My Thoughts in Favor of Financing

[ohtarabell]

Crisi:

Back in:

Support for my 90% of the people get it right assertion from the Orlando Sentinel (below) Would love to see facts specific to dvc finaincing and how many lives it has ruined. By the way, 75% of buyers finance. In the most difficult environment in 100 years, fewer than 10% of all timeshare finance contracts are going sour. This is across the entire industry. Take your best guess on DVC defaults, but they are at the top of this food chain in terms of credit worthy buyers. It makes one wonder what dvc defaults are in normal environments. I would make a bet that it is lower than mortgage defaults. Please read the numbers below carefully if you are not a finance person. I'll give you a hint, default rates in 1st quarter 09 are not 10.4%

"The entire time-share industry is grappling with rising defaults. The industry-wide default rate was 7.9 percent in 2008, up 30 percent from 2007, according to the American Resort Development Association. It has continued to grow in 2009, rising 31 percent during the first quarter of the year from the first quarter of 2008.

Disney says the default rate at Vacation Club is lower than the industry average, though it would not provide specific figures."

Give me your facts, not 4 posters on a message board.

Also, don't use the 10% default number. You see, those are potentially worse case defaults on dvc financed contracts. Those by definition are only secured by your dvc interest. The things you lose are your points and your credit score.........period. It won't cause you to lose your mortgage.

 

[Sandisw]

They would have done financially better to save the interest, take cheaper vacations or no vacations while they saved to pay cash. A 5 year loan of $15k at 10% has you paying almost $4400 in interest. That's 30% over the purchase price.

I have a hard time believing that people who can't manage to save $15k to pay cash have $4400 to throw away.

Maybe so, but there are some of us who value quality of life, and that includes Disney vacations, as much as we value financial wealth.

And I am one of those people who didn't want (and yes, I said want) to forgo my vacations so that I could build my savings above and beyond what I am already doing.

And, I did I have the cash flow (from a 2nd job) to pay for those vacations yearly, which was why I was working that job to begin with. Could I have not done that and had more money in the bank right now? Of course, but would I trade that for the memories and experiences I enjoyed with my kids? NO!!!!

Sorry, but there is no right way to look at this. People make the choice of how they want to live their lives and what they want at the end of the day.

For a lot of people, including me, there is more to life than a fat bank account. As I said earlier, I respect you have brought up these points to think about for those that are considering financing DVC as I do feel that no one should go into this decision lightly.

But, to tell people that you pity them because they put the memories and time at WDW above money, is just plain wrong. We need to respect each other's opinion, because the bottom line, that is all this discussion is about--each and everyone's opinion about how to buy a DVC membership.

 

[crisi]

Crisi:

Back in:

Support for my 90% of the people get it right assertion from the Orlando Sentinel (below) Would love to see facts specific to dvc finaincing and how many lives it has ruined. By the way, 75% of buyers finance. In the most difficult environment in 100 years, fewer than 10% of all timeshare finance contracts are going sour. This is across the entire industry. Take your best guess on DVC defaults, but they are at the top of this food chain in terms of credit worthy buyers. It makes one wonder what dvc defaults are in normal environments. I would make a bet that it is lower than mortgage defaults. Please read the numbers below carefully if you are not a finance person. I'll give you a hint, default rates in 1st quarter 09 are not 10.4%

"The entire time-share industry is grappling with rising defaults. The industry-wide default rate was 7.9 percent in 2008, up 30 percent from 2007, according to the American Resort Development Association. It has continued to grow in 2009, rising 31 percent during the first quarter of the year from the first quarter of 2008.

Disney says the default rate at Vacation Club is lower than the industry average, though it would not provide specific figures."

Give me your facts, not 4 posters on a message board.

Also, don't use the 10% default number. You see, those are potentially worse case defaults on dvc financed contracts. Those by definition are only secured by your dvc interest. The things you lose are your points and your credit score.........period. It won't cause you to lose your mortgage.

I don't care about population statistics. I'm talking about individuals. You seem to care about it as a population....I really don't. I'm sure that in most cases it works fine - but that is still not a good reason to encourage it.

 

[marynvince]

I don't care about population statistics. I'm talking about individuals. You seem to care about it as a population....I really don't. I'm sure that in most cases it works fine - but that is still not a good reason to encourage it.

