The Price of Borrowing Money - DVC Direct Sales

[🍀TwinsMom]

DVC purchases are sensitive to the overall economy. If the Stockmarket falls and unemployment rises we will see a slow down in sales. For an indication of what might happen look at the early sales of both BLT and VGC. Both resorts were impacted. VGC sales were slow and for such a small resort it took awhile to sell. Big incentives were offered.

How big were incentives? I am hemming and hawing over 300 resale CC to do annual Thanksgiving trips in a 2-bedroom rotation, or wait for Poly 2.0 initial buy-in price 300 points, with those extra year’s points thrown in? With the upcoming (possible) recession/lingering inflation, I don’t know if direct or resale is more sensitive to discounting since I wasn’t even aware of DVC until 2018.

We love WL/BR/CC, but I hate BR kitchen layout/foyer. CC has the same interior layout of Riviera that I like, but it’s small.

Poly 2.0 is compact, self-contained, all interior amenities, and walking/monorail access. While the outside design is meh, location is great, and I expect to love the rooms Inside.

CC 300 is listing for 155ish. Poly 2.0 is probably going to be $207-$217 list price before discounting. But how much to push sales with GF, RR, DL, and AU still in active sales?

 

[McCrae]

How big were incentives? I am hemming and hawing over 300 resale CC to do annual Thanksgiving trips in a 2-bedroom rotation, or wait for Poly 2.0 initial buy-in price 300 points, with those extra year’s points thrown in? With the upcoming (possible) recession/lingering inflation, I don’t know if direct or resale is more sensitive to discounting since I wasn’t even aware of DVC until 2018.

We love WL/BR/CC, but I hate BR kitchen layout/foyer. CC has the same interior layout of Riviera that I like, but it’s small.

Poly 2.0 is compact, self-contained, all interior amenities, and walking/monorail access. While the outside design is meh, location is great, and I expect to love the rooms Inside.

CC 300 is listing for 155ish. Poly 2.0 is probably going to be $207-$217 list price before discounting. But how much to push sales with GF, RR, DL, and AU still in active sales?

I bought BLT in 2009 for $99 per point. My memory might be a bit off but I think the price was 120 for non members and 112 for existing. Going into 2010 I think the discounts for BLT and VGC were atleast 20%.

 

[KimMcGowan]

I'm willing to bet that are many folks here on the DIS that actually do finance, but are afraid to say so because of the crowd shaming that can occur.

We financed our very first contract through DVC way back in the day, paid it off after a few years, and have been in a position to not have to do so since. I'd bet a 3-night stay in a studio of choice if our experience is all that unusual.

We financed most of our resale contracts, but with very low interest rates, much lower than Disney's (3%). But we also paid them off in order 3 years.

We did exactly the same thing and don’t regret it a bit.

Spending haphazardly because you *might* die before your time is, I’d opine, the very definition of financial illiteracy. Clearly, not everyone would agree.

But that is the problem, what is “haphazardly” to you does not necessarily set the definition of financial illiteracy. For many others it is just an investment into their family, a perfectly reasonable thing to spend money on. (But I do agree with you- those rates make it a hefty investment).

 

[Sandisw]

But that is the problem, what is “haphazardly” to you does not necessarily set the definition of financial illiteracy. For many others it is just an investment into their family, a perfectly reasonable thing to spend money on. (But I do agree with you- those rates make it a hefty investment).

I think this is so true! It is all about what one values as a priority for spending your money and there truly is no one definition that is going to work for everyone. I do agree that if you have to finance at a higher rate, you need to take that into consideration when you decide if a DVC purchase makes sense, but in the end, if you have, and you are fine with going that route, then I say good for you!!!

 

[gmi3804]

I think this is so true! It is all about what one values as a priority for spending your money and there truly is no one definition that is going to work for everyone. I do agree that if you have to finance at a higher rate, you need to take that into consideration when you decide if a DVC purchase makes sense, but in the end, if you have, and you are fine with going that route, then I say good for you!!!

Until you’re at retirement age and don’t have a pot to piss in.

