the English language out to get you far in life. Thanks for the lesson. Off topic but thanks anyway. I think the OP has gotten enough opinions here to make a decison that is best for her family. Sorry if you don't like my style of posting. I present things like I'm making a case for it.

DAVE

 

[Juliet25]

To those who have been through the Disney financing process, what does it involve in terms of paperwork, getting a decision, etc? I have the paperwork breaking down the down payment and interest rates, but there was no application.

Also, can incentive cash ($1200 for 150 points) be used in lieu of a downpayment?

Thanks!

 

[vascubaguy]

To those who have been through the Disney financing process, what does it involve in terms of paperwork, getting a decision, etc? I have the paperwork breaking down the down payment and interest rates, but there was no application.

Also, can incentive cash ($1200 for 150 points) be used in lieu of a downpayment?

Thanks!

I didn't go thru the financing with DVC, but I do know that you can use the incentive towards the downpayment; however, you have to pay at least 10% out-of-pocket.

My understanding is that you can do the financing app over the phone. Depending on what they find, you might have to send pay stubs, etc to prove income.

HTH

 

[Frankiesmom]

We just bought in last month;we financed thru Disney-we plan on paying it off in 3/4 years. We have 2 homes-1 we rent with enough $ left over to cover our DVC payment. We have 4 kids-1 heading off to college in the fall;a 13yr. old;4 yr.old and a 1 yr. old. My family truly values our disney vacations;in the past 2 years i have already given Disney close to 16,000 for our 4 vacations. it makes more sense for us to put the money into DVC-even if we have to finance;we are actually saving money in the long run-taking into acct. the type of disney vacations we take. We do have $ put away for emergencies and retirement;but we're not paying for our kids to go to college. DH and i have strong feelings about this-no one payed for either of us-and we appreciated that it was our $ paying for our classes-which made us more serious students. My point is everyone has to decide what is right for them and their families. Angel

 

[DisFlan]

We do have $ put away for emergencies and retirement;but we're not paying for our kids to go to college. DH and i have strong feelings about this-no one payed for either of us-and we appreciated that it was our $ paying for our classes-which made us more serious students. My point is everyone has to decide what is right for them and their families.

Ooh, ouch. Our son is graduating from college in May, and the biggest graduation gift we're giving him is to come out not owing a cent. He's always worked, both part and full time, but we've paid the tuition and a portion of his other expenses. We figured that it's tough enough for kids coming out right now without being weighed down with school loans. School has become SO expensive right now that few kids can handle it themselves without scholarships and/or a ton of loan money. And that puts a major anchor on their futures.

We both put ourselves through school (including med school for my husband) - we know how hard it is, and we wanted our son to go to school, not worry about tuition. He's a very good student and has done well. He's planning an Advanced Internship in business at WDW this fall.

I'm not trying to be critical and you're right that every family has to decide for themselves, but, wow, no way would we have bought DVC before paying for college. DVC was the last thing on our list. We wouldn't have spent time at WDW, either, if it was at the cost of college. Education has always been first and foremost with us. It's a kid's best ticket to a good future.


DisFlan

 

[bounceliketigger]

Hello , my name is "Mimi" & my hubbie's name is "Joe". We were going to Disney this year and were going to spend $3400 to be able to bring "gramma". Instead we chose to spend the $3400 on DVC and now we can bring Gramma & whoever else we want every year until we're too old to walk and have to be wheelchaired around the parks.

 

[themudd4]

I know I posted the other day and said we were planning on buying into DVC this year, and that we were going to go through Disney to do so. Well...I have changed my mind...sort of! After I thought about what I had read on here I called my financial advisor. So glad I did. I was right in thinking I should NOT touch my savings. That need always be left alone for those JUST IN CASE moments. I was also right in saying personally I would never take out a loan against my home for a lower than Disney interest rate. He did say if we could pay cash that of course would be the best opt. but he also knew that for most people that was not an opt. He did however advise me of something that I had not thought about. As of next year my DH can borrow against his retirement. He does have to repay it...but he will be paying the interest to himself. So we are planning on putting money back for the next year...actually it is 16 1/2 months. Then what ever we may still need we will be able to borrow from his retirement.

I can hear some of you yelling at me now..."The cost will be higher per point"..." You are taking money away from your future"...Am I am sure many other things. But We figured it up and even if the price per point went up to the $101...they are likely to have some sort of special deal...but even if not the amount we will save in interest will out way the difference in cost. And we are not taking away from our future...we have to pay it back (to ourselves) with interest. We may even come out a little better than we went into it in his retirement.

