Is this for real?

[lthiesfeld07]

I've made the decision that DVC is definitely in my future!
Last night I met a friend at the Doorway to Dreams store at Woodfield Mall and well... I am convinced...
I was offered 60 points at either Boardwalk Villas or Villas at Wilderness Lodge (My choice resorts) and the price is right. A 10 year loan at a low interest rate and the monthly payment is doable...
However, I am almost 24 years old. I have student loans, but I did just get hired for a full time job.
I can't help but feel irresponsible if I buy into DVC. I plan on visiting Walt Disney World at least one time a year for the rest of my life. So in the long-term, it makes perfect sense.
Many current DVC owners say their biggest regret is not joining sooner.

I thought about resale, but I can't find an option that is right for me yet.

Does anyone have any opinions? Or was in similar situation?

 

[Missyrose]

I've made the decision that DVC is definitely in my future!
Last night I met a friend at the Doorway to Dreams store at Woodfield Mall and well... I am convinced...
I was offered 60 points at either Boardwalk Villas or Villas at Wilderness Lodge (My choice resorts) and the price is right. A 10 year loan at a low interest rate and the monthly payment is doable...
However, I am almost 24 years old. I have student loans, but I did just get hired for a full time job.
I can't help but feel irresponsible if I buy into DVC. I plan on visiting Walt Disney World at least one time a year for the rest of my life. So in the long-term, it makes perfect sense.
Many current DVC owners say their biggest regret is not joining sooner.

I thought about resale, but I can't find an option that is right for me yet.

Does anyone have any opinions? Or was in similar situation?

Step away from the pixie dust. I know the DVC salespeople like to sell you on how affordable the monthly payment is. But when you finance a DVC purchase, you will effectively pay double the amount of the purchase price over the 10-year period.

I would wait until you're a little more financially stable (pay off the student loans, keep the full-time job for a couple of years, build some savings so you can buy resale with cash).

I'm 30 and I just bought my first DVC contract (and am in the middle of buying a second) both paid with cash from savings. Wait until your finances become a little more stable and you won't regret it.

DVC will still be there in a couple of years!

 

[tjkraz]

I won't tell you that it's wrong but I do think it's wise to think about where you want to be in the next few years.

We were first introduced to DVC in 1997 but did not buy until 2003. There's a part of me which wishes we had done it sooner. The price would have been lower and we would have had more trips to Walt Disney World over those years. (We did not go at all from 1997 to 2002.)

However if we HAD bought into DVC, we would have spent thousands of dollars on the DVC points, park tickets, airfare and other Disney things from '97 to '02.

Could we have squeezed it into our budget? Probably but an already tight budget would have been tighter. Owning DVC would have certainly put our first house purchase in 1998 in jeopardy. It would have meant fewer dollars for home improvements.

When our son was born in 2001 my wife was able to cut back her work hours dramatically and essentially become a full time mom. Our kids have never spent a day in day care. That never would have been possible if we were paying $200 per month to DVC plus setting aside money for other trip expenses.

So do we regret not buying sooner? Not really because I know other sacrifices would have been necessary--sacrifices we're glad we did not have to make.

 

[k3chantal]

I've made the decision that DVC is definitely in my future!
Last night I met a friend at the Doorway to Dreams store at Woodfield Mall and well... I am convinced...
I was offered 60 points at either Boardwalk Villas or Villas at Wilderness Lodge (My choice resorts) and the price is right. A 10 year loan at a low interest rate and the monthly payment is doable...
However, I am almost 24 years old. I have student loans, but I did just get hired for a full time job.
I can't help but feel irresponsible if I buy into DVC. I plan on visiting Walt Disney World at least one time a year for the rest of my life. So in the long-term, it makes perfect sense.
Many current DVC owners say their biggest regret is not joining sooner.

I thought about resale, but I can't find an option that is right for me yet.

Do not finance this! One of the top reasons to purchase DVC is the potential savings years down the road as the cash cost of accommodations rises but the number of points at each resort is set (which means though there may be some fluctuation in how many points it 'costs' for each size room and season, it won't go absolutely crazy.)

If you finance this, you are negating the potential savings.

Your gut that feels you are being irresponsible is actually telling you what to do. Wait until you can pay it in full. Pay off your student loans, buy a house, establish yourself with your career and full time job. Then when you can pay for this luxury item with cash, then do it. Disney will be there.

Yes, I love being a DVC owner but that is because I am confident that I can pay the yearly dues, afford airfare and the other travel related expenses. I bought it when I was 38 and I still have plenty of time to enjoy it. Don't leap into a 50 year commitment without making sure you can keep it.

 

[Sammie]

I would wait until you have more job security. If you really want it, start a DVC savings account and put money away toward the purchase.

I would not finance.

