UY, Personal Financing, Engaging a Sales Person, First Point Date?

[musicmantrs]

Good Morning!

Long time reader, first time poster on the DVC side. I've read through the stickies and we have stayed at a couple of DVC renting points and loved them. We're looking to take advantage of the BLT discount and I have several questions:

We typically travel in mid-late May so I'm thinking April UY but wanted to see if there were any gotchas? We have 2 kids aged 5 and 2 so for the foreseeable future we'll have to contend with school schedules.

An add-on to the above, if we purchase with an April UY would we receive 2021 points that have to be used before April (since we're past the banking date for 2021)?

Any downside to using our own financing? I've got a few offers for personal loans that have much better terms and I'm assuming we can just act as cash buyers

How do we get on a salesperson's radar? We have a trip in March and know we could stop by a kiosk and/or do a tour then but we'd like to wrap this up by then.

Thanks Everyone!

 

[Wedgeout]

Currently April is in the 2021 UY. If offered as available, you would get those 2021 points and after the purchase, call member services for a gratuitous banking into the 2022 UY. I’d sure avoid June and even August UY’s for your mostly May bookings. (Because of banking and cancellation rules). With your current BLT focus, call in and get a guide assigned for a chat to get all your questions answered and purchase needs. I have no knowledge on the finance part.

 

[CaptainAmerica]

Any downside to using our own financing? I've got a few offers for personal loans that have much better terms and I'm assuming we can just act as cash buyers

If you're buying Direct and financing, it's extremely difficult for the math of DVC to work out in your favor regardless of the current incentives at BLT. That interest expense is going to gobble up all of your savings and you won't hit break-even for a couple of decades.

 

[Jwaire]

Any downside to using our own financing? I've got a few offers for personal loans that have much better terms and I'm assuming we can just act as cash buyers

You would be acting as a cash buyer. Many members have used low interest loans like HELOCs and other products to purchase their contracts. I would just be careful with the personal loan companies. I personally wouldn't want a $20-30,000 personal loan on my credit report especially if you plan on purchasing a new house anytime soon. Disney will pull your credit, but since they hold the note they don't report the loan balance to the credit agencies. You have a similar option with Monera Financial. However, with both Disney and Monera, you pay for that in interest rate.

 

[Matty B13]

Also, rethink your UY, you might be traveling in May right now, but as soon as your 5 year old starts school you will be traveling during the February & April School Vacations. I have 3 kids and we have found our Feb UY to work best and our trying so sell our June UY.

 

[CaptainAmerica]

Also, rethink your UY, you might be traveling in May right now, but as soon as your 5 year old starts school you will be traveling during the February & April School Vacations. I have 3 kids and we have found our Feb UY to work best and our trying so sell our June UY.

Most (not all) states have nuked their February vacations.

I still travel around that time, but it's pulling my kids out of school rather than taking advantage of a scheduled break.

 

[musicmantrs]

Thanks for the feedback so far.

It is the one UY consideration we've debated - in Texas spring break has always been March as long as I can remember so we wouldn't really have the opportunity to travel in February so we have debated March or April*. I like late May because our schools are normally out a week or 2 before the end of May and it feels like a lot of states continue school until closer to Memorial Day.

 

[Jwaire]

An add-on to the above, if we purchase with an April UY would we receive 2021 points that have to be used before April (since we're past the banking date for 2021)?

If you purchased a March or April use year, you would receive 2021's points assuming they have that use year available.

The only negative to an April use year is the November 30 banking deadline. I tend to be very busy at the end of November, but if that works for your family—you should be fine. I have a Feb use year and it's just perfect. My points reload in time for Spring Break. Lots of options.

How do we get on a salesperson's radar? We have a trip in March and know we could stop by a kiosk and/or do a tour then but we'd like to wrap this up by then.

https://disneyvacationclub.disney.go.com/savings/
You can either chat with them or call the 800 number. You can also contact a current member to send you a referral link (I suggest you do because there's a $500 incentive if you are referred from a current member).

Honestly, the only resort I would purchase direct for anything other than a small contract would be Riviera or maybe the upcoming Grand Floridian Villas extension.

Thanks for the feedback so far.

It is the one UY consideration we've debated - in Texas spring break has always been March as long as I can remember so we wouldn't really have the opportunity to travel in February so we have debated March or May. I like late May because our schools are normally out a week or 2 before the end of May and it feels like a lot of states continue school until closer to Memorial Day.

Use year has nothing to do when you travel. It's just when the points are reloaded and decides your banking deadline. For example, if you travel every year in January you would not want a February use year. If something goes wrong with your January trip, it's too late to bank your points and your points would expire.

 

[musicmantrs]

Honestly, the only resort I would purchase direct for anything other than a small contract would be Riviera or maybe the upcoming Grand Floridian Villas extension.

For me, I want to be walkable to a park and not have to rely on the Skyliner. We just stayed at CBR for the W&D Half and it felt like Riviera sometimes had trouble with riders coming from CBR going to Epcot (or in reverse). I have been kind of slow rolling to see what the price and expiration for Grand Floridian comes in at. I like BLT because of the # of rooms and a perception of "more availability". Given all the factors, Beach Club would be a candidate for us resale but the close expiration kills it as an option (plus I want the blue card). Our most common use cases are going to be 1 BR or 2 BR and rarely a studio for trips with just myself and my wife.