I really do. It must be tough always being right. Never considering other points of view. Having to always have the last word. Unfortunately the experiences in your life have jaded you and left you bitter.

 

[babster462]

My grandmother died when my mother was young. Her final illness bankrupted the family. The financial pressures - as well as the emotional pressures - created three out of five not well children and had a negative impact on the last 40 years of my grandfather's life. My sister is a stage IIB breast cancer survivor who just went through her second radical mastectomy this fall. My other sister nearly died two years ago from alcoholism.

We enjoy our time with our vacations and our family. But DVC is not the least expensive way to vacation. This is, frankly, a justification for DVC that makes me pity you. Its a shame that only spending money you don't have lets you enjoy time with your family.

Hey thanks for the pity party!! I will think about it as I vacation 3-4 times a year with my family and friends on my DVC points for the next 48 years!! Hope you enjoy your inexpensive vacations on your money. To each his own!!

 

[hopare]

My grandmother died when my mother was young. Her final illness bankrupted the family. The financial pressures - as well as the emotional pressures - created three out of five not well children and had a negative impact on the last 40 years of my grandfather's life. My sister is a stage IIB breast cancer survivor who just went through her second radical mastectomy this fall. My other sister nearly died two years ago from alcoholism.

We enjoy our time with our vacations and our family. But DVC is not the least expensive way to vacation. This is, frankly, a justification for DVC that makes me pity you. Its a shame that only spending money you don't have lets you enjoy time with your family.

I was watching this thread closly. I have been struggling internally with financing DVC for a few years. I still can't bring myself to do it even though I know it will be great for our family We saved and will be buying resale (cash)in a few months.
One thing I hope is that I am never so unaccepting and judgemental. I would rather be poor and without DVC than be that miserable!

 

[nunzia]

I am a nurse and I have seen on a daily basis for the last 34 years how the future is never guaranteed to anyone. In the blink of an eye, your whole life can change and all your careful plans for the future change. I firmly believe in living for today and not for tomorrow because sometimes tomorrow never comes. Life can be too short. Buy into DVC and enjoy the vacations with your family and friends while you can. I go 3-4 times a year because that is what I bought into DVC for. Owning DVC makes you take the vacations you need and enjoy the time with family while you are still able to enjoy!!

 

[nunzia]

My grandmother died when my mother was young. Her final illness bankrupted the family. The financial pressures - as well as the emotional pressures - created three out of five not well children and had a negative impact on the last 40 years of my grandfather's life. My sister is a stage IIB breast cancer survivor who just went through her second radical mastectomy this fall. My other sister nearly died two years ago from alcoholism.

We enjoy our time with our vacations and our family. But DVC is not the least expensive way to vacation. This is, frankly, a justification for DVC that makes me pity you. Its a shame that only spending money you don't have lets you enjoy time with your family.

Wow..that last statement seems a little harsh.
I'm sorry for all the problems your family has had and are having.
I really don't think the point here is if it's WISE to finance or heck, if it's WISE to do any discretionary spending at all. You can always go to extremes to make points and yes, there are overspenders (like my SIL who seriously has this issue, can ill afford it and has had storage sheds ((barns)) built to store all the junk) You can also argue that almost anything is an unwise use of money since almost anything can be had cheaper or not have to be had at all. I get at least 90% of my clothing at thirft stores (clearance racks in thrift stores are even better), so I think anyone who buys their clothes retail is not making a wise use of their money. And anyone who pays more than 15.00 for a purse is just foolish. MY opinion, but if people want to do that fine. I bet we all could have bought much smaller houses and saved more. We could have no TV, never dine out, never buy books (library). We could use public transportation or a bicycle or scooter and not have a car, or we could buy a Focus instead of a Lexus. I just think it's silly to argue about wise use of money or credit when people have different opinions of needs and wants. Yes..ALOT of people (and organizations) were completely idiotic with their financial dealings..how could anyone think housing was sustainable at those increases? Well, they didn't, but they thought THEY could get THERES before it crashed and too bad to everyone else.
Anyway, there is opinions and then there is judging and I think we should be careful to keep the two seperate.

 

[CarolMN]

OK. Rather than give out multiple infractions, I am closing this thread. Reason should be obvious.