Moved from Mouse - Finance or pay outright for DVC?

[delmar411]

DH is pretty much on-board to buy into DVC but we've been having a hard time figuring out whether we should just save for a few years (taking no vacations) and pay it all up front or finance the majority of the purchase which would allow us to go on vacation while paying for the points over a few years.

If you financed what was the rates? I can't figure out that kind of info because it's not a mortgage or a re-fi. We can't do a home equity loan either as we don't own our house right now.

Thanks for any thoughts on this dilemma!

 

[eliza61]

I really can't advise you on which way to go, you have to do the math and decide your families comfort level. I will tell you that my Dh & I put down a lump sum and then financed the rest through our credit union ( I want to say at 6% but I can't remember). Many folks don't finance or charge luxury purchases but this worked best for us and that's what mattered. 7 years later we have yet to regret the decision.

Good luck

 

[BrentR]

If you can pay off your contract in a few years and the payments wouldn't straing your budget I would finance it so you can start enjoying your DVC membership ASAP. I would only do this if I could commit to paying this off in 2-3 years becuase it would make me nervous...that is just me.

I cannot answer your question about interest rates because we paid cash. I believe that the rates are dependant on your credit score. You could probably do better at your local financial institution.

If your placed with a quide you can always ask them....

 

[SSRFred]

I'd say rent points for vacations while saving money for small resale purchases. It'll go like this...
Dream Season - Check in Sat Check out Fri, 6 Nights 220pts for a 2BR at SSR.
220 x $10 = $2200

Save up $10,000 and purchase 100-120 pts resale. Bank & Borrow every two to three years and go on points for those vacations at a cost of $1200 or so.

Save more money and add on until you have enough for your desires.

 

[OlderMan]

...around $11,000 for 10 years for a monthly payment of about $150.

Interest rate was about 9.75%--I think.

Of course, this was (almost) 11 years ago. Check with your guide for current rates.

 

[Kathi OD]

Our interest rate was 9% for 10 years. We financed 7900 and paid $102/mo.

Dues were an additional fee.

 

[casper]

It's important for you to understand your own financial situation and "know" that you can handle the long term payments. You might figure how much DVC will "actually" cost when adding the loan interests and decide if it is still worth it to you.

You might also spend some time looking at the resale market and find something that would fit easier in your budget. Or buy fewer points on the resale, go every other year, while saving up for the add on of more points at a later time as finances allow.

Just remember that DVC is going to be around for a long time. So don't feel pressured or in any kind of hurry to "have to buy" anytime soon if your situation is in question.

Good luck with your decision.

 

[I'mNoPrince]

We looked at what we were paying for our 2 trips every year at a mod.

Bought enough points to cover that and pay about the same spread out over the year now instead of just saving for it.

So our Dues and loan payment are just a bit mre then what we were paying anyhow and we get a way nicer stay.

We don't look at it as a luxury item we look at it as preventive health care. Knowing we have a place to go and enjoy every year just makes us happy.

the resale market is still strong for DVC so if anything did happen we could Rent our points or sell then out-right.

and yes it was 9%+ for us through DVC

 

[boettj]

I think you get the common thread here. Make sure you are not over extending yourself. Right now the economy is teetering in my opinion. The price of oil is only going higher. The price of gas at the pump is hitting new all time highs. Add to that the lending market has go to hell and a hand basket, the real estate market has eroded, new housing starts are down, manufacturing numbers are off for the first time in 10 years, and the jobless rate is growing. A pretty bleak outlook if you ask me.

What does this all mean? Well that would depend on your current situation. Are you currently over extended? Do you owe a ton of money on credit cards? Would adding DVC put you over into being over extended?

I could keep going on and on... It's the doom and gloom outlook I am predicting. And trust me when I say I hope I am wrong.


Just move forward wisely.