Have you paid off DVC?

[Meriweather]

We paid cash for all 3 of ours.

 

[ssawka]

You could just purchase some resale contracts for between $96-$100 per point if you have the cash. ($92 was a good deal though, good buy)

Yes, that is true, but even at $96, that's still a 4% increase, so in that case I paid an extra $924, but I got:

1. An extra year of usage
2. The UY that I wanted
3. The exact number of points I wanted
4. A quick and easy transaction
5. A canvas tote bag

 

[keishashadow]

add me to the cash only club

 

[JWG]

We paid for our contract with money we inherited. I know my mom would be happy to have paid for such wondeful vacations.

Sad... not the paying cash, but how it was obtained. Hopefully all happy memories with how you spent the money.

One note: If you pay a lump sum to DVC, your monthly payments don't change. It just means your loan is paid off sooner.

So, DVC does not reammoritize (I know I spelled that wrong!) the loan each month. That's what I hate about my existing home mortgage, they don't either.


We paid cash for our purchase, but also only bought about 50% of the points I want to have. We'd like about 150 BLT points to do a 1 BR every other year or 2 BR in certain seasons for a week. We purchased 75 such that we could do a studio every other year.

There are 250 BWV points in the family that we'll inherit, so trying to balance our purchases with what we know we'll likely get ownership of in 10-15 years if even.

We expect that in 2-3 years we'll add the additional 75 points we want at BLT.

 

[Astros]

We paid cash for our BCV contract as well.

 

[staceymay00]

I would first want an adequate emergency fund before paying the loan off early. If so then absolutely I would try to pay off the DVC loan early. We bought resale and paid upfront for our contract. It is not the number of points we *need*, but not having a loan payment feels better to me than not having enough points (although wanting points for a 2BR and having points for a 1BR is a little bit if a drag ). Good luck with your decision.

 

[Inkmahm]

add me to the cash only club

Me, too. Technically, we put the purchase on the DVC VISA card to get the reward points and then paid the bill immediately so we had no interest charge.

 

[wbl2745]

We didn't buy until we could pay cash. We don't borrow for things that we consider to be non-essential.

 

[keishashadow]

Me, too. Technically, we put the purchase on the DVC VISA card to get the reward points and then paid the bill immediately so we had no interest charge.

i discovered that trick (here) & made sure to use it when i bought my 2nd contract, was nice to have that gift card.

 

[cricketjamest]

We paid cash for both our contracts. It was the only way we could justify the purchase.

Paying interest on a loan would have taken away from the value and enjoyment of "membership" for us.

 

[jodifla]

We financed it, and paid it off more than 10 years ago.

Glad we FINANCED and didn't drag our feet and wait. We paid a fraction of what it's going for now. We can sell it now for more than we paid for it, and we've had 14 YEARS of great vacations without throwing money away on accommodations.

 

[Debrn]

We bought 1.5 yrs ago and financed. Planned to pay off by now, but are now in the process of divorce over the last 8 mos. I really want to keep my DVC so am making my monthly payments and plan to start paying it down asap.

 

[grafxgirl]

We paid ours off immediately after we got the contract.

 

[Shleedogg]

We bought in July 09 and paid it off this spring, less than a year. With the interest, it really negates a lot of the DVC savings to hold onto the loan for too long. I don't remember the figures anymore, but it was really not worth it.

 

[Wilver]

We had a similar interest rate and paid ours off as soon as we could. It made more sense to use our savings which was getting less interest than what we were paying Disney, so to us it just made sense to pay it off quickly.

 

[homercrispy]

paid off both of our contracts. time for another one.

 

[funatdisney]

There's a handy little button on the DVC loan page to make extra payments of over $10.

Where is this page? On the member website?

 

[nunzia]

Where is this page? On the member website?

Yes..on the DVC member site there is an area with your loan info and you can pay there. You can also pay with Bill Pay..I did this..just put in all the info and account number in my Bill Pay account and shot off extra payments and then the pay off. Worked fine.

 

[jco_direwolf]

Personally I don't see buying DVC on credit. If I didn't have the money to buy it outright I wouldn't.

If you really can afford the payments, then put the money into an account every month and earn the interest. While DVC does go up in price, $50 -> $110 in 20 years (which is an increase of $3/point per year so expect to pay another ~$15 in 5 years.)

I'm in the other boat... I'm surprised at how many people are willing to buy DVC on credit.

johno

 

[ssawka]

If you really can afford the payments, then put the money into an account every month and earn the interest. While DVC does go up in price, $50 -> $110 in 20 years (which is an increase of $3/point per year so expect to pay another ~$15 in 5 years.)

It depends on where you want to buy, but see my earlier post where the direct price of BLT went up $20 per point in just one year.

I can appreciate when people say that they wouldn't buy a luxury on credit, and you really should not buy DVC if you aren't absolutely sure you can afford it, but people buy lots of things on credit that they may not consider luxuries but at least partially are. If you finance a car, did you get the most basic of basic cars? Is your house the minimum house size-wise that you need? If not, at least a portion of that purchase can be considered a "luxury".