New purchase and financing rate through Disney?

[dcibrando]

How do the payment plans work with a new SSR purchase through disney? what is the rate? tks

 

[tjkraz]

For the best interest rate (9.75%) you need to put 20% down and be set-up for direct debit of monthly payments. Any current promotional discounts are INCLUDED in the 20%, meaning that you do actually pay less than the 20% down.

Financing is for up to 10 years, which I would recommend since there is no pre-payment penalty. If you want to make additional payments, you just call member accounting and they will take care of it.

Monthly payments normally begin within a couple of months after you file the paperwork. But I believe that SSR is still in a pre-sales mode (selling points in units that haven't yet opened), so payments may be defered a few months longer.

If you happen to be a Disney Visa card holder, there is a promotion running now where you can put up to 10% of the down payment on the visa and defer payments and interest for 6 months. The nice thing about this promotion is that if you pay your balance off each month, payments are applied to the DVC purchase LAST. So, if you charged a DVC down-payment plus $2000 in other charges, you can pay off the $2000, continue to charge other items, and not pay any interest. Hope that makes sense.

You also earn 1% toward Disney Dollars for every purchase on the Visa.

Annual dues can also be scheduled for monthly debit if you so desire. There is no service charge or interest involved--they simply debit your bank account for 1/12 of the annual dues per month.

Hope that helps.

 

[dcibrando]

this is interesting...

so if i make a purchase totalling $15,000
I would need to put 20% down
BUT... if I am a disney visa holder (which I am) I can put $1500 (of the $3,000/20%) on the visa and not pay for 6 months?

 

[cdpa4d]

One note on the Disney Visa promotion. You still have to make a minimum payment on the down payment every month. I believe 2 or 3% of the $2,000 down payment. The 10% down payment is interest free for 6 months, but a 2 or 3% payment is required on the $2,000 down payment each month.

 

[dcibrando]

thanks!

 

[tjkraz]

I'm sure cdpa4d is right about the payments. But just want to reconfirm that it is interest free. If you have web access to your Visa account, you should be able to log-on and see full details of the promotion. It does state:

Payments and credits are allocated to balances with lower Annual Percentage Rates (APRs) (such as promotional APRs) before balances with higher APRs except promotional balances on qualified Disney Vacation Club or Disney vacation package purchases.

If you look at the text I bolded above, that's where it indicates that paying off your full monthly balance each month LESS the DVC down-payment will prevent interest from accruing.

On your $1500 you'll also earn $15 in reward points.

 

[Tramp68]

one other thing...

At $98 per point, 150 points costs a total of $14,700. You are getting $8 per point incentive which is a total of $1,200.

The 20% down payment is $2,940 of which Disney is giving you $1,200, leaving you with a need to pay $1,740 or 11.84%

I just noticed you used $15,000 as a price...which is like 153 points...changes the figures a bit, but the jist is the same..you pay 11.84% of the 20% down payment.

All of YOUR portion of the down payment may go on your Visa for 0% with your minimum monthly payments for 6 months...

 

[tjkraz]

All of YOUR portion of the down payment may go on your Visa for 0% with your minimum monthly payments for 6 months...

Is that right? Are they allowing it even if it exceeds the posted 10% threshold?

I guess Chase probably has no way of really knowing how large the contract purchase was, right? Perhaps they apply the no-interest promotion to any charges put through by the Vacation Club...

 

[dcibrando]

but wait a sec... is disney offering the $8 off ANY the 150 points

this is from another post about the NEW incentive:
Here is the new offer as I understand it.
SSR 150 Pts
Feb 05 U/Y Prorated Dues (so approx 6 months of dues due)
They suggest they are giving 150 pts free because you will get 150 pts again in Feb 06.
Price Per Point $90.00



if my calculations are right... if I get 150 points X $90 = $13,500 but on their website it shows $14,700 being the starting point???? (which would be $98 per point).

so is $13,500 really the lowest starting point... or is it like the last incentive where it's $8 off per point OR 100+ extra points

 

[tjkraz]

if my calculations are right... if I get 150 points X $90 = $13,500 but on their website it shows $14,700 being the starting point???? (which would be $98 per point).

so is $13,500 really the lowest starting point... or is it like the last incentive where it's $8 off per point OR 100+ extra points

I can't confirm or deny the report you posted about the current incentive. But I'm sure there is SOME incentive.

