Question on financing through DVC..

[babesboo99]

We were going to buy about 140 points through the DVC. Now we had something happen where the down payment money has to go else where right now. Do you think if we drop down to buying 50 points and ask if we can put the down payment on the financing they would help us? Once we get the car paid off we will add more poiints but for now we can't. I am really hoping they will we want to become part the family.

Jennifer

 

[DVC Dude]

Here are my three thoughts:

1. I don't think DVC sells 50 point contracts for new members - I think the lowest is 100 points (but this changes often)

2. I really don't recommend buying a timeshare via financing. I believe Disney charges 14% or so. Thus, the best advice is pay for it in cash or don't join (in my opinion).

3. The absolute cheapest way to get into DVC is to buy a 25 point resale contract and then add on directly from Disney in the future.

 

[arthur06]

Here are my three thoughts:

1. I don't think DVC sells 50 point contracts for new members - I think the lowest is 100 points (but this changes often)

2. I really don't recommend buying a timeshare via financing. I believe Disney charges 14% or so. Thus, the best advice is pay for it in cash or don't join (in my opinion).

3. The absolute cheapest way to get into DVC is to buy a 25 point resale contract and then add on directly from Disney in the future.

That is how I bought. When I wanted to buy, it was only 160 point options. And at the time that was not what I wanted.

I bought 30 point BWV resale (paid cash). Then a short time later added on 125 BLT points (part cash, part finance). I really showed DVC that 160 was too many, and 155 wasn't.

We will be looking to add on in the next few months if the right contract comes along. If not, we have to problems waiting. I will add on thru resale (most likely) and pay cash.

 

[MFMont]

Here are my three thoughts:

1. I don't think DVC sells 50 point contracts for new members - I think the lowest is 100 points (but this changes often)

2. I really don't recommend buying a timeshare via financing. I believe Disney charges 14% or so. Thus, the best advice is pay for it in cash or don't join (in my opinion).

3. The absolute cheapest way to get into DVC is to buy a 25 point resale contract and then add on directly from Disney in the future.

Agreed.....DOn't do it!

If you must finance find a credit union and get a line of credit.

 

[Sandisw]

I have heard they will allow you in with 50 points. You will be required to put down the 10% deposit so if you decide to go through Disney, this will be required.

You are allowed to put the deposit on a CC and if you have a Disney Visa, you would get 6 months, 0% interest on the deposit (and any other part of the balance).

I have done this with my add ons, and it was a great way to buy without the extra finance charge. Of course, I knew that the money would be there and that I could pay it off in 6 months.

Good luck!

 

[Deb & Bill]

Put your plan to buy DVC on the back burner for now. If you really want to go to WDW and can't find a good discount, consider purchasing a reservation from a member so you can experience DVC. Then you can resolve your cash flow problem and do a little more study on DVC.

It will be there when you can swing the purchase.

 

[Mick@Tink]

Put your plan to buy DVC on the back burner for now. If you really want to go to WDW and can't find a good discount, consider purchasing a reservation from a member so you can experience DVC. Then you can resolve your cash flow problem and do a little more study on DVC.

It will be there when you can swing the purchase.

I couldn't agree with the PP more. Heed this advice. DVC will always be there when your cash flow is better! Good luck with your decision.

 

[babesboo99]

We already rented points from a friend and we loved it at the BCV. This is the reason why we would love to buy into it right now. we are not going this year because we already made other plans . But we would love to go next year using our points and or maybe tranferring some if need be.. I appreciate all the advice we are being given but I guess it just comes down to whether we want it bad enough.

 

[JimMIA]

I appreciate all the advice we are being given but I guess it just comes down to whether we want it bad enough.

Whether you do it or not may depend on "...whether we want it bad enough."

Whether your decision works out successfully probably depends on whether you paid any attention at all to the responses.

 

[DVC Dude]

I appreciate all the advice we are being given but I guess it just comes down to whether we want it bad enough.

I WANT a new Ferrari, private jet, multi-million dollar mansion, 100 foot yacht, private chef, etc., but I can't afford to pay for those things right now.

The decision to buy or not is up to you, but I would suggest starting off with a small contract paid in full and add-on as your get more funds.

 

[kamik86]

I was someone that financed my purchase and don't regret it for a second. (and I could now pay it off from savings right now if I wanted to, I just don't wnat my cash reserves going as low as they would need to for that to work)

However if your in a situation where "something happening" can take the down payment money... what if something happens 3 months from now? I financed because I knew I could pay it off in a year and just didn't want to wait that year to save it up because it would cost more to rent points for the trips I was planning during that time then it would cost in interest to finance. However I still had a few thousand in the bank after my down payment. Since I'm assuming you don't have that (otherwise you would still have the down payment money and the emergency fund would have covered this other situation. I would agree that you probably shouldn't buy.

