Joining DVC

[MinnieMouse456]

My husband and I have been looking into the DVC since we got married (June 2012) and we finally think we're in the financial place to do it. Our only worry is credit... I have none and his score is around 623... Its improving a lot from what it was (it was around low 500 when we got married) and our banker thinks it will improve a lot more this year but do you think we would get approved the way it is now or wait until it gets higher? We know prices have gone up and will continue to go up...

 

[chukdotcom]

My husband and I have been looking into the DVC since we got married (June 2012) and we finally think we're in the financial place to do it. Our only worry is credit... I have none and his score is around 623... Its improving a lot from what it was (it was around low 500 when we got married) and our banker thinks it will improve a lot more this year but do you think we would get approved the way it is now or wait until it gets higher? We know prices have gone up and will continue to go up...

Please don't take this as in insult. But it sounds to me like you guys are in no financial position to take on DVC. Having that poor of credit is indicative of other problems. If you are just digging yourself out now, then it's probably not the best time to buy a timeshare. Also, don't be so sure that prices will continue to go up. Timeshares fluctuate much like traditional real estate does. There has been a large increase recently, and it may not be sustainable. Just rent some points for the next couple of years IMO.

 

[DizBub]

My husband and I have been looking into the DVC since we got married (June 2012) and we finally think we're in the financial place to do it. Our only worry is credit... I have none and his score is around 623... Its improving a lot from what it was (it was around low 500 when we got married) and our banker thinks it will improve a lot more this year but do you think we would get approved the way it is now or wait until it gets higher? We know prices have gone up and will continue to go up...

It's my understanding that DVC does not go on your credit report if you buy direct. I've also heard that they will finance almost anyone........and for this reason there are probably so many foreclosures on the newer resorts. Disney finance rates are high, 10% to 15% depending on what they learn about your credit.

My advice to you is to save up money to pay cash for a small resale contract and move forward from there. Don't forget to factor in the annual dues.

 

[Deb & Bill]

Both of the previous posters have given you very good advice. Get your life settled and stable before you take on more debt. Because that is all DVC is, more debt. Not a necessity, just a want.

 

[newdeal]

I read on here some good advice which was if you have to finance DVC you shouldn't buy DVC. I think this is a good idea. It would make more sense to stay at value resorts for a couple of years than it would to buy DVC on financing. As far as prices going up I wouldn't be so sure. Buying from Disney on new resorts will go up yes, however DVC is a depreciating asset, meaning that it expires and so eventually your DVC "investment" will be worth nothing at the end of your contract. As DVC contracts get closer to the end we will know better what that depreciation actually is per year but now its still pretty unknown as the contracts all have a lot of time left even the oldest ones

 

[Dean]

My husband and I have been looking into the DVC since we got married (June 2012) and we finally think we're in the financial place to do it. Our only worry is credit... I have none and his score is around 623... Its improving a lot from what it was (it was around low 500 when we got married) and our banker thinks it will improve a lot more this year but do you think we would get approved the way it is now or wait until it gets higher? We know prices have gone up and will continue to go up...

Financing retail is a quadruple whammy from a cost standpoint. You pay double for most resorts and then pay more with high interest rates. I'd agree with saving and then buying resale. If you do decide to finance there are options for resale. Personally I'm not in favor of financing a timeshare or luxury purchase (DVC is both) but you'll have to make your own decision ultimately.

 

[Daisy54]

It's my understanding that DVC does not go on your credit report if you buy direct. I've also heard that they will finance almost anyone........and for this reason there are probably so many foreclosures on the newer resorts. Disney finance rates are high, 10% to 15% depending on what they learn about your credit.

My advice to you is to save up money to pay cash for a small resale contract and move forward from there. Don't forget to factor in the annual dues.

Yes the do run your credit score if you are financing through DVC. We almost got sucked in to their "no pressure" sales when we at WDW there a few weeks ago. When we got home, we had a letter from the finance company with our credit score.

They were directing us toward a VGF purchase at $155 p/p. We talked about interest rate and how much to put down. Luckily, I decided to have them send me the paperwork to look over after we got home from vacation and wouldn't sign until then. The sales agent talked me into putting $500 on hold for the 'good' interest rate (9.75%) for putting 20% down.

Low and behold, when we got home, I checked my credit card balance, and they already charged me for the 20%! I immediately called and told them I never said I would definitely purchase, and I didn't want to purchase while I was still on the WDW high. The did refund me the money.

I didn't know about this discussion board or resales until I got home. I specifically asked the sales rep if there were any resales available, and she said no.

 

[Deb & Bill]

...I didn't know about this discussion board or resales until I got home. I specifically asked the sales rep if there were any resales available, and she said no.

DVC doesn't sell any resales. You have to get those through members who are reselling their contracts, usually through a broker of sorts, but sometimes by themselves.

 

[Lynne M]

Here's the problem with financing, especially if you're buying direct from Disney.

There's only one reason to buy DVC, and that's to save money on the villas. If you buy direct through Disney and finance at their insanely high rates, over the life of the contract, you're not saving money. If you're going to finance for the full amount of time they'll let you (I think it's 10 years), you could potentially be paying double or triple what a resale buyer who doesn't finance will pay.

