Joining DVC question

[Disneydreamer5]

Hi all ok a little backgound. Me, DH,4DD'S 18,16,14,11, AND DS 15.
Don't make a ton of money but we manage.
We usually can only afford a vacation once every 2 years.
We are all in love with Disney, have only been there once.
We are very interested in someday making it to Italy.
I am trying to figure out if DVC is a good choice for us.
I am thinking from what I have researched so far we would need to buy at least 250 points at the very least as we need larger accommuations.
My question the big one is the MONEY. I get that they cost 101 per point,$26,250.00. ok now my question is how is that paid?
Like a car loan? Over time? How much are some of your monthly payments on this? I mean I spend $350.00 a month on cell phone bills and if I can come up with that every month I would have no problem coming up with a similar amount if it meant I got to go away every year instead of once every 2 or 3 years.
Everything in this house is about dollars and cent.
Any insight anyone can give me would be so much help and so very appricated. I have been trying to explain it to DH but I am not sure of what I am saying,lol.
Please Help. Another thing he asked that I couldn't answer was what is the whole advertisiment they have saying you are guareenting you family a vacation for the next 50 years? How is that. Isn't the mortgage a 30 year and are the rates fixed?

Lets just say I got a huge amount of money tomorrow and I decided I wanted to pay a DVC out right. Cash you front for say a 2 bedroom at BCR, could I do that?

 

[kim_d]

Let's see...I think I can give you a quick overview.

You buy points either directly through Disney or through a resale company. The price per point per resort depends on which resort it is. For example, buying directly for Disney for AKL is $96 (with a discount incentive).

How often you get to go on vacation correlates to how many points you purchase- points for accomodations vary by season, resort, room size and room type.

Financing is available. Depeding of credit, Disney offers financing at about 11%. Length of time is 5, 7 or 10 years. 10% down is required.

Your DVC ownership varies in length of time based on resort. We own at BCV and our ownership expires at 2042 and we also own at AKL and our ownsership there ends 2057 (think those dates are correct).

You can pay cash for your points as well. You can also pay off your finacing at anytime.

Sounds like you at the beginning stages- I would call DVC and have some materials sent to you.

 

[robandkelly13]

You can finance for 10 years and the interest rates are fixed. Depending on your credit you will have either 10% or 14% interest. If you call DVC tomorrow they can email you a pricing chart which will show you the breakdown of monthly payments. We recently purchased, and if I remember correctly 250 points was about $400 a month - give or take. I'm not sure how the incentives have changed since we bought AKV, so your best bet on an exact figure is to call and have DVC send you an email.

 

[Disneypirate85]

We purchased resale thru Time Share Store (Jamie) @SSR, and all in all the transaction was easy. We did get a better rate thru them as well 10.25 where Disney was 14.0 my credit score was very good but only received standard rate thru Disney which was higher the Benchmark Bank (TSS) and we only financed for the 5 year option direct draft (saved .5% by doing that). We opted for 160 pts SSR cause that was enough or so we thougt, now we need 100 pts more so will be doing an add on.
Noone can tell you what you need or how many pts only you can decide that but 1 thing we learned from Dis was "BUY WHERE YOU WANT TO STAY"! Cannot stress this enough.Being able to book 11 months out makes all the diffrence ESPECIALLY around any major holiday or Food and Wine. This is why we need 100 BWV points we stayed there over 4th of July and just fell in LOVE with it so that will be our add on.
SERIOUSLY call Mouse Service's and speak to someone my guide is Brad Smith very very helpfull fella and 0 pressure.
If we can help you with any questions please feel free to PM me.
And GOOD LUCK....you will love DVC.

 

[Deb & Bill]

You could go with half the number of points you need and then bank one year and use them the next. I only saw one Italian resort available in the book and it was available by the day and not by the week. You'd need up to 276 points for a week there for a two bedroom. And if you ever want to bring boy friends or girl friend, you'd need something bigger than a two bedroom.

You will pay annual dues - figure roughly $4 a point this year and increasing over the next years. And you will still need to pay for your park admissions, plus food and transportation to WDW.

If you purchase AKV, you'd need a minimum of 270 points for a week in a savanna view two bedroom. At BWV, BCV, VWL, you'd need a minimum of 270 for a week in almost any two bedroom.

 

[dvcbrad]

Hi all ok a little backgound. Me, DH,4DD'S 18,16,14,11, AND DS 15.
Don't make a ton of money but we manage.
My question the big one is the MONEY. I get that they cost 101 per point,$26,250.00. ok now my question is how is that paid?
Like a car loan? Over time? How much are some of your monthly payments on this? I mean I spend $350.00 a month on cell phone bills and if I can come up with that every month I would have no problem coming up with a similar amount if it meant I got to go away every year instead of once every 2 or 3 years.
Everything in this house is about dollars and cent.
Another thing he asked that I couldn't answer was what is the whole advertisiment they have saying you are guareenting you family a vacation for the next 50 years? How is that.

I think most financial advisors would say that this is not a prudent expenditure for you right now. Yes, you'll get 50 years of vacation accomodations - you get 50 years regardless of how long you finance, because that's what the right to use agreement is w/ DVC. But that's accomodations only, not transportation, tickets, food, etc.

