SSR&S Finance Question

[jghra]

DH & I are considering a purchase into SSR&S (First Time DVC'ers). I talked to our Guide, Deborah, on Friday and set up a time to tour the models during our October trip. I have looked through the information kit and now I have a question about financing. Our Guide talked about 10% down when I asked about different options (deposit & cash vs. Disney financing).

I started looking at the financing sheet closer and there is an example showing 10% down and 10.75% APR. Is this the plan people are getting? The other Direct Debit Example is 20% down and 13.5% APR for 10 yrs. I figured the interest both ways and the 10% down/10.75% APR is the better deal. Will I be able to get this financing after we tour the model (I noticed on the finance sheet it has mailout in ( ), so I wasn't sure if this was a deal for people that buy sight unseen).
I was just curious what types of finanacing people are getting for SSR&S.

Thanks for your help.

Gretchen
the "G" in JGHRA

 

[DVCGirl49]

Hi Gretchen,

I have not seen the SSR financing sheets, however I do have a few from the other resorts. Indeed in the columns for the 3, 5, 7, 10 yr financing it does have an example with 20% down but at the bottom of the page it indicates that you could also do 10% or 30% with those options.

We have always done the 10% with the 10 yr financing. That way have the flexability to just make just the required payment amount during the holidays when there are lots of other bills, and the rest of the year make extra payments to get the loan finished sooner.

As for the percentage rates, the rate my guide quoted me for SSR was the 10.75% for 10 yrs direct debit. I did not ask about the percentage rate for doing it by statements, but normally that is about 1% higher than direct debit.

I'm not sure what the 13.5% you saw is for. The sheets I have indicate the same % rate for 3, 5, 7, and 10 yr financing....it also says at the bottom of the page that the rates are good if the purchase is made iwthin 30 days of the sales presentation. Perhaps your guide sent you the sheet for those not purchasing within the 30 day timeframe and that is why there are different rates?

 

[DrTomorrow]

Gretchen, I'm not sure where you got the 13.5% rate. We just bought in at SSR&S, and there were three rate options: 50% down / 1 year to pay (forget the rate, 5-something?), 10.75% regular payments, and 9.75% if you do direct withdrawal. The minimum down was 10%. We did 10% down / 9.75% rate - but we'll be looking into a home equity loan before payments start next spring.

 

[tixx]

I'm going to pay cash or do the one year deal this whole idea of saving money and lifestayle loses something when you finance it at 10% ...the bank is only paying 1% these days

do present members really think this is a good deal if you cant pay it in cash or in one year ... to pay a maint. and finance fees seems to add up to 3k a year on 200 pts


Your buck is your best friend !

 

[DrTomorrow]

Originally posted by tixx
do present members really think this is a good deal if you cant pay it in cash or in one year ... to pay a maint. and finance fees seems to add up to 3k a year on 200 pts

Nope, most of think it is a bad deal - we just love throwing money away!

Well, first, we are going to get a HE loan with lower rates; and then there are the tax benefits.

As for the $3K/year; first of all, that's only for 10 years of a 50 year use period - the last 40 years are maint. only. And I bet you'll find that a lot of DVC owners were paying close to - or more than - that in WDW-based travel costs anyway. More expensive that some other options? You bet. Is it "worth it"? That's up to each individual. We thought so.

Your buck is your best friend !

Here we'll just have to agree to disagree.

 

[RobDoc]

The 13.5% was a typo that apparently a few were sent. The rates are 10.75% ( 9.75% if you allow direct debit) for either 10 or 20% down- for up to 10 years. There is also a 5.95% rate for 50% down and a 1 year loan.

Enjoy!

 

[floridafam]

The rate for the 1/2 down remaining 1/2 within a year option goes to 4.95% if you use direct debit.

The 13.5% was a typo??

Doesn't DVC proof read their documents?

 

[BraveMom3]

Where do you get these "finance sheets"? I paid cash for my first and only DVC purchase, but I'm interested in the finance options for an add-on.

Thanks.

 

[tixx]

10% interest is $2,OOO.OO PER YEAR INTEREST ONLY

 

[rsschneck]

We are still thinking about an add-on!

The one year deal seems pretty good with half down and pay the other half in 12 months with 4.95% direct debit. Do you pay the downpayment right away or in the Spring?

My question is when do you start paying the payments? If we purchased when we are down there is 2 weeks when would our payments start? Do maintenance fees start in January 2004?
Never financed with Disney before. I am assuming the interest is tax deductible, right?

