Financing in an unusual situation

[CastAStone]

When we first purchased BWV, we closed just before the 7 month window for our October trip. There were no studios available. We were able to do a split stay in a 1 BR for 4 of the 7 nights. Could never get the other nights. Since then, its been even more difficult.
I would not count on getting into BWV or BC at the 7 month window for fall.
Fall tends to be very full for DVC with F&W, MNSSHP and MVMCP.

Thank you. Someone suggested buying 100-125 points at each and just alternating each one every other year via banking and borrowing and we may do that instead. That would also allow us to buy one with cash later this year and one with cash next year (or late this year) instead of financing.

 

[ELMC]

I did something similar. I financed with a plan to pay it off in 11 months and it worked out great for me.

Thank you for sharing your experience, and I'm glad to hear that it worked out. We've heard many stories like yours with happy endings, and that's awesome. I think what's different this time is the situation we find ourselves in with the economic uncertainty. Normally I don't have a thing to say when people suggest they are going to finance. But this additional variable changes things greatly IMO.

Thank you. Someone suggested buying 100-125 points at each and just alternating each one every other year via banking and borrowing and we may do that instead. That would also allow us to buy one with cash later this year and one with cash next year (or late this year) instead of financing.

As I said in my last post, I really do wish you luck with your decision and the process. I wanted to take a minute to thank you for being honest and open to changing your thinking. A lot of times on these boards people come and post their plan fully expecting everyone to tell them how good it is. When the opposite happens they get very hurt and defensive, and it's not a good situation. At the end of the day, I don't know if I'm right or wrong. I don't think anyone does. But you asked for advice, listened to it, and hopefully that leads to a positive outcome for you. All in all this is a very enjoyable thread.

 

[CastAStone]

Thank you for sharing your experience, and I'm glad to hear that it worked out. We've heard many stories like yours with happy endings, and that's awesome. I think what's different this time is the situation we find ourselves in with the economic uncertainty. Normally I don't have a thing to say when people suggest they are going to finance. But this additional variable changes things greatly IMO.

As I said in my last post, I really do wish you luck with your decision and the process. I wanted to take a minute to thank you for being honest and open to changing your thinking. A lot of times on these boards people come and post their plan fully expecting everyone to tell them how good it is. When the opposite happens they get very hurt and defensive, and it's not a good situation. At the end of the day, I don't know if I'm right or wrong. I don't think anyone does. But you asked for advice, listened to it, and hopefully that leads to a positive outcome for you. All in all this is a very enjoyable thread.

It’s a weird time for sure and I really appreciate everyone chiming in on the ideal way for a total stranger on the internet to manage the financial specifics of their indulgent vacation plans as everyone and their brother is losing their jobs. Thanks for the answers.

 

[D-Trick]

A lot of times on these boards people come and post their plan fully expecting everyone to tell them how good it is. When the opposite happens they get very hurt and defensive, and it's not a good situation.

SERIOUSLY! +1 to this.

 

[RichV03]

Hi all,

Read through all the replys and am wondering if I made a bad choice. We just put in an offer on the perfect BLT contract for our family. We plan on paying half in cash and financing the rest. I see just about everyone says no to financing but I am wondering if my thought is that bad on it. Recently my mother in law passed away at a young age, we decided at that point that life is short and do what we love when we love it. We figure, yes we could save up another 2-3 years to pay off a contract fully without finance, but thats 2-3 vacations we can enjoy with our two little ones. The small amount we will pay in interest(getting loan through our local credit union so much lower rates) is worth having magical moments now. In 10-15 years I can see the little ones not enjoying as much because they will be in their teens and lets be honest, teens are teens and probably will have other interests at that point. Figure we could resale then as there will still be plenty of years left to use for the next family. Am I really that crazy?

 

[4luv2cdisney]

Nobody should be making luxury purchases if they don't have 6 months of living expenses liquid. Not now, not ever.

If you have that and you want to short term finance something, do it and don't worry about what other people think.

Most people think DVC resale prices are headed down.

 

[RichV03]

Nobody should be making luxury purchases if they don't have 6 months of living expenses liquid. Not now, not ever.

If you have that and you want to short term finance something, do it and don't worry about what other people think.

Most people think DVC resale prices are headed down.

We actually have 9 months worth in emergency savings and don’t want to dip into for the sole reason that it’s there for emergency. I could see prices going down a little bit but after talking to a few agents I’ve found Disney is still doing some buybacks to try and prevent prices going to low(at least that is what they think is the reason behind it). Regardless(and maybe this is wishful thinking on my part) I feel like once we get over the curve the country will bounce back pretty quick. And by quick I’m thinking a year maybe. Again I’m just your average guy, but I think America is better prepared then ever to handle coming back. The amount of people working from home without a hitch is mind boggling.

