How to finance DVC while in Florida?

[JennyG95]

Hi all, me and my fiancé are looking at becoming members and have been since we did a tour of OKW in June last year.

My question is, how do you go about financing your membership? I remember the DVC cast member saying that it can only be done in the US but I just wondered how you go about doing it and if there was anything in specific you needed to bring with you? (birth certificate, proof of address, etc...)

We go back to WDW in September and that is when I think we would plan on becoming members

Thank you!

 

[Wakey]

I'd seriously advise buying direct and financing. Your life of contract outlay would be immense, it's 185 a point now for Copper Creek. Your break even point would be decades. It's a luxury purchase, I'd say if you cannot buy it outright, stay away. And look into resale, if you haven't the money to pay for it, consider going for a much cheaper resale contract at 75 a point. If you go after first week in Jan to end Sept you'd likely be able to book other resorts at 7 months anyway. Being a UK visitor the perks won't be worth much to you. If you must finance you'd probably be better looking for a personal loan or taking it on your mortgage (albeit risk there) rather than paying Disney 10% finance rate.

 

[JennyG95]

Thank you for your advise, our breakeven point was something I was ever so slightly concerned about but it's so easy to get caught up in the Magic of it and not see the downsides to the DVC.

I'll definitely look into resale as I've been told by a few people to do that, but as you said it's a luxury purchase and not something to be taken lightly!

Thanks again!

 

[Lee Matthews]

Me and my partner did the DVC purchase tour a couple of months ago and fell in love with it. Even when financing, we aren't put off by extra costs too much as it will get us the dream we want, especially as we plan to go once a year if not every other year.

Currently we are not planning to go back to WDW until September 2018, so I'll probably save what I can until then and re-look at it once we go back. Especially with the DVC being added to Colorado Springs etc.

 

[Wakey]

Yes I'm UK and want to only go every other year, as I don't want boredom to set in and on my annual main USA vacation I like to travel to different States (I'll be up to 25 this year). If you are going times I say, particularly in a 1 bed you can book everywhere at 7 months. I bought cash, but if you have to borrow the money instead seriously think about buying Saratoga. I just picked up a fully loaded 160 point contract for 75 dollars a point with 2016 points banked into 2017. I couldn't use them, so rented them out via Daves (all gone in less than a day) bringing the purchase price to under 64 a point. I booked those guests into AKL in August and Poly September no probs, they could have had Grand Floridian, Boardwalk, anywhere at 7 months. I'm going 2018 and I should have no probs getting 4 nights Vero and 7 nights AKL which are the 2 I plan staying in. 2020 I suspect I'll go for Grand Floridian 1 bed or Bay Lake with perhaps some nights at Hilton Head (latter is a bit more Challenging in summer). Within 3 trips mine is in the black. Think about it before splashing 185 a point at Copper Creek on 10% finance. Coming from UK perks just will never make up vast difference in costs.

 

[Cyberc1978]

Yes I'm UK and want to only go every other year... I couldn't use them, so rented them out via Daves (all gone in less than a day) .

if you are from UK and rent through daves (assumes davids?) did he hold back 30% for taxes or how did you go about that?

 

[Willowfae]

Look at buying resale as that can be done from the UK. You loose some benefits (10% discount on merchandise etc) but as the savings can be in the thousands of pounds that is a lot of t-shirts you'd need to buy! You also get a full choice of resorts rather than what Disney is currently selling.

We did it in Dec 2015 and are kicking ourselves for not doing it sooner. By 2019 (we are just doing Disney cruise in 2018) we will have broken even and from then on it's all a win win situation for us

 

[Willowfae]

I'd seriously advise buying direct and financing. Your life of contract outlay would be immense, it's 185 a point now for Copper Creek. Your break even point would be decades. It's a luxury purchase, I'd say if you cannot buy it outright, stay away. And look into resale, if you haven't the money to pay for it, consider going for a much cheaper resale contract at 75 a point. If you go after first week in Jan to end Sept you'd likely be able to book other resorts at 7 months anyway. Being a UK visitor the perks won't be worth much to you. If you must finance you'd probably be better looking for a personal loan or taking it on your mortgage (albeit risk there) rather than paying Disney 10% finance rate.