The prices reported on the website most likely meet a legal requirement. That entire disclaimer was clearly scripted to comply with timeshare law. In the past, they offered a "free vacation" promotion concurrently with a per-point cash discount. Those opting for the "free vacation" were required to pay the full purchase price. That may well be the reason why the full sticker price of the points must be disclosed.

 

[Tramp68]

if my calculations are right... if I get 150 points X $90 = $13,500 but on their website it shows $14,700 being the starting point???? (which would be $98 per point).

so is $13,500 really the lowest starting point... or is it like the last incentive where it's $8 off per point OR 100+ extra points

__________________
I can't confirm or deny the current incentive...BUT..

What Disney does is base your purchase price on the FULL amount or $98 per point in order to calculate the 20% you need to put down. So, in essence you are both correct. The entry price you have to PAY is $13,500 because you are getting $1,200 from the $8 off per point..total $14,700.

Basically what this means is that you have to come up with $2940 for your down payment ($1740 including the $1200 from Disney) instead of 20% of $13,500 which is only $2700. Trivial but can be important if you are scraping pennies to purchase.

Is that right? Are they allowing it even if it exceeds the posted 10% threshold?

I don't know..I wasnt told there was a 10% threshold by my guide, but I didnt have a Disney VISA anyway. As you said, I am not sure if they would even know. Doesnt hurt to try..worst case is you end up paying a few dollars in interest. I still have an old Disney bankcard and never reapplied.

 

[minnie1928]

that the 0% interest thing for the Disney Visa was up to $2500. I purchased at SSR on Saturday and my sales agent told me this. I haven't looked at the Disney Visa site yet to see if she was correct.

 

[athenna]

that the 0% interest thing for the Disney Visa was up to $2500. I purchased at SSR on Saturday and my sales agent told me this. I haven't looked at the Disney Visa site yet to see if she was correct.

This is correct. I charged $2500 of my add-on to my Disney Visa because of this promotion.

 

[Silos]

I'm sure cdpa4d is right about the payments. But just want to reconfirm that it is interest free. If you have web access to your Visa account, you should be able to log-on and see full details of the promotion. It does state:

Payments and credits are allocated to balances with lower Annual Percentage Rates (APRs) (such as promotional APRs) before balances with higher APRs except promotional balances on qualified Disney Vacation Club or Disney vacation package purchases.

If you look at the text I bolded above, that's where it indicates that paying off your full monthly balance each month LESS the DVC down-payment will prevent interest from accruing.

On your $1500 you'll also earn $15 in reward points.

Unfortunately, this promotinal rate on the VISA card does not work correctly. Bank One now Chase is applying payments based on the normal sequence that the credit card was originally setup to handle. That is payments reduce the lower rate items first. I know this because it has happened to mean for the last three months and after talking with the Bank's Quality Control department they verified, reluctantly, that the programming was incorrect. They have since then corrected so they say, but I paid off the balance to keep from having to call on a monthly basis and explain the payments were applied incorrectly once again.

 

[senecabeach]

Thanks for all these thoughts...I've learned something too !!

Brandon...

Do yourself a kindness and ...

.......call your guide for the "Official" response !!!

Remember...this is an important financial decision......just like a home mortgage question.... ask an expert.. not a neighbor!!

 

[tjkraz]

Unfortunately, this promotinal rate on the VISA card does not work correctly.

Gee, there's a shock...

 

[Ergens2]

Ok, so I am a little confused. How can you use your points if you finance? Essentially your contract is not paid for so how does that work?

 

[tjkraz]

Ok, so I am a little confused. How can you use your points if you finance? Essentially your contract is not paid for so how does that work?

Same way you get to live in your house even if you have a mortgage.

Since Disney writes the note for those who finance, in a sense they are taking money out of one pocket and putting it into another. Incidentally, interest is often tax deductible for those who finance since the note is secured by property. It's treated as a second home.

 

[Ergens2]

Ah I see! Thanks Tim!! I am a little slow on the uptake today.

 

[dcibrando]

will disney let you 'bank' the extra 150 points they give you for becoming a member?