Paying for DVC

[KristenCH]

We've been doing lots of research on DVC and we are slightly confused on how you pay for DVC. Do you pay for all of it all at once, like if we were to buy 75 points Copper Creek at $188 direct from Disney right now, would we be expected to pay for all $14,100 immediately or can you pay for it over the course of a year, two years, etc.? I know it's possible to finance it, but I was unsure on what Disney expects if you don't finance it.

 

[The Jackal]

We've been doing lots of research on DVC and we are slightly confused on how you pay for DVC. Do you pay for all of it all at once, like if we were to buy 75 points Copper Creek at $188 direct from Disney right now, would we be expected to pay for all $14,100 immediately or can you pay for it over the course of a year, two years, etc.? I know it's possible to finance it, but I was unsure on what Disney expects if you don't finance it.

No financing means you pay for all of it.

 

[caylene44]

We've been doing lots of research on DVC and we are slightly confused on how you pay for DVC. Do you pay for all of it all at once, like if we were to buy 75 points Copper Creek at $188 direct from Disney right now, would we be expected to pay for all $14,100 immediately or can you pay for it over the course of a year, two years, etc.? I know it's possible to finance it, but I was unsure on what Disney expects if you don't finance it.

It's the same as purchasing any kind of real estate. If you cannot pay cash upfront, you take out a loan/mortgage on it.

 

[MurphyL]

I am in the process of buying a contract with Disney and they indicated I could put a $1,000 deposit and pay for the remainder within a month. They said they couldn’t extend it beyond the month. If you get the Chase Disney credit card it allows you to charge the purchase and pay for it over six months. They offer a 0% rate for six months and give you points for the purchase. Look into this option.

 

[rob5589]

If you get the Chase Disney credit card it allows you to charge the purchase and pay for it over six months. They offer a 0% rate for six months and give you points for the purchase. Look into this option.

They give you double points on the purchase which is an added bonus. Paid for my park hopper for my first DVC visit which was great.

 

[gharter]

Some people do finiance it.
I am in the group who believes when you are buying in to DVC, this is a vacation, not an investment and if you can't afford it without financing, you probably should not be buying yet.

 

[Cyberc1978]

I’ve read that some put the total amount towards a creditcard ie a Disney Visa card and get bonus back. Using a Disney Visa card is also interest free for up to 6 months that way you can sort of finance it without paying interest. Assuming you pay off the total within the 6months.

 

[wnielsen1]

I’ve read that some put the total amount towards a creditcard ie a Disney Visa card and get bonus back. Using a Disney Visa card is also interest free for up to 6 months that way you can sort of finance it without paying interest. Assuming you pay off the total within the 6months.

I've done it and they do give you 2x points (requires the Premier version of the card with the $49 annual fee) and they also offer you the 6 months interest free financing (either version of the card provides this) although I just paid it off when the bill came.

 

[anomamatt]

Other than financing long-term at ~10%, other options are:

1. Disney Visa, 2% rewards, 6 months @ 0% -- I always do this. They will generally give you 30ish days to pay the final amount.

2. Pay 50% now, Disney will finance 50% over 12 months at like 5-6%.

 

[kniquy]

We've been doing lots of research on DVC and we are slightly confused on how you pay for DVC. Do you pay for all of it all at once, like if we were to buy 75 points Copper Creek at $188 direct from Disney right now, would we be expected to pay for all $14,100 immediately or can you pay for it over the course of a year, two years, etc.? I know it's possible to finance it, but I was unsure on what Disney expects if you don't finance it.

You can do a few different things.
1. Pay in full/cash at time of closing
2. Put some or all on a Disney Chase credit card -- it gives you 6 months interest free to pay for it. After that would be your regular interest rate so not ideal if you can't pay it off by 6 months. This gives you a little back in disney rewards, So $141 back if you have a regular card or $282 back if you have the card that gives 2% back.
3. Finance through Disney or through a different timeshare lending company (there are a number of options). I think both options are comparable in interest rate and lenth of loans. Some require credit check, some don't. Some require a different % of down payments.

 

[Rush]

We put our 75 direct points on our Costco Visa card for the 3% cash back, though I’m still waiting to see if that will qualify as a travel expense, otherwise it will just be 1%. Normally Disney does get us 3%, but since it’s to DVD and shows up as a timeshare on my bill we’ll see. If it does get 3% that will cover the closing costs.