I don't think we can use Disney finance. Mortgage may well not be an option. We tried and a timeshare was one thing they said they won't allow you to borrow for.

 

[zavandor]

I'll join the crowd suggesting to have a serious look at resale. One should go direct only in a few cases:
- you want to stay at the resort they are currently selling at least 80-90% of the time and would be seriously disappointed if you cannot book it at 7 months
- you want to buy a resort that's difficult to find resale and Disney accepts to put you in a waitlist (VGF or VGC)
- you want a small add-on (not much more than the minumin 25 points)

In every other case, resale saves so much money that it's really hard to pass.
Financing a DVC purchase is always a big NO. It would simply eat any saving.

If the perks you get buying resale are important to you, then buy resale first, then add-on 25 points for the same resort and UY. At the moment, if you buy a small add-on you get all the perks, there is no minimum to qualify as direct purchaser.

 

[pinklotusflower]

We bought BWV resale in 2015 and agree with everyone else you make a huge saving buying resale. We were able to get 300 points compared to 150 if we had bought direct. Have you considered resale via a loan at a reasonable interest instead of going direct at 10%.

 

[Wakey]

I'll join the crowd suggesting to have a serious look at resale. One should go direct only in a few cases:
- you want to stay at the resort they are currently selling at least 80-90% of the time and would be seriously disappointed if you cannot book it at 7 months
- you want to buy a resort that's difficult to find resale and Disney accepts to put you in a waitlist (VGF or VGC)
- you want a small add-on (not much more than the minumin 25 points)

In every other case, resale saves so much money that it's really hard to pass.
Financing a DVC purchase is always a big NO. It would simply eat any saving.

If the perks you get buying resale are important to you, then buy resale first, then add-on 25 points for the same resort and UY. At the moment, if you buy a small add-on you get all the perks, there is no minimum to qualify as direct purchaser.

This is excellent advice. I go one step further and say consider type of room and season you will travel. Makes a huge difference to 7 month non home resort availability. Many Brits travel August, many take a 1 bed. You can book anywhere at 7 months on that pattern, particularly last 2 weeks August.

 

[Lee Matthews]

Been reading up and I can't make any head nor tail of reselling DVC.

Still thinking of saving £4K or so as a deposit to reduce the overall cost and finance the rest. I'm guessing that's still

 

[zavandor]

I'll help you: buy resale.

 

[Minniesgal]

Buy resale direct prices are just not worth it.

Save up and don't finance, disney interest rates are downright ridiculous especially for none US citizens. I've heard them charge 13%.

Definitely buy where you will be happy staying. 7 month window getting harder and harder and will continue to as they add rooms thus competition at 7 months.

 

[UKDisneyJoe]

Surely getting a loan would be more then 10% that Disney charge?
I have been speaking to a friend who is DVC and am going in December to investigate further. We are only looking at getting 50 points at present but will up it in the coming years.
The thing I never asked friend about though is the contract length. Is it always the same for every new contract?
This whole DVC thing is so confusing

 

[zavandor]

Surely getting a loan would be more then 10% that Disney charge?
I have been speaking to a friend who is DVC and am going in December to investigate further. We are only looking at getting 50 points at present but will up it in the coming years.
The thing I never asked friend about though is the contract length. Is it always the same for every new contract?
This whole DVC thing is so confusing

To get Disney financing you need to buy direct and direct points are outrageous. Financing a big amount at 10% would eat most of the savings you get with DVC. It could easily move the breakeven point from 7-8 years with resale to 20+ years for direct and financing.
For a 50 points contracts, it might make sense to go direct, but still financing it not a good idea. I would skip a vacation to save the money to pay cash.

