The VGF 2 pricing thread

[KAT4DISNEY]

Please don't assume that everyone who might join this thread is as up-to-speed as VGF2 as you are.

There was a question earlier today about this. See:

Answering a question is not being disparaging of persons knowledge.

 

[Sandisw]

We currently have a March UY at GF and are seriously looking to add.

If by some miracle GFV2 goes on sale in Feb, and we buy March UY points, would we get 2021 points?

How does that work? - or are we out of luck?

Not a deal breaker, but curious.
Thanks

It will all depend on how they decide to offer the points. Points deeded to the new building won’t be usable before the rooms open there. However, they have points deeded to the current building that can be used as soon as they are bought.

So far, there has been no info on how it might go. When RIV sold, it went on sale in April with a December opening, and all UYs, but February got 2019 points.

I think there is a good chance we will see all UYs get current UY points when it goes on sale. My guess is that Feb and March UY will start with 2022 since I am guessing sales don’t open until at least March..just a guess

 

[nuhusky123]

there is a wild card event that will likely impact dvc sales in the coming years. The fed will be increasing interest rates, this will make borrowing money more expensive.

now all of us here know financing isn’t the best for dvc but plenty of people will and do finance

if it costs more money to finance dvc I would be willing to bet this will impact dvc sales

the first round of fed hikes will be coming right around the time gfv is released for sales. I think this will hit dvc sales by a good couple of % points further depressing dvc ambitions

 

[BWV Dreamin]

there is a wild card event that will likely impact dvc sales in the coming years. The fed will be increasing interest rates, this will make borrowing money more expensive.

now all of us here know financing isn’t the best for dvc but plenty of people will and do finance

if it costs more money to finance dvc I would be willing to bet this will impact dvc sales

the first round of fed hikes will be coming right around the time gfv is released for sales. I think this will hit dvc sales by a good couple of % points further depressing dvc ambitions

DVC direct make borrowing very easy. Does not impact one’s credit rating. Interest rate is determined by credit score, but even so, will easily lend money. May be a different story going through a bank.

 

[nuhusky123]

DVC direct make borrowing very easy. Does not impact one’s credit rating. Interest rate is determined by credit score, but even so, will easily lend money. May be a different story going through a bank.

Interest rates are set by the federal reserve. Raising the interest rates means for every $1 you borrow the more it costs

i have no idea what you are saying about making it easy or why that is even part of the conversation When I said financing Disney will cost more.

awesome that Disney financing makes it easy to borrow money. So does a bank but that doesn’t change the fact the federal reserve will increase interest rates to combat inflation thereby increasing costs to finance dvc

interest rates are not dictated by ones credit score. Again the federal reserve sets interest rates. Credit score can have a small impact by a percentage of a percent but that’s noise to a bank

 

[Jimmy Geppetto]

there is a wild card event that will likely impact dvc sales in the coming years. The fed will be increasing interest rates, this will make borrowing money more expensive.

now all of us here know financing isn’t the best for dvc but plenty of people will and do finance

if it costs more money to finance dvc I would be willing to bet this will impact dvc sales

the first round of fed hikes will be coming right around the time gfv is released for sales. I think this will hit dvc sales by a good couple of % points further depressing dvc ambitions

Interest rates are set by the federal reserve. Raising the interest rates means for every $1 you borrow the more it costs

i have no idea what you are saying about making it easy or why that is even part of the conversation When I said financing Disney will cost more.

awesome that Disney financing makes it easy to borrow money. So does a bank but that doesn’t change the fact the federal reserve will increase interest rates to combat inflation thereby increasing costs to finance dvc

interest rates are not dictated by ones credit score. Again the federal reserve sets interest rates. Credit score can have a small impact by a percentage of a percent but that’s noise to a bank

Feds raised the rates nominally in 2018. DVC wasn’t impacted. The last material rate hikes came between June 2004 and June 2006. I don’t have the DVC sales history during those times but I would render a guess they were not materially impacted to the point where prices dropped (or incentives increased).
Inflation is high. Canadian and USA economies are almost at full employment.
I’m no economist but I’d guess there is no impact to DVC sales.

As a potential VGF2 buyer… I hope I’m wrong.

 

[nuhusky123]

I would not expect a change in price but I would expect fewer sales that would typically be financed

 

[davidl81]

The Fed's are talking about raising interest rates to .9% by EOY 2022. That is not going to materially impact financing rates for DVC.

 

[nuhusky123]

The Fed's are talking about raising interest rates to .9% by EOY 2022. That is not going to materially impact financing rates for DVC.

I disagree but that’s cool we don’t have to agree. Money has been almost free up to this point.

 

[KAT4DISNEY]

I disagree but that’s cool we don’t have to agree. Money has been almost free up to this point.

People used to finance at Disney's very high rates without blinking an eye lash. As I understand they've lowered them but I'd hazard that the Disney rates are still much higher than what could be gotten elsewhere. They heavily lean on the monthly payment amount vs the rate or even overall cost of the purchase.

