Seriously considering DVC

[Mr Man]

Hello,

I have been lurking the DVC board for the last 6 months. This is an excellent resource. Thanks to all on this board for the wealth of valuable information you have made available.

With all of this back-up, it is getting mighty difficult to act "dumb" when speaking to the DVC rep when I already know the answers to most of the questions I am asking (yet somehow this comes naturally to me). Why do I do this? I dunno rightly. I am a salesman by trade and suppose I cannot resist the urge to see if the DVC rep steers me correctly even if I sound clueless.

The currrent plan is as follows: We will be at "The World" 9/9/07 - 9/15/07 and will be staying at AKL Savanna View I would like to tour the villas and make the decision on the purchase of around 200pts go/no-go 1st day. We are 90% certain we want to purchase & 70% certain it will be AKV. Is this at least 80% clear? The DD points are very attractive to us. DVC rep I have been speaking to told me he has a 35% success rate on initial contacts converting to owners. If I could do that in my line of business, I would be retired by now (hmmmmm.....)

I am up to speed (at least I think I am) on the basics of DVC. I do have a few questions though and would appreciate your consideration:

1. If I choose to purchase DVC direct from Disney, I would like to finance short term only (loosely defined as 1.5yr). I need to know if there is any penalty for early payment in full. I can't seem to find this in the documentation supplied and have not been able to talk to DVC the last few days. My idea is to pay 20% up front and then make 4 lump sum payments direct to principal over the next 14 months or so to close it out (while making my minimum payments of course). I just want to make sure there are no surprises i.e. interest compounded and added into final payment. If so, this is a clear loser, and I will likely re-think financing options.

2. My assigned DVC rep said that if we make the deal in advance of our trip to The World in Sep, he could swing it where we could use points from our new DVC account to fund this trip. I am a bit leery of this, as we have free dining and our package is paid in full. I am assuming that we will have to transfer our points to the non-DVC part of AKL and have to believe there will be some effect on our park tickets & DVC (I thought you could not even get DDP much less free DDP if you use DVC points at a non-DVC resort) Has anyone else received an offer like this? Still, it is tempting but I will have a hard time figuring out best value, not to mention the fact that buying into something unseen (even if it is Disney) goes against my best instincts.

Thanks in advance for your thoughts.

 

[Mtnman44]

As to question #1: there is a 100% chance that you will be able to pay off the loan with NO penalty.

As to question #2: I think there is only about a 30% chance of this working like you would want. IF you really want to use your incoming DVC and developer bonus points for your Sept trip, you will need to:

-put down your DVC deposit and get a member number and then book a new stay at AKV (availabilty of savanah view is questionable at this point). Make sure to book that you want to buy the dining plan upon arrival.

-cancel your existing cash reservation and "free" dining

 

[CarolMN]

Just confirming (I like to do that, LOL) -

1. No prepayment penalty with Disney financing.

2. No free dining with DVC points reservations. The guide was offering to let you use your points for an AKV villa for your dates. You'd be on your own for dining (you can get DDP- with points reservations, but you have to pay for it) and tickets.

 

[ScottakaMickey]

1. Note that a loan through Disney is a simple interest loan where they calculate the interest over the life of the loan that you request, 10 year, 7 year, etc. And then take that interest plus your principle and come up with your payment. So, while Yes, you can pay it off early, you can't pay down the principle and reduce the interest. Yes you will pay less interest by paying it off early, but the interest you are paying is based off of the original contract agreement for a simple interest loan.

 

[flyerron]

You can finance thru Disney for a 1 year payoff.
exchanging your ressies for a points vacation at this point will be a rush & may be worth it if you get double developer points to use & get your prepayment refunded or applied to your down payment, but I don't think you can do thet because DVC & CRO ar seperate entities. Your guide will be able to steer you thru this process.
Good luck.

 

[blancosofhollywood]

We just went on the tour and were not informed of DEVELOPERS DOUBLE POINTS..... My Husband is supposed to call the rep tomorrow. I am going to make sure he asks for this.....

BY the way.. The AK villas are not open yet ( I think) we saw a beautiful model at SSR. They have 42 inch Flat panel TVS, Beautiful Kitchens ( 1 or 2 BDRM) and are stunning..... I think we are going to buy there too.. but I want the DD points like everyone else...
'


Good luck to you...

 

[Mr Man]

Mtnman44- I see your point. I will definitely keep my existing reservation.

