Financing

[HyperspaceMountainPilot]

Am I understanding correctly that you can finance direct with Disney (for some catastrophically high rate), but then they’ll let you make your payments on the loan by credit card? Or possibly just the payoff?

 

[MerlinandtheMouse]

Am I understanding correctly that you can finance direct with Disney (for some catastrophically high rate), but then they’ll let you make your payments on the loan by credit card? Or possibly just the payoff?

Both. We’re almost done paying our loan but we’ve always used our CC to pay for our loans in chunks. I don’t know if it’s just if you’re a new member or if it’s your first time buying direct that the loan is sky high but the second time (if you choose to do it a second time lol) they give you the more “reasonable” interest rate of 8.99%

 

[Girlstar30]

They'll remind you there's no prepayment penalty....

Personally I think between balance transfers and Disney Visa promotional financing that's probably the better way to go, or going direct with Disney for financing which you can then make payments on with the Disney Visa - though I don't know if those payments qualify for 6 months no interest...

Both. We’re almost done paying our loan but we’ve always used our CC to pay for our loans in chunks. I don’t know if it’s just if you’re a new member or if it’s your first time buying direct that the loan is sky high but the second time (if you choose to do it a second time lol) they give you the more “reasonable” interest rate of 8.99%

Maybe they figure if your already have points they need to entice you somehow

 

[MerlinandtheMouse]

Maybe they figure if your already have points they need to entice you somehow

Eh maybe but I believe it’s more of an action of trust. If you’ve made your payments and paid your dues on time for the first year or however long it takes you to pay it off, if earlier, they extend that as a courtesy of trust. Might motivate some to buy direct again, but that was never even a small motivation on my part though so I’m not sure.

 

[Girlstar30]

Eh maybe but I believe it’s more of an action of trust. If you’ve made your payments and paid your dues on time for the first year or however long it takes you to pay it off, if earlier, they extend that as a courtesy of trust. Might motivate some to buy direct again, but that was never even a small motivation on my part though so I’m not sure.

I would be more inclined to buy at 8.99 than 17.5 for sure even if it's a short term loan but yes I think trust is a factor which is why they don't run credit after a year of being a member

 

[davidhr]

Am I understanding correctly that you can finance direct with Disney (for some catastrophically high rate), but then they’ll let you make your payments on the loan by credit card? Or possibly just the payoff?

Monthly payments have to be direct deposit. Any other additional payment can be by credit card with no limits.

I believe the rate after a year is 8 or 9%. Not the best, but not outrageously high.

 

[Cfabar1]

I think they feel that it is so easy to take the money back, and they’ll make a nice return on 9% anyways, so why not just make everyone feel good…

 

[Girlstar30]

I had to

 

[muppets3d]

I'm not sure that prepayment penalties are even legal anymore, are they? We financed a VGF purchase in 2023 and the process was very simple. The interest rate was not competitive but it is what it is. Hindsight we should have spread the deposit and payments out with DVC to 90 days and put them on a Disney Visa so we could have 6 months interest free financing to pay it off. We ended up paying like $700 in interest (we paid it off quickly) versus we could have paid $0 in interest had we done that. Live and learn. We won't finance again.

 

[Brian Noble]

I had to

I mean it's only $400/month!

It's a bargain at twice the price.

 

[PolyRob]

I mean it's only $400/month!

It's a bargain at twice the price.

I had a friend justify the 10 year loan telling me it was less than her monthly car payment

 

[muppets3d]

I had a friend justify the 10 year loan telling me it was less than her monthly car payment

People who live life constantly asking "how much a month" don't know what true freedom is.

 

[Girlstar30]

I had a friend justify the 10 year loan telling me it was less than her monthly car payment

For the next 10 years