financing a DVC

[reedycreek]

ok i've been reading this board for 2 hours now looking for any and all info i can get on my probable purchase of a DVC membership. i couldnt find answers to all my questions, and got tired of looking so i will ask my second, and last set of questions of the night:

1) how does disney charge you for your yearly fees? do you get a bill, how can you pay it (cc, check, etc)?

2) i dont own a home, so cant take out a second mortgage to finance the DVC purchase. i may just use cash for the entire thing, but am thinking of financing. disney's rate was 9% APR, where else can one go to get a loan for this type of purchase? and is the interest deductable on federal taxes?????

thanks so much all, i love these boards!

 

[tamu91]

1) how does disney charge you for your yearly fees? do you get a bill, how can you pay it (cc, check, etc)?

2) i dont own a home, so cant take out a second mortgage to finance the DVC purchase. i may just use cash for the entire thing, but am thinking of financing. disney's rate was 9% APR, where else can one go to get a loan for this type of purchase? and is the interest deductable on federal taxes?????

thanks so much all, i love these boards!

Let me see if I can fill you in here

1) Yearly maintenace fee can be paid in two ways. you can pay it in one lump sum every January or you can have it taken out via direct debit. There are no fees to use direct debit

2) Tax issue might defer from state to state but you outta be able deduct the Florida state tax portion of your maintenace due which isn't much.

DVC purchase through financing should be considered with care IMO. However, in this case you did mention having cash on hand to purchase your membership. If so, here are some financing options that I have seen or read on this board. Not all makes 'financial' sense but why tie up your own money if you can use someone else's

1) Disney, quick and dirty but yeah 9% is little steep
2) Credit cards .. many cards now offer 0% for 12-16 months. I've even seen some cards with 0% life of the loan, Discover and Citi comes to mind. There was a transaction fee but it was less than $75 Of course, you CAN'T be late with your monthly payments EVER but 0% for life of the loan for less than $100 is not a bad deal for DVC purchase.
3) Financial planners would kill me but you can borrow from your 401K. You pay yourself interest, around 5% I think, but it's certainly better than paying somebody else. Of course, there are some drawbacks to this option but worth consideration IMO.

 

[reedycreek]

thanks for the heads up TAMU! i am not sure about the financing yet, the credit card idea is a good one, i was thinking of getting a delta american express card b/c i fly song all the time to MCO from NY, and you get 15000 bonus miles. that way, i can charge the DVC to my other AMEX, and transfer the balance to my MC which gives me a 4.9% APR on transfers...hmmm. do you hear the wheels turning!?!?

thanks again.

 

[dcibrando]

oops...

 

[dcibrando]

I've even seen some cards with 0% life of the loan, Discover and Citi comes to mind. There was a transaction fee but it was less than $75 Of course, you CAN'T be late with your monthly payments EVER but 0% for life of the loan for less than $100 is not a bad deal for DVC purchase.

can you point me in this direction? where can I find one of these cards for 0% life of loan?

 

[tamu91]

can you point me in this direction? where can I find one of these cards for 0% life of loan?

I re-financed the last 12 mos of my auto loan using Discover Card 0% deal. I got the offer in the mail and that was done about 4-5 months ago. I paid $75 tranfer fee but no interest as long as I'm not late making the monthly payment.
If you have a good credit history, why not try calling your credit card company and see what kind of deals they're willing to make.
Another good source for this type of information is the BUDGET board. That's where I first got the wind of these 0% deals.