 

[Sandisw]

Until you’re at retirement age and don’t have a pot to piss in.

No one said that you don’t plan for retirement. But that each person has their own financial situation and goals and what is right for you is not right for me.

And in that planning, you know how long you work. So, if you need to work longer because of choices you made than IMO that is okay too.

 

[Brian Noble]

Three are (at least) three different versions of the money conversation.

Version one is a caricature: "Do I want to buy DVC with financing, or never go on vacation?" I rarely take this version seriously, but it is lurking behind many posts/threads.

Version two might be the most important, but also one that the DVC boards are sometimes unwilling to have: "Am I in a financial situation in which (a) buying DVC is a responsible purchase, or should I (b) visit Disney less often/pay cash for cheaper lodging, onsite or off/vacation in less expensive destinations?" For some people, the answer is (b), but if anyone here every actually suggests that to anyone, it is taken as a personal attack and is quickly shouted down. I have my own reasons for why I suspect that's so, but I am only an armchair psychologist, so I will keep them to myself.

Version three is the easiest one: Given a specific set of planned stays in DVC lodging, what's the most affordable way of booking them? Realistically, this is rarely the conversation we are actually having, but it is the conversation that we most often want to have.

 

[heynowirv]

I work in financial planning and one area I work in is to help pre-retirees determine their ability to fully retire. Most can if they are frugal or have a real budget. But the trend has been newer clients have less saved and fewer have pensions.

Buying DVC is not something I would have done a year ago nor is it something I can fully rationalize. But to paraphrase Jack Bogle, there are things we do for family that might not make sense. I bought DVC to invest in memories with my boys. For the first time in about eight years, my finances are taking a back seat to making memories with my boys. I know it sounds terrible. But I’m horrible at spending money and taking vacations. I bought DVC to help me do both.

We are also using cash to pay for the contract and we have a relatively healthy savings rate. So that helps us realize saving money versus direct bookings.

And here I thought you'd be talking about being on the road with dean morriarty.

 

[BeachClub2014]

Three are (at least) three different versions of the money conversation.

Version one is a caricature: "Do I want to buy DVC with financing, or never go on vacation?" I rarely take this version seriously, but it is lurking behind many posts/threads.

Version two might be the most important, but also one that the DVC boards are sometimes unwilling to have: "Am I in a financial situation in which (a) buying DVC is a responsible purchase, or should I (b) visit Disney less often/pay cash for cheaper lodging, onsite or off/vacation in less expensive destinations?" For some people, the answer is (b), but if anyone here every actually suggests that to anyone, it is taken as a personal attack and is quickly shouted down. I have my own reasons for why I suspect that's so, but I am only an armchair psychologist, so I will keep them to myself.

Version three is the easiest one: Given a specific set of planned stays in DVC lodging, what's the most affordable way of booking them? Realistically, this is rarely the conversation we are actually having, but it is the conversation that we most often want to have.

Version four: One should avoid sharing financial information, or seeking the endorsement or approval, of complete strangers on the internet about a private financial decision.

 

[Cfabar1]

Yes, there is a balance….

To me, there is a recognition that I can go on a vacation every year, but some years a vacation may make more sense or less sense than others. Additionally, DVC is a rather limited system. There are expiration dates, and outside of WDW in Orlando, the use, in practicality, is rather limited in one way or another. (A large contract with Aulani may be an exception with this, though that has other limitations).

The ideal customer, to me, is a person who knows for whatever reason, that they will return to WDW year after year after year after year, and can compare the direct cost of visiting and staying at resorts on or off-property with the cost of DVC.

One thing people often fail to include is the value of staying on-property varies greatly from person to person. Keep in mind, during your stay most likely if you’re there for a week you’ll be stuck taking Disney buses, monorails, etc. at least some of the time. The planning videos make it seem like if you stay on property you’ll be 5 minutes from the gate from all parks. Reality is not that way.

 

[Jack Kerouac]

And here I thought you'd be talking about being on the road with dean morriarty.

I would like to think Jack would have liked to go on the road to WDW, but maybe Walt had people like Jack in mind when he decided alchohol wouldn’t be served at the Magic Kingdom when it opened. Both were brilliant men. Some just have their demons.

