Financing your DVC?

[rentayenta]

I'm all for Disney financing. If I had the time I would elaborate as to why..



MG

Please elaborate.

 

[Sandisw]

While the interest rate at Disney is higher than other loans, it is an easy way to finance a DVC purchase direct from them--even if it is only so that you can get started with your purchase as you seek out other and possibly lower rates.

But, when I was first deciding, I took my payments, my MF's, and my other Disney travel costs (airfare, tickets, food, etc). and compared it to what I was currently paying for our yearly trips to stay at the CR. Even with the Disney payments, I was still able to stay within my yearly vacation budget.

For me, it was about whether DVC was going to cost me MORE to own than what I was currently doing. Whether I paid it to them as finance charges on a loan, or for cash reservations through CRO, was immaterial for me. The bottom line was that I would not be paying more than I do now for my trips to Disney and at some point, when the loan was gone, I would be paying less.

So, I went for it and signed up. But I also looked into other options to see if I could get a lower rate somewhere else.

As it turned out, when I was able to get the entire thing covered on the Visa for 6 months, interest free, I didn't end up having to take out the other, lower cost loan and will have everything paid up in the fall.

As long as you have looked at your own situation and feel that you are financially able to handle things, think that DVC is right for you, and that you are happy with what it is costing you, then I say, go for it.

Good luck!!

 

[rentayenta]

As long as you have looked at your own situation and feel that you are financially able to handle things, think that DVC is right for you, and that you are happy with what it is costing you, then I say, go for it.

Good luck!!

Wise words!

 

[Maistre Gracey]

While the interest rate at Disney is higher than other loans, it is an easy way to finance a DVC purchase direct from them--even if it is only so that you can get started with your purchase as you seek out other and possibly lower rates.

Please elaborate.

One thing I like about Disney financing is that it's a true mortgage, and therefor tax deductible. So, a 10.75% rate is actually around 8% for the average Member. Yes, you can probably beat that with a home equity loan, but you may be paying your DVC for 30 years if you go that route (depending on terms). Plus, your house as collateral for DVC? That's not for me, but that's just my opinion.
Most other forms of financing will not be a mortgage, and likely not tax deductible.

More later...

MG

 

[rentayenta]

One thing I like about Disney financing is that it's a true mortgage, and therefor tax deductible. So, a 10.75% rate is actually around 8% for the average Member. Yes, you can probably beat that with a home equity loan, but you may be paying your DVC for 30 years if you go that route (depending on terms). Plus, your house as collateral for DVC? That's not for me, but that's just my opinion.
Most other forms of financing will not be a mortgage, and likely not tax deductible.

More later...

MG

ITA. I would never add our DVC to our home equ. line but see why some would. We just refied and did not add any debt to our loan. We decreased our mortgage payment by over $400 a month. And having DVC as a true and invisible mortgage is excellent.


I will wait patiently for more of your insights.

 

[bumbershoot]

...Disney 10 year financing at 10.75% (only for those with excellent credit scores)...

That rate is NOT for excellent scores, not at all. Hubby nearly passed out when he got the good rate, b/c until just recently he had "neutral" credit. He only has a car loan, less than 2 years old, on his credit, other than some long past stuff, but that loan hadn't helped him go into more than just average credit.

And that was just in March, so it's not like the economy was booming.


He is *quite* sure that he could not have qualified for financing a resale, but with Disney it was very easy and SO fast.

We have absolutely no intentions of paying on the thing for the whole 10 years. Thankfully, you can prepay at any time with no penalties...there's even a spot on the member site where you can make a $10+ payment at ANY time, as long as you don't have your monthly payment pending. I know that sounds piddly to those of you with 17K in cash on hand, but it's better and easier than the rigamarole Chase makes us do to put extra towards the car loan!

 

[superpug]

We just purchased through Disney, financed 50% of the cost, and plan to pay the rest off over the next year. The process was very simple and very quick.

 

[rentayenta]

We have absolutely no intentions of paying on the thing for the whole 10 years. Thankfully, you can prepay at any time with no penalties...there's even a spot on the member site where you can make a $10+ payment at ANY time, as long as you don't have your monthly payment pending. I know that sounds piddly to those of you with 17K in cash on hand, but it's better and easier than the rigamarole Chase makes us do to put extra towards the car loan!

I love the idea of paying a little extra here and there. I will follow your lead.

 

[nmoore14]

I have a question about financing as well. Can I use a home equity line to pay for my DVC purchase? I heard that this will help when it comes to tax time.

 

[Sanchez]

Sorry to interject but the pp is correct- the loan through Disney is invisible and does not show up on your credit. We just refied and it's no where to be seen. My source for the info was our DVC guide. It's true, I promise. Call DVC and ask.

Of course, if you fail to disclose this on a mortgage application you may very well be committing loan fraud.

 

[oakmanner]

We have paid an additional 2k on our loan through Disney over the past 12 months by just sending in $25 or $50 whenever we have it. It's super easy and a great way to reduce the overall interest we will pay.

 

[Maistre Gracey]

I will wait patiently for more of your insights.

I do apologize... I forgot about this thread. I am leaving for a "sky-trip" for the next week. I will try to update from a hotel in God knows where..

MG

 

[WonderinAland]

We also financed half, with the balance due over the next year. Nice thing about this is the interest rate is only 4.95%, not 10+. Still no penalty to pay off early. This made it cheaper than most credit cards! Helped my DH finally make the leap, instead of saving for the next year and risk BLT selling out (interest rate balanced out the higher cost/lower incentives...)
We also didn't have to fill out the credit application part on the paperwork.