 

[BWV Dreamin]

Interest rates are set by the federal reserve. Raising the interest rates means for every $1 you borrow the more it costs

i have no idea what you are saying about making it easy or why that is even part of the conversation When I said financing Disney will cost more.

awesome that Disney financing makes it easy to borrow money. So does a bank but that doesn’t change the fact the federal reserve will increase interest rates to combat inflation thereby increasing costs to finance dvc

interest rates are not dictated by ones credit score. Again the federal reserve sets interest rates. Credit score can have a small impact by a percentage of a percent but that’s noise to a bank

The interest rate Disney charges is based on adequate credit score and a great one. If you have ever purchased direct, you would know this. Also Disney’s lending practices are not based on the same criteria as a home equity loan or personal loan. What the Federal Reserve does has no bearing on how Disney lends money. It only affects their interest rate they charge. Not getting into a debate with you. Have you ever purchased direct?

 

[BWV Dreamin]

The Fed's are talking about raising interest rates to .9% by EOY 2022. That is not going to materially impact financing rates for DVC.

Exactly.

 

[nuhusky123]

The interest rate Disney charges is based on adequate credit score and a great one. If you have ever purchased direct, you would know this. Also Disney’s lending practices are not based on the same criteria as a home equity loan or personal loan. What the Federal Reserve does has no bearing on how Disney lends money. It only affects their interest rate they charge. Not getting into a debate with you. Have you ever purchased direct?

I own direct, I pay cash though. Below is the language dvc was offering on financed contracts. This is a terrible, god awful apr. but I can guarantee if the fed raises rates so will dvc. As you like to mention over and over Disney won’t leave money on the table so not raising rates to match the fed would mean dvc is making less profit on those poor souls who finance

this is such a horrible rate, makes me cry



INTEREST RATE – For new Members, we offer fixed rates from 9.99% (APR 10.0%) to 18.0% (APR 18.01%) – ex. a 10- year loan with a 10% down payment and a fixed annual rate of 15.0% (APR 15.01%) would require, among other criteria: (1) a 675 min. credit score, (2) current payment status on any primary residence mortgage, (3) no foreclosure history in prior 3 years, (4) no open Federal or State tax liens or judgments, (5) no active bankruptcy filings, (6) no charged-off debt or unpaid judgments greater than $3,000 each or $10,000 total within last 3 years, and (7) no active credit counseling plan. Rate is reduced by .50% if direct debit monthly payments through a U.S. bank account are selected at time of purchase and maintained. You may still qualify even if your situation doesn’t match our assumptions. Your loan’s rate will depend upon the specifics of your loan and payment history. ANNUAL PERCENTAGE RATE (APR): A measure of the cost to borrow money expressed as a yearly percentage. The APR shown assumes a first installment payment within 45 days of closing and includes closing costs and a $250 document preparation fee in the financed amount. Void where prohibited. Additional restrictions and terms may apply.
DVC-22-2300051-W2

 

[Epcot Forever Forever]

One of you is saying a change in the federal funds rate will definitely impact the rate Disney charges.

The other is arguing that a change in the federal funds rate will be limited in impact to the the rate Disney charges.

You disagree on whether the amount that buyers will care will be enough to meaningfully impact sales. You do not disagree that a change in the funds rate will change interest charged by Disney.

 

[Epcot Forever Forever]

Anyone truly financing a DVC purchase is financially cruisin for a bruisin, so I for one don’t think the interest rate will make a meaningful difference unless it goes up by like 750 basis points.

 

[AvidDisReader]

Just for clarity, the Federal Reserve Does NOT raise consumer interest rates. It raises the interest rate on funds that Banks borrower money from the Fed. Usually they raise rates at a .25% at a time. There is usually a reciprocal increase in prime rate/consumer rates when the Fed raises rates. The Worst way to go to finance DVC is thru Disney using consumer rates. Much better to use a HELOC, much better rates. Depending on how fast you can expect to payoff the debt, it might actually be better taking a Charge Card advance that offer no interest for 12 to 18 months-but be careful as if you do not payoff in the no interest time period the interest rate becomes oppressive.

 

[BWV Dreamin]

Just for clarity, the Federal Reserve Does NOT raise consumer interest rates. It raises the interest rate on funds that Banks borrower money from the Fed. Usually they raise rates at a .25% at a time. There is usually a reciprocal increase in prime rate/consumer rates when the Fed raises rates. The Worst way to go to finance DVC is thru Disney using consumer rates. Much better to use a HELOC, much better rates. Depending on how fast you can expect to payoff the debt, it might actually be better taking a Charge Card advance that offer no interest for 12 to 18 months-but be careful as if you do not payoff in the no interest time period the interest rate becomes oppressive.

Great explanation. DVC qualifies for 6 months no interest using Chase Disney Visa when purchasing direct.

 

[Sandisw]

Has anyone looked up how many VGF points have sold on the resale market in the last 6 months or so??

 

[KTownRaider]

Has anyone looked up how many VGF points have sold on the resale market in the last 6 months or so??

For the 3 month period of Sep-Nov, VGF had 17.4K pts sold (16.8 private party + .6K ROFR)

https://www.dvcnews.com/dvc-program...er-2021-privates-sale-prices-and-volumes-flat

 

[mamaofsix]

It'll be interesting to see how guest demand shakes out. I'll be dying to get into one of these things at 7 months if they're ever available. 2 real beds is MUCH preferred for my family over a queen and a couch. And I find the kitchenettes useless.

Now we just need to convince Disney to build a King bed studio some place.

Is this as big a deal now that they are refurbing VGF1 with murphy beds that are the exact same size, type and quality queen mattresses as the regular beds? To me, it's more bang for your buck. You still get 2 "real" queen beds as well as a couch if you need it...