DVC tour/special finance rate..

[IslandHap]

It's my understanding that part of the "sales pitch", when you take the DVC tour, is that Disney will offer to knock a percent off of the finance rate. This offer being good for only thirty (30) days after you complete the tour.

If you take the tour a second time, at some later point, do you get the same reduced finance rate offer?

We are staying in a one bedroom at BWV on a cash ressie in Dec., but I'm not going to buy until the BCV start selling/pre-selling. I'd like my wife to take the tour with me, but don't want to waste our one shot at the special finance offer.

Is the tour even necessary, since we are going to be staying in one of the one bedroom units?

Any thoughts/suggestions??

 

[Mickbee]

IF I recall, the lower interest is a one shot deal. I recall people mentioning taking the tour and returning a year+ later and could not benefit from the lower rates.

If you are one site and have the 90 minutes to take the tour, I would recommend it. I am very glad that we took the tour. I ask 1.2 million questions, which was good to have a person to ask onsite. Your guide is also there for you long term. It is good to know the person and establish a relationship. This could come in handy down the road. As for information; this forum cannot be beat. All of the folks here provided us with a wealth of information when we were looking to purchase in addition to constant updates and info.

During your tour, ask the guide the exact number of rivets in the ball at Epcot. It is the true Jedi test.

Enjoy your trip!

 

[RobDoc]

Usually, the discounted rate is only available the first time you take the tour. No, a tour is not necessary, but is a worthwhile venture since there is a lot of information presented.

There is no guarantee the same interest rate will be available when BCV begins sales either. There have been rumors that BCV will presell, but unless/until it happens, no information is available.

It is likely that there would not be any closing for BCV until the resort actually opens and no date has been announced for that.

 

[Terry S]

The official word I received regarding the special 30 day finance after you take the tour is that it is a one time only deal for 30 days per property being sold. So as long as the VWL is still the property being sold in December, they will offer you the one time 30 day special financeing for VWL at that time. Then when VWL sells out and they start offering BCV, you will be allowed a one time 30 day financing offer for BCV as well (if it is still a special at that time).

As you said, since you are staying in the one bedroom, you really don't need to see it, but you might want to see a two bedroom which is the one bedroom with a connecting studio and also, part of tour is the availiablity of a guide to answer any questions that you might have.

 

[kda]

That was the way it was explained to us, too, Terry. We'd taken the tou rat BWV last fall, but didn't buy until this May, for a variety of reasons (and it worked out best for us because we have always loved WL the most). When I called to ask about WL, I was told we'd qualify for the lowest financing rate because this was a different resort and this was our first inquiry about VWL. At the time MB was only $5, so it wasn't a consideration. I believe the interest rate was about 1% higher than last fall, but our guide told us it would be even higher if we didn't get the special rate.
IslandHap, you could call DVC and ask, so you don't miss the opportunity to qualify for the special rate. Or wait and ask when you get down there, and be sure to confirm with your guide when you start the tour. You can always call and just go over your current questions on the phone. Ask for the video and the informational book, and you can study that and start fantasizing.

 

[Mojomanny]

If I can add in my own 2 cents,

If you have good credit and own a home, why not get a home equity loan to pay for DVC?

I understand there is a bit longer delay to get a home equity versus a Disney loan, but the upside is positive.

The first and most obvious is the interest rate. We are paying 5% on our home equity loan (Prime - 1.5%) for the first two years and then Prime thereafter. I am sure this beats Disney by a long shot.

Second is tax deductibility of the interest charged. The Disney loan may not be as clearly deductible since it may not fit the requirements of a 2nd home (Stay so many days, etc). The home equity loan is tax deductible.

I am not a lawyer or CPA, and do not play one on TV. I am NOT saying the Disney loan is not or may not be deductible in the eyes of the IRS. What I am suggesting is that a home equity loan has no questions attached, it IS deductible, regardless of used for DVC, a car or round the world trip.

I would suggest that if you have good credit and own property, that you consider leveraging it and saving far more than the 1% quick decision interest savings from DVC.

BTW - we used our AMEX to pay for DVC, picking upi 12,000+ points in the process and then paid in full from our equity loan on the AMEX due date, reaping a months free interest.

A word of caution is needed. Using your home for leverage is a risky venture if not used properly. I do not suggest or advocate using an equity loan for purchases which will quickly depreciate or have no long term value. I suggest against using it for vacations, meals, home electronics or other "frivolous" expenditures. (not suggesting meals are frivolous, I am referring to nice dinners out cause you have the money available)

I consider our purchase in DVC an investment which will possibly appreciate in value, and will last us at least another 40+ years which makes it a reasonable candidate for using the home equity loan. I am not advocating improper or unsafe use of a home equity loan. I do not want to see anyone homeless in a couple of years because they used an equity loan foolishly or irresponsibly.

Have a Great Day!

 

[Muushka]

What a great post Mojomanny!

I agree with you all the way on every point you made about the Home equity line of credit. Especially the words of caution about misusing the credit. I have a friend who got one, and is certainly on her way to loosing her house because of it.

The lines of credit are usually obtained at no cost to the consumer. I noticed that AMEX now has a cash back option (.5%), which could also be kind of nice (if you don't collect miles). Yes, there are other very good options besides DVC financing.