Financing Questions

[trampslady]

Hi! My husband I and are on the brink of purchasing at BCV at 170 points (we think). We don't have children and a studio would be fine. Our plan is to bypass the MB offer and bank this years points. We figure that would give us a year or two of additional points (banking again some of next years into to following.

I see that Disney will finance but the interest rates are a bit steep. We were looking to pay off our points within 2-3 years. We do have the option of paying around $6000 down and financing the rest, but the $6000 will be pulled from a stock that we are thinking of selling. We were thinking of putting the balance on a low interest credit card (7.9%) for airline miles and then transferring it to an even lower offer as it comes (3.9%).

Would financing the points on a low interest credit card be any cheaper in the long run than the higher interest that Disney offers? My understanding is the Disney financing would be simple interest on the principle rather than interest on the balance each month as with a credit card?

What financing options have others used?

 

[crazyaboutdisney]

interest paid while financing with disney is (I think) tax deductable, while finance charges with a credit card are not. Since you don't have children you may not be itemizing anyway!!

 

[deerh]

Hi! Some answers maybe:
1. some people use a home equity line to pay off the disney loan, others use a credit card.

2. Disney finacing is high, 11.49% if direct debit.

It is all up to you, BUT, you POSSIBLY CAN DEDUCT the interest if you itemize on your federal tax return.

Check with your accountant/tax advisor, but you can do this IF you itemize. This is a better deal than a credit card, but you may not agree, even with the Disney higher rate, it is POSSIBLY tax deductible, as the cc is not...
Hope this helps and good luck!
deerh

 

[Maistre Gracey]

I will have my DVC paid in two years.

My financing method...Play the credit card teaser rate games. I am currently financing at 0.0% until March of '03, then it will be time to look for some other credit card willing to give me close to 0%. Good thing I have a high credit line!

It's a little work, but worth it!

 

[trampslady]

Thanks for the responses!

We do not currently itemize. You are right, no kiddos gets us every year!

Gracey-

We were thinking of doing the very same thing. How many points did you purchase?

 

[Maistre Gracey]

Originally posted by trampslady

Gracey-

We were thinking of doing the very same thing. How many points did you purchase?

We currently have four contracts: VWL- 450 pts, VWL- 150 pts, VB- 150 pts,
VB- 100 pts...Total 850 pts.

The important thing to remember, is to always be on the look out for the teasers in the mail. Sometime it is better to transfer balances a bit early in order to extend the teaser rates. I have found that if you call your other credit card companies, they SOMETIME will try to match other offers.

Like I said...a liittle more work, but it can save you thousands!

Good Luck!