I know this will not be an opt. for everyone, and I know even after I explained this, someone is still convinced I am WRONG...but I think this will work best for me and my family, and that is all that really matters...right?! Not to mention Disney is the "happiest Place on Earth!"

 

[eliza61]

Good for Mudd4,
Glad you found an option that works for you. Financing is notthe "ultimate evil" that alot of people would have you believe. Whichever way you go, I've found that quite a few people who are DVC members wished they had done it sooner. Including myself. Welcome Home

 

[JimFitz]

It's a kid's best ticket to a good future.


DisFlan

Not necessarily. Education is important, but it's big business in the US now. It's no longer about the education, it's about the $$$ the colleges get. I work with Harvard MBA's and make more money in one year than they will see in 10. Education is important, but it's become too much of a money making scheme.

 

[Glorydaz]

well, it's been interesting reading everyone's opinion...here's my story: I am 49 years old, divorced - all my kids are grown (youngest in college - paid for) ..my bf and I just came home last night and we are buying into DVC - I just have to tell my agent we want WL not SSR...whatever the case, we are financing...taking the 7 year option but will definitely pay off sooner....

we came 2 years ago (AKL) , just stayed at WL, I'm coming in May for Mother's Day with my 22 year old DD and we are planning a 2007 October visit....sitting down with a calculator, it comes out to well over $8000 easily in a 4 year span and this trip around, we realized we truly love Disney and all it offers...

I won't wait until I have the cash because I don't want to. like other people on this thread, I am very responsible with my money/credit/debt. I own my home ( paying a mortgage), we both own our new cars outright, have a little money in the bank and we both have pension plans...

I know, I said I don't want to wait...why? well, I believe life is a gift and we don't know what's around the corner. my Mom died suddenly when I was 21 without experiencing many of life's pleasures... DVC is giving my children and grandchildren to come a legacy - Disney is truly one of the "happiest" places and if I can share that with them...even though I'm financing, it means the world to me...

yes, we all have opinions but obviously we all also share a love of Disney...so while we all choose different paths to own a piece of that Disney "magic" - we all end up in the same place!

looking forward to "coming home" with all of you - my neighbors!

 

[Frankiesmom]

Well said! Welcome home!!! Angel

 

[vascubaguy]

Not necessarily. Education is important, but it's big business in the US now. It's no longer about the education, it's about the $$$ the colleges get. I work with Harvard MBA's and make more money in one year than they will see in 10. Education is important, but it's become too much of a money making scheme.

True... I just wish they'd pass along all this $$$ they are making down to the employees (not just upper level administration and IT folks). Then I could pay $$$ for more points!

 

[ClarabelleCow]

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

Couldn't have said it better myself, we waited till we had the cash to make the initial purchase, then put our two add-ons on credit card then paid them off the next month (milege points!!). I have way too many friends my age (38-40) who are in hock to their eyeballs for luxury things and now can't afford the necessities. At this point if my home wasn't paid off, if my kids didn't have some sort of college fund and if I didn't have a years income in the bank, I wouldn't finance anything, unless it was a car and needed, not wanted. Friends laugh at us because of this thinking, sure we could live the "high life", but why go into debt for a luxury?

 

[CHIdadOF3]

We just purchased at SSR and we put down close to half as a down payment on our credit card. Just got the bill and we will pay that in full. The remainder we financed for 10 years through DVC at 9.75%. We did this for 2 reasons: 1)We plan on paying the balance off before the first payment is due (I was just buying time) and, 2)In the event that anything should happen where we couldn't complete the first plan, the payments would be low enough to digest.

The credit card we used is fantastic because we can exchange our rewards points for cash (20,000pts = $200) so this is like getting an additional $200 off the purchase price.

- Tony

 

[shantay1008]

Okay, we may be the only DVC members to have this happen, but you never know. Two years ago we stayed at WDW as a little side visit because we were in Cocoa Beach for a wedding. Long story short, we started out in the All-Stars, but found ourselves switching to a one-bedroom at BCV (five of us at the time). We had just sent away for information on adoption and were in the midst of deciding whether or not we could take on a fourth child. Would we ever get to travel again?!? (We're like the earlier poster who would rather drive a "cheesy" car so he can take great vacations. )

So, one day at MK, we see a family with three blond kids and a fourth, obviously from Asia. It was like looking at a possible version of us! I subtly corner the dad at the garbage can and he tells me their story, about how they adopted their little girl from China, how well she's doing, etc. The heavens open and the sun shines down because, apparently, you can still go to Disney World even if you adopt!

