How did YOU finance DVC?

[lugnut33]

Chris, if you had bought FRE or FNM when it dropped to pennies, and then sold it at when the expected tarp raised it's value about 10 fold... Well, don't worry about me. I certainly do appreciate your concern, however.

I'm sure no matter what I say you'll think I'm a complete dummy, but here it goes.

I'm a pretty normal guy, who has a family. I don't make baller money like some people do, but I'm OK. Well, for the last several years our family has enjoyed vacationing at WDW, and Dinseyland. I wanted to have a place where we can take yearly, or bi-yearly trips with the family for as long as me and my wife are physically capable of taking. We want to forge a tradition of taking these trips with our kids now and when they are older. Something that they can look back on when they are old and remember how good a time they had with their folks. Heck, maybe they will even have posession of our contract and will be enjoying trips with their kids, or grand kids. This thinking was just one aspect that went into our decision to buy into DVC.

And actually, we took your advice and purchased fully with cash. I did quite a bit of research and in August we found a 120 point contract at SSR for $80 a point and it all went through fine (all 08 & 09 points, seller paid 08 Dues). Sure, probably not the super deal a wheeler dealer like yourself can get, but I'm happy with it. I didn't feel like financing was a good option on this purchase, especially since it was under 10K. I also didn't feel like extending ourselves credit wise. Only debt we have is our house, which is reasonable (Wisconsin is very cheap to live in, my house in Florida would be like a bazillion dollars).

One thing I was very glad about occured just a few weeks ago when member fees came out. My little contract meant a little fee that we will have no problem paying every year. I'd be afraid of having a large amount of points and paying fees on them each year, but again that's a personal preference. Some people really really love their Disney and that's cool with me.

Now, as for it being a bargain or a deal. I don't really look at it that way because this is something we wanted. And I know it's not a bad deal. To me, a bad deal is paying $400-$500 a night to stay at the Contemporary. Yeah, we could continue to stay at POFQ, but why? I like having the option of getting a one bedroom or a two bedroom, or a studio if just my wife and I decide to take a weekend getaway. It's flexible for us. However, others may not feel that way, but I respect their opinions. Who the heck am I to bag on others opinions? I'd just come off as a crusty old geezer if I did.

In the end, I'm fine with maybe paying a little extra, but that's what one must do sometimes to have a finer things in life. Atleast for me and my family we consider Disney and DVC a finer thing. And so far, of all the DVC members we've met, they are cool and very friendly. Can they be a bit overzealous? Yup, but that's OK with me.

 

[dandave]

Lugnut, Did you read everything? I don't think you're a dummy for buying 80 points in cash. For God's sake! My offer is only for 50 points! Wheeler Dealer? Hardly. Intelligent woman who wouldn't risk her family's home to finance a timeshare? Yes, thank you!!
DVC *is* one of the nicer things in life, and I do (did) want it. That's my whole point. I will not, however, participate in talking it up to the point that those who perhaps cannot afford it are enticed into financing their family homes just to be a part of "the club". That disgusts me. Period.

 

[lugnut33]

I did read everything and frankly I was offended by some of what you were saying.

You know what, life is short and you darn well better have a fun time here on our Spaceship Earth. If somebody wants to buy on credit, oh well. Just don't come asking for a bailout like those smart bankers have done.

It's OK to express and opinion, but don't look down on other people because you think you know what is right. For how much my 401K has tanked in the last year, I wish I had taken that money and spent it else where. The whole stock market thing is a big gamble. I would have done better betting it on red or black out in Vegas.

Probably time for this thread to be locked.

 

[dandave]

Lugnut, I'm speechless. Honestly, as they say in Lampoon's Christmas Vacation, "I could have woke up with my head sewn to the carpet and not been more surprised". I have looked down on no one, yet have been looked down upon for actually staying at the AS Resorts. Whatever. I'm confident enough to stay there and still have a great vacation, as shocking as that may be. I don't need to be part of a club to feel confident in my opinions, either. Call it Women's Lib (*with* the bra though, if that's OK. After two kids and all...well, you know. )
Again, and for the last darned time, I have no patience for those who have tried to recommend DVC as a smart financial move in uncertain times to others. Think of me what you will, and make all the little angry, red faces you wish. I'll sleep well knowing that I stood firm in what I believe.

 

[JPS439]

Yes you stood firm on what you believe, you certainly showed those people on the semi-anonymous disney related internet message board what's what.


Back to the ORIGINAL QUESTION. Put the largest down payment I could swing and financed the rest. I make as many principal payments as I can throughout the year and should have it all paid off in about 2yrs.

 

[Dee77]

OK here goes. Without addressing any of the specific comments/criticisms that have played out on this thread- here's what my DH and I have used as our guide to buying at BLT.

My in-laws have been members for several years and gave us the ultimate gift of a trip with our DD(2) this past year. We went and tried to "get everything done" that we had on our wish list figuring we would not be back anytime soon. By day 3 we started asking questions about buying DVC. We loved our family time exploring all the great things "Disney", also our DD has severe food allergies and we were completely at ease with all of the restaurants and the way they handled our concerns.
Basically- The way we look at it is, yes it's an extra expense each month (since we did finance most of the cost) however, we really believe it is the type of trip we would like to make as a family for years to come. My in-laws and numerous others are all planning their annual trip for this year and we are so glad we will be there as well (with my parents too.) This to us is PRICELESS for our daughter. A trip with ALL of her grandparents, who could ask for more. Too many times people say "I wish I had..." Life is short.
If by chance, we are way over our heads or if something dramatic happens to us financially, we can always sell the contract or sell points in a given year to off-set some of the cost. Plus there is a valid point in saying that there is a tax write off.
Bottom line- we are prepared for this new financial cost each month and hope to have it paid off early.

