First time buyer--Considering Resale / DVC

[snorris49]

Hi everyone...

After much decision, I've decided that investing in DVC makes a lot of sense for me and my family. However, I don't want to do the large upfront investment with a 160 points, since I want to pay for part of it now in cash. I'd like to do a smaller amount 50-100 points either in resale or through DVC (since I hear they are starting to do 100 - 50 points). If I start off small this year, pay part of it in cash and finance a small portion of it, I will have it paid off fairly quickly (barring no catastrophes happen in life--obviously no guarantees something couldn't happen). And then this next year, I would increase the points and hopefully, pay the entire balance of the upgrade without having to finance. I want to do as little financing as possible, and this seems to be a reasonable way to get my feet wet with DVC.

I'd really appreciate the advice on what the experts recommend

Has anyone financed a small amount of points directly through DVC recently?

Thanks for the advice

 

[chalee94]

I'd really appreciate the advice on what the experts recommend

pay cash and don't finance a luxury. start small and see how it works and then add-on as you are comfortable that DVC is a good deal for you.

that's a good plan.

Has anyone financed a small amount of points directly through DVC recently?

nope. i started small and paid cash.

i enjoy using my DVC but decided i wanted to spend more time at non-disney destinations, so i opted for a cheap non-DVC timeshare (also for cash) for trading instead of adding on more DVC pts.

 

[adminjedi]

Pay cash...financing just increases the cost of your points, which translates to you paying more for your vacation lodging.

Remember when figuring what you can afford, buyer on resales pays closing costs of approx $350-$450. If you buy a smaller contract that translates into paying more per point.

 

[dudelydude]

This is what I have read on this board over the last few days. You can buy as little as 50 points right now through DVC, get a one-time use of an additional 50 points and pay no closing costs. So if you borrowed next years points, you could potentially have 150 points to use right now (as an example). Scroll down on the "DVC Operations" board and search for more threads where you see "50 points" and you'll see more people's responses to this.

 

[snorris49]

Thanks for the responses. At least I'm more or less on the right track not wanting to finance much if at all.

Disney is an investment for me b/c we go so much (and seriously amassed a chunk of change spent already on our trips) and I also have food allergies, and WDW is the best place for me to go as far as food is concerned. I also like the idea of having a kitchen or kitchenette to use to make my own meals.

I'm waiting to hear back from both the DVC people and resale folks and just trying to get as much info as possible before I make a decision.

I appreciate the advice! Keep the tips coming

 

[chalee94]

You can buy as little as 50 points right now through DVC, get a one-time use of an additional 50 points and pay no closing costs.

to get technical, i don't think these are one-time use pts so much as pts from the prior year's "use year." so it depends on which use year you buy...

newbies might want to read this thread if you don't already understand what "use year" means.

http://www.disboards.com/showthread.php?t=1942668

 

[Havana]

Do you have, or want to think about getting a Disney Visa?
We just bought DVC and took advantage of the 6 months no interest up to $10,000.

 

[Sandisw]

When you buy in with Disney, I believe that you can take advantage of a lower interest rate if you put 50% down and finance for only a year. Last year when I looked in to things, it was around 5%.

But, we ended up just using our Disney Visa, got the reward points, and got 6 months, 0% interest on the purchase--enough time to have the money to pay upfront. I teach a class at the college level and knew I would be teaching in the Fall so by December would have all the money I needed. I added on in June and with the delayed payments, it was great.

Since Disney is now allowing new members in with less points, IMO, the lines between going resale vs. DVC are blurred depending on what resort you want.

I would get the numbers directly from Disney and go from there. And, depending on the UY you pick, you could end up with 2009 points as well.

Good luck!

 

[dudelydude]

to get technical, i don't think these are one-time use pts so much as pts from the prior year's "use year." so it depends on which use year you buy...

You are correct, but I didn't know the OP's level of expertise, so I didn't want to use the term, "2009 points" just in case that raised more questions. JUST trying to keep it light.

Is the 50 point buy-in through DVC temporary? I would assume so, but for how long?

 

[snorris49]

When you buy in with Disney, I believe that you can take advantage of a lower interest rate if you put 50% down and finance for only a year. Last year when I looked in to things, it was around 5%.

That's a great tip! Definitely something I would consider and very manageable. That's about what I was thinking I had down for a smaller amount of points. The Disney Visa is also a good idea.

I'm also kind of hoping I can end up with 2009 points too, depending on the UY as you said.

I think I'm going to call DVC tomorrow, since I have the day off work to number crunch. I hate not knowing exact figures!

 

[ToddyLu]

Just to play Devil's advocate....DH and I financed our purchase...yep, the hole purchase...we survived and are enjoying our DVC.

We also owned flood insurance in a no flood zone before Katrina--thank God. Now we have a rider for volcanoes and earthquakes.....enjoy your purchase, however you get it.