I decide that we HAVE to buy into DVC even though it means financing. Thanks to DH's well-deserved year-end bonus we could afford adoption or DVC, but not both. But the thought of being back in that wonderful pool at Stormalong Bay gets me through two years of paperwork, fingerprinting, doctors' visits, social worker visits, worry, etc., etc. And my mantra becomes: she might hate us and be miserable, but at least she'll be miserable at Disney World.

Well, flash forward to the present day. We had an awesome trip to China to pick up our little girl, who is an absolute delight. We took the kids and my parents, who helped us tremendously through the process, to WDW in Feb. and we had an incredible time. My mom and I stood there with tears streaming down our faces watching "Cinderellabrations," still amazed that this little girl was at Disney World, for goodness sake, instead of sitting in an orphanage. An official Disney princess, just like her older sister.

And guess what? Thanks to an adoption credit, our tax refund this year will pay off the balance of our DVC membership. The reason I'm sharing all this is that I suppose we're all just looking for validation that we make good decisions. For us, it was emotions all the way, and it worked out fine. Go with your guts, people. You never know what magic may happen.

 

[TreesyB]

I don't know if anyone has said this: (haven't read thru the entire thread). I could die tomorrow, and then the DVC would be completley paid for (as I have that much insurance). But why wait until tomorrow what I can experience now with my DS. So I'm financing this (for the year probably, or at least until the exchange rate gets really good, or really bad) for now. But I don't believe in putting off creating memories with my son. Life's too short. and I have the rest of my life to work it off

 

[shantay1008]

Speaking of financing (or not).... We've discussed how to pay for the initial DVC purchase on this thread, but it would be interesting to hear if people have clever ways to handle other WDW expenses.

I'm exploring ways to creatively invest, save, or whatever to handle our dues and, primarily, park tickets (for 6). Airfare isn't as much of a concern as we rack up miles at an alarming rate thanks to my husband's travel schedule for work. My goal is for our WDW vacations to be completely self-sustaining.

I had considered the Disney Visa, but at only 1%, I would have to charge $80,000 to pay our dues next year!

 

[newfamilyman]

I could not justify the cost of buying DVC if I had to pay interest to someone else, so I borrowed it from myself, through my 457 (the government employee's version of a 401(k)). While I will have to reduce my pre-tax contributions (and employer match) while I am paying the loan back, which will likely also increase my income taxes somewhat, I still think I come out better than paying interest to somebody else. We enjoy taking vacations, and I guess I like the idea of using money that I had contributed to my 457 prior to having children, when I could afford to max out, to use for the larger family, now that we have children.

While I'm itching to comment in an unrestrained fashion on this whole college eduction issue, I think I will just say that I'm uncomfortable with people on this board making others feel guilty or bad about how they are budgeting their money. I guess a depression era-mentality would suggest that everything be saved before any luxuries like DVC be purchased, but there are so many variables that every individual family has to consider.

 

[erikthewise]

I could not justify the cost of buying DVC if I had to pay interest to someone else, so I borrowed it from myself, through my 457 (the government employee's version of a 401(k)). While I will have to reduce my pre-tax contributions (and employer match) while I am paying the loan back, which will likely also increase my income taxes somewhat, I still think I come out better than paying interest to somebody else. We enjoy taking vacations, and I guess I like the idea of using money that I had contributed to my 457 prior to having children, when I could afford to max out, to use for the larger family, now that we have children.

While I'm itching to comment in an unrestrained fashion on this whole college eduction issue, I think I will just say that I'm uncomfortable with people on this board making others feel guilty or bad about how they are budgeting their money. I guess a depression era-mentality would suggest that everything be saved before any luxuries like DVC be purchased, but there are so many variables that every individual family has to consider.

It needn't make you uncomfortable. Everyone is free to state their opinion, even if that opinion criticizes others, as long as it isn't done in an abusive manner. And we are also gloriously free to ignore such criticisms.

On a strictly financial basis, I am a little queasy about your conclusion that borrowing against your retirement fund costs you less than paying interest. I am not qualified to say otherwise, but I recall being warned about the consequences of such a move. Unfortunately I don't recall the details as it was quite awhile ago. Maybe somebody knowledgable will contribute on that issue.

 

[newfamilyman]

On a strictly financial basis, I am a little queasy about your conclusion that borrowing against your retirement fund costs you less than paying interest.

In my case, both my wife and I have pensions through our employer. I had planned to use my 457 for luxury uses, assuming that our pensions would cover the "basics." For us, I think it makes sense, but if I didn't have a pension, I would agree that borrowing from a vital source of retirement income would be risky.