Just Purchased!

[Chkysbak]

My wife and I just purchased BLT for $160 pp @ 200 points. My entire family goes to disney at least once a year and this year we are going twice. We were ecstatic that our DVC sales person called us and said that BLT was available and we wasn't going to be on a waiting list. Of course as everyone here, the down payment killed us. This is especially true since I just got back from Disney last week.

I know we will use it, just terrified due to cost. My wife was insistent on purchasing direct. I did look into doing a Home Line of Credit, but we didn't have the equity since the housing market fall.

Nervous but excited

 

[wiigirl]

Yay! Congrats!

 

[ELMC]

My wife and I just purchased BLT for $160 pp @ 200 points. My entire family goes to disney at least once a year and this year we are going twice. We were ecstatic that our DVC sales person called us and said that BLT was available and we wasn't going to be on a waiting list. Of course as everyone here, the down payment killed us. This is especially true since I just got back from Disney last week.

I know we will use it, just terrified due to cost. My wife was insistent on purchasing direct. I did look into doing a Home Line of Credit, but we didn't have the equity since the housing market fall.

Nervous but excited

I'm going to say this as nicely as possible, and I fully expect to be accused of ruining your day, stomping on your vacation happiness, being against DVC, Disney, direct purchases, vacations in general and mice. But I can weather that no problem, just as long as you understand that my intent is to help and not to insult or belittle you.

Holy cow. Do you realize that you used the words "killed" "terrified" and "nervous" to describe this purchase? I would think that a vacation timeshare purchase would be a source of happiness, not terror.

Do you realize that the down payment that killed you is only 10% of your purchase commitment and that you are responsible for coming up with twenty times that amount over the next ten years in terms of principal, interest and maintenance fees (not to mention actual vacation costs)?

Do you think that the fact that you didn't have equity in your home to help finance this purchase is a sign that maybe it's not the best idea?

I don't know the dynamic between you and your spouse, but have you asked her why she insists on paying direct? Is she the one shouldering the burden for the extra $12,000 that you are paying vs. resale or are you?

One quick correction, you stated that the down payment killed you, much like it does to everyone here. I don't think it's safe to make that assumption and I would hate for you to enter into this situation thinking that it was the norm. Many, many people purchase their DVC contracts outright and those that do finance often do so with little worry or stress. If the down payment is financially stressful for you, that might be a sign.

I have to say, I'm nervous for you and I have absolutely no stake in this decision. Please consider these questions and I wish you the best of luck with whatever you decide.

 

[e46m3]

Wow. I am glad you said that because I was thinking the same thing.

Do people not care about saving for a rainy day or college tuition anymore? This is a luxury expense. This economy can turn on a dime. Will you be prepared?

 

[Kwaschitz]

Congrats! We also just bought - fed exed our contracts a few moments ago


Is there a reason you chose BLT? Location is great and for that it had been on my list. We chose VGF - $10/pp cheaper though points per night are a it higher (though for our stay length and season, there wasn't much difference in number of points needed)

 

[KAT4DISNEY]

I also don't think a timeshare purchase should get into a category that makes you nervous but hope it turns out well.

I am curious why your wife insisted on direct considering it was going to be such a monetary stretch?

 

[Msmithmd]

My wife and I just purchased BLT for $160 pp @ 200 points. My entire family goes to disney at least once a year and this year we are going twice. We were ecstatic that our DVC sales person called us and said that BLT was available and we wasn't going to be on a waiting list. Of course as everyone here, the down payment killed us. This is especially true since I just got back from Disney last week.

I know we will use it, just terrified due to cost. My wife was insistent on purchasing direct. I did look into doing a Home Line of Credit, but we didn't have the equity since the housing market fall.

Nervous but excited

Based on your own statements above, it seems quite likely you will be defaulting on your loan and giving the points back to Disney in a few years, or selling them to the resale market at a huge loss off your purchase price.

Financially responsible people are not terrified of, or "killed by" a timeshare. They do not make a down payment. They purchase with extra cash on hand, and don't go in debt for luxury items.

There is one purchase in life where it is fully reasonable to take on a big debt obligation- your primary residence. A weaker argument can be made for a car loan, so long as it is essential to transport you to the location where you work and make money. Even there, if you're working at McDonald's, you'd better not be buying an Escalade...

There is never, ever, a logical rationale to take out a loan that "kills you" to purchase a timeshare. Even a Disney one. Clearly you are caught up in the emotional hype of the "club." Well, adding truth serum- there is no club. This is a way to pre-purchase future vacation lodging, hopefully at a long term discount to what it would cost to pay cash. Nothing more. You are destroying most if not all of that discount by financing, and apparently putting your finances for everything you do the other 51 weeks of the year at risk as well.

