Is this for real?

[jarestel]

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

In your haste to be hilarious, you missed the original point. But it was a very funny line!

 

[lthiesfeld07]

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.

Thanks for your advice! It definitely put things in perspective for me... I am sure my DVC agent is going to be disappointed! (oh well)

 

[JKMJ441724]

I'm still at a loss. I think all of this may be a moot point.

I don't see how the OP could buy 60 points directly from Disney - whether it is a good idea or not. What have I missed?

Will Disney let OP buy an add-on to her friend's DVC?

 

[lthiesfeld07]

I'm still at a loss. I think all of this may be a moot point.

I don't see how the OP could buy 60 points directly from Disney - whether it is a good idea or not. What have I missed?

Will Disney let OP buy an add-on to her friend's DVC?

What do you mean?

 

[DannysMom]

I'm still at a loss. I think all of this may be a moot point.

I don't see how the OP could buy 60 points directly from Disney - whether it is a good idea or not. What have I missed?

Will Disney let OP buy an add-on to her friend's DVC?

As a result of the weak economy DVC has done away with the (high IMO) minimum point buy in. The incentives (when buying direct) do not kick in until you buy 100 or more points, but they now let new members buy in at whatever point value they are comfortable with. As most members with few points will add on eventually.

 

[disneynutz]

I'm still at a loss. I think all of this may be a moot point.

I don't see how the OP could buy 60 points directly from Disney - whether it is a good idea or not. What have I missed?

What you missed is that Disney will do what ever they need to do is to make money. We have found that rules and policies can be bent under the right conditions, after all they are in the business of selling DVC contracts.

If you tell them that you only want XX resort, XX UY, XX number of points and you walk because they can't deliver, there is a really good chance that they will get "special permission" to make your sale and they will contact you. This has happened to us a couple of times.

If they know that you will buy what they offer, why would they offer anything else?

Bill

 

[ELMC]

I'm still at a loss. I think all of this may be a moot point.

I don't see how the OP could buy 60 points directly from Disney - whether it is a good idea or not. What have I missed?

Will Disney let OP buy an add-on to her friend's DVC?

DVD got rid of their old minimum purchase amounts months ago. You can now buy as little as 50 points as a new owner or 25 points as an add on. This might not be heavily advertised because obviously they still want people buying bigger contracts, but if you ask your salesperson he will tell you.

 

[Tunseeker1]

I have a different idea about your purchase, but my opinions don't usually make sense to normal people.

You are 24 years old, you should not be thinking about buying into disney, even if it is only 4.9% interest.
You should be out drinking every weekend, and putting some of it on your credit cards at 15.99% interest.

You shouldn't be planning for vacations 20 years down the road with a family you don't even have yet.
You should be going to Mexico or the Bahamas to an all inclusive resort and getting fall down drunk with nothing to show for your money.

When you start asking for advice in public people will place their values on you, not think about what your situation in.
I bought DVC when I was younger then you. I have sent my parents, siblings, and cousins to Disney on points.
My friends have gone to disney with me and paid for part of my trip!

I have lived my life knowing that I may not have a tomorrow and that unless something I want to do is outrageous or stupid I would make it happen. I don't regret any of it.

Good luck with whatever choice you make.

 

[JKMJ441724]

As a result of the weak economy DVC has done away with the (high IMO) minimum point buy in. The incentives (when buying direct) do not kick in until you buy 100 or more points, but they now let new members buy in at whatever point value they are comfortable with. As most members with few points will add on eventually.

What you missed is that Disney will do what ever they need to do is to make money. We have found that rules and policies can be bent under the right conditions, after all they are in the business of selling DVC contracts.

If you tell them that you only want XX resort, XX UY, XX number of points and you walk because they can't deliver, there is a really good chance that they will get "special permission" to make your sale and they will contact you. This has happened to us a couple of times.

If they know that you will buy what they offer, why would they offer anything else?

Bill

DVD got rid of their old minimum purchase amounts months ago. You can now buy as little as 50 points as a new owner or 25 points as an add on. This might not be heavily advertised because obviously they still want people buying bigger contracts, but if you ask your salesperson he will tell you.

Thanks for the info everyone! I learn something new on the DIS every day! I'm going to call my sister and see if she wants to buy 50 points!!!!

 

[lthiesfeld07]

I have a different idea about your purchase, but my opinions don't usually make sense to normal people.