For our 175 point resale purchase we used LightStream (a SunTrust Bank product) at 6.24% and up depending on length of term, amount borrowing and credit rating. It was a good rate, no fees, and it’s super easy and fast, I can’t recommend them enough. Filled out the application, within 2 min they approved and will deposit the money directly into your bank account that day or a specific date of your choosing.

To some extent though I do agree that it’s probably best not to borrow for DVC, especially long term. But it’s not always black and white. In our case, we intend to have it paid off in 2-3 months at most, we just elected to go the finance route since there were no fees and to avoid having to sell equities to free up the cash. At the end of the day it’s each person’s choice to do with their finances as they see fit, and if needed, seek professional financial advice.

 

[sachilles]

As mentioned above, it's suggested you pay it in it's entirety up front. The financing offered isn't a real great rate.
Those that pay it up front often use a credit card that earns rewards. Since it's a sizable amount, disney is willing to split up the charges so long as they are used by the payment date. In my case I wanted the Airline miles for my united card. I put about 70% on the card, and asked them to charge the remaining amount a week later to the same card. That gave me time to pay the card and free up the credit line again without causing any stress about being near the credit limit. It comes through as a lodging charge, so I earned double miles on the transaction. Earned enough miles for 2 round trips to Orlando.

 

[rg35]

I know the common advice is against financing (we paid cash back in 2012), but DVC price increases have very much outpaced wage increases (real median household income was actually below 1999 levels up until 2016) so I have no idea how most Americans would be able buy DVC without financing. Even before these large jumps in price, I believe the majority of DVC purchases were financed anyway.

For the most part, DVC (and WDW vacations in general) are products marketed and sold to people who can not truly "afford" them without creating large debt or financial strain.

 

[akirk18]

There are a couple credit cards (Chase Freedom and a one from Wells Fargo) I know of that right now have interest free for 15-18 months. My wife and I choose this method because paying off in 6 months was doable but 15 months made it much much easier.

 

[TexasChick123]

There are a couple credit cards (Chase Freedom and a one from Wells Fargo) I know of that right now have interest free for 15-18 months. My wife and I choose this method because paying off in 6 months was doable but 15 months made it much much easier.

Same here. We got the Chase Freedom. We are going to get 1.5x rewards and have 15 months to pay it off with 0% interest rather than all at once. It’s a win-win for us.

 

[Jack_Sparrow_NJ]

Just made a direct add-on purchase. My guide set it up so that I would pay 1/3 today, 1/3 in 30 days and the final 1/3 in 90 days. It seems like that is a pretty standard option. And yes, if you have a points card you can use the card to pay for each of the three payments.

 

[4luv2cdisney]

Just made a direct add-on purchase. My guide set it up so that I would pay 1/3 today, 1/3 in 30 days and the final 1/3 in 90 days. It seems like that is a pretty standard option. And yes, if you have a points card you can use the card to pay for each of the three payments.

Oooooh. That's a pretty nice option. Why did you have to tell me that?

 

[AVeliz]

Other than financing long-term at ~10%, other options are:

1. Disney Visa, 2% rewards, 6 months @ 0% -- I always do this. They will generally give you 30ish days to pay the final amount.

2. Pay 50% now, Disney will finance 50% over 12 months at like 5-6%.

Do you know if this is for new Disney Premier Card customers, or does the 6 month 0% apply to current Disney Premier customers as well? I already have the Disney Premier Card and just curious if I pay a portion of my contract that I would get the 6 months as well. Thanks in advance!

 

[AVeliz]

I've done it and they do give you 2x points (requires the Premier version of the card with the $49 annual fee) and they also offer you the 6 months interest free financing (either version of the card provides this) although I just paid it off when the bill came.

Do you know if this is for new Disney Premier Card customers, or does the 6 month 0% apply to current Disney Premier customers as well? I already have the Disney Premier Card and just curious if I pay a portion of my contract that I would get the 6 months as well. Thanks in advance!

 

[PolyRob]

Do you know if this is for new Disney Premier Card customers, or does the 6 month 0% apply to current Disney Premier customers as well? I already have the Disney Premier Card and just curious if I pay a portion of my contract that I would get the 6 months as well. Thanks in advance!

The 6 month 0% financing is a perk on all Disney Visa cards (free or premier). It is not an introductory bonus either. You always have the option for 0% up to 6 month on a Disney vacation or DVC purchase.