 

[Wakey]

Surely getting a loan would be more then 10% that Disney charge?
I have been speaking to a friend who is DVC and am going in December to investigate further. We are only looking at getting 50 points at present but will up it in the coming years.
The thing I never asked friend about though is the contract length. Is it always the same for every new contract?
This whole DVC thing is so confusing

If it's confusing you are NOT in a position to buy, as frankly you are a DVC salesman's wet dream- eager to indulge but pretty clueless. Don't take this the wrong way, I am not trying to be rude, just giving you warning. There's tons of info on the DVC boards on here. Read it all- some of the most knowledgeable DVC experts on here. Stay away from Facebook pages full of people who impulse bought on pixie dust. Don't take buying advice from any friend who just bought on impulse at Disney and hasn't carefully researched the market since. DVC Info has some excellent articles, read them all. Mouse owners and DVC News also. Digest it and spend 3 months researching before you buy it or go to any sales presentation.
Back to your question, each resort has an end date. The original ones were 2042 (Old Key West was the first and they set that date) and when they built WL, BCV, BWV, HHI and VB they stuck with that end date. Then they started offering a 50 year term on newer ones so SSR is 2054, BLT 2060 etc. Confusingly they offered OKW owners the opportunity to pay to extend to 2057. Only a small number took up the offer so now and again these 'extended' contracts come on the resale market or if you buy an OKW direct from Disney they will turn it into one of these as they need more people at OKW in them.
You can buy any resort direct at a hefty premium. Disney acquire older ones on right of first refusal and foreclosure and flip them at a hefty mark up to direct buyers. So SSR can be had for 75 a point resale, it is 145 if you buy from Disney.
Extensions probably will not happen for anywhere else but no one knows.
Buying direct or resale has no effect on contract length.

 

[UKDisneyJoe]

If it's confusing you are NOT in a position to buy, as frankly you are a DVC salesman's wet dream- eager to indulge but pretty clueless. Don't take this the wrong way, I am not trying to be rude, just giving you warning. There's tons of info on the DVC boards on here. Read it all- some of the most knowledgeable DVC experts on here. Stay away from Facebook pages full of people who impulse bought on pixie dust. Don't take buying advice from any friend who just bought on impulse at Disney and hasn't carefully researched the market since. DVC Info has some excellent articles, read them all. Mouse owners and DVC News also. Digest it and spend 3 months researching before you buy it or go to any sales presentation.
Back to your question, each resort has an end date. The original ones were 2042 (Old Key West was the first and they set that date) and when they built WL, BCV, BWV, HHI and VB they stuck with that end date. Then they started offering a 50 year term on newer ones so SSR is 2054, BLT 2060 etc. Confusingly they offered OKW owners the opportunity to pay to extend to 2057. Only a small number took up the offer so now and again these 'extended' contracts come on the resale market or if you buy an OKW direct from Disney they will turn it into one of these as they need more people at OKW in them.
You can buy any resort direct at a hefty premium. Disney acquire older ones on right of first refusal and foreclosure and flip them at a hefty mark up to direct buyers. So SSR can be had for 75 a point resale, it is 145 if you buy from Disney.
Extensions probably will not happen for anywhere else but no one knows.
Buying direct or resale has no effect on contract length.

Believe me I am far from a salesman's wet dream thank you very much I WILL NOT buy anything until I fully understand it which is why I am asking questions on here and will ask questions at Diseny but will go away buying nothing if I am not 100% sure I know what I am getting in to. Thank you for your comments and help though

 

[UKDisneyJoe]

Would anyone recommend buying 50 points direct (for any perks you get out of Disney) and more resale. This is what a friend is going to do as they have 50 already and suggested this due to resale not being eligible for the possible perks. Is this correct too.

 

[Cyberc1978]

Would anyone recommend buying 50 points direct (for any perks you get out of Disney) and more resale. This is what a friend is going to do as they have 50 already and suggested this due to resale not being eligible for the possible perks. Is this correct too.

If you bought your first resale contract after April 2016 then you are not eligible for any perks.

The general recommendation is to buy the resort you prefer resale, and then add on 25 points directly to get the perks.

So in this case only 25 points directly is needed to get the perks.