You are 24 years old, you should not be thinking about buying into disney, even if it is only 4.9% interest.
You should be out drinking every weekend, and putting some of it on your credit cards at 15.99% interest.

You shouldn't be planning for vacations 20 years down the road with a family you don't even have yet.
You should be going to Mexico or the Bahamas to an all inclusive resort and getting fall down drunk with nothing to show for your money.

When you start asking for advice in public people will place their values on you, not think about what your situation in.
I bought DVC when I was younger then you. I have sent my parents, siblings, and cousins to Disney on points.
My friends have gone to disney with me and paid for part of my trip!

I have lived my life knowing that I may not have a tomorrow and that unless something I want to do is outrageous or stupid I would make it happen. I don't regret any of it.

Good luck with whatever choice you make.

Not sure what drinking has to do with my decision but okay.
I do plan in advance. I know that I will be going to Disney for the rest of my life. I am single and don't see that changing anytime soon. I have gone to Disney solo for several trips now.I would rather spend my money once a year on a Disney vacation than drinking every weekend. There are other circumstances as well that dont need explaining.

 

[JKMJ441724]

Thanks for the info everyone! I learn something new on the DIS every day! I'm going to call my sister and see if she wants to buy 50 points!!!!

So our call went like this:

Me: apparently you may be able to buy into DVC with a minimum of 50 points.

Sister: Shut up!

Me: No. You shut up! Come on, Kelly, you have some Diem to Carpe!! You ready?

Sister: Maybe....!!!






So OP - what was the sale price of those points - if you don't care to say...

Woohoo!

 

[DannysMom]

Don't forget to check out resale too. You could well get 100 pts for the same price as those 50 purchased direct. Of course you will have twice as much MF as well.

 

[pilferk]

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.

Just another bit of input:

We financed..but for a VERY short term. We had about 70% to put down, and I was due a good sized bonus, from work, in about 90 days (the bonus was accumulated...the payout was just 90 days away).

We financed (shorter term than 10 years, though..to keep the interest rate lower)...but had the balance paid off approximately 100 days after we signed our paperwork and paid the first lump (70%) to Disney. There is no penalty for early payment of your balance.

That being said...my wife and I were in our early 30's, had income and job stability (I'm STILL with the same company....6 years-ish later) and we owned our home.

Keep in mind: You may someday want to leave the nest, own a home, etc. Make sure you're not significantly delaying (or, worse, eliminating) those options for the future.

I'm not going to join the chorus of those who say "don't finance, EVER"...because there are times and scenarios where it's "ok". But I would say: It's not a good idea to finance for 10 years, putting the minimum down, and then make the minimum payment for 10 years. You'll more than double your buy in price and likely strap yourself for cash, down the road, for other things.

 

[marynvince]

I have a different idea about your purchase, but my opinions don't usually make sense to normal people.

You are 24 years old, you should not be thinking about buying into disney, even if it is only 4.9% interest.
You should be out drinking every weekend, and putting some of it on your credit cards at 15.99% interest.

You shouldn't be planning for vacations 20 years down the road with a family you don't even have yet.
You should be going to Mexico or the Bahamas to an all inclusive resort and getting fall down drunk with nothing to show for your money.

When you start asking for advice in public people will place their values on you, not think about what your situation in.
I bought DVC when I was younger then you. I have sent my parents, siblings, and cousins to Disney on points.
My friends have gone to disney with me and paid for part of my trip!

I have lived my life knowing that I may not have a tomorrow and that unless something I want to do is outrageous or stupid I would make it happen. I don't regret any of it.

Good luck with whatever choice you make.

Outstanding way to make your point. Thank You for taking a nontraditional approach to answering a common question here on the boards.

And since the OP was looking for advice, I'll render mine. Resale is the way to go. With price around 50% of direct you can get twice as many points or points for half off. Good Luck to you!!

 

[tjkraz]

... instant gratification is going to cost your dearly..that and the finance charges over 10 years (EEK!!) will be thousands of dollars.

There's no obligation to take 10 years to pay for it.

If someone goes into a DVC purchase thinking they will need the entire 10 years to afford it, that may be a bad idea. Financing a portion with the intent to pay it off much quicker is very different.

And since the OP was looking for advice, I'll render mine. Resale is the way to go. With price around 50% of direct you can get twice as many points or points for half off. Good Luck to you!!

Of course, OP may not want more points. More points means higher annual dues and more vacation days spent at Disney per year.