Cancel. Now. Then purchase in the future when you can actually afford it.

I know this is blunt and strongly worded, but WOW your initial post in this thread was disturbing. Please read this in the spirit it is intended, as free advice and not as an attack...

 

[nd43]

I'm going to say this as nicely as possible, and I fully expect to be accused of ruining your day, stomping on your vacation happiness, being against DVC, Disney, direct purchases, vacations in general and mice.

ELMC, for what it is worth, I think accusing you of not liking mice has just gone too far... that is a low blow by anyone who has done this

To the OP, welcome to DVC!

I must admit, my gutt sank a little with your post and I am a strong supporter of direct around here just because of the over tones of potential financial stress it might cause you. Only you can decide if it is truly manageable so I will leave that to you.

However, you have found the right board. Keep reading. You will find many ways to get the most out of your ownership and how to navigate a lot of nuances of DVC reservations, perks, etc.

Overall, DVC has proven to be a great product for many, many owners. The vast majority of owners purchased direct so you are also not unique in that decision. However, all purchases (direct or resale) hopefully will fit into your future budget requirements so you can fully enjoy the product without undue financial stress (after all, this is all about taking vacations and getting away from stress - not causing ongoing new stress!).

I wish you the best!

 

[Minniesgal]

My biggest fear when we bought was that we would be hit by a financial storm and regret wasting money on such a luxury and that fear made us wait 6 years. When we finally did buy we did take a loan but not because we didn't have the cash but for cash flow management and we will have paid it in 9 months, although we could have paid it quicker. Our points make us happy because we can use them secure in the knowledge we bought when we could afford them and we have no fear or nerves etc. if we had stretched ourselves financially to buy them I am very convinced we would not enjoy them half as much.

 

[Chkysbak]

Maybe I need to explain a little...LOL

The reason why the down payment of 4k was "killing" me is due to the fact that I just spent 6k on my last vacation to Disney last week. So effectively, my savings account has gone down 10k in the past 10 days.

I have the money in savings, it was just a huge drop in the past 10 days.

My wife and I went direct to get the points now. I will in the future look at getting it paid off sooner. No, the monthly payments are not an issue. I don't have enough equity in the house to borrow 100% nor do I have that amount of cash in savings, but I can within a couple of years.

Financially, we will be fine its just the shock of 10k leaving that quickly.

Sorry maybe I should have been more upfront.

Resale is an option, but later down the road.

 

[dizfan]

Congratulations and home neighbor!

 

[luv2sleep]

Humm. Wow so critical. I don't know about everyone else but big purchases always make me nervous no matter what my financial situation is. I suppose it's because I'm not wealthy and everything in my life is worked hard for and nothing handed to me. To spend my money on even a small expensive item stresses me out. Again, I've got no one else in my life to fall back on financially and that's a huge part if it. So even if I could easily afford a home purchase or time share I'd be stressed while being excited. It's a big commitment. Maybe people who are truly loaded just can't understand that? I don't know. I've never had that experience. I completely understand the OP's feelings. It's exciting but nerve retaking at first at the same time. Congrats OP!

 

[bobbiwoz]

Congratulations and home neighbor!

Yes!

Enjoy your DVC membership!

Bobbi

 

[Deb & Bill]

Just one little reminder. Of that $6K that you spent, I'm sure some of it was for tickets, food, travel, incidentals. You will still need to pay for those with or without DVC.

Good luck with your new purchase. Just give a little thought to what some of the others have already told you. You have time to rescind and rebuy if you really want this. It's not a cheap vacation by any means.

 

[Missyrose]

One thing to point out that I haven't seen yet in this thread is the current resale prices for BLT. Contracts are selling for between $80 and $100 per point. I point this out not to get you to buy resale, but to know what your new points will be worth the minute you signed on the bottom line. So, if for any reason, you wanted to sell your contract, you would have to bring money to the table to satisfy your loan.

 

[e46m3]

Maybe I need to explain a little...LOL

The reason why the down payment of 4k was "killing" me is due to the fact that I just spent 6k on my last vacation to Disney last week. So effectively, my savings account has gone down 10k in the past 10 days.

I have the money in savings, it was just a huge drop in the past 10 days.

My wife and I went direct to get the points now. I will in the future look at getting it paid off sooner. No, the monthly payments are not an issue. I don't have enough equity in the house to borrow 100% nor do I have that amount of cash in savings, but I can within a couple of years.

Financially, we will be fine its just the shock of 10k leaving that quickly.

Sorry maybe I should have been more upfront.

Resale is an option, but later down the road.