 

[FinallyFL]

I suggest a March UY since this would give you the option to go during spring break, your desired May time frame and summer within the first 6 months of your UY. If you're going to move forward soon you'd still receive 2021 points. With either an April or March UY they should be able to grant you an exception to the banking deadline. If your March trip is booked through Disney, you might also be able to get some pixie dust and request to use your new points for your upcoming trip.

 

[Jwaire]

For me, I want to be walkable to a park and not have to rely on the Skyliner. We just stayed at CBR for the W&D Half and it felt like Riviera sometimes had trouble with riders coming from CBR going to Epcot (or in reverse). I have been kind of slow rolling to see what the price and expiration for Grand Floridian comes in at. I like BLT because of the # of rooms and a perception of "more availability". Given all the factors, Beach Club would be a candidate for us resale but the close expiration kills it as an option (plus I want the blue card). Our most common use cases are going to be 1 BR or 2 BR and rarely a studio for trips with just myself and my wife.

Oh, I completely understand why you picked BLT. Aesthetics aside, I love the resort, amenities and location.

 

[RoseGold]

I wouldn't buy DVC at all if you are financing. It flips the math. I guess I've seen a few things like HELOCs that were already done, blah blah. But many of these finance products are so bad I'd call them predatory.

Just stay at Swolphin and use the laundry room. Heck, stay at the JW and use the laundry room. You STILL come out ahead.

 

[bumbershoot]

That interest expense is going to gobble up all of your savings and you won't hit break-even for a couple of decades.

I understand that prices are higher than in 2009, but I feel you're drastically overstating interest. We financed with DVC and the interest after paying it off in 7 years was not an amount that changed breakeven in such a drastic way. If I had paid out of pocket for the DVC accommodations I've booked I would have broken even in the second year (full disclosure, I've always banked and borrowed from the beginning), even with the interest charged.

I figured the total interest out at one point and shuddered for a moment and then I was done. It wasn't an amount that emotionally scarred me, and owning has been WELL worth it.

 

[RoseGold]

If I had paid out of pocket for the DVC accommodations I've booked I would have broken even in the second year (full disclosure, I've always banked and borrowed from the beginning), even with the interest charged.

I'm not sure how this is possible, even without financing. Even comparing paying cash for DVC vs paying full price cash for deluxe resort, I could maybe make this work with the OKW villa, which no one is booking cash.

Even paying cash, DVC takes years to break even and might never against cheaper options like Swolphin or CB. The spread on renting DVC points is very tight right now. It's hard for me to even recommend buying when renting makes so much sense. I wouldn't recommend DVC at all if you have to finance it.

Add in the finance charges and interest, and I don't see how it isn't way upside down for a looong time.

 

[CarolynFH]

Thanks for the feedback so far.

It is the one UY consideration we've debated - in Texas spring break has always been March as long as I can remember so we wouldn't really have the opportunity to travel in February so we have debated March or April*. I like late May because our schools are normally out a week or 2 before the end of May and it feels like a lot of states continue school until closer to Memorial Day.

We’re in Texas too, and for the last two years our grandkids’ ISD has had a week off in February and in March, plus October. SO….

ETA - And the last day of school is May 27. The times they are a’changin’!

 

[havoc315]

If you're buying Direct and financing, it's extremely difficult for the math of DVC to work out in your favor regardless of the current incentives at BLT. That interest expense is going to gobble up all of your savings and you won't hit break-even for a couple of decades.

I agree, though it does depend on the financing. For example, financing on a credit card that just gives you 0% for 12 months, and then making sure you pay it off within 12 months.... Is the way to go.
But once you start long term financing at any real interest rate, you really end us losing money on DVC.

 

[havoc315]

I'm not sure how this is possible, even without financing. Even comparing paying cash for DVC vs paying full price cash for deluxe resort, I could maybe make this work with the OKW villa, which no one is booking cash.

Even paying cash, DVC takes years to break even and might never against cheaper options like Swolphin or CB. The spread on renting DVC points is very tight right now. It's hard for me to even recommend buying when renting makes so much sense. I wouldn't recommend DVC at all if you have to finance it.

Add in the finance charges and interest, and I don't see how it isn't way upside down for a looong time.

That's precisely it. Though it depends on a few different factors, break even on most resorts, compared to renting points, is way over 10 years, maybe even closer to 20 years. Financing adds another few years to the equation.

 

[CaptainAmerica]

I agree, though it does depend on the financing. For example, financing on a credit card that just gives you 0% for 12 months, and then making sure you pay it off within 12 months.... Is the way to go.

Yeah I mean for max incentives at BLT Direct we're talking about something like $60,000. I don't know anybody with that kind of credit limit on a 0% introductory offer.

 

[RoseGold]

Any downside to using our own financing? I've got a few offers for personal loans that have much better terms and I'm assuming we can just act as cash buyers

Depends on what you mean by "personal loan." If it's any kind of timeshare finance company, they will put a lien on the property. This will cost money (finance charges). You can take a loan on something else, like a HELOC on your actual house, and appear as a cash buyer.

I wouldn't do any of these options. I'd just stay at Swolphin.

 

[Jwaire]

Look, you have to do what's best for you. There are always more affordable accommodations. Do I recommend getting a 10-year loan for DVC at 9.99% and not paying it down as quickly as possible? No. But financing also isn't the end of the world either. I bought a DVC resale contract with financing at the beginning of COVID when everyone thought the sky was falling. I paid the loan off within 12 months. If I sold it today, I'd make money. Your mileage may vary.