 

[Jack Kerouac]

Our first trip as a family was this April. We stayed at OKW. I loved the quiet resort, but the bus rides were long and we got stuck waiting for certain buses for a while at times. But I fell in love with Disney again (I went a lot as a child but had not been in more than ten years.) I loved seeing my boys experience the magic and I realized I wanted that for them at least every couple of years. I’m terrible at taking vacations. I will book them and cancel them later. We bought DVC to invest in our family, to give our boys memories, and to help me suck less at vacationing. We also have the means to pay for it and that wasn’t always the case.

 

[Jack Kerouac]

Yes, there is a balance….

To me, there is a recognition that I can go on a vacation every year, but some years a vacation may make more sense or less sense than others. Additionally, DVC is a rather limited system. There are expiration dates, and outside of WDW in Orlando, the use, in practicality, is rather limited in one way or another. (A large contract with Aulani may be an exception with this, though that has other limitations).

The ideal customer, to me, is a person who knows for whatever reason, that they will return to WDW year after year after year after year, and can compare the direct cost of visiting and staying at resorts on or off-property with the cost of DVC.

One thing people often fail to include is the value of staying on-property varies greatly from person to person. Keep in mind, during your stay most likely if you’re there for a week you’ll be stuck taking Disney buses, monorails, etc. at least some of the time. The planning videos make it seem like if you stay on property you’ll be 5 minutes from the gate from all parks. Reality is not that way.

We experienced some long waits to and from parks when we stayed at OKW. My wife’s one requirement for buying DVC was being on the monorail since we have young boys and she didn’t care for the buses.

 

[Jack Kerouac]

Version four: One should avoid sharing financial information, or seeking the endorsement or approval, of complete strangers on the internet about a private financial decision.

So much of our decisions around money is psychological and based on our personal experiences with money. DVC is no exception. I grew up visiting WDW every year. Seeing my boys experience it for the first time made me decide that spending a lot of money to make that an experience they can have at least once every other year was worth it. Everyone spends money. Some may appear to do it wisely. Others may appear to do it foolishly. But we don’t always know what others have experienced, so it makes it difficult to make an objective decision about how money should be spent. The same goes for saving money.

 

[cbyrne1174]

Three are (at least) three different versions of the money conversation.

Version one is a caricature: "Do I want to buy DVC with financing, or never go on vacation?" I rarely take this version seriously, but it is lurking behind many posts/threads.

Version two might be the most important, but also one that the DVC boards are sometimes unwilling to have: "Am I in a financial situation in which (a) buying DVC is a responsible purchase, or should I (b) visit Disney less often/pay cash for cheaper lodging, onsite or off/vacation in less expensive destinations?" For some people, the answer is (b), but if anyone here every actually suggests that to anyone, it is taken as a personal attack and is quickly shouted down. I have my own reasons for why I suspect that's so, but I am only an armchair psychologist, so I will keep them to myself.

Version three is the easiest one: Given a specific set of planned stays in DVC lodging, what's the most affordable way of booking them? Realistically, this is rarely the conversation we are actually having, but it is the conversation that we most often want to have.

Your version 3 is exactly why I'm looking at adding on more Marriott and getting rid of some of my Wyndham.

 

[tom1944]

I am considering making my initial purchase and have about $30,000 available for points.

If I ever decide to purchase additional contracts I could save but I am also considering using cash value of my whole life policies and letting the dividends pay back the loan. Luckily we really don’t need the entire value of the insurance so having the loan will not risk my spouse’s financial security if I pass while there is still a balance

 

[Cfabar1]

Why not start with your first $30k and see where it goes… You have time to figure out that down the road if you want more points.

 

[tom1944]

Why not start with your first $30k and see where it goes… You have time to figure out that down the road if you want more points.

That is the plan.

If we add more it would be from savings or using the cash available in the insurance plan.

$30,000 is enough for the initial step into DVC and it is very possible we might not spend the entire $30,000

We might consider purchasing two 100 point contracts especially if we cannot decide on a specific home resort.