Resale Purchases - Pay In Full or Finance?

[TheOGCruise]

Love reading through the ROFR threads and the Closing Time threads. I'm curious for those of you who are active on the resale market, are you purchasing these in full or are you financing a portion after a hearty deposit/down payment?

I'm evaluating a potential contract through resale versus VDH direct and debating how to make that purchase work. I'd love to pay in full but that's not realistic for me.

Thanks!

We just closed on a resale contract and paid cash. I believe everyone needs to decide what works best for them. For us, financing was not an option. I had the opportunity years ago to purchase direct as a former castmember but decided against it at time - i am glad I made that decision. They were selling Vero Beach at the time as the newest DVC location and seeing those horrible annual dues now makes me cringe. We also had a chance when we went to Aulani a while back and they were having some great incentives but just couldn't bring ourselves to pull the trigger.

We have worked hard to get debt free and my husband just retired so we decided if we were going to do this, it would be cash only.

Just waiting for the deed to be recorded and the points to load!

 

[DonMacGregor]

I "financed" my first, direct contract by taking out some cash when I refinanced my mortgage 3 years ago. We were sitting on a 6% loan dating all the way back to 2004, and had never looked into a refi for various reasons (the housing crisis, amount of equity, etc.). When we refi'd in 2020, we got 2.75% on the mortgage, took out what amounted to 6% of the equity, and still ended up with a payment that was $700 less per month. That's about the only way I'd ever consider "financing" a DVC purchase (I wouldn't even consider a HELOC).

 

[E2ME2]

Each purchase should be evaluated individually, and all come with their own unique set of circumstances.
I advocate paying Cash for DVC-Resales, but with some of the historic lows we've seen in today's market, I could see someone stretching a little bit and financing that golden opportunity to get a few more points than what they could afford for CASH. A hypothetical example:
I've seen some BWV contracts pass ROFR for $100 - $110 per point. If you financed 200 points at $100/per point
and were able to pay it down at an accelerated rate, you could effectively still realize $110 per point cost, which is still significantly cheaper than buying direct. And, as others have posted on this thread, I'm now planted firmly in the camp of "do it today if you can, as tomorrow is never guaranteed".