Purchasing DVC Points!

[princessnikitaa]

Hello, my name is Nikita and I am 20 years old! I've been on sooo many Disney vacations that I started to look into DVC. My close family member is a DVC member, and it just makes sense for us as we go every year.

I was just looking for you folks to give me some inside tips on purchasing DVC points, and things I should know or that you have experienced while purchasing/owning.

I already know the basics of it, from having reference from my family member. But am open to any information you would like to pass on to me!
I've saved up some money,and am looking to finance. Anyone have any tips on that?

Also, does anyone know how I can set up a signature here on DISboards?
I'm a total newbie, and would like to put some extra information about my Disney Vacations whenever I create a post!

Thanks to all! Hoping to hear from you.

 

[magicaldisney]

Hi there! First for your signature, go to the upper right hand corner and click on your name, then you will go to signature on the left side of the page.

As for DVC, our first purchase was direct and then we added on with resale If I knew then what I know now, I would only buy resale. Because Disney is the only place we have used or intend to use our points any limitations placed on resale doesn't matter to us.

Good luck on your decision and if you have specific questions, please let us know.

 

[princessnikitaa]

Hi there! First for your signature, go to the upper right hand corner and click on your name, then you will go to signature on the left side of the page.

As for DVC, our first purchase was direct and then we added on with resale If I knew then what I know now, I would only buy resale. Because Disney is the only place we have used or intend to use our points any limitations placed on resale doesn't matter to us.

Good luck on your decision and if you have specific questions, please let us know.

Thank you so much for your response! Do you have any personal experience with financing or did you just buy straight out? I'm looking to finance but am questioning whether it's worth it or not!

 

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[magicaldisney]

It's never worth it if you can pay cash outright for it. However, if you can afford the monthly cost of a loan I don't see anything wrong with it. As with a car or a home you will pay much more for it because of all the interest you have to pay. The key is, knowing if you can afford the monthly payment without putting you in the poor house. If that's the case I would wait until the monthly payment doesn't kill you or you have more cash to put towards the purchase. If you buy direct, you can finance directly through Disney and if you go resale, they will direct you to a lender they like to use. Don't forget there are annual dues that you will have to pay for the points you purchase. Keep that in mind for budgeting purposes.

Many here will disagree with me and will say you should only buy if you can pay cash for it. No judging from me. You do what works for you!

 

[Lynne M]

The problem with financing, if you do it through Disney, is that the finance charges are so high they may eat up any savings on resort stays you get by buying DVC. And to me, then you've taken away any justification for buying in the first place. You really need to do the math.

You also need to consider what your home resort would be, because you don't just 'buy DVC', you're really buying an interest in a specific resort. Your resort choice determines where you get the 11-month booking advantage,which can be critically important. It also determines how long you will own your points. And, how much you will pay. For example, if you go through Disney and buy at the Poly and finance, you'll likely be paying way, way, way, WAY more for your membership than someone who buys the same number of points at SSR, resale, and pays cash. Over the life of the membership, thousands more.

 

[princessnikitaa]

The problem with financing, if you do it through Disney, is that the finance charges are so high they may eat up any savings on resort stays you get by buying DVC. You really need to do the math.

You also need to consider what your home resort would be, because you don't just 'buy DVC', you're really buying an interest in a specific resort. Your resort choice determines where you get the 11-month booking advantage,which can be critically important. It also determines how long you will own your points. And, how much you will pay. For example, if you go through Disney and buy at the Poly and finance, you'll likely be paying way, way, way, WAY more for your membership than someone who buys the same number of points at SSR, resale, and pays cash. Over the life of the membership, thousands more.

Thank you so much for your input!!

I have a resale company that's really good and sends me almost bi-weekly e-mails, on resale. I know that I have the chunk of it saved up, it's just maybe like 3,000 - 4,000 I might have to loan out. I'm thinking maybe it might be a better investment for me, because I do plan on attending one Disney vacation a year (or every two years if need be)..
I'm just wondering whether the outcome of a (almost a lifetime for me anyway since i'm so young..) of DVC outweighs the finance?
I'm hoping to finance as little as possible?

Also, anyone that has financed.. have you had any problems with doing so?

 

[Lynne M]

I know that I have the chunk of it saved up, it's just maybe like 3,000 - 4,000 I might have to loan out. I'm thinking maybe it might be a better investment for me, because I do plan on attending one Disney vacation a year (or every two years if need be)..
I'm just wondering whether the outcome of a (almost a lifetime for me anyway since i'm so young..) of DVC outweighs the finance?
I'm hoping to finance as little as possible?

Could you wait until you have the $3000- $4000 saved up?

 

[princessnikitaa]

Could you wait until you have the $3000- $4000 saved up?

I guess I could I was just hoping to use the points within the next year or two!

 

[magicaldisney]

If you can make the monthly payments, then finance what you need to, if that's what works for you. Whether you finance or don't finance only affects you and no one else, so do what's good for you. Many people finance and I haven't heard anything problems with financing.

