How many of you finance your contract?

[FutureWasYesterday]

I would love to hear from those people that finance some or most of their DVC contracts... any regrets or do you look at it like breaking-even because maybe thats what you would pay for cash ressies at one of the resorts anyway?

 

[rocketriter]

We financed through Disney for three reasons: the convenience, because we wanted an unsecured loan and because we wanted some time to come up with the money but knew we wouldn't need the entire term of the loan to do so. Each month we can choose how much more to pay off depending on available cash, and from time to time we throw a big wad of money at it. We'll be paid off in a fraction of the length of the loan, so our interest cost will be much less than what is calculated for the loan. Could we have done it cheaper and still gotten this flexibility? Perhaps, but we'd have had to pay an accountant to figure out how.

 

[JimC]

Financed the BCV purchase for one year. We used Disney because it was fast, easy and the rate/interest for 12 months was immaterial.

 

[Simba's Mom]

We financed for 5 years, only because that's what we felt we could comfortably handle. We weren't looking at the interest aspect or payback time of a timewhare or anything like that. Only regret we have about doing that is that we want to sell our contract and buy at a new home resort (not leave DVC, certainly!), but we feel it would be easier to wait until we own the contract "free and clear". Wish we'd been able to buy "free and clear" so that we could look into making that change now, but Oh, well! At least we own DVC.

 

[MinnieFan4ever]

We also went with Disney and financed our BCV purchase for one year. It was very easy, so easy when we added on, we went with Disney again.

 

[Frozenfingers]

Put it on the credit card, then paid off the CC with a home equity loan. Only regret was I used Disney Visa.. shoulda used my other card for airline miles.. Bottom line is we were able to get a great rate, plus the tax benefit helps.. Did a small add on a couple of months ago, just put it on the cc and paid it off.

 

[brivers222]

We financed through Disney about 65% of the total for many of the reason above:

1) we wanted an unsecure loan

2) in talking with our accountant, we can write off portions of our dues on our taxes each year.

3) Low monthly payment can easily be made and in most cases double payments can be made.

4) Pretty much hastle free. We signed several papers and then whala, we're approved. It's as easy as buying air

I am going to start a company, where I bottle air and charge people for it...

"How about a Cell Phone that works! A cell phone that just wants to be a cell phone, thats the phone I want!" ~ John Heffron (local boy and a great person) Last Comic Standing

 

[Coach Rick]

Yeah, pretty much what brivers222 said. It is just plain easier, and the payments were low enough that it really doesn't impact our budget at all.

 

[Mickmse2002]

We put 50% down on both contracts and financed the other 50% through Disney. Mainly for the convenience and speed of the transactions.

 

[Tink03477]

I did the same as Coach Rick and brivers222 for the same reasons as well. I will try to pay it off earlier with tax returns every year too. I do want to add more points later.

 

[DVC Jen]

We financed for the whole 10 years so we could get that tax deduction and not have large payments at all. This was back in 2001 and we have already broken even.

 

[crisi]

Just a note on tax deductions.

You can probably deduct a percentage of your dues whether you pay cash, finance through Disney or finance via a home equity loan. The portion you can deduct is the property taxes, a pretty small amount.

If you finance, you may be able to deduct interest if your loan is secured by your residence. My understanding is that you cannot deduct interest if you finance through Disney, if you take out a home equity loan, you probably will be able to.

I am not an accountant nor an attorney. Tax law is convoluted and just because Bob can deduct something doesn't mean you will be able to. Talk to your own tax advisor regarding your specific situation.

 

[crazywig]

Originally posted by crisi
Just a note on tax deductions.

You can probably deduct a percentage of your dues whether you pay cash, finance through Disney or finance via a home equity loan. The portion you can deduct is the property taxes, a pretty small amount.

this is true. we paid cash for our points and we are able to deduct the property tax portion of the dues.

 

[goofy4tink]

For those of you that bought add-ons....was it easier or just the same as when you first financed thru Disney? We're thinking of buying another 50 pts but didin't want a huge hassle.

 

[vanstoj]

We financed. THought the interest rate was stiff, but we are paying it off early. Should have our first contract paid off in 1 1/2 years and our other 2 contracts in less than 2. It was very easy, but I have to say we will not finance again. I can't stand paying those high interest charges. At least it is fixed and won't go up because the feds raise their rates.

 

[twotoohappy]

Are you responsible for the agreed upon interest if you finance through Disney, or if you pay it off early is the amount of interest you've paid is less? thanks!

 

[sssteele]

We financed through Disney - 3 years for our first contract (200 points), and 3 years for a 100 point add-on the year after we made our first visit home. When we made our first "modern times" trip to WDW in 2002 (hadn't been there since '89) we managed to save $500 a month for a year for that trip (treated our son and family). We figured we could do that to finance three years. (500 a month). The first contract will be paid off my last year of teaching, and then we'll "only" have $250 a month plus dues on the origninal 200 points. I've been concerned that I would have to buy a vehicle before the first contract is paid off, but so far (knock on wood) the 95 Explorer is still roadworthy after 200,000 miles. I was on pins and needles this past trip as to whether it would survieve the 2000 mile journey, but it did.

 

[JimC]

Originally posted by twotoohappy
Are you responsible for the agreed upon interest if you finance through Disney, or if you pay it off early is the amount of interest you've paid is less? thanks!

It is a simple interest loan, the faster you pay the less you pay in interest. There are no pre-payment penalties.

 

[LakeAriel]

OOPS! could have deducted the property tax portion? Is that amount somehere in this huge pile of papers? Oh well, I'll know for next year.

 

[helenabear]

Paying ours with a home equity loan. I just don't have the ability to tap out that kind of fund at the moment. So I am paying as much as I feel like a month and I have no pre-payment penalities on this. Works for me