Until you can purchase and pay cash, rent from someone.

 

[brertoad]

Don't forget about maintanence fees. It is always better to pay cash rather than finance.

 

[Meggysmum]

I love my DVC but would never dream of using finance for any sort of vacation or non-essential purchase.

We bought ours with savings a couple of years ago and have added on using savings too. I wish we had bought years ago and the only reason we didn't was that we had never heard of it, our finacial situation would have been the same.

Pay off your debt, build up a savings fund that is equivalent to at least 6 months take-home pay as your rainy day fund and then start saving for your DVC and buy resale outright when you have enough. You can always go to WDW and stay in cheap accomodation for a few years and then when you can afford the Deluxe resorts your DVC will mean even more to you as you know it is then a sensible investment.

 

[lthiesfeld07]

Thanks for the input. Very valid points. I am torn... I could pay cash for half of my purchase but still would need to finance some of it. I do live at home so I don't have many bills. I guess I just need to think about what is important to me.

 

[jarestel]

I suppose I have a slightly different take on a DVC purchase, as, IMHO, it is really not much different, financially, than buying a new car. Most people here have bought cars and I'd guess most have probably financed cars. And in all likelihood, economic ruin didn't come to pass.

So two points: 1) DVC isn't really that big of a purchase to begin with - assuming one sticks to reasonable point amounts - and 2) Financing isn't necessarily the bogey-man many here paint it out to be. Realistically, if all of the current DVC members paid cash on the barrel-head DVC would still be the best kept secret and most of the current resorts would never have been built.

Having said that, there are many other ways to enjoy WDW trips without the encumbrance of a 30-50 year DVC membership. Renting points, staying at non-Disney properties, or using Disney discounts to stay on-site will all probably work well for a few years while you decide if frequent Disney vacations are really the way you want go. Many people love WDW for a few years and then - gasp! - find they have grown tired of it.

Bottom line is each member - or prospective member - has to decide if DVC fits their personal financial position and then if it fits their personal lifestyle.

Good luck!

 

[DVCMikey]

When we bought DVC, my wife, (gf at the time) were only about 26 or 27 I think.

When we first bought we kind of felt like "we hope this was a good idea".

Now since then we have loved it. We were able to take so many WDW trips and even take family. We have added on twice since then. One of them is paid off and working on paying off the two newer ones.

Just think of it as an investment. I rather put my money into DVC than the stock market since we actually get use out of it and will be able to use it for many many years. We are now married and have a baby girl who we know is going to love going with us and love being able to use it with her family some day.

 

[Lynne M]

I know that when you buy direct from Disney you get your points right away, and with resale, you have to wait awhile. But that instant gratification is going to cost your dearly..that and the finance charges over 10 years (EEK!!) will be thousands of dollars.

You said you don't have many bills because you live at home. Are you planning to live at home for the next 10 years? Between now and the time you pay off the loan when you're 33, is there any chance you might meet someone, want to marry, buy a house, start a family? Your financial situation is probably going to change dramatically over the next 10 years, and the finance charges on that loan are going to chew up money you could have used for a downpayment on a home, a wedding, baby expenses...

Do some research on what BWV and VWL resales are going for. I bet you'll find that they're way cheaper than what you'd pay buying direct. There's a pretty good chance that with a few more years of savings, you could by a resale outright, without having to take out a loan.

Are you sure you'd want BWV or VWL for your home resort? You'd be happy staying there if nothing else was available?

Take your time, do your research. DVC isn't going anywhere. And don't forget, just because you put off buying doesn't mean you can't stay in DVC resorts for really good prices....check out renting. Significant savings over cash reservations, no long-term commitment.

 

[Sandisw]

Given that you have plenty of time to research DVC and make a decision, I would not rush in to this direct purchase.

IMO, everyone does need to make decisions that are right for them and whether or not you ultimately finance DVC is up to you.

I would look at the overall cost of DVC including monthly payments, MF's, and your costs for your once per year trip, and see how that stacks up against your total monthly expenses and decide if you are comfortable with how much of it is being used for what I would consider "entertainment".

Since you don't currently have living expenses in terms of mortgage, rent, etc. I would be very cautious, as others have mentioned, in not considering those for the long term because at some point you will.


The good news is that DVC will be there and so take a little extra time--even if its just a few weeks--to be sure you have all the "what ifs" covered.

 

[sechelt]

Our son is a self proclaimed Disney Freak. When he was 24, he had a new college degree, lived at home, new full time job, student loans. He made the decision to pay off his student loans as fast as he could. About 3 years after getting that great full time job, the company laid off 500 people. My son was one of them however he was debt free. Last year he went back to university and plans to become a DVC owner after he graduates.

