Question on financing/cost of DVC

[mla973]

Hello - I just got back from a 8-day trip to the World, and fell in love with the look of SSR. DH and I are a young couple who travel to WDW every year or so. I plan on continuing the tradition. So, I wish we would have attended a DVC presentation when we were down there, and now I am regretting it.

Anyway, my question is on financing/cost details... Now I'm going to try to ask this with an example and hope I get the numbers and terminology correct, so here goes...

Let's say we decide to purchase 150 points of SSR directly from Disney. I'm assuming that I multiply the price per point to get a total, but threads I am reading here mention closing costs and such. I wondered if anyone could tell me what the additional costs are (beyond the per point price), and how financing is arranged if you cannot pay the total in cash upfront.

Thanks in advance!

 

[Beca]

There are no closing costs with Disney...they pay them for you. Yes, the total cost would be 150 X your cost per point. That is IT when you buy via DVC.

With Disney, you can put 10% or 20% down. 10% gets you an interest rate of 10.95% and 20% gets you an interest rate of 9.95%. If you are having trouble coming up with the down payment, you can take DVC up on "Magical Beginnings" and sell them your first year's points back. I'm not sure what they are offering right now on that one...either $5 or $10 per point. DVC will let you apply that to your down payment, so you can get "in" with very little out of pocket money.

Good luck on your decision,



Beca

 

[DrTomorrow]

I seem to remember one additional thing: if we set up automatic payment for our DVC purchase, we got a better interest rate. This was Sept. 2003, so I'm not sure what still applies.

Good luck!

 

[Pixie_Dust]

Also check resales. If you can get your financing elsewhere (or even better wait until you save up and don't have to finance/pay interest!), you could potentially save a bundle. We did.

 

[The Prophet]

Here is a way to get 0% financing on your purchase

1. Apply for one of the credit cards with a 0% rate on balance transfers and make sure your credit limit is sufficient to pay off your balance. (Discover is currently running this promotion)

2. Call DVC and pay off your balance with a credit card that gets you points/miles/whatever

3. Do a balance transfer from the 0% card to the one you used to pay off DVC.

Any questions let me know


The Prophet

 

[tjkraz]

If you want to buy a contract via resale, that's where you get into closing costs and additional fees. You CAN save some money buying on the resale market (how much depends on the exact specs of the contract you buy), but resales take a lot of extra time and effort to acquire, and you must come up with your own financing or pay cash. But if you are a fan of SSR, it's probably not even worth considering a resale.

The going rate for SSR now is $95 per point, with the first set of points coming in 2005. They are also offering a promotion that will deduct $10 per point from the price taking you down to $85pp. That $10 per point is applied to your down payment, meaning you only need to provide about $9pp cash to meet the 20% down payment for the best interest rate.