And 60 point contracts are not only hard to come by but typically command a premium price and have higher closing costs on a per-point basis.

Resale is definitely worth looking into but for such a small contract a direct buy may still make sense.

Overall I tend to agree with jarestel's philosophy. There are a lot of people who can afford to spend $2000-3000 per year for a Disney trip but don't have $10-20K they wish to plop-down on a DVC purchase. Does that mean they should either skip several years of trips to save up or remain stuck as cash guests?

OP says she has money for half of the purchase up-front. At Disney's direct prices, I'm guessing that leaves $3000-4000 to be financed. Not exactly the greatest financial risk in the world.

Personally I would question more whether OP is ready to commit that money plus more (tickets, airfare, etc.) to Disney for the next 30 years. But that's ultimately for her to decide. Buying the DVC points--even with a few years of interest paid on $4k, is going to save her a lot more money than foregoing DVC and making annual cash trips to WDW.

 

[k3chantal]

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.

I am a parent and yes I wouldn't want any of my three kids to dive into this or any luxury purchase. You got it. And it has nothing to do with loving or not loving Disney. Every person in my family loves Disney. It has to do with setting your life up for financial success.

I think you have a great idea. Save, save, save your money and that way you will know whether or not you can truly continually afford the payments.

I don't think the car analogy is a good one. Cars in our society are often a necessary in order to go to work or to the grocery store. It is a cost of living expense. Side note: Also, when we do buy cars, my husband and I either pay for it in full or choose a three year option to pay it off. Then, we drive our cars for ten years or more).
DVC is completely a luxury purchase. You can still go to WDW or DL every year without it.
Over the course of many years, I have come to realize that if you want something too badly, you won't necessarily make a good financial decision. Be able to walk away.

We turned our first house into a rental a few years back and bought a second home. We saw probably a hundred houses and made offers on about twenty of them. Our offers were turned down because the sellers often thought it too low. But, we knew what we wanted to pay and we believed the housing market was going to get worse. By our patience and being able to walk away, an offer was finally accepted and we ended up in a better neighborhood with a lower price than we thought possible at the time. The house has also kept its value over the years.
So don't panic about a good deal at DVC right now. Good deals will pop up again.

 

[fmer55]

In your haste to be hilarious, you missed the original point. But it was a very funny line!

I didn't miss the original point, I read it through and my point was this is a luxury purchase. Where as buying a car is a must have for the most part. And I also disagree with the point of it buying a minor purchase when you still live at home, especially when you are paying student loans. It seems that OP may be burying themselves with "small purchases" when added up may preclude the purchase of more meaningful things in the future.

With that said I have made more than my share of ill-thoughout decisions as well as purchases that I should never have made

 

[tb1972]

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.

I think that's a wise choice to make payments to yourself to save for DVC.

DH & I are 39 and have two children. We just purchased DVC in March and paid cash. After much research and hearing the DVC sales pitch, we decided on a resale contract paying cash was the way to go. We don't like debt!

Another thing to consider about the future when you have a family is that flights, park tickets and meals at Disney can accumulate quickly. Therefore, you aren't just paying maintenance fees but potentially several thousand dollars more for vacations. Traveling as a family is more than a single person or a couple.

 

[DMKEDM]

One reality that the anti-finance people on this board (who all make good points about the money issues) often miss is the potential that you'll be spending a considerable amount of money going to Disney whether you buy DVC or not...

Only you can run that math. Total up your best guesstimate of how much you'd spend on room, transportation, park tickets, food, souvenirs, etc. w/out DVC.

Then total up how much you'd spend w/out the cost of the room, and instead add in the monthly cost of your loan and maintenance fees.

Compare those numbers.

Then, total up the costs w/out the room--and without the cost of DVC--but instead w/the cost of renting DVC points.

That will give you your "real" money comparisons...

Then, consider that the cost of your loan for the points and your maintenance fees must be paid, every year, whether you find you "can" go to Disney or not in any given year (whether for financial reasons or "life reasons," some years you may find it difficult to find time and/or money to go to Disney)...yes, you can rent your points to cover at least some of the costs if there is a year (or years) you don't go--but the possibility exists that you won't be able to rent your points, too--or that you'll be uncomfortable enough with the whole rental process that you won't want to. That's an important part of the analysis you're doing.

THEN, and only then (when you have a real sense of the differences in costs), do you still want DVC? Do you want to spend around $150 (give or take, the likely price of the loan payment ( plus maintenance fees on 60 points) on pure entertainment? Even if it means foregoing other kinds of entertainment?