CarolMN- Gotta keep the free dining........one last huzzah for appetizers I guess.......hello Pepcid AC.

ScottakaMickey- Your post explains exactly what I was trying to understand. This makes perfect sense. I just got my packet from DVC 2 hours (sweet book). I will look for 1-2 yr term and go from there.

Flyerron- Agreed. Pleasure first, then business.

blancosofhollywood- I have to admit that the DD points are the primary reason pushing me towards this purchase now. I would definitely check into it.

Thanks all. This has helped me a bunch. I have to go read the Dreams Book now.......... it is insidious the effect it is having on us.......

 

[Mtnman44]

I guess I sounded like I was trying to disuade you from using points. That was not my intention. My only comment was that it would be totally separate from your existing reservations and the Lodge.

IF you can cancel that reservation and get a refund, it would not be a bad idea at all to use your newly aquired developer points and book your stay at a DVC location, perhaps even AKV if there is availability still. Maybe you should check to see what is available and see if your guide can get a hold on it for you. This would allow you to use the money you were planning on spending for accomodations and instead get a "free" dvc stay. Your only expense would be for the DDP (which has recently been downgraded and isn't really the deal it used to be by the way).

 

[benjaminb13]

I too am seriously considering AKV-
as in most timeshares, Is there a way to get a special rate for a stay for those planning to buy? If the customer attends the presentation?
Those of us who live on the west coast including myself worry that we spend thousands of dollars and decide we dont want to purchase.
If you dont mind my asking- what does a purchase package for a 2 bedroom unit look like- for say 200 points
What are extra DD points?

 

[RobDoc]

I too am seriously considering AKV-
as in most timeshares, Is there a way to get a special rate for a stay for those planning to buy? If the customer attends the presentation?
Those of us who live on the west coast including myself worry that we spend thousands of dollars and decide we dont want to purchase.
If you dont mind my asking- what does a purchase package for a 2 bedroom unit look like- for say 200 points
What are extra DD points?

No, DVC does not offer any special rates to take the tour. You may get a fastpass, a lunch or an ice cream afterwards, but nothing is used as a draw to take the tour.

Currently DVC has an incentive where in addition to the contract points buyers will get double that number of points (Developer Points) to be used within a year for reservations made for dates 7 months ahead.

Cost per point for this incentive is currently $104 per point - so 200 points would be $20,800. You would NOT be purchasing a specific sized unit - as DVC points may be used to reserve any sized villa from a studio to a Grand Villa (or any size in between - including a 2BR). The only limitation would be based on the number of points you have available to make the reservation and availability.

 

[benjaminb13]

Thank you
that was very helpful

 

[blancosofhollywood]

Hi EVERYONE

When we went to the presentation, they didn't offer us the DD points. Ofcourse we want the AKV.... I am going to have my husband call our guide JAMES today and see what the deal is....


Thanks..

 

[Mr Man]

Hello all, me again.

I have looked over the Dreams book and included offer closely and see nothing in there regarding DD points. Must be saving that for the "Glengarry Glenross" moment in the DVC office

The offer included with the Dream book was for SSR only. No AKV.

For SSR
$104.00 pt with a slight financing incentive for Direct Debit payment & a financing credit up to $1280. I assume this is for 3rd tier of point purchase (270+). No $8 per pt discount/ no DD pt.

I'm a bit underwhelmed but not discouraged. A 50 yr commitment to anything is a big step after all. DW and I had celebrated our 16th wedding anniversary today and she reminded me that it feels like "forever" I wonder what our 66th wedding anniversary would be like at DW.

It is proving difficult to contact the DVC folks. I am hesitant to leave messages. I mean, they know they have a captive audience, why reinforce this by drooling all over them?

I will schedule a tour when I am down there and see what DVC will do.

The more I consider things, the more I think I will buy-in initially at the minimum 160 points. This way I can pay it off in a year and then add points as-needed (and who knows maybe add-on later at the fabled mythic CRV or GCV).

Nice book though. Amazing how few points you need for OKW Grand villas (must be like 3 of em total)......

 

[TenThousandVolts]

1. If I choose to purchase DVC direct from Disney, I would like to finance short term only (loosely defined as 1.5yr). I need to know if there is any penalty for early payment in full....

2. My assigned DVC rep said that if we make the deal in advance of our trip to The World in Sep, he could swing it where we could use points from our new DVC account to fund this trip. I am a bit leery of this, as we have free dining and our package is paid in full. ... Still, it is tempting but I will have a hard time figuring out best value, not to mention the fact that buying into something unseen (even if it is Disney) goes against my best instincts.

