Financing....

[shammytack]

I would have to finance with about 10% down. Probably about 250 points. Would do one WDW vaca and one or two long weekends closer to home in NY. This would be the max we could go for now. With financing, dues, points etc., etc. what would I lay out a month approx....bottom line. Should I check into the Store. Isn't $5-$10 per point like $1250? or am I missing something? LASTLY....would I be better off just sticking $200 a month in a cookie jar and paying outright for our vacas until I have a better down payment. Dues and maintenance same thing? All in all. Bottom line. How much a month? THANKS!!! You all sound so happy being DVC members I'm really tempted....but buy where and what $ amount to expect? I want to have really great family vacas with my husband, and 3 & 7 year old. THANKS AGAIN for all your DVC wisdom!

 

[wisbucky]

Assuming that you purchase 250 points from Disney for SSR and that you give up the points for this year (magical beginnings) and you put 10% down you would need to finance approx. $17,775. You can finance through Disney for up to 10 years. If you did this for ten years your monthly payment would be approx. $237.00. Your annual dues would be approx. $950.00. If you feel this is putting you in a financial rut it may be in your best interest to wait. However, you could possibly purchase less points for now and as time goes on add on.

And yes dues and maintance are the same.

 

[JimC]

My view is that you should fit the DVC costs (points and fees) into your current vacation budget and still have enough for your long weekend trips.

Disney will cost you more in cost of the points, but they pay all closing costs and financing is easier through them (they hold the paper so they can use whatever underwriting protocol they like).

Resales will generally cost less per point, closing costs are negotiable as to who pays, but you may need to budget say $2.00 per point for the size contract you are considering for those costs. Financing is harder to come buy in the resale market. I know of one finance company and I believe they charge higher rates than Disney does. The alternative is to use personal financing (line of credit or other personal debt).

 

[mickeyc]

DVC membership is a luxuary for most of us. It is a vacation expense and not an investment opportunity. When DVC first became available I was not able to afford membership and consequently waited until 2000 to purchase a resale. Keep in mind the DVC videos you view are sales pitches to entice you to purchase. I enjoy watching them. DVC is an excellent program and is very flexible.

None of us know your personal finances and if paying $200 plus per month fits into your budget I think it is worth the memories you will have with your children. However, it should not be at the expense of funding your retirement or the children's education. There are always ways to take an inexpensive vacation. Disney vacations are not cheap.

Also, keep in mind in addition to the monthly expense to pay off the contract you will have maintance fees. These fees will be in excess of $600 per year, although you maybe able to deduct the property tax portion. The propety taxes are generally around $100. The maintance fee will add another $50 plus per month in addition to the cost to finance the contract.

If you purchase a resale you should save 15% to 30% per point depending on the points available on the contract. All contracts are not alike. Lower priced contracts generally have no points available for use in the current use year or follwing use year if they have be barrowed. However, resales require you would have to secure your own financing. Purchasing directly from Disney they can arrange the financing for you. Keep in mind we are in a low interest rate environment and the I think Disney interest is in the neighborhood of 10%.

Good luck in your decision, you may need to discuss with your tax advisor.

 

[jimmytammy]

I agree with Jim C. Your situation sounds similar to ours when we first purchased. Our 2 biggest regrets about DVC purchase...we didnt buy in sooner when pts were lower, and we didnt buy enough pts to start with. We are at two add-ons later right now.
250 pts is a good amount and you should get them now before the price goes up again. You know your circumstances better than anyone but again what Jim C said about budgeting your vacation money in with DVC payments, thats exactly what we do.
I put in a few extra hrs on Fri. and Sat. doing sidejobs. This alone pays for DVC and vacations. And yes it is worth it for me personally. When I get down thinking I would rather be doing something else, I can easily remind myself about DVC, and the wonderful times it has helped produce for our family, and all neg. thoughts about work go out the window. Find something you or DH are good at and create extra income around thast to offset other expenses if you need too.
Scary part is you will soon figure out ways to get 2 trips out of DVC at WDW a year!

 

[tjkraz]

Originally posted by shammytack
Should I check into the Store.

If you're referring to the Timeshare Store, just be aware that TS is a resale agent for timeshares including DVC. To the best of my knowledge they do NOT finanace the sales. Think of them as real estate agents--they bring together parties looking to sell and parties looking to buy.

If you purchase direct through DVC, you can either use their financing or obtain your own. If you purchase a resale, then you need to find your own financing. The lowest interest rates are likely to be via Home Equity line. I haven't checked lately but they are probably still in the 5% range.

The lowest DVC rate available over 10 years is 9.75%.

Other than that, some banks will independently finance timeshares--others will turn you down flat simply because they choose not to touch a timeshare.

 

[Duckielucky]

We originally bought 250 points. I thought that I could add 50 points later and at some date split the points between our two children. No can do. You can not add and then split. Each contract is a property and can’t be divided into units of less than 150 points. Solution: We bought another 250 points. Now each child will eventually get 250 points – if they stay on my good side.