You said you don't need the poitns yet because you don't plan to take a trip this year... so wait and buy next year. If this was going to work out you would have the amount needed for a down payment by then.

 

[Lynne M]

Please forgive the unsolicited financial advice....but look at it this way.

You mentioned that you have concerns about your credit. If your credit rating isn't so hot, you're likely to be unable to get a timeshare loan if you go resale, and if you go through Disney, you'll be paying a ridiculously high interest rate. That interest is money you're throwing away. Money you could have used for more Disney vacations, or other, more important things. The only reason anyone would throw away that kind of money is if they were in a terrible hurry to buy.

And there's NO reason to be in a hurry to buy. You mentioned you rented points, it worked out great for you. Why not continue to do that until you can save the money to buy into DVC without taking a loan? You get to stay in DVC resorts at a great price, and you get the SAME experience that members get. Really. With the interest rate you're going to get if you have to borrow, you'd likely save money by renting instead of buying.

You also mentioned wanting to be part of the family. DVC isn't a family. It's a financial arrangement. Nothing more. Disney puts a lot of fluffy marketing around it, but it's just a different way to pay for your lodging. Members don't get special treatment, aside from a few small perks that are in NO way worth what you'd be paying in interest.

Keep renting, and put the money you save away for the day when you can afford to buy outright. DVC can be a very good deal, but not if you're paying a high interest rate that's eating up all of your savings.

 

[s830632]

I just financed part of my DVC contract through my credit union using a signature loan. You could actually get the whole thing financed, they won't require a 10% down like DVC would, but I have to agree with everyone else about not doing this if you don't have the money to put down for a down payment. I look at it a little differently though, it's not about giving financial advice, it's about making sure you actually get to go to disney. If you can't afford to put forth a down payment, then it's likely you won't be able to afford to take a trip down to disney either. Purchasing into DVC is nothing more than getting a place to stay, you still need money if you want to do things. If you're stuck trying to make yet another payment on your DVC property, then chances are it's going to be hard to come up with the money for the actual trip.

When I made the decision to do this, I financed a portion and paid the 10% myself, even though I didn't have to, and, I made sure I'd have enough to go to Disney as well this summer, without putting myself in any financial hardship.

 

[mjc2003]

I just financed part of my DVC contract through my credit union using a signature loan. You could actually get the whole thing financed, they won't require a 10% down like DVC would, but I have to agree with everyone else about not doing this if you don't have the money to put down for a down payment. I look at it a little differently though, it's not about giving financial advice, it's about making sure you actually get to go to disney. If you can't afford to put forth a down payment, then it's likely you won't be able to afford to take a trip down to disney either. Purchasing into DVC is nothing more than getting a place to stay, you still need money if you want to do things. If you're stuck trying to make yet another payment on your DVC property, then chances are it's going to be hard to come up with the money for the actual trip.

When I made the decision to do this, I financed a portion and paid the 10% myself, even though I didn't have to, and, I made sure I'd have enough to go to Disney as well this summer, without putting myself in any financial hardship.

I agree with this and the other posts--if you are unable to come up with even the 10% and want to finance that as well, you are talking $500 (10% of a 50 pt contract at approx $100 pp). If you don't have that $500, how are you going to afford park passes, airfare, food, and all the trappings?

Not meaning to sound critical, but "whether you want it bad enough" should not be a factor, I'm sorry. Whether you can afford it should be the critical question. If you can afford it AND want it, then do it. If you just want it but CANNOT afford it, I'd say rent points.
You said "something else happened" and you can't afford the down payment right now. Life is full of "something else happened". This is a luxury purchase.

Please don't take this advice the wrong way. Take this advice as sound reasoning from people (not me, we just joined) who have experience with the financial commitment. For us, we wouldn't buy our BCV contract until I could afford the entire cost up front.

 

[jupers]

I'm going to disagree with everyone.
I lost my dad to cancer this past year....the reality is life is too short. I made the decision to buy and finance through my credit union. Yes, you should wait till you have cash to have a timeshare...by the time I have that cash the kids may be too big enough to enjoy it. It'll be paid off in a few years. In those years I will be able to enjoy many family trips. Fortunately, I got a great deal resale and the financing comes right out of my paycheck so I don't feel it too badly. I haven't even had the points in my account yet and I don't regret it for a second...at least not yet anyway.

