How much cash needed upfront?
- Thread starter Mercy
- Start date
Simba's Mom
everything went to "H*** in a handbasket
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We bought 100 BCV points with a $10 "magical beginnings" special, I think they have something similar at SSR. At the time, points cost $79, with a minimum down-payment of 20%, $1680. But that $1680 was a theoretical #-with a $10 magical beginning, you "sell back" your first year's points and take that off the downpayment. Our sell-back cost was $1000(100 pointsX$10 each). $1680-$1000=$680 as the amount of cash we needed. And our guide said, in response to my asking, that we could put the $680 on Disney Visa, actually he said we could even put the entire price on it if we wanted! What was a nice little surprise was that, although we have an August use year, and had no BCV points until August of 2003, I could make ressies for December 2003 11 months ahead.
That is to expire 10/31/03 is that the credit counts towards your 20% down payment.
Simba's Mom is correct in that you are not required to put down 20%, only 10% but if financing through DVC, you will pay 1% higher interest with 10% down.
What's also nice is the credit is not magical beginnings so you get to keep your first year's points.
I believe my guide said that the credit will decrease to $5 ppt. on Nov. 1, 2003.
Simba's Mom is correct in that you are not required to put down 20%, only 10% but if financing through DVC, you will pay 1% higher interest with 10% down.
What's also nice is the credit is not magical beginnings so you get to keep your first year's points.
I believe my guide said that the credit will decrease to $5 ppt. on Nov. 1, 2003.
Patricia721
Mouseketeer
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This information is directly from the Disney Saratoga Springs Resort Special Financing: Loans & Dues Payments ---
20% down with 3 year, 5 year, 7 year or 10 year financing term. The interest rate is 9.75% if you have the monthly payment taken directly from your checking or savings account. The interest rate is 10.75% if you mail in the payment monthly.
There is also the option of 50% down with a 1 year financing term, at 4.95% or 5.95% (same options as above).
DVC is currently giving a $10 per point discount on SSR. Our salesperson, Jim McCoy, told us that special would end today, 10/31. Starting 11/1, the discount is $5 per point.
Here is an example of how the discount operates - 150 points * $89 = $13,350. 20% of $13,350 = $2,670 downpayment. However you have a $10 per point discount or $1,500. Therefore, your actual downpayment is $2,670 - $1,500 or $1,170. The remaining $10,680 is financed. Unlike previous MB, you do not have to "give the first year's points back".
I hope this is helpful!
20% down with 3 year, 5 year, 7 year or 10 year financing term. The interest rate is 9.75% if you have the monthly payment taken directly from your checking or savings account. The interest rate is 10.75% if you mail in the payment monthly.
There is also the option of 50% down with a 1 year financing term, at 4.95% or 5.95% (same options as above).
DVC is currently giving a $10 per point discount on SSR. Our salesperson, Jim McCoy, told us that special would end today, 10/31. Starting 11/1, the discount is $5 per point.
Here is an example of how the discount operates - 150 points * $89 = $13,350. 20% of $13,350 = $2,670 downpayment. However you have a $10 per point discount or $1,500. Therefore, your actual downpayment is $2,670 - $1,500 or $1,170. The remaining $10,680 is financed. Unlike previous MB, you do not have to "give the first year's points back".
I hope this is helpful!
Patricia721's calculations are largely correct, but LIFERBABE is right that the minimum down payment is only 10%
Current pricing is $89 per point. To purchase 150 points (the minumum for a new owner), you would need to have the following in cash (check / credit card), up front:
150 pts @ $89 pp = $13,350 total investment
10% of $13,350 = $1335 down.
When you call DVC you can get away with putting as little as $500 up front just to get the paperwork moving. But you'll need to send the balance of the down payment when you sign and return the documents.
The promotional discount ($10 pp now, $5 pp starting on Saturday) comes off of the remaining financed balance. Thus if you purchase tomorrow, you would be financing as follows:
$13,350 (total purchase) - $1335 (dp) - $1500 (promotion) = $10,515 financed.
If you purchase after 10/31, the promotional discount would only be $750, and the net financed amount is $11,265.