If you can't buy without financing, there's just no advantage for you in buying. I'd recommend renting points instead. You get to stay in the same villas, at the same resorts, and have the same experience, without the long-term financial commitment, without the huge interest charges, without worrying about your credit score.

The other advantage to renting instead of buying is that you only pay if you're actually going to take a trip. If you buy, you're paying that loan and those maintenance fees every single year, whether you're using your points or not.

Remember, only your resort costs are covered by DVC. In order to use your points on, say, a trip to WDW, you're still paying for airfare or gas, park tickets, food. If times are tight and a trip like that just isn't in the cards for a year or two, you're still paying for DVC.

 

[supersuperwendy]

My husband and I have been looking into the DVC since we got married (June 2012) and we finally think we're in the financial place to do it. Our only worry is credit... I have none and his score is around 623... Its improving a lot from what it was (it was around low 500 when we got married) and our banker thinks it will improve a lot more this year but do you think we would get approved the way it is now or wait until it gets higher? We know prices have gone up and will continue to go up...

As someone who financed is still currently finacing my DVC obsession... DON'T DO IT!!! 5 years ago I was chomping at the bit to be a DVC member and took the plunge and financed through Disney. So here we are 5 years later sick and tired of making the payment. With dues and loan we are at nearly $500 a month! That's craziness. Can we afford the payment? yes..are we sick of making it? YES!!!!! With 4 kids the cost of using our membership is through the roof! To fly 6 from PA..$2000 if we're lucky!! park passes...$1700 on the last visit!! We have spent sooooooooooooo much money in the past few years as DVC member it's insane. We just printed the forms to sell our contracts. In essence to simply get out of the payment. Down the road we may buy again via resale but we need to lose the payment!! DON'T FINANCE!!!!!!!

 

[Maverick]

As someone who financed is still currently finacing my DVC obsession... DON'T DO IT!!! 5 years ago I was chomping at the bit to be a DVC member and took the plunge and financed through Disney. So here we are 5 years later sick and tired of making the payment. With dues and loan we are at nearly $500 a month! That's craziness. Can we afford the payment? yes..are we sick of making it? YES!!!!! With 4 kids the cost of using our membership is through the roof! To fly 6 from PA..$2000 if we're lucky!! park passes...$1700 on the last visit!! We have spent sooooooooooooo much money in the past few years as DVC member it's insane. We just printed the forms to sell our contracts. In essence to simply get out of the payment. Down the road we may buy again via resale but we need to lose the payment!! DON'T FINANCE!!!!!!!

This might be the absolute best answer I've ever seen related to the downside of financing a DVC purchase. Nothing like a real world example to drive home the point.

 

[MsTessP]

As someone who financed is still currently finacing my DVC obsession... DON'T DO IT!!! 5 years ago I was chomping at the bit to be a DVC member and took the plunge and financed through Disney. So here we are 5 years later sick and tired of making the payment. With dues and loan we are at nearly $500 a month! That's craziness. Can we afford the payment? yes..are we sick of making it? YES!!!!! With 4 kids the cost of using our membership is through the roof! To fly 6 from PA..$2000 if we're lucky!! park passes...$1700 on the last visit!! We have spent sooooooooooooo much money in the past few years as DVC member it's insane. We just printed the forms to sell our contracts. In essence to simply get out of the payment. Down the road we may buy again via resale but we need to lose the payment!! DON'T FINANCE!!!!!!!

Honestly, it really might help many people out if this were made into a sticky. Between folks like Wendy above and the untold large group of people that simply had to walk away and get foreclosed, that's a lot of people who have found that "pixie dust" never lasts when the financials don't make sense. These types of stories just might be "Disney's Best Kept Secret."

 

[Syndrome]

Wondering how one sells a contract that is financed through Disney ???
I mean, there is some equity there .......but I imagine Disney must be paid in full before the contract is sold.
Probably why so many contracts are foreclosed instead of sold. If you cant afford to pay off the contract loan, how would you sell it ?

Its kind of like being "underwater" in a car or house loan, but as soon as you buy DVC through Disney, you are in essence "under water" as soon as you sign the contract !

Hmmm, something to think about.

 

[crisi]

It was happening a lot in 2009. People would try to buy contracts only to have the seller pull out because they didn't realize they'd need to make good on the entire loan - and the resale price wasn't supporting all the debt, and Disney would rather foreclose than only get paid back partially

Back in 2008 the tone on this board was a lot different. There were fewer "don't finance!" folks and more people willing to tell you that prices were only going to increase and they could sell their contract for what they bought it for just a few years later. Now, the advocates for caution are louder and there are more of us. When this board forgets the members that lost their jobs, then their homes - not just the DVC ones, but the ones they lived in every day, I suspect those that advocate caution will start diminishing.

Even in good economies, good, valuable people lose their jobs every day. A friend of mine just got let go - she is an electrical engineer with a master's degree and twenty years experience (I suspect she'll be employed again soon, but any hiring cycle takes a few months). You really want to try and structure your financial life in such a way that if that happens, you have as little necessary cash flow going out as you can. Loans for luxury purchases wouldn't be part of that plan.

 

[HokieGCC]

Disney is an expert at separating you from your money. You don't need DVC to go every year if you want. If you are intent on being DVC members then save for the cash. The initial purchase is just a fraction of the total cost of DVC. Hope you don't mind the frank opinion.