Finance vs. Cash? How many points?

[mom2g3]

Okay...I'm asking one of those annoying repetitive questions....well, 2 of them.

How many points do I need? I'm going CRAZY trying to figure it all out. We want to be able to have a 4-7 day vacation in DW AND a couple of weekends at HHI each year. We live about 3 hours from HHI and 7.5 from DW.

DS is 5 1/2, so we have to watch school times, etc.

I'm thinking that 250-320 points should be plenty....we want at least a 1-BR and maybe more when we want friends and/or family to join us. But, that's SO EXPENSIVE!!!

The MAIN reason we are buying into DVC is because I'm a Mortgage Loan Officer for one of the large banks still standing, so I am a consumate workaholic and I want to make sure that we go on regular vacations. I know that if I commit to spending this money, I will go and I'll make the most of it.

Also...I don't like the idea of paying interest, but I hate to spend all of that cash at once. We are able, but is it the smart thing to do?

what do I do??? :

 

[Sandisw]

I would plan for Magic Season for trips to WDW as many of the school breaks fall in that time frame. Start out with what you need for those 1 bedrooms. One thing we are doing this summer to stretch out our points is doing a split stay between 3 nights in a studio (just DH, me, and DD14 this time--my other children are not going) and then trading up to a 1 bedroom for the other 3.

As far as financing, I think that is a personal choice. IMO, if paying for it outright would cause your emergency savings down to a level that you are not comfortable, finance it and then pay it off in a year or two. Yes, those finance charges add to the cost of DVC but sometimes, taking out that lump sum is just scary (I know it is for us).

If the 250 - 300 that you would need to do both WDW and HH is more than you want to get to start, just buy what you need for HH and start with that. Then, you will be a member and can see how DVC works with getting you there (since it is close). You can always add on from that point, especially if you are interested in any of the new DVC resorts. Once a member, you qualify for better incentives at small buy in amounts (ie: right now, I think the BLT discount on 100 points for members is the same as it is for 160 points for new members).

Good luck!!!

 

[ToddyLu]

Have you checked resales?? You could get smaller contracts and add on without paying as much. Like get 2 50 point contracts and follow Sandi's recommendations. DVC isn't going anywhere and if you get enough points for 4 nights and have to pay the rest in cash or change resorts so be it until you are ready for more. With a small contract you still get the AP discount, etc. Bitting off smaller contracts may work great for you in the long run.

You could get a contract for a WDW resort, then also a small contract at HH then use the booking advantage at both. You cannot combine your points until the 7 month mark. But you would have 11 month home advantage for both. I think I would make it all in the same UY just for convenience sake.

Listen to SandiW grasshopper...she will show you the way!!

 

[ToddyLu]

DVC is also an expensive Timeshare and I think probably only beneficial to those crazy folks like us who have to have at least a yearly fix. You can get great deals at other Timeshares for less money and get in the Orlando area. THere is a great Timeshare site with forums I think it is something like Tugg.com....lots of folks get info from there when they are thinking or buying. I would take a few days and really read, read, read. You really need to understandi how UY affects your cancellation of a reservation and the rule of 4..

Good luck with your decision making

 

[jlwhitney]

Okay, to finance or not.

If you have the cash on hand and it won't wipe out most of your savings at once...heres the best way to determine to finance or not

It is worth financing if the amount of money you would pay into it will earn a higher rate of interest than the loan is....

example: you have a 5 year loan at say 4.6% and you could invest the cash used to pay for it OOP and earn a rate of say 5.1% than its worth financing since your interest will pay for itself and you will still make some...

though with todays markets it is more of a gamble..but if the interest you would earn is less than the interest on the loan you are better of paying OOP since you will pay more in the end