I just hope that your job is stable. Some of my engineer friend here on the West Coast lost their job recently because it was outsourced. Most of them were able to find a job right away. It's just scary these day with a global economy. I am not trying to scare you, just hoping you have enough for a rainy day.

 

[jstarcze]

Welcome Home and Congratulations from Mickey, Goofy, and Me!

 

[ELMC]

Maybe I need to explain a little...LOL

The reason why the down payment of 4k was "killing" me is due to the fact that I just spent 6k on my last vacation to Disney last week. So effectively, my savings account has gone down 10k in the past 10 days.

I have the money in savings, it was just a huge drop in the past 10 days.

My wife and I went direct to get the points now. I will in the future look at getting it paid off sooner. No, the monthly payments are not an issue. I don't have enough equity in the house to borrow 100% nor do I have that amount of cash in savings, but I can within a couple of years.

Financially, we will be fine its just the shock of 10k leaving that quickly.

Sorry maybe I should have been more upfront.

Resale is an option, but later down the road.

I'm going to preface this comment by telling you (and everyone else) that it's going to sound obnoxious. It's not intended to be obnoxious, and I am certainly not trying to be obnoxious. I tried several different ways to craft this comment and no one way is better than any other. So I'm just going to say it, and apologize in advance to anyone who gets offended. Here goes...

If 10k leaving your savings account at once is a shock to you, that might be a sign that a DVC purchase of this magnitude may not be appropriate to your situation.

That being said, in cases like these I usually go based on what is originally said, as it most often reflects someone's true feelings. You probably feel attacked or judged, and so you're trying to explain or backtrack a bit. I'm sorry you were made to feel that way. If you are leaning to go through with this, please scroll down to the end of my post for a potentially less risky strategy.

Humm. Wow so critical. I don't know about everyone else but big purchases always make me nervous no matter what my financial situation is. I suppose it's because I'm not wealthy and everything in my life is worked hard for and nothing handed to me. To spend my money on even a small expensive item stresses me out. Again, I've got no one else in my life to fall back on financially and that's a huge part if it. So even if I could easily afford a home purchase or time share I'd be stressed while being excited. It's a big commitment. Maybe people who are truly loaded just can't understand that? I don't know. I've never had that experience. I completely understand the OP's feelings. It's exciting but nerve retaking at first at the same time. Congrats OP!

Not critical, helpful. I would love nothing more than to congratulate the OP, spread the Pixie Dust, tell them how much they would love BLT and welcome them home. But that doesn't do any good, and it's a little disingenuous of me to not warn them about the potential pitfalls.

I don't know what you're trying to say with your "things not handed to you" comment, so I'll try not to take offense to that. But if you're implying that we have had things handed to us or that we can't understand where the OP is coming from because we have money, you're a bit off the mark. If a purchase like this makes you so nervous, maybe that's saying something. DVC is a luxury purchase. If it is a stretch or is causing someone stress, maybe it's not the best thing for them. I think it is possible to say that without being offensive.

One thing to point out that I haven't seen yet in this thread is the current resale prices for BLT. Contracts are selling for between $80 and $100 per point. I point this out not to get you to buy resale, but to know what your new points will be worth the minute you signed on the bottom line. So, if for any reason, you wanted to sell your contract, you would have to bring money to the table to satisfy your loan.

This is an excellent point. I would add to this one suggestion. If the OP is intent on buying direct and financing, they should at least buy at VGF. Although the resale market has not yet been established, it is very safe to operate under the assumption that the immediate depreciation of the contract will be nowhere near as large as it is with BLT. It's still a risky proposition, but much less so than buying BLT and waving goodbye to $12,000 in value on day 11.

 

[luv2sleep]

Not trying to be offensive. What I was trying to say is that I can't imagine ever being comfortable with a larger purchase. Ever. No matter how much money I had. That's likely because of my background and how things have affected me personally. I can't speak for anyone else but I can understand being nervous over any large purchase luxury or otherwise. So I can understand being nervous. Again just speaking from my own personal experience. I can't imagine ever being rich enough that it won't bother me. But that's just me. Maybe people don't get as nervous because they have had different experiences or aren't natural stress balls like me, lol. Some people have more inherent anxiety over everything in life. Not just spending $$. That's who I am.

 

[dbs1228]

OP if you must buy direct now for the outrageous 160.00PP and possibly consider resale later then why not buy 100 points now and look into resale sometime next year and save a boat load of money! I also agree that if I was going to buy direct right now there is NO WAY I would buy BLT at 160.00PP when I can get VGF similar location, nicer, newer rooms and probably a more desirable resort down the road! btw I am a BLT owner and love the resort, I bought direct at 108.00PP a few years ago and thought that was crazy expensive.

Good luck