The Price of Borrowing Money - DVC Direct Sales

[🍀TwinsMom]

You mean you don’t want to wait until your princess, who practically wears her Elsa dress to bed every night, is now telling you she’s getting her 10th piercing and asking if she can bring her boyfriend Chad along?

Nope! Our kids are *almost* 9 and 10 now, and already this Halloween we got a taste of preteen social lives/Ubering the kids around to all the Trunk or Treats, Trick or Treats, parties and play dates galore that kept us hopping, on top of regular school and sports schedules that go with munchkins. There were several days/nights we unexpectedly had the house to ourselves in quiet -- and it was WEIRD. Keeping the kids on vacation with us as long as possible. So far stuffies and dolls and Epcot scavenger hunts and fishing trips with dad on Crescent Lake on vacation are popular, and we'll keep it going before Chad/Britnee are mentioned as plus ones and my husband has a coronary.

 

[DonMacGregor]

So far stuffies and dolls and Epcot scavenger hunts and fishing trips with dad on Crescent Lake on vacation are popular, and we'll keep it going before Chad/Britnee are mentioned as plus ones and my husband has a coronary.

You're so out of touch! Brytnee is spelled with a "y" now...

 

[Brian Noble]

Wait. Y'all bought this for your kids? Huh.

 

[DonMacGregor]

Wait. Y'all bought this for your kids? Huh.

 

[bumbershoot]

I’m guessing that most who finance for ten years have other loans as well

That's an interesting assumption to make.

You can get personal loans for 3 years under 6% ( lower than the current mortgage rates)

Not everyone can get such personal loans.

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.

I'll never be afraid of rude people.

We bought, we financed. Compared to the cost of the used car loan we had had, which was 25% due to the then-husband's "neutral credit" the ~10% was nothing.

We were paying more than that to go to disneyland often, even staying offsite. We had plans for WDW in the future. I have a family near there. I wanted to host them. DVC was perfect to get what I wanted to create. Even financing, and I think we paid it off at the 7-year mark, I made out like a bandit. We got the value of doing what we wanted to do and paying a relatively small premium to do it before we had the cash to do it with.

Gorgeous.

And I'm literally becoming an accountant, so it's not that I'm financially illiterate (a phrase someone on the thread so lovingly used). But my joy in life has value, and sitting on my butt at home, or continuing to pay HoJo at Disneyland rather than going to WDW to bask in the vastness of OKW or beauty of VGF, are not the things I wanted to do.

BTW, we're a couple of idiots that bought DVC direct and financed at 10.5% back in 2008. Without any justification, IMO if the amount we eventually purchased that 160 points is calculated against the current resale point costs we still are ahead.

Same. But I don't consider myself an idiot, and I don't think you are, either.

Wait. Y'all bought this for your kids? Huh.

Heh heh. Exactly.

 

[Nursemanit]

That's an interesting assumption to make.



Not everyone can get such personal loans.



I'll never be afraid of rude people.

We bought, we financed. Compared to the cost of the used car loan we had had, which was 25% due to the then-husband's "neutral credit" the ~10% was nothing.

We were paying more than that to go to disneyland often, even staying offsite. We had plans for WDW in the future. I have a family near there. I wanted to host them. DVC was perfect to get what I wanted to create. Even financing, and I think we paid it off at the 7-year mark, I made out like a bandit. We got the value of doing what we wanted to do and paying a relatively small premium to do it before we had the cash to do it with.

Gorgeous.

And I'm literally becoming an accountant, so it's not that I'm financially illiterate (a phrase someone on the thread so lovingly used). But my joy in life has value, and sitting on my butt at home, or continuing to pay HoJo at Disneyland rather than going to WDW to bask in the vastness of OKW or beauty of VGF, are not the things I wanted to do.



Same. But I don't consider myself an idiot, and I don't think you are, either.



Heh heh. Exactly.

I am at the age where I know many “ financially literate” coworkers who avoided debt , built up a large nest egg, and died right after or before retirement. Vacations are more fun now than in your 70s.

 

[gmi3804]

I am at the age where I know many “ financially literate” coworkers who avoided debt , built up a large nest egg, and died right after or before retirement. Vacations are more fun now than in your 70s.

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

 

[Brian Noble]

As it happens, I just got my "annual social security update" email yesterday, and went to look at the various estimates. Deciding when to begin benefits is basically betting on my own life expectancy. The right decision for me is not entirely clear.

Genetics suggests I might have a long life post-retirement. On the other hand, I have several decades worth of "city miles" to account for. As a former President put it: When I was young and indiscreet, I committed many youthful indiscretions. In my case, the meaning of "young" is...generous. So far, I don't seem to have any lasting health impacts from those years, but I'm sure there is still time for them to crop up.