 

[E2ME2]

Hi all,

Read through all the replys and am wondering if I made a bad choice. We just put in an offer on the perfect BLT contract for our family. We plan on paying half in cash and financing the rest. I see just about everyone says no to financing but I am wondering if my thought is that bad on it. Recently my mother in law passed away at a young age, we decided at that point that life is short and do what we love when we love it. We figure, yes we could save up another 2-3 years to pay off a contract fully without finance, but thats 2-3 vacations we can enjoy with our two little ones. The small amount we will pay in interest(getting loan through our local credit union so much lower rates) is worth having magical moments now. In 10-15 years I can see the little ones not enjoying as much because they will be in their teens and lets be honest, teens are teens and probably will have other interests at that point. Figure we could resale then as there will still be plenty of years left to use for the next family. Am I really that crazy?

I don't think you're crazy at all. Only YOU can decide what's right for you. My Mom was a "save every penny for a rainy day" person; My Dad was a "live for today, because tomorrow is not promised" person.
As a result, I live with a foot in both worlds. I think that financing at today's super low rates presents a unique opportunity, coupled with possibly lower than normal resale prices it could still be a bargain in the long run.
After all, we're talking about a luxury purchase, not a necessity. It is a bit of a First-World-Problem
Good luck with your contract;
ET

 

[crisi]

Hi all,

Read through all the replys and am wondering if I made a bad choice. We just put in an offer on the perfect BLT contract for our family. We plan on paying half in cash and financing the rest. I see just about everyone says no to financing but I am wondering if my thought is that bad on it. Recently my mother in law passed away at a young age, we decided at that point that life is short and do what we love when we love it. We figure, yes we could save up another 2-3 years to pay off a contract fully without finance, but thats 2-3 vacations we can enjoy with our two little ones. The small amount we will pay in interest(getting loan through our local credit union so much lower rates) is worth having magical moments now. In 10-15 years I can see the little ones not enjoying as much because they will be in their teens and lets be honest, teens are teens and probably will have other interests at that point. Figure we could resale then as there will still be plenty of years left to use for the next family. Am I really that crazy?

I wouldn't do it. If you can back out I would. Because in another six months that perfect BLT contract will be $20 or more less per point (my guess, I could be wrong) and while getting your two little ones vacations is a sweet plan, a better plan is to make sure that you aren't taking on debt and saving as much as you can for your kids and your own future. Yeah, life can go at any time - we lost a beloved brother in law to cancer at a young age. But its important to keep in mind that most of us are going to have a future.....(And I pay $60k a year in college tuition room and board right now - and will for another two years, so ouch).

 

[RichV03]

I wouldn't do it. If you can back out I would. Because in another six months that perfect BLT contract will be $20 or more less per point (my guess, I could be wrong) and while getting your two little ones vacations is a sweet plan, a better plan is to make sure that you aren't taking on debt and saving as much as you can for your kids and your own future. Yeah, life can go at any time - we lost a beloved brother in law to cancer at a young age. But its important to keep in mind that most of us are going to have a future.....(And I pay $60k a year in college tuition room and board right now - and will for another two years, so ouch).

I appreciate you input, I truly do. If I had to finance the whole contract I probably wouldn’t. However we only plan on finance half so it’s not that much debt and we plan to have it paid off in 3 years top. I don’t think prices will go that low for BLT. Talked to a few agents, and it sounds like Disney has bought a handful of contracts at 137 this last week. That tells me they see value still and won’t let it go to low. At $140 I feel comfortable, if it passes I’ll be happy I think. Who knows more could change in the coming months, but I still feel this is a good value for our family.

 

[crisi]

I appreciate you input, I truly do. If I had to finance the whole contract I probably wouldn’t. However we only plan on finance half so it’s not that much debt and we plan to have it paid off in 3 years top. I don’t think prices will go that low for BLT. Talked to a few agents, and it sounds like Disney has bought a handful of contracts at 137 this last week. That tells me they see value still and won’t let it go to low. At $140 I feel comfortable, if it passes I’ll be happy I think. Who knows more could change in the coming months, but I still feel this is a good value for our family.

If a BLT contract is $90 in six months, how will you feel. I think around $100 is reasonable. And three years is a LONG time to have a loan for a luxury, you aren't talking about some sort of bridge, you are talking about having to take three years to pay it off. That isn't bright. But you asked if you made a bad choice. Yep you have. But you have the right to make it.

 

[zakdavid]

If a BLT contract is $90 in six months, how will you feel. I think around $100 is reasonable. And three years is a LONG time to have a loan for a luxury, you aren't talking about some sort of bridge, you are talking about having to take three years to pay it off. That isn't bright. But you asked if you made a bad choice. Yep you have. But you have the right to make it.

This is probably the best reason to wait right now. There’s a very small chance the prices will go up from where they are right now between now and end of the year, but a good chance they will drop. If they drop a negligible amount all you lose is time. If they drop more and you waited, that’s a good chunk of change you would save

 

[RichV03]

If a BLT contract is $90 in six months, how will you feel. I think around $100 is reasonable. And three years is a LONG time to have a loan for a luxury, you aren't talking about some sort of bridge, you are talking about having to take three years to pay it off. That isn't bright. But you asked if you made a bad choice. Yep you have. But you have the right to make it.