The current interest rate for the financed amount is 10.75% if you send a check each month, 9.75% if you go direct debit. These numbers are based upon a 10-year finance period, and may be lower for shorter durations. If you finance through DVC, there are no payments due (after the down payment) until the resort opens next May. Also, no interest will accrue until the resort opening.
To the original poster: read the DVC FAQ on this site and see if it helps. For many, many people, DVC makes a lot of sense and will save us thousands of dollars over the next 40-50 years. You may also find a thread on these boards about situations where DVC is not beneficial. Some of the main reasons are:
- If you travel during the summer and holiday periods. Point costs are high and your DVC dollar doesn't go as far.
- If you travel during weekends. Weekend stays can cost two or three times the Sunday - Thursday rate. Again your points don't go as far.
- If you like to take spontaneous trips. DVC members are used to planning their trips 6-11 months ahead of time. You may find limited availability if you cannot plan more than a month or two ahead of time.
- Lastly, DVC presents members with first class accommodations. A two-bedroom villa room that sleeps 8 people can cost you $550 to $1000 PER NIGHT if you reserve through Central Reservations. If you are comfortable (personally and financially) staying in an All-Star or Moderate resort room, then DVC will likely not stand up well in a cost comparison. But if you compare the DVC purchase price to the rack rates of the rooms you will have available, you will likely find that the DVC investment pays for itself in a decade or less.
So, if you like to take spontaneous, cheap, Christmas-time vacations over a weekend, DVC is likely not for you. If the opposite applies, you should definitely do your DVC homework.
Hope this helps.
Current pricing is $89 per point. To purchase 150 points (the minumum for a new owner), you would need to have the following in cash (check / credit card), up front:
150 pts @ $89 pp = $13,350 total investment
10% of $13,350 = $1335 down.
When you call DVC you can get away with putting as little as $500 up front just to get the paperwork moving. But you'll need to send the balance of the down payment when you sign and return the documents.
The promotional discount ($10 pp now, $5 pp starting on Saturday) comes off of the remaining financed balance. Thus if you purchase tomorrow, you would be financing as follows:
$13,350 (total purchase) - $1335 (dp) - $1500 (promotion) = $10,515 financed.
If you purchase after 10/31, the promotional discount would only be $750, and the net financed amount is $11,265.
The current interest rate for the financed amount is 10.75% if you send a check each month, 9.75% if you go direct debit. These numbers are based upon a 10-year finance period, and may be lower for shorter durations. If you finance through DVC, there are no payments due (after the down payment) until the resort opens next May. Also, no interest will accrue until the resort opening.
To the original poster: read the DVC FAQ on this site and see if it helps. For many, many people, DVC makes a lot of sense and will save us thousands of dollars over the next 40-50 years. You may also find a thread on these boards about situations where DVC is not beneficial. Some of the main reasons are:
- If you travel during the summer and holiday periods. Point costs are high and your DVC dollar doesn't go as far.
- If you travel during weekends. Weekend stays can cost two or three times the Sunday - Thursday rate. Again your points don't go as far.
- If you like to take spontaneous trips. DVC members are used to planning their trips 6-11 months ahead of time. You may find limited availability if you cannot plan more than a month or two ahead of time.
- Lastly, DVC presents members with first class accommodations. A two-bedroom villa room that sleeps 8 people can cost you $550 to $1000 PER NIGHT if you reserve through Central Reservations. If you are comfortable (personally and financially) staying in an All-Star or Moderate resort room, then DVC will likely not stand up well in a cost comparison. But if you compare the DVC purchase price to the rack rates of the rooms you will have available, you will likely find that the DVC investment pays for itself in a decade or less.
So, if you like to take spontaneous, cheap, Christmas-time vacations over a weekend, DVC is likely not for you. If the opposite applies, you should definitely do your DVC homework.
Hope this helps.
Minnie's Mate
DIS Veteran
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- Aug 15, 2000
- Messages
- 1,310
My wife and I are considering a DVC purchase. We are going to WDW in November and unfortunately missed the $10 discount at SSR.
I am pretty sure I know the answer to both of the following questions is no, but here goes: 1) We have a Disney Visa with several hundred dollars in Disney dream money or whatever they call it in rewards, can we use these toward the down payment? 2) Can we have the monthly payment charged to our Disney Visa and earn the 1% in dream dollars each month in lieu of our checking account?
Like I said, I think I know the answer, but thought I would through that out there.
