Incentives for sales in VWL

[mrhodes]

Were on the edge of making a VC purchase and are trying to decide between going directly with Disney at VWL or buying re-sale at BV. Does anybody know if Disney is offering any incentives at VWL (since it is new), such as park tickets or additional points? What is Magical Beginnings?

We will be at Coronado Springs during spring break and could tour the facility at that time.

Is the interest tax deductible, and does anyone know what Disney's present interest rate is?

Although the per point price for VWL is $72. (I belive) and re-sales can be gotten at around $65. saw one at $61. However, I assume some years have been used up on the re-sales, interest on the loan might be better with Disney, and if any incentives are offered this can be factored in. Just trying to get a good overview of all cost to arrive at a true per point cost.

Some of these questions may already have been answered on this board, so sorry if a repeat. Great info here, and appreciate your help.

V/R Mike

 

[bicker]

I don't know if Magic Beginning applies to VWL -- they really don't seem to need any incentives to sell VWL at a quick pace. I'm sure there are no admission ticket or extra point incentives. Those are the types of incentives they needed to give when DVC was new, and no longer need to offer.

Incidently, no "years have been used up" on the re-sales: All (current) DVC memberships end in 2042, even new VWL purchases. The biggest different between new and re-sale is that DVC pays the closing costs if you buy from them.

Brian Charles Kohn
"in my own words"
Some Imagination, huh? - Mickey Mouse

 

[drusba]

Magical Beginnings is the only incentive offered for VWL. Under it you sell back half your first years points for $10 per and that amount is applied to down payment. Your dollar cost thus comes in at $67 a point but you relinguish the use of half your points for the first several months.

Interest on a Disney loan is tax deductible (as well as the portion of annual dues for property taxes). Disney's current loan rate is I believe 10.95% (although it is usually significantly less if you do only a one year loan). Disney's price includes closing costs.

Resale prices you see are "asking" prices and are negotiable. BWV and OKW are available only through resale; VWL currently only through Disney. Loan rates in the resale market tend to be a few points above Disney unless you are able to buy by taking a home equity loan on your existing home, in which case the rate will be lower than Disney. Thus, loan rate can be very important in determining true cost of a resale in comparison to Disney. Also, the buyer pays closing costs for a resale (about $500) unless negotiated otherwise.

You mention an issue about years used up in resales. Note, if you are talking about use year it has little importance as it has nothing to do with when you can go (any time of year) or when you can call to make a ressie (11 months in advance at home resort, 7 at others). If you are talking about when the owner first purchased and how many years left, it also has no real importance as all DVC memberships end Jan 31, 2042, regardless of when purchased.h

[This message was edited by drusba on 02-25-01 at 11:29 AM.]

 

[Disnydad]

They do not need incentives to sell VWL. They did offer us Magical Beginnings. We did not take them up on it, we wanted to use those points! It's the only on site place to buy direct from Disney and the VBC will not be along for some time.

Don, DVC/VWL 2000

[This message was edited by Disnydad on 02-25-01 at 02:17 PM.]

 

[SusanSeng]

When we were there in January, they offered us MB for VWL. Basically, they are buying back your points for this year, which lowers the price. I am sure someone on this board can expain it better. We ended up buying a resale because we wanted Boardwalk. The VWL however are just beautiful. We were able to go with a home equity loan at 8%. Much lower than what Disney was offering with a purchase directly through them.

 

[SusanSeng]

They offered us a free lunch at ESPN after our tour. We had to tour between 10-2pm. Our bill came to $80 for all four of us and they paid it!!

 

[Luv2Dream]

If you put half the purchase price down when you sign, and finance for one year for the rest of it the loan rate through disney is 5.95%. We did this with our purchase for VWL. They did offer us Magical Beginnings but we didn't take them up on it.

 

[Tinker Bell]

The current use year being sold is September 2000 and you get full points for that year so ½ year of points is the incentive (relative to a use year that started with the purchase date). You can cash in this ½ year of points at $10/pt which makes the effective purchase price $72 - ½ ($10) = $67. The standard financing is 13 something % and the "special deal" if you buy within 30 days of your tour w/ "approved credit" is 10 something %. The interest should be tax deductible but consult your tax advisor, yada, yada …

The above is the way I understood the deal. If anyone thinks I have this wrong, please let me know.

Tinker

 

[mrhodes]

Great info from one and all. Thanks, I requested the information pack/video and we will take advantage of the tour this April.

Leaning toward the Wilderness Lodge, but would like to see it first.

Thanks again. V/R Mike

 

[mickeyc]

All the information noted in this post is excellent. I would just add that you probably could get a good deal via resale; however, you will have to work a little harder. As noted previously the resale market is hot. You may be able to find a seller who you can work with you directly. Some post have noted e-bay as a possiblity. Also, another excellent source is the timeshare user group (tug) which had several available. I think the address is www.tug1.net. although I am not certain. Finally, I would factor in current points available, closing cost, and maintaince fees (yearly dues). If you use a search engine for example"yahoo" there are many websites devoted to selling timeshares directly from owners. Good luck, I am sure you will find something.

 

[Mickey Moose]

Picked up one more tidbit I haven't seen in this thread that is relevant to taxes. Our guide (were considering VWL) stated that approximately 20% of the yearly dues are for real estate taxes and can be deducted each year.......