All these wise and financially savvy posters may or may not spend money "just for fun"...most people, do, tho--whether it's $150/month or not is an open question, of course--

But as best as I can tell, your maintenance fees, for 60 points, will be about $30/month. The loan payment on 60 points will be around $120 or so...(these are no more than my best guesses--but the Disney people will be able to tell you with some exactitude exactly what your monthly payment would be)...

So, can you afford $150/month (even if you factor in the potential for paying a mortgage or rent at some undetermined time down the road)? If so, do you want to go to Disney badly enough to spend that money?

It's not all about money. I have 515 points (all bought direct) and didn't finance a penny's worth of them...(unless you count 0% interest loans that were repaid prior to interest kicking in)...but I surely did finance a goodly portion of the luxuries in my life before I became financially stable...some of it was vacations; some was jewelry; some was funky clothing; some was music or gizmos; some was eating out--there are literally zillions of ways to spend $150/month (w/out even thinking too hard about it!)...I did my time paying off revolving credit card debt (haven't not paid in full for about 15 years now...but surely did for the first 15 years of my adult life!)...

So...think it through, but don't forget to factor in the non-money considerations, too!

Good luck!

 

[Sandisw]

One reality that the anti-finance people on this board (who all make good points about the money issues) often miss is the potential that you'll be spending a considerable amount of money going to Disney whether you buy DVC or not...

Only you can run that math. Total up your best guesstimate of how much you'd spend on room, transportation, park tickets, food, souvenirs, etc. w/out DVC.

Then total up how much you'd spend w/out the cost of the room, and instead add in the monthly cost of your loan and maintenance fees.

Compare those numbers.

Then, total up the costs w/out the room--and without the cost of DVC--but instead w/the cost of renting DVC points.

That will give you your "real" money comparisons...

Then, consider that the cost of your loan for the points and your maintenance fees must be paid, every year, whether you find you "can" go to Disney or not in any given year (whether for financial reasons or "life reasons," some years you may find it difficult to find time and/or money to go to Disney)...yes, you can rent your points to cover at least some of the costs if there is a year (or years) you don't go--but the possibility exists that you won't be able to rent your points, too--or that you'll be uncomfortable enough with the whole rental process that you won't want to. That's an important part of the analysis you're doing.

THEN, and only then (when you have a real sense of the differences in costs), do you still want DVC? Do you want to spend around $150 (give or take, the likely price of the loan payment ( plus maintenance fees on 60 points) on pure entertainment? Even if it means foregoing other kinds of entertainment?

All these wise and financially savvy posters may or may not spend money "just for fun"...most people, do, tho--whether it's $150/month or not is an open question, of course--

But as best as I can tell, your maintenance fees, for 60 points, will be about $30/month. The loan payment on 60 points will be around $120 or so...(these are no more than my best guesses--but the Disney people will be able to tell you with some exactitude exactly what your monthly payment would be)...

So, can you afford $150/month (even if you factor in the potential for paying a mortgage or rent at some undetermined time down the road)? If so, do you want to go to Disney badly enough to spend that money?

It's not all about money. I have 515 points (all bought direct) and didn't finance a penny's worth of them...(unless you count 0% interest loans that were repaid prior to interest kicking in)...but I surely did finance a goodly portion of the luxuries in my life before I became financially stable...some of it was vacations; some was jewelry; some was funky clothing; some was music or gizmos; some was eating out--there are literally zillions of ways to spend $150/month (w/out even thinking too hard about it!)...I did my time paying off revolving credit card debt (haven't not paid in full for about 15 years now...but surely did for the first 15 years of my adult life!)...

So...think it through, but don't forget to factor in the non-money considerations, too!

Good luck!

This is exactly where we were when we bought DVC. We were going yearly and paying cash for our trips and would continue to do so...so, for us, it was about whether or not owning DVC could be bought for no More than that..and yes, we considered financing..in our opinion, whether we paid the discounted cash rate for our room or a interest on a DVC loan, made no difference.. We had X amount of dollars in our vacation budget and needed to continue to fit DVC I to that.

When we realized we could and once the loan was paid, we'd be in better shape. Of course, we ended up not financing the purchase so it was even better. I guess my point is that we all have to look at our own situations and make decisions on how to manage our finances in a way we are comfortable with. What I think is great for young people is to get all the perspectives of others so they can make their own decisions within their own comfort zone.