I am pretty sure I know the answer to both of the following questions is no, but here goes: 1) We have a Disney Visa with several hundred dollars in Disney dream money or whatever they call it in rewards, can we use these toward the down payment? 2) Can we have the monthly payment charged to our Disney Visa and earn the 1% in dream dollars each month in lieu of our checking account?
Like I said, I think I know the answer, but thought I would through that out there.
/
Unfortuntely the answer to both question IS no. However:
- You could make your DVC down payment on the Disney Visa and at least receive some additional reward points.
Ideally, if you can finance through a home equity line, you can charge the entire DVC purchase to the Visa, get the reward points, and then pay off the balance with your equity line.
- Your monthly payments cannot be made on the Visa, but if you want to do an "extra" payment from time-to-time, you can call DVC and have that payment placed on the credit card.
- If you pay your annual dues in one lump sum they will put it on a Visa card. If you want to make monthly payments on the dues it must be via check or direct debit from checking/savings account.
- You could make your DVC down payment on the Disney Visa and at least receive some additional reward points.
Ideally, if you can finance through a home equity line, you can charge the entire DVC purchase to the Visa, get the reward points, and then pay off the balance with your equity line.
- Your monthly payments cannot be made on the Visa, but if you want to do an "extra" payment from time-to-time, you can call DVC and have that payment placed on the credit card.
- If you pay your annual dues in one lump sum they will put it on a Visa card. If you want to make monthly payments on the dues it must be via check or direct debit from checking/savings account.
Minnie's Mate
DIS Veteran
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- Aug 15, 2000
- Messages
- 1,310
tjkraz
You sure know your DVC information. I figured no one had asked about doing this...or if they had it was some time ago and didn't appear in the message boards recently. It sounds like you really were attentive and did your research and had your questions in order when you met with the DVC guide.
You sure know your DVC information. I figured no one had asked about doing this...or if they had it was some time ago and didn't appear in the message boards recently. It sounds like you really were attentive and did your research and had your questions in order when you met with the DVC guide.
Naah, the real experts just didn't see your post yet.
Actually I never would have thought to ask all of those questions myself. Read these boards daily for another month and you'll probably know just as much as I do. We all learn from each other.
Thank you all for your useful information.
tjkraz.... wow! You really know your stuff, thanks so much!
A couple more questions, 1) You mentioned annual dues, how much is that? 2) If I purchase say 150 points, but only go every other year, will I have 300 points to use? Do you keep accumulating points (the number you purchased) every year? 3) Can the points only be used at Disney propertys, or are there other places you can use your points?
Thanks!
tjkraz.... wow! You really know your stuff, thanks so much!
A couple more questions, 1) You mentioned annual dues, how much is that? 2) If I purchase say 150 points, but only go every other year, will I have 300 points to use? Do you keep accumulating points (the number you purchased) every year? 3) Can the points only be used at Disney propertys, or are there other places you can use your points?
Thanks!
The dues will vary depending upon your Home resort, and are subject to change each year. For Saratoga Springs, the initial rate DVC is providing is $3.80 per point. So, for 150 points at SSR, you would pay $570 in annual dues.
By contract the dues can go up 15% per year, but historically they have only varied by an average of 3-4% per year at Old Key West. Some years they have even gone down.
You do receive your 150 points each and every year. Through the use of banking and/or borrowing you can easily ensure that you have 300 points available every two years.
There are many, many other locations for which the points can be used. Your best value will always be the 7 DVC resorts (5 on-site at WDW, as well as Vero Beach, FL and Hilton Head, SC). But the other options are available.
It sounds like you're at a point where you really want more info on DVC. If that's the case, I would really encourage you to call them and get put in touch with a Guide. Their sales approach is VERY low-pressure--actually NO pressure would be a better description. We took about 6 weeks from start-to-finish to make a decision, and throughout the process our Guide's attitude seemed to be "eh, I don't need to call and bug you--you'll call ME back when you are ready."
By contract the dues can go up 15% per year, but historically they have only varied by an average of 3-4% per year at Old Key West. Some years they have even gone down.
You do receive your 150 points each and every year. Through the use of banking and/or borrowing you can easily ensure that you have 300 points available every two years.