For the record, I financed 100 of my points and have never regretted it. It allowed me to buy Grand Californian before it sold out. I paid extra whenever I was able to and the points were paid for in a year. I wouldn't hesitate to do it again because I didn't buy DVC for the $ savings. I bought it so my family could stay on-site and enjoy Disneyland for the next 50 years. To me, that's priceless.

 

[fmer55]

I suppose I have a slightly different take on a DVC purchase, as, IMHO, it is really not much different, financially, than buying a new car. Most people here have bought cars and I'd guess most have probably financed cars. And in all likelihood, economic ruin didn't come to pass.

So two points: 1) DVC isn't really that big of a purchase to begin with - assuming one sticks to reasonable point amounts - and 2) Financing isn't necessarily the bogey-man many here paint it out to be. Realistically, if all of the current DVC members paid cash on the barrel-head DVC would still be the best kept secret and most of the current resorts would never have been built.

Having said that, there are many other ways to enjoy WDW trips without the encumbrance of a 30-50 year DVC membership. Renting points, staying at non-Disney properties, or using Disney discounts to stay on-site will all probably work well for a few years while you decide if frequent Disney vacations are really the way you want go. Many people love WDW for a few years and then - gasp! - find they have grown tired of it.

Bottom line is each member - or prospective member - has to decide if DVC fits their personal financial position and then if it fits their personal lifestyle.

Good luck!

You cannot drive your DVC to work where you make money to pay for your DVC

 

[ELMC]

Thanks for the input. Very valid points. I am torn... I could pay cash for half of my purchase but still would need to finance some of it. I do live at home so I don't have many bills. I guess I just need to think about what is important to me.

If you're still torn after half a dozen "don't do it" posts, it sounds like you have already made up your mind.

I'm curious, though. You said you live at home, what do your parents think?

 

[fmer55]

I know that when you buy direct from Disney you get your points right away, and with resale, you have to wait awhile. But that instant gratification is going to cost your dearly..that and the finance charges over 10 years (EEK!!) will be thousands of dollars.

You said you don't have many bills because you live at home. Are you planning to live at home for the next 10 years? Between now and the time you pay off the loan when you're 33, is there any chance you might meet someone, want to marry, buy a house, start a family? Your financial situation is probably going to change dramatically over the next 10 years, and the finance charges on that loan are going to chew up money you could have used for a downpayment on a home, a wedding, baby expenses...

Do some research on what BWV and VWL resales are going for. I bet you'll find that they're way cheaper than what you'd pay buying direct. There's a pretty good chance that with a few more years of savings, you could by a resale outright, without having to take out a loan.

Are you sure you'd want BWV or VWL for your home resort? You'd be happy staying there if nothing else was available?

Take your time, do your research. DVC isn't going anywhere. And don't forget, just because you put off buying doesn't mean you can't stay in DVC resorts for really good prices....check out renting. Significant savings over cash reservations, no long-term commitment.

And if you were going to buy at the age of 24, i would think you would want AKV or BLT or OKW extended to carry you past 2042. In 2042 OP wold be 54 and still in DW prime

 

[lthiesfeld07]

Well I haven't discussed it with them because I am sure i know their opinion. They aren't Disney fans like me and don't quite understand.
I never thought about financing DVC. I would be paying more than double over 10 years and that just seems wrong.
I do see myself going to WDW every year. I can afford that. That's why I think DVC is a good choice for me. However, I would like to move out eventually, (hopefully) find someone to get married to and have a family...

I think I am going hold off and make "fake" payments to myself for the next year and see how much I accumulate. Paying cash would be the best option instead of financing.

Sounds like a lot of you are parents as well and wouldn't want your child to dive into a luxury purchase like this.

 

[JKMJ441724]

I was offered 60 points at either Boardwalk Villas or Villas at Wilderness Lodge (My choice resorts) and the price is right. I thought about resale, but I can't find an option that is right for me yet.

Does anyone have any opinions? Or was in similar situation?

Is that a typo? I thought minimum buyin through Disney was 160.

 

[Lynne M]

Sounds like a lot of you are parents as well and wouldn't want your child to dive into a luxury purchase like this.

Not a parent, but in fifty-something years I've learned that diving into a luxury purchase without doing a heck of a lot of research first usually doesn't end well.

I think your plan to make payments to yourself is a very, very smart one. I'm not saying that DVC is always a bad idea at your age, it's just that the circumstances you were describing probably weren't going to give you your desired outcome.

The entire reason to buy into DVC is to have a cost-effective way of paying for villa-style accommodations in DVC resorts. By purchasing direct, and by financing, you were going to lose much of the cost savings that buying into DVC could give you. By paying cash and buying resale, you maximize your savings.

 

[lthiesfeld07]

Is that a typo? I thought minimum buyin through Disney was 160.

No typo. I was offered 50 points at first but thought 60 points would work better for the holidays, etc.