Financing DVC

[jtcomegys]

My wife and I are financing 150 points for 10 years, which means that $10,800 for 150 points becomes $18,000. We really wanted to buy into DVC because we go to WDW at least once every 1-2 years and the trips will just keep getting more expensive as the years go by. (Stay off-site???--are you kidding me?)

Anyway, the only thing stopping us from signing on the dotted line is the fact that by financing, we are basically doubling our purchase price and that makes it seem like not such a great deal.

Does anyone have any comments on this? Is there a better way to go for those on a budget? Please help!

Thanks for all your help in the past.

Jay and Ang

 

[RobDoc]

Unfortunately, as with most financed purchases, the total costs are deceptive. Other than finding your own financing (local bank, home equity loan), there are no other options thru Disney- except paying cash.

Just for comparison- figure out the total cost (purchase price and interest expense) on your home. Now..that's a real eye-opener.

I'd suggest looking at the monthly payments- and compare that to your personal budget rather than looking at the total costs. You can also redo the math and add up what your WDW trips (without DVC) would cost over the next 10 years- that should help DVC look a lot better! Enjoy!

Doc DVC Board Co-Moderator
doc@wdwinfo.com

 

[Rob_b]

When we financed we applied points to our down payment. I'm not sure if they still offer this option. I financed for 5 years. Paid the loan off in 2. You can make payments on principal by calling member services. They can charge your credit card. I wish I could pay more loans with my credit card.

 

[KNWVIKING]

I don't know your specific financial situation,but depending on your tax bracket that $7200.00 in interest could save you $2400.00 in income tax. It's also possible the property tax portion of your dues can save you a few more $$. You could also make additional prinipal payments that would greatly reduce that interest total. Also remember that even if you paid cash in full, you would still have lost 10 yrs of interest on that money.I think it's still a bargain.

 

[chris1gill]

As was pointed out, financing obviously does bring the costs up quite a bit... Personally we would never finance for more than 5... The five year plan, added about 19% to the principal of the loan... not nearly what the ten year plan does to the costs... For us, the ten year plan, just represented too much money to lose... We did pay the loan off in 2... and we paid cash for the add on... You have to look it over along with your other fiances of course, but if you could do it in 5 or less, you'd be a lot better off...

 

[Doctor P]

I strongly second Chris' advice. I felt the same way and followed that advice myself.

 

[SusanU]

My plan has always been to pay off early, but instead I keep using that cash for extra add on points! But with the price increases and the many mini trips I get, I still think it's a great value!