Financing AKV through Disney

[ead79]

We're considering buying DVC (I swear we go back and forth on it all the time, LOL!). We would be interested in 160 points at AKV. If we financed through Disney, what is the deal?

Is there a current discount on points (I thought I read they were selling them for around $94/point)?

What is the interest rate and length of financing?

Is a downpayment required? If so, how much?

I hate to talk to a DVC person when we're not at all ready to go ahead just yet. I don't want to waste their time.

Sorry for all the questions!

 

[robinb]

The price per point is $101. The current promotion is a choice of $8 off or taking "Developer's points" on a 1-1 basis (160 points in your case). The developer's points can be used at any DVC resort (except maybe AKV) and expire 7 months after your purchase date. Your down payment depends on the length of your loan. I think the 1-year loan requires a 50% down payment while the longer loans require a 10% down payment. I don't exactly remember the rates ... I want to say they were around 6% for the 1-year and 10-12% for the longer loans. Someone else will have a better memory on this that I do.

 

[LisaS]

I can't help with the financing questions but wanted to update the info Robin gave you because the current price for nonmembers is $104/pt. As Robin said, there is a choice of an $8/pt incentive (bringing the price down to $96/pt) or a set of developer points.

 

[RobDoc]

As of a month ago, DVC was offering a 1 year rate at 4.95% with 50% down and 5 or 10 year rates at 10.75% with 10% down. These are the Preferred Financing Loan rates using Direct Debit.

In some cases, higher downpayment may be required. As LisaS pointed out, the purchase price is now $104 with an incentive for new purchases bringing the cost down to $96 per point for 160 or more points.

 

[Donald is #1]

For those of you that have financed recently, is the Disney rate a good rate? Or have you found better financing else where?

 

[RobDoc]

For those of you that have financed recently, is the Disney rate a good rate? Or have you found better financing else where?

The Disney rate is pretty good for timeshares, but better financing is certainly available. Many have used a home equity loan or 2nd mortgage to finance their purchase. It doesn't hurt to investigate other options, but the Disney program is convenient and there is no penalty for early payoff.

Enjoy!

 

[Disneyracingfan]

It's only 10% down? I looked last year but had something come up and it was 20% down but you could use the $8 off per point as part of the down, if that makes sense? I just called today about getting new information on DVC so I could figure out buying again. I know last time they were also going to give me some credit on the trip I was on toward the purchase. It seemed like a good deal then hopefully not much has changed, but whats a couple of dollars over 40 something years of enjoyment.......

 

[jgus]

When you buy, they show the selling price at the $104pp, then the $8pp discount is shown as additional down pyment. BUT, you really have to put 10% down on the $104pp. Rate is 10.75% preferred w/ direct debit.

 

[Disney-Kim]

When we bought in 2003...I thought we only put $500 down...and then incentive went towards the rest. We did the 10 yr financing and got the discounted % rate for a direct debit payment. I think our rate is in the 9% range.

our payment comes out on the 30th and the dues come out the 15th.

financing with Disney was easier than buying a car. It was a breeze and we were happy with the decision.
there are better rates if you get a HELOC but if you are not a homeowner...not sure if you are....then Disney is really the way to go.

the quick and easy process is great. They Fedex you all the paperwork and you sign by all the Mickey heads and date at the Palm Trees. its cute.
having the payment come out of your account each month just makes it another bill like the mortgage or car. the pymt is affordable and you own DVC. its the best feeling.

 

[Disney-Kim]

We're considering buying DVC (I swear we go back and forth on it all the time, LOL!). We would be interested in 160 points at AKV. If we financed through Disney, what is the deal?

Is there a current discount on points (I thought I read they were selling them for around $94/point)?

What is the interest rate and length of financing?

Is a downpayment required? If so, how much?

I hate to talk to a DVC person when we're not at all ready to go ahead just yet. I don't want to waste their time.

Sorry for all the questions!

Oh I also wanted to say that we asked our guide a TON of questions about financing/payments/ and all that and she was great. go ahead and ask...they are really helpful

Our lady is Carol DeAngelo...she did our original purchase and our add on. She was really easy to work with and helped us thru all our financing questions.

 

[MandM22]

As of a month ago, DVC was offering a 1 year rate at 4.95% with 50% down and 5 or 10 year rates at 10.75% with 10% down. These are the Preferred Financing Loan rates using Direct Debit.

In some cases, higher downpayment may be required. As LisaS pointed out, the purchase price is now $104 with an incentive for new purchases bringing the cost down to $96 per point for 160 or more points.

We just purchased and webmasterDoc is right on target.

When you buy, they show the selling price at the $104pp, then the $8pp discount is shown as additional down pyment. BUT, you really have to put 10% down on the $104pp. Rate is 10.75% preferred w/ direct debit.

jgus is also right on target. The 10% is based on the total price of $104 pp.

Good luck in your decision.

We are all signed and just waiting for final settlement.

 

[robinb]

jgus is also right on target. The 10% is based on the total price of $104 pp.

Actually, it depends on your credit history. If you have little or no credit or if you have a low credit score or if you have had payment problems in the past you may be required to put down a larger deposit than others put down.

 

[Donald is #1]

Everyone, thanks for the inputs on the financing rates. If I do buy into the DVC, I don't really want to use a HELOC since I already have a home equity loan to pay off the renovations that I had done on my condo. It's good to know that Disney's rates are reasonable if I decide to go that way.

 

[ead79]

Thanks for the help! I do have a couple more questions. How do the annual dues work? Can that be paid monthly instead of annually? How much are the dues per point at AKV?

 

[DVC Dude]

Please don't flame me, but I don't think timeshares should be financed, especally at 10% or more interest rate. At that level, you are usually much better off renting points until you can put down 50% or 100% on a purchase.

 

[HockeyKat]

This isn't a flame, just an observation.

I think it all depends on your situation. It is better to finance a DVC than to put your WDW vacations on a credit card, imo. At least the interest is fixed and you can deduct it.

And yeah, some may say if you can't afford to pay cash, you shouldn't go on vacation... but tell that to your kids (and I don't have any nor want any so that isn't my deal but I can sure see the POV of someone who does). Or to yourself when you are old and can't enjoy it anymore.

We bought a 210 pt resale, paid the 10% down in cash, and did a 5 year loan at 9.95% (the rate though the reseller's lender). Our payment is roughly 371/month, which brings our total financing charges to about 4700 added to the buyin cost of 17500. It is costing us roughly about what a compact sedan would cost.

If we had waited to buy, we would likely have paid at least that financing cost in vacations before we would have 50% down, not to mention the cost of buying in may go up enough to make it a moot point. I have also added that cost to my initial investment in my spreadsheet that takes all the numbers into account (putting investment into interest bearing account, accounting for inflation, etc), and we still come out ahead compared to paying OOP for moderate vacations over the life of our DVC.

 

[MandM22]

Actually, it depends on your credit history. If you have little or no credit or if you have a low credit score or if you have had payment problems in the past you may be required to put down a larger deposit than others put down.

Good point.. I was just assuming the Preferred Financing Loan rates using Direct Debit... My bad.