incentive for paying off DVC in full?

[Junick]

If you purchase a DVC membership and pay it off in full, do you get a percentage of the purchase price off. Someone told me if you do this you get 25% of the purchase price off. I have worked at the same place for 30 years and was thinking of borrowing the money from my 401K to do this. I'm not penalized if i pay it back and besides I will be paying myself back 10% instead of a financial institute 15 or 16%. Any thoughts on this?

 

[look1angel]

We paid everything up front on our Amex & I do not recall getting any kind of discount. In fact I think they'd rather you finance so they can cash in on the interest. I could be wrong about the financing, but we most certainly did not get any kind of discount. Oh wait, we did get a $25.00 gift card

If they are offering such a deal I'd take advantage of it for sure!

 

[disneyfreakjackie]

We just bought DVC a few months ago ... no penalty for paying off early, but not discount either!!

 

[Mtnman44]

You save x number of years' worth of interest. That is your incentive.

 

[marynvince]

while you are paying yourself back 10%, it is with taxed income, instead of the tax deffered money you withdrew. Plus, the money that was in there is not working for you until it is all paid back. In this market, with huge gains here and on the way that is lost money. Why not a home equity at 3%, a better overall decision, in my opinion. Good Luck.

 

[3happydancers]

We just bought DVC a few months ago ... no penalty for paying off early, but not discount either!!

Same here. We paid off ours in full and did not receive a discount but nor did we pay years of interest!

As far as borrowing from your 401K, I would ask questions before committing to this. You may be much better off with a home equity like another pp mentioned. I know our home equity is at 3% right now.

Good Luck!

 

[JimC]

You get no discount for paying cash.

Borrowing from a 401(k) is generally not advisable. Proponents usually cite that it is quick, easy, no early withdrawal penalty and they are paying interest to themselves. The first part is true if the plan permits loans -- not all plans do. But paying interest to yourself is a false benefit -- you are simply taking more of your own funds to provide a return on your already invested assets.

Also be sure that you understand the pay back requirements should you lose your job or want to change employers. Many 401(k) plans require payment in full within 60 days.

 

[Louiepipbgeeco]

Just bought in August Direct-- I paid full in cash and did not receive any sort of discount. Other than the satisfaction of knowing I would have no interest

 

[DizGirl20]

I second the home equity suggestion. Don't touch that 401K!!! Not to be dramatic, but you never know what could happen tomorrow (take it from someone who had to borrow from our 401K and said we'd pay it back and never did b/c of job loss) but I think the home equity is the best suggestion.

 

[disneynutz]

Disney's APR is 10.5% unless it changed recently.

 

[Harlemgirl720]

The only incentive we recieved was some money off the closing costs. The best incentive...only paying maintenance fees every year.

 

[ssawka]

In fact I think they'd rather you finance so they can cash in on the interest.

You took the words out of my mouth! It is in Disney's best interests that you finance. That way they get your interest money with very little risk. If you default, no big deal they'll just foreclose take the points and sell them to someone else.

 

[FindTheMickeys]

I financed through Disney for 10 years BUT paid it off in 4 The only thing I got for paying it off early is the satisfaction that I no longer have a loan payment AND my next 46 vacation lodgings are paid for