auralia said:
The rates are about 10% if you are financing you may be better off just renting points because that finance charge really negates the savings.
Not entirely true. Yes, you'll save more if you DON'T finance...here is something I just posted in another thread:
I did resale and I was able to finance through Timeshare Lending.net. Yes, the interest rate is high. However, I am still saving money over buying direct from Disney AND paying cash. If you're going to finance (obviously better to pay cash, but that's not the choice we made...) here is what we did.
We purchased 160 points at SSR for $55 a point. We had two years in banked points which we were able to rent out for $3500...this went directly toward the purchase price. So we financed $7,700 over 5 years at 12.9%...total purchase price including interest is $10,488. Spread over the remaining 42 years of the contract=
10488/42 = $250
+MF points - roughly $750 per year...assume any increase will also see a corresponding increase in hotel rooms.
=$1000 per year. 160 points can get me 12 nights a year in an SSR studio during value season. Cheapest hotel room on property=$1008 + tax for 12 nights. Thats for a value - not even a mod or a deluxe!! Further more, renting 160 points at $10 a point = $1600 a year...you also don't get any ownership perks, like the $399 PAP deal that's running right now.
If we didn't finance, our "yearly cost" would be about $933 a year for the same 12 nights. Not a huge cost over the life of a DVC contract.
A lot of people do not want to finance, which I totally understand...but it's simply not true that financing negates all possible savings. Now buying direct and financing is a whole 'nother animal!