 

[jghra]

Thank you all for your response. Glad to hear the Direct Debit @ 10.75% was a typo (I'll take lower interest rate anyday). My guide said as long as the loan was paid in full before March 31st there would be no interest charges. This is what I plan to do, but if I can do other things with the money I may just decide to leave this loan the way it is and pay more a month so it doesn't last the full 10 yrs. (or do the Home equity thing like someone suggested)

IMHO even with the financing it is still a better deal than Disney Full price or even buying the points from other members. We have bought points from other members the last two trips (which I am grateful for). First time we stated at OKW we paid full Disney rates, ouch!! OKW at full rate was still cheaper than Disney hotel rooms for our big group, so I am not complaining.

To whoever asked:
Finance sheets were included in the DVC information I requested 2 months ago. If you would like a copy I would be happy to scan them and send you an attachement via email.

Thanks for all your help. I don't know what I would do without these boards and all the DIS members. You all are Great!!

Can't wait to hear those sweet little words "WELCOME HOME"!!

 

[DrTomorrow]

Let's check the math - just trying to be accurate, as I'm sure other potential owners are reading this:

200 pts @ $89/pt 17800
Less 10% down (1780)
Less $10/pt discount (2000)
Financed amount 14020
Term - 10 years
Rate - 9.75 (direct withdrawal)
Monthly payment $183.34

Amortization info:
Principal paid first yr $871.39
Interest paid first yr $1328.69

Principal paid last yr $2088.17
Interest paid last yr $111.91

Total interest paid $7980.78

Annual maint. fee
200 pts @ $3.80/pt $760.12

So, tixx, I'm not sure where 2000 a year interest only came from. True, for the first 10 years, you'll pay $2960.80 for principal, interest and dues.

As always, any math proving me wrong is more than welcome!

rsschneck, we had the choice of 1st or 15th of month; our payments start May 15, 2004. I'm pretty sure the dues are pro-rated from opening day. They already charged our down payment (ff miles woo hoo) but I think that there's a $500 deposit option.

 

[RobDoc]

Originally posted by DrTomorrow
I'm pretty sure the dues are pro-rated from opening day.

Maintenance fees are prorated- from opening or when you get the points- whichever is later. (If you have a September Use Year, dues will be prorated from that date to the end of the year.

Enjoy!

 

[tixx]

Originally posted by DrTomorrow
Let's check the math - just trying to be accurate, as I'm sure other potential owners are reading this:

200 pts @ $89/pt 17800
Less 10% down (1780)
Less $10/pt discount (2000)
Financed amount 14020
Term - 10 years
Rate - 9.75 (direct withdrawal)
Monthly payment $183.34

Amortization info:
Principal paid first yr $871.39
Interest paid first yr $1328.69

Principal paid last yr $2088.17
Interest paid last yr $111.91

Total interest paid $7980.78

Annual maint. fee
200 pts @ $3.80/pt $760.12

So, tixx, I'm not sure where 2000 a year interest only came from. True, for the first 10 years, you'll pay $2960.80 for principal, interest and dues.

As always, any math proving me wrong is more than welcome!

rsschneck, we had the choice of 1st or 15th of month; our payments start May 15, 2004. I'm pretty sure the dues are pro-rated from opening day. They already charged our down payment (ff miles woo hoo) but I think that there's a $500 deposit option.

nice work Doc , i was just guessing high, I will either pay in full or maybe do the one year finance ...also I like the idea of locking in the deal and paying, interest free till may 2004, as someone says above if thats true ...

 

[tixx]

[double post

 

[tixx]

Originally posted by DrTomorrow
Let's check the math - just trying to be accurate, as I'm sure other potential owners are reading this:

200 pts @ $89/pt 17800
Less 10% down (1780)
Less $10/pt discount (2000)
Financed amount 14020
Term - 10 years
Rate - 9.75 (direct withdrawal)
Monthly payment $183.34

Amortization info:
Principal paid first yr $871.39
Interest paid first yr $1328.69

Principal paid last yr $2088.17
Interest paid last yr $111.91

Total interest paid $7980.78

Annual maint. fee
200 pts @ $3.80/pt $760.12

So, tixx, I'm not sure where 2000 a year interest only came from. True, for the first 10 years, you'll pay $2960.80 for principal, interest and dues.

As always, any math proving me wrong is more than welcome!

rsschneck, we had the choice of 1st or 15th of month; our payments start May 15, 2004. I'm pretty sure the dues are pro-rated from opening day. They already charged our down payment (ff miles woo hoo) but I think that there's a $500 deposit option.

nice work Doc , i was just guessing high, i will either pay in full or maybe do the one year finance ...alos imlike the idea of locking in the deal and paying interest free till may 2004 as someone says above if thats true ...

 

[tixx]

double post

 

[Luvdisney]

The interest rate for 10% dn is 10.75% with direct withdraw. The rate is 9.75% direct withdraw with 20% down. My guide said with the 10% down and $10 discont for SSR you qulify at the 20%down rate. I was thinking of an Add on at HH and with 10% dn the direct withdraw rate was going to be 10.75%.