So we are thinking of buying now....

[ssawka]

If you need to finance, try to either pay it off quickly or find a lower interest rate (home equity line of credit maybe).

The finance charges can be real budget killers. If you're paying $2,500 in dues and interest charges a year, you could take two to three trips in a moderate or rent DVC points Sunday through Thursday for that amount of cash and double or triple your fun.

If you have your heart set on DVC and money is tight, like the others have suggested, I would probably try to get my foot in the door by buying a small amount of points resale.

I agree that the interest rate is outrageous, and if you can refinance, by all means do it, especially with a HELOC. Two things to take into consideration though:

1. Disney's cost per point will continue to rise, so if you don't want to do resale, or you have your heart set on a property that is extremely popular, buying now rather than later may actually offset some of the finance charge.
2. If you do not refinance with a HELOC or some other type of mortgage loan, the interest may not be tax deductible.

 

[Dean]

I agree that the interest rate is outrageous, and if you can refinance, by all means do it, especially with a HELOC. Two things to take into consideration though:

1. Disney's cost per point will continue to rise, so if you don't want to do resale, or you have your heart set on a property that is extremely popular, buying now rather than later may actually offset some of the finance charge.
2. If you do not refinance with a HELOC or some other type of mortgage loan, the interest may not be tax deductible.

Technically the interest is only deductible if set up as a mortgage which a HELOC generally would be but many timeshare directed loans are not.

 

[Sandisw]

We have decided to wait until a little before the 11 month window, if I have a job we will buy if not we will rent..

I understand the thinking in not financing, but we currently like to do one trip a year and our kids are 3 and 6.. So its a matter of paying cash for a reservation or financing DVC, to us saving up $20K and waiting a few years to buy AND still making trips makes no sense..

This was exactly my thinking in terms of financing vs. saving and paying full cash. If I was going to stop going to WDW, then yes, I could see waiting to buy DVC. But my trips were going to continue and I was going to continue to pay $2000 - 2400 per year to stay at the Contemporary. At least now, that same money pays for my yearly DVC costs.

Since I am a family of 5, deluxes were really our only option (and we were not interested in the family suites).

Now, I was lucky that I worked out other financing, a lot less than Disney (and ended up being able to put it all the Disney Visa so am getting 6 months, interest free).

But, even with the 10.75% and a 10 year loan that Disney offered me, the yearly costs, including MF's would have been right around the same amount as the hotel bill.

So I was left with the choice to either give my "cash" to the Contemporary or give my "cash" for DVC. Either way, I was giving up about $2500 a year for lodging. At least with DVC, when I have the loan paid off (by the end of the year), my yearly vacation expenses will actually be less than they are now!
Good luck with your decision!!!