There are many, many other locations for which the points can be used. Your best value will always be the 7 DVC resorts (5 on-site at WDW, as well as Vero Beach, FL and Hilton Head, SC). But the other options are available.
It sounds like you're at a point where you really want more info on DVC. If that's the case, I would really encourage you to call them and get put in touch with a Guide. Their sales approach is VERY low-pressure--actually NO pressure would be a better description. We took about 6 weeks from start-to-finish to make a decision, and throughout the process our Guide's attitude seemed to be "eh, I don't need to call and bug you--you'll call ME back when you are ready."
2) If I purchase say 150 points, but only go every other year, will I have 300 points to use? Do you keep accumulating points (the number you purchased) every year?
You can bank one year into the future and borrow one year ahead. So.....
We bought our contract resale with 7 points in 2002. We weren't going to use them until 2003. So we banked those 7 points. In 2003 we took a vacation for 282 points. We used the 7 bank points from 2002, all 150 points from 2003 and 125 borrowed points from 2004. We won't go in 2004, so in April (when those points hit my account - we have an April Use Year - another complication) I'll call and bank those points to 2005. In 2005, we will use 25 2004 points and 149 2005 points to make a 174 point reservation. We will let one point go to waste, but be out of borrow mode. In April 2006, I call and bank all 150 points into 2007 and in 2007 I can borrow another 150 points from 2008 and have a total of 450 for the family reunion trip....etc.
Now, notice one point goes to waste. You can't bank more than one year ahead - so if you bank into 2004 those points need to be used during your 2004 Use Year. And you can't borrow from more than one year ahead. So I can only borrow 2008 points for a 2007 trip - not 2009 points. And there are some rules about banking - you need to do it six months before your points expire to bank all your points - so you do need to have a plan to maximie the benefit.
Your next question will be "Whats a use year."
I have an April Use year. I get my points April 1st of every year and need to use them by March 31st of the following year. I don't need the points in my account to make reservations - they will just need to be there when I take my trip - so it doesn't affect your reservation window. But it does affect when I need to make my phone call to bank those points - six months before they expire if I want to bank them all. And it may affect your travel plans - i.e. I don't know that I'd ever take a trip on my points in March - just in case we needed to cancel - it would be hard to get any use from those points.
You can bank one year into the future and borrow one year ahead. So.....
We bought our contract resale with 7 points in 2002. We weren't going to use them until 2003. So we banked those 7 points. In 2003 we took a vacation for 282 points. We used the 7 bank points from 2002, all 150 points from 2003 and 125 borrowed points from 2004. We won't go in 2004, so in April (when those points hit my account - we have an April Use Year - another complication) I'll call and bank those points to 2005. In 2005, we will use 25 2004 points and 149 2005 points to make a 174 point reservation. We will let one point go to waste, but be out of borrow mode. In April 2006, I call and bank all 150 points into 2007 and in 2007 I can borrow another 150 points from 2008 and have a total of 450 for the family reunion trip....etc.
Now, notice one point goes to waste. You can't bank more than one year ahead - so if you bank into 2004 those points need to be used during your 2004 Use Year. And you can't borrow from more than one year ahead. So I can only borrow 2008 points for a 2007 trip - not 2009 points. And there are some rules about banking - you need to do it six months before your points expire to bank all your points - so you do need to have a plan to maximie the benefit.
Your next question will be "Whats a use year."
I have an April Use year. I get my points April 1st of every year and need to use them by March 31st of the following year. I don't need the points in my account to make reservations - they will just need to be there when I take my trip - so it doesn't affect your reservation window. But it does affect when I need to make my phone call to bank those points - six months before they expire if I want to bank them all. And it may affect your travel plans - i.e. I don't know that I'd ever take a trip on my points in March - just in case we needed to cancel - it would be hard to get any use from those points.
Deemarch
DIS Veteran
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- Oct 18, 2003
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- 1,413
Mercy,
Go ahead and call. TJKRAZ is right...No pressure. As a matter of fact, our sales agent was so laid-back and I was so excited, I felt as if I was going to scare him!! haha
As for your getting the most out of your purchase...Yes, you do use more points to go to WDW during the summer or the holidays, but if you were going to go then anyway you are getting the benefit of staying at some of the best places in the "world", wouldn't that be true?
