Is this for real?

[BestDadEver]

I dont see an issue with financing . Even if you wait the price per point will likely go up , more the the amount of intrest payed .

I would not go full term if you do go ten years . The rate is rediculously high . But it's not a lot of money with only 60 points likely in the $6500 range . I like to strech my loans out as much as possaible , and pay them off sooner . Lets say your loan is $100 per month you can pay $125-150 per and that would take a lot of time off . Just make the extra payment to the principal .

I also elected to buy dvc over buying a new car .

I think it's a good idea for you as long as you can afford it .

 

[Missyrose]

I dont see an issue with financing . Even if you wait the price per point will likely go up , more the the amount of intrest payed .

This is nonsensical. If OP purchased 60 points direct from Disney for BWV at $115 pp, that makes it a $6900 purchase. The interest over 10 years almost doubles the cost, so the OP is looking at spending somewhere around $13,000 for 60 points.

Even if the per-point priced jumped to $150 a year from now (probably unlikely for a sold-out resort but I'll play along anyway). That purchase price for 60 points would be $9000.

 

[BestDadEver]

This is nonsensical. If OP purchased 60 points direct from Disney for BWV at $115 pp, that makes it a $6900 purchase. The interest over 10 years almost doubles the cost, so the OP is looking at spending somewhere around $13,000 for 60 points.

Even if the per-point priced jumped to $150 a year from now (probably unlikely for a sold-out resort but I'll play along anyway). That purchase price for 60 points would be $9000.

It's my opinion . Something people dont get around here .

 

[Missyrose]

It's my opinion . Something people dont get around here .

But "your opinion" told the OP that the price would go up more than the interest she would pay on the loan, which simply isn't true.

 

[lthiesfeld07]

It seems my topic really started some great discussion about purchasing DVC.
I know long term, it will be a good decision for me. But I agree not right now. I ran the numbers again, and I think I will wait until I can put 50-75% down. That way I don't have to finance as much. I do hate to pass up BWV... I would love to be able to book this resort 11 months out, especially during Food and Wine and Christmas!
I am sure my DVC agent will be disappointed...

Thanks everyone for the discussion and opinions!

 

[BestDadEver]

But "your opinion" told the OP that the price would go up more than the interest she would pay on the loan, which simply isn't true.

I said likely. Nothing definitive in my post , since its all speculation anyway .

Since we are nitpicking someone stated that you would save 50% off buying resale . Thats not true especially with a 60 point contract . Why didnt you jump all over them .

Also you would need to take into account the cash oop that she would pay . To vacation every year she isn't a dvc member . That money would go towards the contract .

We aren't going to see eye to eye that why it's an opinion . Can you please respect mine as I did yours .

 

[Missyrose]

It seems my topic really started some great discussion about purchasing DVC.
I know long term, it will be a good decision for me. But I agree not right now. I ran the numbers again, and I think I will wait until I can put 50-75% down. That way I don't have to finance as much. I do hate to pass up BWV... I would love to be able to book this resort 11 months out, especially during Food and Wine and Christmas!
I am sure my DVC agent will be disappointed...

Thanks everyone for the discussion and opinions!

Seems like you have a good plan. Don't worry, BWV isn't going anywhere, it'll still be available once you have more funds.

 

[disneynutz]

It seems my topic really started some great discussion about purchasing DVC.
I know long term, it will be a good decision for me. But I agree not right now. I ran the numbers again, and I think I will wait until I can put 50-75% down. That way I don't have to finance as much. I do hate to pass up BWV... I would love to be able to book this resort 11 months out, especially during Food and Wine and Christmas!
I am sure my DVC agent will be disappointed...

Thanks everyone for the discussion and opinions!

Your DVC Guide is a sales person, not your friend and business is business. You can buy BWV latter, (our favorite resort) via resale and save some money.

WDW is a wonderful place that can give you years of enjoyment. Owning a DVC contract can save you some money compared to paying OOP for a deluxe room. The down side is that both come at a high price. The Dad in me wants to say that you should save some money for your future, the Disney lover in me wants to say that you should enjoy your dreams.

Renting from a DVC owner might be a way to check out the DVC, save some money on your room, while still getting your Disney fix.