 

[kamik86]

I'm going to disagree with everyone.
I lost my dad to cancer this past year....the reality is life is too short. I made the decision to buy and finance through my credit union. Yes, you should wait till you have cash to have a timeshare...by the time I have that cash the kids may be too big enough to enjoy it. It'll be paid off in a few years. In those years I will be able to enjoy many family trips. Fortunately, I got a great deal resale and the financing comes right out of my paycheck so I don't feel it too badly. I haven't even had the points in my account yet and I don't regret it for a second...at least not yet anyway.

I agree with the idea here and that is why I had no problem financing the way I did. However with no down payment I have to think they are setting themselves up for problems. I would also guess they have no emergency fund if the money for when something came up had to be from the down payment. (If I'm wrong and they have an emergency fund but made a choice not to use it because they could take from the down payment and just really don't' want to spend that unless they have to then my opinion may change) What if they had bought and made the down payment and then this something happened?

Life is short so go out and enjoy the vacation but if you can't afford the timeshare without a way to have NO down payment then it is too much of a stretch and your setting yourself up for problems.

 

[Lynne M]

I'm going to disagree with everyone.
I lost my dad to cancer this past year....the reality is life is too short. I made the decision to buy and finance through my credit union. Yes, you should wait till you have cash to have a timeshare...by the time I have that cash the kids may be too big enough to enjoy it. It'll be paid off in a few years. In those years I will be able to enjoy many family trips. Fortunately, I got a great deal resale and the financing comes right out of my paycheck so I don't feel it too badly. I haven't even had the points in my account yet and I don't regret it for a second...at least not yet anyway.

I absolutely agree that life is short, and it's important to take those family vacations while you can.

But the point I was aiming at for the OP is that it's entirely possible to have the very same vacations without actually buying DVC.

Owning your own membership does make it easier to manage your reservations, that's for sure. And yeah, there are the occasional small perks. But if getting those things means paying interest that will overwhelm any possible savings you're getting.....man, they're not worth it. And certainly not if the loan and the maintenance fees are going to make it hard for you to pay your other bills.

That's the other thing;maintenance fees. If something comes up...medical bills, car repair, etc....that means you really can't afford a Disney vacation that year, you're still required to pay the MF as well as the loan payment. On a 140 point purchase, that's hundreds of dollars a year just for the MF. You don't pay the fees and/or your loan payments, Disney suspends or repossesses your membership, and all the money you spend on the loan is gone, with nothing to show for it.

That's why I recommended renting points to the OP. All the same lovely DVC resort stays, none of the loan payments, nasty interest, and maintenance fees to pay whether you go to WDW or not. You don't pay anything unless you're actually taking the trip.

 

[Scotgirl]

I'm going to disagree with everyone.
I lost my dad to cancer this past year....the reality is life is too short. I made the decision to buy and finance through my credit union. Yes, you should wait till you have cash to have a timeshare...by the time I have that cash the kids may be too big enough to enjoy it. It'll be paid off in a few years. In those years I will be able to enjoy many family trips. Fortunately, I got a great deal resale and the financing comes right out of my paycheck so I don't feel it too badly. I haven't even had the points in my account yet and I don't regret it for a second...at least not yet anyway.

Sorry about your dad I agree - we financed our DVC purchase through Disney - though probably works out cheaper for us because of the exchange rate. We've also lost parents who'd put a lot of things off and sadly never got the chance to do them. As long as you're not going to be destitute I'd say go for it - everyone's circumstances are different. All I know is we can now holiday at Kidani Village every two years for three weeks and we couldn't afford to do that if we were booking as a normal holiday. Can't wait for October!

 

[marynvince]

if it is a small part of your entire portfolio of financial obligations. There is much truth to the fact that kids are only this age once and they will cherrish these memories for a lifetime. However, eventhough no one is promised a tomorrow, it is not prudent to live like tomorrow is not going to come. Just like other decisions, balance is a must.
Renting points is a great way to enjoy the DVC lifestyle without the upfront cost or the longterm obligation. Purchasing does not "pay" for itself until many vacations have been taken and years have gone by. Rent for a few years and when finances allow for lifes unexpected hits to not have an impact on your purchasing ability, that will be the time to buy. (Apparently eloquent writing left one sentance too early).
Good Luck. We'd love to have you on board, but we'll be here in a couple of years if you wait to buy.

 

[Greysword]

Bottomline: If you have to stretch to get and pay for your points and monthly fees, I suggest you wait. As others have said, DVC is a luxury, and WDW has other (more cost effective) options available (rent points, moderate and value resorts, off site hotels). On the other hand, financing is great as long as you know what you are paying for and are able to afford the extra costs over a period of time.

Good luck!