New DVC Contract THROUGH Disney for less than 100 a month!

[timandlesley]

For those of you looking for an affordable option to buy into DVC, this post is for you
My guide sent me this tonight:
A new member can join and be a member of Disney's Hilton Head Island Resort for 100 points...at $80 a point...no closing costs...and we'll give them March 09 points for 200 points come next month to use on their 1st vacation! A monthly payment of under $100 a month!

Wish this deal was around when we bought in, GREAT way to get in at a very affordable rate
-Lesley

 

[bwvBound]

 

[Nikisha421]

Not a bad sales pitch but wouldnt someone want to buy in at a newer resort with a long contract life? But at the same time I guess you cant beat the price no matter the length of the contract!

 

[timandlesley]

I think it's just having those points that you can use, you can book at 7 months and get to buy into DVC for a low monthly payment. Just passing it along
Lesley

 

[Lynne M]

There's a reason it's so cheap. It's a nice deal for people who want to stay at HH. Not a bargain at all for those who want to stay at WDW.

Dues are very high at HH, significantly higher than the WDW resorts. Over time, that additional cost will outweigh any savings on the initial buy-in price. You may get in at an affordable price, but you'll pay more over the life of the contract than those who own at WDW resorts.

If you're not fussy about where you stay, it's possible to get reservations at WDW at 7 months. For the last several months of the year (Oct-Dec), you'd likely only have a choice of OKW, SSR, or possibly AKV. If you want to visit in December, you may have difficulty getting even those resorts at 7 months. And if you're OK staying at OKW or SSR, you'd save money in the long run by buying resale there.

 

[Crystal_27]

That really isn't a bad deal at all (although I wonder if the $80/point is comparable to what HHI is being listed at through the resale sites...I would think Disney is on the high end). Still, a pretty darn convenience way to get into the DVC system. Thanks for sharing!

 

[JimC]

Does the $100 monthly payment include the $557 in annual dues? How many months does it take you to pay the loan for those points? It could be a very costly way to purchase DVC.

On a remaining term of contract basis, $80 seems expensive, particularly for off-property.

 

[tammymacb]

That really isn't a bad deal at all (although I wonder if the $80/point is comparable to what HHI is being listed at through the resale sites...I would think Disney is on the high end). Still, a pretty darn convenience way to get into the DVC system. Thanks for sharing!

I'm waiting for ROFR right now on a HHI contract. 150 points. 38 banked 08s, all 09s and all 10s coming. Seller is paying closing. $53.00 per point. Now ( if it passes ) THAT is a good deal.

 

[lugnut33]

I'm waiting for ROFR right now on a HHI contract. 150 points. 38 banked 08s, all 09s and all 10s coming. Seller is paying closing. $53.00 per point. Now ( if it passes ) THAT is a good deal.

That's a $4050 difference!!

 

[5forDiz]

I'm waiting for ROFR right now on a HHI contract. 150 points. 38 banked 08s, all 09s and all 10s coming. Seller is paying closing. $53.00 per point. Now ( if it passes ) THAT is a good deal.

Sending lots of pixie dust your way Tammy that your HHI contract will make it through ROFR ! Yes it would be a good deal Please post back how it goes.

$80 is high for HHI compared to resale prices; and even paying closing costs/fees on resale there is still a nice $ savings to be realized; OKW resales around $80 and SSR resale prices are in that ballpark too.

 

[Dean]

It's not a bad deal if you only want 100 points and HH is a good choice for someone but one can still get in cheaper resale and still finance in many cases if needed.

 

[letitsnow]

if i took that deal would i be able to book for gcv??? we wouldn't ever make it out to florida but would love to be a dvc member. seems the more affordable way.

 

[quentina]

There's a reason it's so cheap. It's a nice deal for people who want to stay at HH. Not a bargain at all for those who want to stay at WDW.

Dues are very high at HH, significantly higher than the WDW resorts. Over time, that additional cost will outweigh any savings on the initial buy-in price. You may get in at an affordable price, but you'll pay more over the life of the contract than those who own at WDW resorts.

If you're not fussy about where you stay, it's possible to get reservations at WDW at 7 months. For the last several months of the year (Oct-Dec), you'd likely only have a choice of OKW, SSR, or possibly AKV. If you want to visit in December, you may have difficulty getting even those resorts at 7 months. And if you're OK staying at OKW or SSR, you'd save money in the long run by buying resale there.

We own HHI, VB and VWL. I have never had a problem with the 7 month window....the 11 month window at HHI is needed if you want to go there in prime time (4th of July etc). We just got back from AKV on Monday....booked at 4 months. We have stayed at all places except BLT....this is a personal choice, never tried to get a reservation and too be honest, don't think I will.

 

[Jason@dvcstore]

That really isn't a bad deal at all (although I wonder if the $80/point is comparable to what HHI is being listed at through the resale sites...I would think Disney is on the high end). Still, a pretty darn convenience way to get into the DVC system. Thanks for sharing!

