New Down Payment Calculations

[nunzia]

I had posted elsewhere about my VGC being 'off' as far as what I had expected and been told by my guide. Then I read an article on DVC News that explained a new accounting method that would go into effect after the 29th. I believe this has already gone into effect, but my experience has a different result than what was presented as to how this works.
In a nutshell, previously I were quoted a sales price of $112.00 per point for VGC, then Iwould 'get' a gift card worth $5.00 a point that would be applied to mydown payment. The new way of doing this would be to require all the down in upfront cash and the $5.00 off would be applied to the balance.
Here is my scenario:
I purchased 2 contracts at VGC, one for 60 points and one for 65. I had arranged to have an initial down of $1,000 to be put on my credit card to lock in my purchase, $500 going toward each contract. Then, the $5.00 off per point would also be included in that which would be $300.00 for the 60 point contract and $325.00 for the 65 point contract. After I received the paperwork I would send in an additional $4,000, so my total down for the 60 point would be 2,800 and for the 65 point 2,825. Are you with me?

So..on the 25th my guide calls me and tells me it's all a done deal (YEAH!) Then he tells me the amount I need to send in by check, but instead of the planned upon $2,000 toward each contract I am told the total due on the 60 point is $2,300 and the total due on the 65 point is $2,325. I'm kinda confused, but OK. Now..after checking around and reading the article on DVC News I figure that this additional $625 due is the gift card value that is no longer applied to the down. OK, I can deal with that.
BUT...
By taking the gift card amount off the balance due, as it should be, my total financed should be $3,620 on the 60 point and $4,130 on the 65. If that was what was happening that would be fine.
However...the amount quoted by my guide for the what I still owned and have financed is: $3,920 for the 60 point and $4,455 for the 65.
That $5.00 off per point is totally missing..Does this mean I'll get an actual gift card? or have they just messed up and I'm paying the full $112 per point?
I hope this all makes sense.
I sure wish I had figured this out before the weekend, because now I have to wait until Mondy to try and sort this out..or maybe when my paperwork arrives this will be magically sorted out.
Has anyone else run into anything like this?
Sorry for the length of this!

 

[CarolMN]

It makes sense to me. The gift card(s) should be applied to the balances and thus reduce the amount financed.

It's possible that the paperwork will be correct when it arrives and that your guide just misspoke. But if it were me, I'd call anyway.

 

[Sandisw]

Unless I am missing something, a 60 point contract, at the $107.00 price ($112 - $5/ppt incentive) should be $6420.

You put are putting down $2500 ($500 as an initial and another $2000 with your paperwork). That leaves a balance of $3920, just what you said your guide told you was your balance for financing.

For a 65 point contract, you should be paying $6955 - $2500, leaving a financed balance of $4455.

I think your guide has the correct figures. However, if your guide says you must send in more than the $2000 for each contract, then you are correct--they have not given you the credit for the GC. I know when my paperwork came, it said I owed the amount of the GC, but my guide told me to just ignore it and not to send anything in. Maybe this is what happened to you.

 

[Crystal_27]

I read (probably on the same source that the OP did) that Disney got into some sort of "legal trouble" regarding the current application of the $5.00/point discount. I found that "legal trouble" statement very odd given that Disney provides the financing so, therefore, wouldn't it make sense that they can write their own financing terms? Maybe the situation that the OP is experiencing has happened many times and people are suing??

Anyway, I'll be curious to see what happens in the OP's situation. It sounds like your guide assumed that you wanted the incentive in the form of a gift card since you were making such a substantial down payment?? Either way, best of luck to you in getting it straightened out.

 

[alice99]

I know when my paperwork came, it said I owed the amount of the GC, but my guide told me to just ignore it and not to send anything in. Maybe this is what happened to you.

Same for me, the way it is worded is confusing.

 

[mickeysmyboy]

DH and I toured on Thursday and are planning to make an inital investment of 160 - 200 points at AKV.

From what our guide said the incentive has been $1250 off the down payment of 10%, so if we wanted a 200 point contract the down payment would be $990 (10% would be $2240 - $1250= $990)

That offer changes tomorrow and the $1250 off will no longer apply to the down payment but the principle of the loan.

It wasn't explained to us a gift card or per point but as a total amount of $1250 off. It didn't much matter to us, we were planning on putting much more then 10% down anyway.

I can't wait to get everything all set and actually be a DVC owner!! I didn't think DH would ever do it!

 

[nunzia]

Unless I am missing something, a 60 point contract, at the $107.00 price ($112 - $5/ppt incentive) should be $6420.

You put are putting down $2500 ($500 as an initial and another $2000 with your paperwork). That leaves a balance of $3920, just what you said your guide told you was your balance for financing.

For a 65 point contract, you should be paying $6955 - $2500, leaving a financed balance of $4455.

I think your guide has the correct figures. However, if your guide says you must send in more than the $2000 for each contract, then you are correct--they have not given you the credit for the GC. I know when my paperwork came, it said I owed the amount of the GC, but my guide told me to just ignore it and not to send anything in. Maybe this is what happened to you.

This may be it.. I was called by a DVC guy yesterday (these guys are good!) and bottom line is that the 5.00 per point is applied to the down, and I only need to send in the 4,000 extra for my total down. So..I guess this was applied to the down after all and all is good. I think this is a very busy time and confusion reigns, not to mention that I was also at work when I talked to my guide and people were popping in and out I can't say enough though at how professional the DVC folks are and what great customer service they have. I also can't say how excited I am that there are points to go around and I finally get to be a VGC owner