But ... it sounds like you already might be tight, and this won't make your financial life any easier. Your monthly payment at 7 years, 11% would be $464 if you financed the entire thing. You also need to budget for the DVC maintenance fees, which, or example, are $4.12 per point per year for Saratoga Springs - which amounts to another $86 per month - or a total of $550 per month

Of course, everyone has their opinion, and others on these boards may not agree, but overextending for this type of expense (it's not really an investment) in this type of economy is risky. Since you're asking for opinions, mine would be that from what you've said that it might overextend you and that perhaps you should wait. Besdies, your kids are nearing college age, so you'll have expenses for that, and they may very well not want to go to Disney at those ages for much longer anyway.

I'm sure this will be a tough choice for you either way, no matter what, and I wish you well with your decision.

 

[marynvince]

I think most financial advisors would say that this is not a prudent expenditure for you right now. Yes, you'll get 50 years of vacation accomodations - you get 50 years regardless of how long you finance, because that's what the right to use agreement is w/ DVC. But that's accomodations only, not transportation, tickets, food, etc.

But ... it sounds like you already might be tight, and this won't make your financial life any easier. Your monthly payment at 7 years, 11% would be $464 if you financed the entire thing. You also need to budget for the DVC maintenance fees, which, or example, are $4.12 per point per year for Saratoga Springs - which amounts to another $86 per month - or a total of $550 per month

Of course, everyone has their opinion, and others on these boards may not agree, but overextending for this type of expense (it's not really an investment) in this type of economy is risky. Since you're asking for opinions, mine would be that from what you've said that it might overextend you and that perhaps you should wait. Besdies, your kids are nearing college age, so you'll have expenses for that, and they may very well not want to go to Disney at those ages for much longer anyway.

I'm sure this will be a tough choice for you either way, no matter what, and I wish you well with your decision.

$350 per month on cell phone bills does not scream tight financial situation. If you can afford it, you will not regret it. When the kids are out of the house you can bank and borrow and do an italy trip through the adventures by Disney option.

 

[Disneydreamer5]

Thank you all for so much information. It's a lot to take in and consider.
It is a lot of money to come up with all at once for closing costs and such, also the monthly fee is higher then I thought it would be but its not that bad, at least now I have a little more insight as to what I would be paying.
I have thought about the kids not wanting to come along any longer too but honestly my oldest who is 18 and in college is as much a Disney freak as I am, lol, now she has turned her boyfriend into one of us too.
As I said money is a major factor and although #350 is a ton of money for cell phones its something that they NEED. I have to be able to be in contact with them whenever I need to be and for that I would pay as much as I had too. I wish it was less and some months it is but that is what it cost me most of the time. Disney, as much as I love it is a Want not a need.
I will continue to do my research and perhaps next time we are at Disney the DH and I will take the tour and go from there.
Again thank you all for your help.

 

[vicki_c]

You also need to budget for the DVC maintenance fees, which, or example, are $4.12 per point per year for Saratoga Springs - which amounts to another $86 per month - or a total of $550 per month

$4.21 per point PER YEAR, not per month.

160 pts x 4.21 = $673 for the year for this 160 pt. example.

 

[dvcbrad]

$4.21 per point PER YEAR, not per month.

160 pts x 4.21 = $673 for the year for this 160 pt. example.

Read the whole post, do the math. It said "per point per year" - and the total payment given is the monthly payment for the purchase price plus points. The MF amount was based on the OP's desire to purchase 250 points.

 

[vicki_c]

Gotcha - thought your yearly # was talking about MF only.

 

[littlestar]

If I were you, I'd probably just rent points every other year for your DVC trip. If you mainly stay Sunday through Thursday (5 nights) you could still get your Disney fix and not have to tie up the cash. Maybe tack on the weekend nights with a cash code (AAA or special through Disney). That way you wouldn't have to tie up the cash if money is tight.

Another option would be to buy a DVC resale for half the points and bank and borrow for your trips.

Also, if offsite will do, Orlando has some gorgeous Marriott Vacation Clubs and Sheraton vacation clubs. You can rent those (2 and 3 bedrooms) off of Redweek.com from owners for very reasonable.

Good luck.

 

[dvcbrad]

If I were you, I'd probably just rent points every other year for your DVC trip. If you mainly stay Sunday through Thursday (5 nights) you could still get your Disney fix and not have to tie up the cash. Maybe tack on the weekend nights with a cash code (AAA or special through Disney). That way you wouldn't have to tie up the cash if money is tight.

Another option would be to buy a DVC resale for half the points and bank and borrow for your trips.

Also, if offsite will do, Orlando has some gorgeous Marriott Vacation Clubs and Sheraton vacation clubs. You can rent those (2 and 3 bedrooms) off of Redweek.com from owners for very reasonable.

Good luck.

These are great suggestions for someone who doesn't know if they can really afford it right now, littlestar! The cost of doing this is significantly less expensive in the short run, and as you say, it doesn't tie up cash for the purchase and require the annual expense of the MF's.

Another source for renting is right here on the disboards. Most rentals are approx $11 per point, so for the 250 points this OP thinks they might need, the cost of their trip for accommodations is $2,750 - less than half of the annual cash flow requirement to purchase!

I think we've all given this person plenty to think about. As I said earlier, I wish them well, as these are difficult decisions. Good luck to all!

 

[Mrs D]

This has been excellent info for someone who has a Disney bug but is still cultivating her hubby's. I would love to head to WDW every year, not sure DH is convinced.
DVC is a very attractive prospect, but after seeing some real numbers and comparisons to renting points, we may have to take a research trip renting!

-to DVC Brad: GO CUBS GO!