Two simple DVC questions that I can't find answers to

[tink2020]

Ok, I've been perusing these boards and reading up a bit, and I still can't answer these two questions. This tells me they are probably rediculously obvious, but I just dont know....

1. Do most people get financing for their first DVC buy-in? I keep reading about how many have Paid Cash for their vacations upfront (by buying in DVC) but it seems Disney would have to offer financing in order to get the general public interested? Just curious.

2. Do you have the option to pay dues annually or monthly, or is that something built in to a specific resort, contract, etc?

Thanks in advance.... I'm sure I'll have more questions as time goes on!

 

[cobbler]

Well us, we financed. Not a smart move and we didn't plan on it but there were a number of reasons why.

1 - We were going to be down there anyway.
2 - I figured how much we could save, how much interest we would have accumulated, and took a rough guess at how much points would cost at that time when we had enough cash outlay. (I figured a generous 4% interest and 104 per point, figuring we could save enough cash in 3.5 to 4 years.

Well then I took how much we would finance and how much interest we would pay over that 3.5 to 4 years and such, well we actually would spend less $$ to finance then to wait and save the cash. Of course I can't guarantee that interest would be that much, could be more or less and I can't say for sure the points will be 104 in 4 years but at 92 for sold our resorts and supposedly 98 for SSR now . . . (without incentives mind you). So we financed and will pay it off in 3.5 - 4 years and I figure we will pay 2500 in interest. We paid 83.30 per point and if you figure the initial outlay + the interest it will figure about 94 per point.

Yes you do have the option to pay your dues monthly by direct debit from your bank account either on the 1st or the 15th of the month.

 

[tink2020]

edit:

So is the financing then through Disney, or did you get a bank loan, etc?

 

[crisi]

Disney does offer financiang. Disney provided financing MAY be tax deductible, depending on your circumstances (your guide will probably tell you yes, your guide is not a tax professional - there are odd circumstances where it is not, but for most people it is). The rate isn't great, you may be better off with a home equity loan. I would guess most people finance.

Through resale, your financing options are a little more difficult. Most banks won't offer a loan on a timeshare, you can take out a home equity loan, which may be your best bet. There is also a company that will finance a timeshare, the rates aren't great and I don't believe that is tax deductible in any circumstances.

 

[tink2020]

Disney does offer financiang. Disney provided financing MAY be tax deductible, depending on your circumstances (your guide will probably tell you yes, your guide is not a tax professional - there are odd circumstances where it is not, but for most people it is). The rate isn't great, you may be better off with a home equity loan. I would guess most people finance.

Through resale, your financing options are a little more difficult. Most banks won't offer a loan on a timeshare, you can take out a home equity loan, which may be your best bet. There is also a company that will finance a timeshare, the rates aren't great and I don't believe that is tax deductible in any circumstances.

Thanks for the info! We won't be able to take a home equity loan really, as we will be buying our first home in May.

edit


Thanks, again, though! Like I originally posted, I'm just trying to gather some info on what's available!

 

[crisi]

Thanks for the info! We won't be able to take a home equity loan really, as we will be buying our first home in May. That's why we aren't looking at DVC right away I think for us, our best bet would be to try and save and pay "cash". That way we won't have too many big things weighing in on our credit at one time. That's something we'll have to straighten out with someone more qualified than myself

Thanks, again, though! Like I originally posted, I'm just trying to gather some info on what's available!

Sounds sensible. A lot of people say "the only thing I regret is not buying sooner." Not me. The first time I heard about DVC was on my honeymoon. My husband and I were both Disney fans, it sounded great, and we didn't buy. Good thing because the marriage didn't last and when it broke up I was in over my head with money without vacations and DVC - keeping the heat up was a problem! The second time I was on my second honeymoon - we could have done it then, but spent the money we would have spent on DVC - building a home, infertility treatments, and an adoption (DVC is definately not the best thing I've ever written a check for!). At the time, the only forseen event was that we'd want a larger home. We finally bought when our kids were two and three and there was money in the bank to pay for it (well, actually, we had a home equity loan for about two weeks while a bonus check came in) and no expenses looming on the horizon.

 

[AFMom]

Congrats on buying your first house in May - that's wonderful! If you do decide to finance through Disney, just as an FYI, they do not report your loan to the credit companies. Not sure why - but hey - it's an interesting thing to know! That's the info I have anyway - anyone know if that has changed?

 

[wdw1972]

It seems like quite a few people finance, but that's not very surprising considering how easily americans in general are willing to go into debt. In my case, I waited until I had the cash in hand to buy, then added points (around 13-14 times) as I had more cash. It was my choice to not go into debt for something as frivolous as a vacation, but that's my personal value system. I would do a mortgage on my home or a short-term automobile loan, but won't finance anything else.

You have the option of paying your dues in full each January, or letting dvc take 1/12 of the total from your bank account each month (no interest).

 

[tink2020]

Congrats on buying your first house in May - that's wonderful! If you do decide to finance through Disney, just as an FYI, they do not report your loan to the credit companies. Not sure why - but hey - it's an interesting thing to know! That's the info I have anyway - anyone know if that has changed?

Thank you! We're very excited about it. Now if only we knew where we are going to live (waiting on DH's Match Day for medical residency programs....blah).

That's interesting information though.... anyone know if it still rings true?

 

[Hibernians]

I joined last month and decided to finance. Its no different than choosing to finance a car or taking a regular vacation and putting it on plastic. I always have the option of paying it off early with no penalties and I thought the SSR 15% discount was to good to pass up - plus after our trip this past November we knew we would be going back again in 2006, so we saw no reason to not join now.
I set it up so that I pay my maintenance fees on a montly basis forever and there is no extra charge or interest fee for this.

Consider this: If you decide to finance you can save 1% by having the money taken directly out of your checking/savings account each month.

 

[tink2020]

I joined last month and decided to finance. Its no different than choosing to finance a car or taking a regular vacation and putting it on plastic. I always have the option of paying it off early with no penalties and I thought the SSR 15% discount was to good to pass up - plus after our trip this past November we knew we would be going back again in 2006, so we saw no reason to not join now.
I set it up so that I pay my maintenance fees on a montly basis forever and there is no extra charge or interest fee for this.

Consider this: If you decide to finance you can save 1% by having the money taken directly out of your checking/savings account each month.

Great! Thanks for the info