And I'd like to ask if there is anyone who ALWAYS chooses to stay in a studio? Not much talk about them, are they okay? It's just my DH and I and we don't need larger. We are used to staying in hotel rooms, so I figure this would just be a better hotel room...Anyone????
Go ahead and call. TJKRAZ is right...No pressure. As a matter of fact, our sales agent was so laid-back and I was so excited, I felt as if I was going to scare him!! haha
As for your getting the most out of your purchase...Yes, you do use more points to go to WDW during the summer or the holidays, but if you were going to go then anyway you are getting the benefit of staying at some of the best places in the "world", wouldn't that be true?
And I'd like to ask if there is anyone who ALWAYS chooses to stay in a studio? Not much talk about them, are they okay? It's just my DH and I and we don't need larger. We are used to staying in hotel rooms, so I figure this would just be a better hotel room...Anyone????
pumpkinboy
<a href="http://www.wdwinfo.com/dis-sponsor/" targ
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At present, in addition to the Disney Visa rewards points (convertable to Disney $$$s), which are nice too, if you ask for it you can get 0% interest for 6 months on DVC purchases using the card! We put our $2000+ downpayment on the card and will pay no interest on that amount until February, when we will pay it off, then make a large prepayment on the loan on the card!. Of course you need to realize that BankOne will pay down your 0% amounts before your higher rate purchases, so it pays to start with a $0 balance, and not charge anything on the card until your 6 month window is nearly over. Also, as soon as the payment hits the card, you need to call BankOne to ensure that you have the 0% rate on that DVC purchase. I also found it useful to call BankOne before the initial charge to double check (and wrote down the person's name, so I could back it up later if needed).
Personally, I much prefer the 0% rate to the 9.75% rate DVC is giving me, or even the lovely 3.5% my home equity line is costing. Call me an Interest Rate Weasel, but this is real money we're talking about here, folks. Anyways, the extra benefits available to DVC members and Disney Visa card holders are scarce to begin with; IMHO we should take advantage of the special perks we actually do get.
Many people will tell you that once you stay in a 1B or 2B, you'll never go back. It's just too good having that washer and dryer in-room, full kitchen, whirlpool tub, etc.
But you are correct--the Studios are basically a better version of a Deluxe WDW resort room. You get the queen bed and a sofa bed, balcony, all the other typical hotel room amenities. You also get a small kitchen in the room--mini-fridge, microwave, sink, coffee maker.
The last couple of times we went, our young son came along. A 1B was a must in our eyes. If you're a parent, imagine just being able to have a normal conversation or watch TV while your child is sleeping!!!
But next year we plan on taking a trip without the kids, and a Studio is more than enough for our little 3 night getaway.
BEACHCLUBVILLAS
Mouseketeer
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- Sep 1, 2002
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Response to is there anyone out there who only uses studios...
We have used the two bedroom when our 2 kids came to treat ourselves and spread out. My husband and I have gone alone and at different times used both a studio and a 1 bedroom. The one bedroom felt extravagent but I enjoyed the king bed and the washer/dryer. We only used the jacuzzi once. We prefer to use the ones at the pool. As for the kitchen, I don't cook on a Disney vacation so all in all the studio set up is fine for us. As long as there is a coffee maker, microwave and small refriderator it has everything we need. In the future, we will save the points and stick with a studio unless the kids come along (ages 15 and 17) and even in that case we may just get 2 studios so they each have their own bed.
There are a lot of folks who say once you go to a 1 bedroom, you never go back. I like the studios because it feels like a better value and I can stay longer.
We have used the two bedroom when our 2 kids came to treat ourselves and spread out. My husband and I have gone alone and at different times used both a studio and a 1 bedroom. The one bedroom felt extravagent but I enjoyed the king bed and the washer/dryer. We only used the jacuzzi once. We prefer to use the ones at the pool. As for the kitchen, I don't cook on a Disney vacation so all in all the studio set up is fine for us. As long as there is a coffee maker, microwave and small refriderator it has everything we need. In the future, we will save the points and stick with a studio unless the kids come along (ages 15 and 17) and even in that case we may just get 2 studios so they each have their own bed.
There are a lot of folks who say once you go to a 1 bedroom, you never go back. I like the studios because it feels like a better value and I can stay longer.
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