 

[Red Dog Run]

There's a point, I don't think we're close to it though. For home mortgages, I think people are pretty sensitive to increases. But I think DVC is more of an impulse purchase for a lot of people. Very few people would borrow 200k at 12% or 16%, but it seems people do it on 30k pretty readily, at least for DVC.

Then again, I could just be talking out of my a**, as we say here in the South

South? South Louisiana native, SW Mississippi resident

 

[Cfabar1]

I think there’s nothing wrong with taking it out as a loan, I just don’t find myself economically secure and stable enough to do so. I would qualify (easily) for a loan, but qualifying doesn’t mean the same thing as being able to pay back quickly and easily without sacrificing other goals if an unexpected expense arose or a loss of income. I’d prefer to pay cash, know the expense is taken care of, and not have to worry about the “what ifs”. Since it is a product that is not at all necessary to live or function, that’s where I land.

Others may say, future point values, resale, rent, etc. but to me it is a toy. Much like a boat or a swimming pool. Yes, it will always have “some” value, but to me, the value will be enjoyment, and I price and pay accordingly.

 

[Frugal Fairy Tales]

When will data be available for October 2022 DVC direct sales?

 

[Sandisw]

When will data be available for October 2022 DVC direct sales?

DVC News usually does it’s analysis right about this time each month so hopefully in the next few days!

 

[Jack Kerouac]

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.

 

[Jack Kerouac]

@DonMacGregor I find myself agreeing with how you see things. Plus, I love that there is another person here who follows the Fed and the impact of increasing rates.

Any chance you listen to the Animal Spirits podcast?

 

[DonMacGregor]

@DonMacGregor I find myself agreeing with how you see things. Plus, I love that there is another person here who follows the Fed and the impact of increasing rates.

Any chance you listen to the Animal Spirits podcast?

No, I can't say that I have. I assume it's a spin on Keynes?

 

[Jack Kerouac]

No, I can't say that I have. I assume it's a spin on Keynes?

It’s a podcast with a couple guys around my age (40 and 37.) One is from NY and one is from MI. I don’t listen to their Talk Your Book, as it’s just an advertisement for the other party, but their Wednesday episodes are great. They aren’t necessarily a spin for or against Keynes. They change their minds and will admit when they’re wrong. I appreciate humility when it comes to investing, finance, spending money, or just anything these days.

If you truly want a spin on Keynes, check out Brian Wesbury from First Trust.

 

[DonMacGregor]

It’s a podcast with a couple guys around my age (40 and 37.) One is from NY and one is from MI. I don’t listen to their Talk Your Book, as it’s just an advertisement for the other party, but their Wednesday episodes are great. They aren’t necessarily a spin for or against Keynes. They change their minds and will admit when they’re wrong. I appreciate humility when it comes to investing, finance, spending money, or just anything these days.

If you truly want a spin on Keynes, check out Brian Wesbury from First Trust.

I'll be honest with you: I'm at a point now, at 58, where I really don't want to focus on finances any more than I have to. I spent far too many years "investing" far too much time either actively managing my finances, or fretting over actively managing my finances. Running a business, raising kids, dealing with everything else life throws at you takes enough of a toll on you in the here and now, without adding the stress of forecasting where you might be in 30 or 40 years.

I reached a point where it was much more liberating to entrust the management of my retirement to someone not only better qualified to do so, but also committed to the endeavor as a profession. Nowadays, my role in the process is to just keep making the money, and occasionally touching base to see where things stand and discuss any recommended revisions to the portfolio.

I'm nowhere near like one of those 40-something guys from a TV commercial spending their day happily sailing their 50 foot yacht, blissfully unaware or unconcerned about financial stability while their broker (who's also eternally smiling) makes money faster than you can print it. As I said, I'm still working and likely will continue to do so well past minimum retirement. Mostly because I like to work, but also because I like the freedom of giving in to some of those Animal Spirits every once in awhile. I'm not a "you can't take it with you" kind guy, but I AM a proponent of "you're more likely to enjoy the fruits of your labor at 50 or 60 versus at 70 or 80". As an example, we did a 4-day REI Adventure Trek to Machu Picchu 3 years ago at 55, and there's no way I would have wanted to do it at 75.

In that regard, maybe I'm more Kerouac than Keynes...

 

[Jack Kerouac]

I totally get that. You and I are definitely alike, and yes, you are more Kerouac than Keynes. The world needs more Kerouac. It sounds like you are living the best life, a balanced life.

 

[Mercdesman]

Right now that's the absolute minimum for Monera. And that's for 800+ credit score. My brother in law had literally 798 and they quoted him like 13.3 or something.

I just bought points and monera quoted 14.9% I searched and found somewhere that gave me 11.9%. Still very high with good credit, but better than 14.9%
Direct was at 12.9% with good credit. I bought 400 points for about half of what direct was selling for.

 

[McCrae]

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.