Good luck and have fun.

Bill

 

[Deb & Bill]

Right now, a week at BWV in a standard view studio is more than 60 points. So you don't have a week long vacation with 60 points. If you bought AKV, you can't get a week in a value studio for 60 points. And these are both the cheapest point times of the year. If you are flying from Chicago (or driving perhaps), plus buying tickets (you'll need to get them from an offsite reseller to save a little money - a discounted AP won't do you any good), you are going to have to lay out that money as well.

So you get married. That doubles the airfare (which probably has already gone up), plus the tickets (and those are sure to go up). Maybe even have a kiddo (add more to the airfare and tickets). Plus you have to eat.

So that 60 point contract that you are still paying for (with a husband, two kids, maybe three by this point) isn't enough to get you a week without adding nights for cash. DVC nights aren't cheap - not like a value resort. And a family of five can't stay in a studio unless one is under the age of three.

I am a mom and I won't saddle my son with our points. We continue to own them and he can use them (or we will use them) until we don't go anymore and sell them off. Dues keep going up each year. In ten years, the approximately $5 a point could be $7 or $8 a point (times 60 equals $480 a year or $40 a month and you are still paying on those 60 points).

Rent points from a member and enjoy DVC membership vicariously through that member.

 

[crisi]

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.

I can beat that. I wouldn't have my son if I had DVC. We had fertility issues - and fertility issues are expensive. When they don't work, adoption is expensive.

I suppose I could have owned it for a year or two and then sold it, but my fertility issues pretty much came on the heels of my marriage. I quite possibly would have never taken a trip on it.

And the thing is, that when life throws you curves like that and you are suddenly funding $20k in infertility and another $20k in adoption - much more now - you aren't "going to Disney anyway."

OP, you have a lot of priorities in your life. You want to move out of your parents place (and I'd lay odds your parents want you to move out of their place, if either of my kids was living at home at 24 and bought DVC, their bags would be packed and they would be on the street, at that age I'm not providing housing so they can afford to play). You want to get married, and weddings aren't cheap if you aren't eloping at the courthouse. You want to buy a house. You want to pay off your student loans. Eventually you want to have kids. You may have to make some choices about these things and "Disney anyway" - much less DVC.

 

[cz4ever]

I can beat that. I wouldn't have my son if I had DVC. We had fertility issues - and fertility issues are expensive. When they don't work, adoption is expensive.

Bundles of joy >>> DVC, for sure. Other people have said it in this thread, but Crisi's is probably the most poignant example --- until you have enough money put away to cover unexpected emergencies, sinking a lot of cash into a luxury like DVC seems like an unwise decision (imho, of course).

Anyway, OP seems to have gotten the point. GL to you, sir! Your idea of "paying yourself" every month to see how much you can afford to put away for DVC seems like a very good idea.

 

[BestDadEver]

All the points above make a lot of sence with a bigger purchase

But I realy dont see how a $6000 loan well affect your long term future .

I often say that $100 makes little diffrence in my monthly expenses . After buying a house having children and all the things that go allong with it .

 

[crisi]

All the points above make a lot of sence with a bigger purchase

But I realy dont see how a $6000 loan well affect your long term future .

I often say that $100 makes little diffrence in my monthly expenses . After buying a house having children and all the things that go allong with it .

Before I dated him, a loan smaller than that forced my husband into bankruptcy as a young adult. When we first married he was still recovering from that. And it delayed his long term future.

 

[Lynne M]

All the points above make a lot of sence with a bigger purchase

But I realy dont see how a $6000 loan well affect your long term future .

I often say that $100 makes little diffrence in my monthly expenses . After buying a house having children and all the things that go allong with it .

For someone who's lost their job, $100 makes a huge difference in monthly expenses. Or someone who's suddenly been hit with a huge medical expense. Someone's financial situation can change very rapidly.

The reason most of us advise against financing a DVC purchase, though, is that Disney's exorbitant finance charges can drain a lot of the value from DVC. Someone who finances their contract is paying more for their membership, sometimes significantly more , than someone who doesn't.

And people don't always realize that. They say 'Oh, I paid $15,000 for my membership'. Well, if you financed, you're not paying $15K. If you keep the loan for the full 10 years, it's WAY more than $15K.

