How many people financed DVC?

[DREAMINOFWDW]

Hi All,
I know that a lot of people frown on it, but how many of you have financed DVC and for how long? And if you did, did you finance through Disney or your own bank?

Thanks in advance,
Lisa, who the only way to call Jim McCoy just may be having to finance....for now!!

 

[sconstantz]

and do you know what range percentage points disny offers?
thanks, just trying to figure out which way may be best for us.
shellyÄ

 

[wdwnut]

hi: our first contract at bwv was financed with disney for 10 years; you always have the option to pay it off early without any prepayment penalties. you can also do what we did; whenever we had accumulated a bit of extra money that wasn't already earmarked for something else, we just got in touch with member accounting and made a payment. this comes directly off the top of the loan amount. for our add on of 150 points last year, we financed with our bank because they were running a loan sale with better rates than disney. call your guide for their current rates/terms.

 

[DVCDAVE]

Hi, We financed through Disney for 10 years at 10.9% with 20% down. The 10.9% is only good for direct debit and during Disney's special offering period wich begins when they offer it to you, and ends 30 days later. We also have Jim McCoy as our DVC guide. He is a very honest, likeable person. We now consider him a friend (seriously). My family took a liking to him immediately when we met him in March to do an add on at WLV. I hope you have the same experience with him that we had, as we think very highly of him.

WDW:
76,77,78,87,FW
92,Offsite
95 POL
96(2), GF,Offsite
97,GF
98,99,00,FW
8/00 DVC member @ BWV
3/01 BWV, FW
3/01 DVC member @ WLV
11/01 BWV !

 

[howardk613]

We financed thru Disney with automatic funds transfer for 1 year. It was painless and fast and I am glad that we did it.

 

[nydizfan]

hey dreamin. we financed through disney for ten years , do not have the percentage but it was around 10%, we bought 230 points at OKW in 1992. that came out to 151 dollars per month direct withdrawal. It will all be paid off in 8 months!!!!. hope this helps. dave

offsite '71 contemporary '72 golf resort '76 village resorts '93 okw '94 okw '95 contemporary '96 okw '97(got married) okw '97 okw '99 okw '00

 

[ripleysmom]

The advantage of financing through DVC is the ability to deduct the interest on your mortgage. We financed for 7 years. Also if you have taken the tour there is a special financing rate for 30 days after the tour but don't wait cause they are strict about it. If you haven't taken the tour, ask them about the rate. You should be eligible.

Kimberly-Lucas and Ripley's Mom

 

[Dumbo]

I financed my purchase with Disney. Then again, I work for peanuts!

Dumbo

 

[dianeschlicht]

We financed our original 230 points through Disney for a few months until the money we were waiting for came through. We wanted to purchase before a price increase, so we did the financing. That was about 5 years ago when the price was still $65/point! We were able to pay it off in just a couple of months when the money came through. We then added on another 150 points when they built the new buildings at OKW. We didn't finance those at all.

Disneydiane

 

[prncssjas]

Hi Lisa!!

I don't think it's bad to finance at all!! It's an easy way to get into DVC without having to put all your $$$ in one place at one time.

For DH and I, we bought 150 points at VB and took advantage of the MB program and credited all our points this year but ONLY because we knew we weren't going to be able to vacation this year (with points...already had one trip paid in cash). We figured "why not"?! So Disney basically paid our 20% downpayment of $2,000 and we financed the remaining $8000 over 10 years at an interest rate of 10.9% (I think!!).

Because there is no penalty for paying off early, we can send extra $$$ each month if we have it but also have the luxury of not being pressured to! Our payment each month is $114 plus dues (another $49).

It's very EASY and do-able. DH and I struggled for a month trying to decide if we could do it comfortably and we have...I am SO glad that we did and look forward to going down. Once you call, I know you will be glad that you did!!!!

Our guide is Julie and she is the BEST!! She is very kind and helpful...I must have asked a billion questions and she never once was irritated or rushed with me. And everytime I call her, she ALWAYS asks how my DH is doing, even though she has never spoken to him! It's GREAT!!!

Hope this helps a little.

Rima

*** Biggest Aladdin Fan in the WORLD!!!***

DVC MEMBER/Vero Beach 2001
12/79 Day Guest
7/84 Day Guest
7/88 Disneyland
7/95 Off Site
1996 Cast Member
2/97 CBR
9/00 GF-HONEYMOON
11/01 GF Concierge

 

[chris1gill]

We financed our original 150 points, and paid that off within 18 months... We had financed it through Disney Directly, for a 5 year term.. It was just easiest to do it that way... After that, we paid cash for our 100 point add on... I would never finance for more than the 5 years, the interest on that 10 year they offer is really really high...