Thanks in advance for your thoughts.

1. no prepayment penalty- if you can stretch yourself and commit to a 12 month loan you will cut your interest rate in half. There are also some creative ways you can achieve your 18 month goal using a 0% credit card to fund your purchase or a portion of your purchase.

2. I think your gut instinct is good. If I were you, I would stick with free dining and take the tour while at WDW.

GOOD LUCK!!!

 

[ScottakaMickey]

Hello all, me again.

I have looked over the Dreams book and included offer closely and see nothing in there regarding DD points. Must be saving that for the "Glengarry Glenross" moment in the DVC office

The offer included with the Dream book was for SSR only. No AKV.

For SSR
$104.00 pt with a slight financing incentive for Direct Debit payment & a financing credit up to $1280. I assume this is for 3rd tier of point purchase (270+). No $8 per pt discount/ no DD pt.

I'm a bit underwhelmed but not discouraged. A 50 yr commitment to anything is a big step after all. DW and I had celebrated our 16th wedding anniversary today and she reminded me that it feels like "forever" I wonder what our 66th wedding anniversary would be like at DW.

It is proving difficult to contact the DVC folks. I am hesitant to leave messages. I mean, they know they have a captive audience, why reinforce this by drooling all over them?

I will schedule a tour when I am down there and see what DVC will do.

The more I consider things, the more I think I will buy-in initially at the minimum 160 points. This way I can pay it off in a year and then add points as-needed (and who knows maybe add-on later at the fabled mythic CRV or GCV).

Nice book though. Amazing how few points you need for OKW Grand villas (must be like 3 of em total)......

You should definitely leave a message for your guide. When you are considering the purchase it is important to stay in contact and express your interest. Disney changes there deals all the time, so if you are in commmunication with him they can potentially, if he is a good guide, let you know about things coming and going.

As you are seeing, the board is telling you about double developer points, but the information doesn't match. The word on the street is that the Double points are expiring at the end of August, or sooner, so it is probable that you can still get them, but you will need to contact your guide.

If you are seriouis, you can always pull the trigger now to get things started and possibly get the deal that is going on now. Then when you get there in Sept, you can tour and meet your guide, and if you don't like it you can stop the paperwork, per se. A little hassle, but we don't know what the "deal" will be next, it sounds like its back to basic price off a contract, but it could change.

Good Luck with your decision!!

 

[blancosofhollywood]

Hi there,

After seeing everyone saying stuff about these points we asked our guy about them. He told us that he didn't get around to telling us about them...

But if we buy 250 points, we would get an extra 500 points to use with in the first year. But...... You would forfeit your $10 or $8 discount per point... and not get the credit...

Now we are back to square 1, Do we take the points and have a Fantastic vacation??? or do we do the responsible thing and take the credit and have a larger downpayment>???

Still thinking about it....

Good luck

 

[zalansky]

Personally, I would (and did) take the DD points. They are worth more than the $10 or $8 a point credit you'd receive. The only reason I was not take the DD points would be if I could not use those points within the 12 month window.

OP - Take the tour and stick with 200 points. I promise, you'll be glad you did.

 

[Doctor P]

1. Note that a loan through Disney is a simple interest loan where they calculate the interest over the life of the loan that you request, 10 year, 7 year, etc. And then take that interest plus your principle and come up with your payment. So, while Yes, you can pay it off early, you can't pay down the principle and reduce the interest. Yes you will pay less interest by paying it off early, but the interest you are paying is based off of the original contract agreement for a simple interest loan.

This is absolutely incorrect. The interest varies every month based on the principal outstanding and the number of days between payments. Having paid down two contracts, I can assure you that this is the way it works. Simple interest does NOT mean what you have stated, at least in my experience with four simple interest loans over the past five years from three banks. It means that you only pay for what you use without compounding. They credit payments based on the number of days since the previous payment.

 

[blancosofhollywood]

Thanks.. we live right here in Hollywood fl, so going up to Disney is just a 3 hour ride...

At the end of the day, I don;t think $2000 is going to make or break us and I would rather have a Kiss-butt Vacation with Family......

Thanks for your help

 

[zalansky]

Just an FYI - there's another thread out there that states rumor has it the double developer points deal will end August 31st. So, if anyone here wants to buy in but you're not touring until Sept, you might miss this deal. Be careful.