 

[BestDadEver]

Before I dated him, a loan smaller than that forced my husband into bankruptcy as a young adult. When we first married he was still recovering from that. And it delayed his long term future.

Thats differnt then just having a loan for a small amount .

I have a hard time believing that was the only cause to the banckrupcy

 

[lthiesfeld07]

I'll jump in here.
I'll use real numbers. After my monthly payment and my monthly dues, it would cost me $117/ month. Not bad right??
Well if I did that over 10 years it is $14040! I didn't think about that originally. My 6900 purchase doubles, which defeats the purpose.
Like I said, I'll pay myself that amount every month and after 12 months I'll have about $1400. I would be on my way to a better down payment.

I don't think there is anything wrong with a loan for DVC, if I didn't need 10 years to pay it off.... Now, I would probably use the majority of 10 years.

 

[BestDadEver]

For someone who's lost their job, $100 makes a huge difference in monthly expenses. Or someone who's suddenly been hit with a huge medical expense. Someone's financial situation can change very rapidly.

The reason most of us advise against financing a DVC purchase, though, is that Disney's exorbitant finance charges can drain a lot of the value from DVC. Someone who finances their contract is paying more for their membership, sometimes significantly more , than someone who doesn't.

And people don't always realize that. They say 'Oh, I paid $15,000 for my membership'. Well, if you financed, you're not paying $15K. If you keep the loan for the full 10 years, it's WAY more than $15K.

If you live in fear of these things imo you can't live your life . In that case you shouldn't buy anything, not just dvc cause the small loan I took for dvc would be small potatos if I lost my job .

In that logic I shouldn't have bought my house cause I may loose my job . I wouldent be able to pay my morgage. But I would deal with it .

I feel bad for those that lost their job or had unexpected medical issues . But I can't live my life with those fears . Just deal with it the best I can when/if they happen

 

[DenLo]

I'm one of the ones that says, we regret that we didn't buy sooner. However, we would only have bought sooner if we had the available cash. It's for a vacation, I would never go to the bank and ask for a loan for a vacation. Pay off your school loans, buy yourself a nice car, do all those things everyone does after graduating from college including renting an apartment. And set aside some money every month for your future purchase of a DVC contract. Remember you will still need to pay for the annual dues as well as the other expenses that are connected to a Disney vacation, transportation to Orlando, your park tickets, dining and any souvenirs you might purchase.

Then when you are older you can decide if a DVC purchase is appropriate for you and whether you want to pay cash or take out a loan. I know others feel differently about their DVC loans, but it's just not for me.

 

[fmer55]

If you live in fear of these things imo you can't live your life . In that case you shouldn't buy anything, not just dvc cause the small loan I took for dvc would be small potatos if I lost my job .

In that logic I shouldn't have bought my house cause I may loose my job . I wouldent be able to pay my morgage. But I would deal with it .

I feel bad for those that lost their job or had unexpected medical issues . But I can't live my life with those fears . Just deal with it the best I can when/if they happen

I think you are missing the point of where the OP is in her life, when I was fresh out of college a $6000 loan for a new(used) car was the same as a house payment to me. You are speaking from experience and I imagine from the voice of someone who is fully entrenched in their career. OP has yet to begin living on her own much less paying the mortgage, car and life insurance you speak of.

Just my 2cents

 

[DougEMG]

I'll jump in here.
I'll use real numbers. After my monthly payment and my monthly dues, it would cost me $117/ month. Not bad right??
Well if I did that over 10 years it is $14040! I didn't think about that originally. My 6900 purchase doubles, which defeats the purpose.
Like I said, I'll pay myself that amount every month and after 12 months I'll have about $1400. I would be on my way to a better down payment.

I don't think there is anything wrong with a loan for DVC, if I didn't need 10 years to pay it off.... Now, I would probably use the majority of 10 years.

I think you are making a wise decision. Buying DVC is purely about saving money on a luxury vacation. You can still stay at BWV at F&W by renting points, just start planning your trip right at the 11 month mark. While renting isn't as cheap as owning in the long run, it is still cheaper than Disney's rates but allows you to better manage your financial risk.