Financing DVC

[trepka1440]

If financing through DVC, what kind of interest rate do the offer?

Thanks!!!

 

[Beca]

10.99 if you put 10% down, and 9.99 if you put 20% down.



Beca

 

[CapeCodFam]

At those rates, I'll bet there isn't really isn't any cost savings of buying DVC vs. paying cash for each trip. If you pay $85/point x 150 points = $12750 x 10.99% * 10 years is about $21000. Yikes!

 

[JimFitz]

Exactly!! That's why we paid for our resale in full.

 

[sagwanamu]

It's a loan. Having a loan always cost more than paying in cash. And the rate is very good comparing other timeshare company offering.

But look at this way, it's only 60 dollars in interest on an average, each month. That's not much. And if you put that money in mutual fund, your final interest cost wouldn't be that much (with some luck).

It's tax deductible. And there is another "perk" using DVC financing. DVC does not report the loan to Credit Bureau, I heard...

I also heard that some people used their credit card to pay it off with 2% - 4% interest rate on balance transfer. There is an option.

Of course paying in cash is the best option, if you have disposable cash.

 

[tjkraz]

At those rates, I'll bet there isn't really isn't any cost savings of buying DVC vs. paying cash for each trip.

Oh, I don't know about that.

Depending on how one uses their points and does the calculations, the breakeven point for DVC is typically in the range of 6-8 years. So, the additional interest paid might push that back into the 10-12 year range. That's not too horrible for an asset one will own for 49-50 years.

And, at least the interest is tax deductible.

But, I agree the numbers look much better for folks able to put down 20%, pay with a home equity line or just pay cash.