That's our story in a nutshell- good luck with your decision.

Dee

 

[december14disney]

This thread is simply for those who financed to state how in order to help give OP some options. We dont know OP's financial situation. She could be a millionaire wanting to finance just for giggles. I dont know. But I do agree with everyone on here who says life is short. OP. If you are okay financially. If you are prepared for the payment DVC will bring. Then do it if you want. None of us here should tell you to or not too.

We put 50% down on Disney visa. Then paid that off to get Disney points. Financed the rest. Monthly payments with dues are about 160 a month or something like that. Used the Disney points we accumulated to buy Annual Passes. Only expense for Disney now is food! (We live in NC so we drive). Good luck with your decision. I really hope whatever you do is best for your family. And if it so happens....welcome home OP!

 

[jpolak]

Only you know your true financial situation so do what is best for your family.

 

[logan115]

Chris, if you had bought FRE or FNM when it dropped to pennies, and then sold it at when the expected tarp raised it's value about 10 fold... Well, don't worry about me. I certainly do appreciate your concern, however.

Right, and quite honestly that's a reason that I'm looking at buying DVC now (re pennies on the dollar). Just like buying stocks that are beaten down, whether it's Fannie, Freddie, Dryships, or even an a double long ETF like DXO, given the state of the current resale "market" I think there's a good chance that the discount I could get buying distressed assets (DVC) now overpowers the financing cost should I choose to finance.

That's my particular market call, maybe I'm right, maybe I'm wrong. But that's something else I'm factoring into my decision.

As others have mentioned, there is some value in paying up for something you want (similar to you lifting the offer to buy a stock instead of sitting on the bid waiting to get filled), whether that value is realized financially, or thru memories that trips will create will vary in each case. My time is also worth something, which is another unmodeled element that needs to go into the DVC equation. Is it worth some money to me to not have to wait for the all-mighty PIN codes or pray that WDW offers some discount that allows me to take the trip and not pay rack rates ? Absolutely. Will there be times that I could've gotten a better deal either thru CRO or renting points, of course, but I'd rather not rely on some code coming out or getting lucky renting a ressie.

To be clear, and I have nothing against you and if my last reply gave off that impression I apologize. As a side note I spent around 7 years down at the CBOE trading options on stocks and the SP 500 before switching over to energy trading, and am considering buying some straddles or strangles on DIS as vol has really come in of its highs. Imagine the irony of using profits from trading DIS stock to actually pay off a DVC contract

Chris

 

[mom2rb]

I financed through Disney. DH's car is paid off. We pay DVC instead of a car note. Since I pay my cars off in three years or less, I treat DVC the same way. SSR is paid off, AKL is almost paid off, and I just started paying on BLT. Unlike my car payments, I write off my interest from DVC. DH's car is ten years old. He wants a new one. That gives us plenty of reason to focus on paying off DVC.

 

[DWFan4Life]

Just curious about this...
We are going to purchase a resale in April or May probably...
We were thinking of opening a line of credit to finance DVC because of the 10.25 interest rate that seems to be offered.
How did you do it? What is your interest rate?
Does anyone have any ideas I haven't considered?

Thanks!

I also want to figured about this, it seems I got an answer. I'm glad I found this thread.

Thanks everyone and have a nice day.

 

[mom of princessx2]

We purchased resale so going thru Disney wasn't an option but I don't think I personally would pay that type of rate (former lending agent prior to SAHM) We took out a HELOC and don't regret it a bit as we have built up plenty of equity on our home. We paid about 20% out of pocket and are paying 3.99% on the LOC. Looking forward to many years of vacation with our girls!!

 

[salukidog]

In the past we would spend(family of 4) about $4000 to travel to disney, its a luxury but as we saved for the trip, now we put that same amount of money toward DVC. Save for what you want, my wife was introduced to WDW 2 years ago, I have spent time there before. She is always talking about the next trip to WDW and we havent gone on this years trip yet. Hey its not for everyone, but it works for us. Yes we hem and hawed and crunched numbers. In the end, it works for us. That is what you should base your decision on.

 

[dandave]

Yes you stood firm on what you believe, you certainly showed those people on the semi-anonymous disney related internet message board what's what.

I love it! I have been on the DIS for quite a few years. Over that time I have sent requested WDW postcards to these "semi-anonymous" Disers' kids, sents plants to those who requested, received plants and cards as Thank You gifts, sent needed UPC labels, rented points, etc., etc.
I'm not going to change the way I Dis, but I'll be sure to answer any of your particular questions in the most self promoting and emotionally unattached manner that I can muster.
What we do in anonymity says far more about us than what we do in the spotlight.

 

[lugnut33]

I love it! I have been on the DIS for quite a few years. Over that time I have sent requested WDW postcards to these "semi-anonymous" Disers' kids, sents plants to those who requested, received plants and cards as Thank You gifts, sent needed UPC labels, rented points, etc., etc.
I'm not going to change the way I Dis, but I'll be sure to answer any of your particular questions in the most self promoting and emotionally unattached manner that I can muster.
What we do in anonymity says far more about us than what we do in the spotlight.

 

[dandave]

Thanks lugnut. I needed all three of those!