Also, you can pay off a loan early. So, as you are going along and come up with a chunk of cash put it towards the loan.

 

[gandyeye]

DVC for me is a very easy decision. If you have to finance it, it is not a good idea. I just bought my first DVC resale contract after trying to make DVC a value proposition for the last 5 years. I never could work it out, even though I was paying cash. It was still a bad financial decision, especially at the resale prices today vs 5 years ago, but the lure of ownership at WDW got the best of me. It was a heart decision, not a head decision.

Just the annual dues I will pay for my 270 points would pay for a week at a value resort. Add any interest you will pay over the life of your loan and you could probably stay in a moderate for a week.

So, my advice is save your money until you can pay cash for your contract, then when the money is in your hands, you can decide if it is worth it.

 

[Minniesgal]

In your shoes i'd buy half the points now for cash, save up the rest and buy the rest of the points for cash when i have it.

 

[MsTessP]

Any financial advisor will tell you to think long and hard before financing a luxury timeshare. What you pay extra in financing costs may add considerably to your "break-even" point. Some who have needed to sell not too long after they purchased by financing never broke even, and some probably took a considerable loss. Save your money, even if it means staying at value or moderate resorts, and then buy resale for cash. DVC will still be there (and perhaps the resale market prices will actually go down a bit).

Another thing to remember: The dramatic ticket price increase this weeks should remind us all that the prepaid lodging you get by purchasing DVC is just that and only that - prepaid lodging. Nothing in way of other discounts is ever guaranteed. What is guaranteed is that ticket prices, airfare and other travel costs, and food WILL increase exponentially as time goes on. Also, keep in mind that owning DVC also means paying hefty member dues annually. If you stay a member for longer than the average owner (approximately 10 years), then you will pay out much more in member fees than you pay in upfront purchase costs.

 

[Dean]

Given you have a lot more knowledge and direct experience than most, you likely know if it's a good choice for you in general. But to be complete one needs to be able to plan ahead at least 7 months, not be subject to last minute cancelations routinely, be OK with the compromises of a timeshare, go enough to make DVC workable, value staying on property enough to pay signficantly more and be able to afford it. To me, that means paying cash but if you decide to finance you may want to consider Monera, Timesharelending.net and light stream. I'd never consider a HELOC, CC even if "interest free" or loan against a retirement account.

 

[princessnikitaa]

Given you have a lot more knowledge and direct experience than most, you likely know if it's a good choice for you in general. But to be complete one needs to be able to plan ahead at least 7 months, not be subject to last minute cancelations routinely, be OK with the compromises of a timeshare, go enough to make DVC workable, value staying on property enough to pay signficantly more and be able to afford it. To me, that means paying cash but if you decide to finance you may want to consider Monera, Timesharelending.net and light stream. I'd never consider a HELOC, CC even if "interest free" or loan against a retirement account.

Well, my plan is to put as much of it down as I can in cash, do a loan, and then pay off that loan in the shortest amount of time. That would be the monthly payment, PLUS any extra money I come across!

 

[Dean]

Well, my plan is to put as much of it down as I can in cash, do a loan, and then pay off that loan in the shortest amount of time. That would be the monthly payment, PLUS any extra money I come across!

The more you can put down the better. Two of the problems that people run into for this approach are that things can happen like job loss and most don't pay it off early. Of those quoted options that are reasonable, Lightstream is likely to be the cheapest. It's not deductible interest because it's not a mortgage but that shouldn't matter in this situation (basically doesn't in any almost any situation).

 

[kapicka]

I would recommend staying in very affordable accommodations or even skipping a year of Disney (which I know can be hard to do) to save up money so you can finance as little as possible. I know some people think pre-paying for vacations by buying DVC is silly anyway (I don't agree!) I do think that pre-commiting and financing vacations with interest is a bad idea.

Whatever you choose - do your research and if you have confidence that you are doing the right thing for you and your family (even if it is different than what I recommend) I wish you all the best!!

 

[Deb & Bill]

Have you completed your education? Any school loans? Do you own a reliable vehicle? Is your job reasonably secure? What about any possibility that you have a relationship that becomes more serious? Any plans to purchase a home or rent an apartment? You are really pretty young and have so much life ahead of you that could be expensive and that makes a DVC purchase less important. These are just things I might ask my son who is 22, just graduated from college and starting a new career. I'm being a mom.

DVC is basically a prepaid vacation plan (you pay ahead of time and your member fees every year). Sometimes it is hard to make those vacation payments when life gets in the way.

 

[com_op_2000]

You are doing the right thing by doing your research up-front.
Read these threads on the DIS and understand the following terms:
UY
MF
HR
11 month and 7 month booking windows
Concierge Collection
RCI
CM
MS
Direct vs resale
Once you have a full understanding of these terms.
Then read some more.

 

[kapicka]

One more thing - forgot to mention that you can also RENT points from a current DVC member. This can often help you save 30% or more off of room/villa reservation made through Disney. That way you can have some advantages of DVC without having to buy in and you can try it out.