 

[Pete W.]

I don't believe in financing a non-essential purchase without having an "emergency fund" to fall back on during hard times. I was laid off for a few months in 1995 and things were tight enough for us with a mortgage and one car payment, but we had money in the bank that got us through the lean time. I can't imagine what would have happened if we had had no cash reserves, a large credit card debt and/or an extra monthly payment to DVC or elsewhere.

That said, we are planning to add-on next year and we will probably use our home equity line of credit because we want to keep $$ in the bank, plus I have stock shares and options that I'd rather not sell/exercise right now for tax purposes, but I could if I had to.

I think the bottom-line is to use credit if it makes sense within the "big picture" of your family's finances, but don't do it if the payments would create a hardship for you in tough times. As much as we all love to think of WDW as "essential," it pales in comparison to having a roof over your head, being able to send your kids to the college of their choice, etc.

 

[Disbuf]

We went ten years also using the direct debit through Disney. We too have Jim McCoy and just think he is the greatest. He has been nothing but honest and is always very helpful with any request that we have had. I would highly recommend Jim to anyone thinking about purchasing.

 

[connie7185]

Well said Pete! Nothing compares to having a roof and giving your children the best you can afford!

 

[prncssjas]

I totally agree with Pete as well!! We have no problems financing with Disney for 10 years but we would NOT have done so without a "cushion" in the bank. DH insists that we do this responsibly (LOL!) because we can't predict what could happen.

While the interest is a little higher than we like, it's not TOO horrible and we can at least keep a lot more money in the bank as our safety net. Hopefully though, we can cut down on interest paid by sending extra money each month.

Let us know what you end up doing. GOOD LUCK!

Rima

*** Biggest Aladdin Fan in the WORLD!!!***

DVC MEMBER/Vero Beach 2001
12/79 Day Guest
7/84 Day Guest
7/88 Disneyland
7/95 Off Site
1996 Cast Member
2/97 CBR
9/00 GF-HONEYMOON
11/01 GF Concierge

 

[vacationman]

We chose to finance through Disney for several reasons. First, it was easy. While we could have received a lower interest rate from our credit union, we are big on avoiding hassles. Disney made the whole process very hassle-less. The rate we paid, while somewhat higher than other sources, will not be a big factor since we will have the entire loan paid off within two years of when we started. Second, we can make lump sum payments at our convenience. When bonus time comes, we can make a large payment via our airmiles credit card and thus earn even more miles for our airfare on our next Disney trip. Third, with magical beginnings, our initial investment was extremely low. Lastly, the unexpected benefit was that the cost we paid for points is now less than we can obtain on the resale market. If times get real tough, we can still sell our timeshare and pay off the loan.

I would not recommend a home equity loan.

Vacationman

 

[DREAMINOFWDW]

We do have a cushion, I would never have even considered this if we did not. I just was wondering how many people started out financing. I will not do an add on (assuming we get our first 150 lol!) unless we can pay cash!!

Thanks everyone,
Lisa, who is dialing the 1-800 to call Jim McCoy!!

 

[KELLY]

We financed our purchase but not through Disney - the rates were way too high. We financed through our home equity loan at about 8%.

We only financed part of it. It will be paid off by the end of this year!

 

[Pete W.]

I hope I didn't sound like I was lecturing or criticizing you, and I know I wasn't actually answering your question when I responded. It's just that your comment about financing being "frowned upon" made me think of the reasons why financing may not be a good idea for everyone.

We're all so (rightfully) enthusiastic about our DVC membership on this board, and we talk about what a great deal it is and how we need more points so we can get a bigger "fix," and we want to add-on quickly before the next price increase and before we get any closer to 2042, etc. that I'm afraid we might sometimes give the impression that it's never a bad idea to finance.

 

[Beachangel]

thru Disney and it was hassle free. I put 20% down & have it taken out of my account - its not not really paying for it since I don't "write" a check each month!

I don't know why anyone would look down upon financing - I have the $$ to pay cash but why would I?

As long as you can afford it - go for it and good luck!

"Think left and think right and think low and think high. Oh, the THINKS you can think up, if only you try." Dr. Seuss