The Timeshare Store, Inc.® sold a 150 point Hilton Head contract on 1/12/10 for $57 per point with the buyer paying closing costs of $425.

THE BUYER RECEIVED 61 BANKED POINTS FROM THE 2008 ALLOCATION WHICH MUST BE USED BEFORE 12/1/10, 150 POINTS FROM THE 2009 ALLOCATION, 150 POINTS FROM THE 2010 ALLOCATION AND ALL POINTS FROM CLOSING FORWARD.

It was sent to Disney on 1/14/10 and Disney waived on that purchase on 2/4/10.

Jason

 

[skierrob]

Wow. I read the title of this thread and shuddered. No offense to the original poster or anyone else who finances their DVC membership, but why would anyone buy DVC based on the monthly payment plan -- or even finance a membership through Disney in the first place?

To me, the original post seems to be like someone buying a car because "the payment is only $300 a month". The thought never occurs to that person that the payment $300 per month for 72 months includes a high 14% interest rate due to the profit margin from that promotion. That the cost of the car under this "promotion" is $25,000 in the end, even though the sticker MSRP price was $15,000 and you could have gotten it for $13,500 with some negotiation.

So, that great monthly payment cost the purchaser of that car at least $10,000 extra.

In terms of DVC, I'm sure the argument is "well, I can go to WDW for 10 days for just $1,200 a year plus dues!"

You are financing that DVC membership through Disney at what cost? 12 to 14% of the purchase price cost a year?

So, if you saved up money first and bought it without financing, or bought a smaller contract with cash, you'd find that you would pay a lot less than your $1,200 per year plus dues.

I get that people want to buy things "now" versus saving up money to buy things with cash 8 years from now. But the amount of money it costs to have those things now is just horrible. Even if your kid is 5 years old right now and you want "the best" for your child, the extra $5,000 you save by saving up the money first and then buying DVC when your kid is 13 could easily be used as the start of one heck of a nice college fund.

Sorry to rant about this. Again, I don't mean to offend anyone -- especially the original poster. It's just that the cost of financed memberships is so dramatically high that I don't see why anyone does it.

Robert

 

[ToddyLu]

See DH and I financed and while I can certainly understand ones point about paying in cash....for us it was a good time...we got a great price per point, 2008 points, and can afford the payments easily. We got this when the economy was in the tank (still is) and no one in our area was offering any sort of loan for this. Could we have waited a year...yeah....could we have waited four years and paid cash...yeah....I also never thought I would lose my house from a hurricane 100 miles away....it completely changed our perspective. Not bashing, just letting you know life affects people and their choices in different ways.

Why do people buy a Lexus when they can pay cash for a Toyota Matrix (which I happen to think are very cute). It is the leather, the GPS, the Bose stereo system. Heck if I had an hour and a half commute I would want that comfort.

When DH had to get his parents out on their porch during Katrina, with his sick father sitting on his chair/walker....watching the water come up...he then had to go out and find people and pets in our community as a fireman...

.....he needed a new car (our Jeep was flooded)......we bought him a Hummer....he deserved it.

 

[letitsnow]

If I waited and saved all that $$$ so I didn't have to finance I'd be throwing my $$$ away on hotel says in the meantime while I'm saving. Sometimes financing is the only way for some people to make a big purchase.

 

[Dean]

If I waited and saved all that $$$ so I didn't have to finance I'd be throwing my $$$ away on hotel says in the meantime while I'm saving. Sometimes financing is the only way for some people to make a big purchase.

Maybe for a house or business, not really for anything else including cars. Spending money on vacations in general and timeshares specifically is a choice one makes. Some people can't afford vacations at all but still take them and finance with a CC. A point I've made several times is if DVC is right for you, it's worth making a few sacrifices in the interim to buy it outright.

 

[hellerjw]

I agree that in a perfect world paying cash for every purchase is the best way to go. However, nobody knows what will happen tomorrow much less several years down the road as they are holding off while saving to make that big purchase. We financed our contracts and did it for 2 main reasons:

1. The financing through Disney is like a mortgage and the interest is deductible, so the pill was a little easier to swallow.
2. Our kids are young and in their prime "Disney Magic" years. We wanted them to experience that as much as they could while young. The real world is a cold, harsh place and being able to give them a living fantasy to believe in was worth every penny of interest in our opinion.

 

[z28wiz]

AGREE 100%

I agree that in a perfect world paying cash for every purchase is the best way to go. However, nobody knows what will happen tomorrow much less several years down the road as they are holding off while saving to make that big purchase. We financed our contracts and did it for 2 main reasons:

1. The financing through Disney is like a mortgage and the interest is deductible, so the pill was a little easier to swallow.
2. Our kids are young and in their prime "Disney Magic" years. We wanted them to experience that as much as they could while young. The real world is a cold, harsh place and being able to give them a living fantasy to believe in was worth every penny of interest in our opinion.