If in six months it’s $90 I’ll be sad but not mad. However I truly would be surprised if it falls that low. Although Disney has no cash flow at the moment they have billions in assets and can’t see them allowing prices to go that low to the public. Is three years really that long? Car loans are typically 5 years and there is almost no chance that they appreciate in value like this could depending on market. I’m not getting into this to maybe make a buck in the end. I’m wanting to get in to enjoy vacations more. The contract we put a offer in has all of 19 points, 94 of 18 already banked. We plan on banking 19 into 20 (it’s a September uy). I guess I’m that guy that asks for opinion but then try’s to justify my thoughts anyway lol. I truly appreciate everyone’s thoughts but after much consideration, I think for me and my family we are doing the right thing. Thanks again everyone!

 

[zakdavid]

If in six months it’s $90 I’ll be sad but not mad. However I truly would be surprised if it falls that low. Although Disney has no cash flow at the moment they have billions in assets and can’t see them allowing prices to go that low to the public. Is three years really that long? Car loans are typically 5 years and there is almost no chance that they appreciate in value like this could depending on market. I’m not getting into this to maybe make a buck in the end. I’m wanting to get in to enjoy vacations more. The contract we put a offer in has all of 19 points, 94 of 18 already banked. We plan on banking 19 into 20 (it’s a September uy). I guess I’m that guy that asks for opinion but then try’s to justify my thoughts anyway lol. I truly appreciate everyone’s thoughts but after much consideration, I think for me and my family we are doing the right thing. Thanks again everyone!

On a separate note. If you plan on banking those 2019 points make sure the seller does it by the end of this month. You won’t have the contract in your account on time to do it yourself

 

[RichV03]

On a separate note. If you plan on banking those 2019 points make sure the seller does it by the end of this month. You won’t have the contract in your account on time to do it yourself

Thanks, we have already requested that and were told they did.

 

[E2ME2]

If a BLT contract is $90 in six months, how will you feel. I think around $100 is reasonable. And three years is a LONG time to have a loan for a luxury, you aren't talking about some sort of bridge, you are talking about having to take three years to pay it off. That isn't bright. But you asked if you made a bad choice. Yep you have. But you have the right to make it.

& if it doesn't drop to $90- $100, but say drops to $110-$120, would that be worth the OP backing out and eating the costs today of a lost deposit + commission + fees, and having nothing to show for it?
Throwing a few thousand bucks down the drain could be a tougher pill to swallow than paying interest on a loan. IJS .....
ET

 

[CarolMN]

Several posts have been deleted. There is no need to accuse someone of being a troll or otherwise disparage another poster. Please state your opinions respectfully.

From the DIS POSTING GUIDELINES:

We do not believe in censorship, and open discussions about various issues is encouraged. When participating in a thread, we ask that everyone be treated with respect and that our guidelines be followed.

 

[gharter]

Hi all,

Read through all the replys and am wondering if I made a bad choice. We just put in an offer on the perfect BLT contract for our family. We plan on paying half in cash and financing the rest. I see just about everyone says no to financing but I am wondering if my thought is that bad on it. Recently my mother in law passed away at a young age, we decided at that point that life is short and do what we love when we love it. We figure, yes we could save up another 2-3 years to pay off a contract fully without finance, but thats 2-3 vacations we can enjoy with our two little ones. The small amount we will pay in interest(getting loan through our local credit union so much lower rates) is worth having magical moments now. In 10-15 years I can see the little ones not enjoying as much because they will be in their teens and lets be honest, teens are teens and probably will have other interests at that point. Figure we could resale then as there will still be plenty of years left to use for the next family. Am I really that crazy?

It all depends how secure your job/jobs are and your financial situation.
As far as financing, it depends how much you need to finance, what the interest rate is and how quickly it can be paid off.
In general, I'm in the camp of don't finance, but there are exceptions.
Based on what you posted, it seems reasonable.

 

[zakdavid]

If I can also add on the financing side, if you only need a year- year and a half there are some creative ways to do it. I did a balance transfer using a discover card to pay for my resale contract. They have a way of doing balance transfers where it is basically just a check they give you to pay anything. They offered 0% interest and a 3% fee for 18 months. So I was able to finance for those 18 months and only paid 3% total and called it a day.

 

[holyrita]

If I can also add on the financing side, if you only need a year- year and a half there are some creative ways to do it. I did a balance transfer using a discover card to pay for my resale contract. They have a way of doing balance transfers where it is basically just a check they give you to pay anything. They offered 0% interest and a 3% fee for 18 months. So I was able to finance for those 18 months and only paid 3% total and called it a day.

Oh interesting! I believe I had gotten balance transfer checks from Chase for the first time a month or so ago. I don't know much about them and didn't think I would need them so I shredded them. Is this something that can be requested?