VGC asking price at 120 pp!

[Kauinohea]

Wow....I started looking about 8 months ago and I swear the asking was about 100.....anyone have idea of what is seen as a fair offer for VGC?

 

[rackle]

I think the 100 pt contract I saw pop up today or yesterday was for $130/pt. No clue what it actually went for but it went fast.

 

[Minniesgal]

People have been paying $110-115 for a while now so that contract is probably about what they will get.

 

[Breyean]

Well, when I bought VGC in January I paid $90 while DVC was getting $130. And I got a smoking deal, I'll admit it. Some were lower' most were higher.

Now DVC wants $165 so $120-130 actually sounds like it's in line with pre price hike discounts of resale vs direct.

 

[Kauinohea]

Sounds like I shouldn't be surprised at the price!

 

[PCMama]

Disney took two contracts I tried for at $99. And $93 ppt, so prices have gone up. $120 is only asking though. I just closed on one at $108, and $122 was asking..

 

[BestDadEver]

And that's why financing makes sense to me . The inflation is quite ridiculous . Waiting and saving money to purchase , the inflation just doesn't offset the interest you will pay.

 

[collections]

Waiting and saving money to purchase , the inflation just doesn't offset the interest you will pay.

Could you please explain this statement? I'm not sure I'm understanding it correctly.

 

[ELMC]

And that's why financing makes sense to me . The inflation is quite ridiculous . Waiting and saving money to purchase , the inflation just doesn't offset the interest you will pay.

I feel like we've been through this before, but this is one of those cases where you make a statement that is completely false and has absolutely no math to support it.

Could you please explain this statement? I'm not sure I'm understanding it correctly.

I think what he is trying to say is that if you buy now and finance, you will end up paying less over the long term than if you simply wait to save the money due to the increased price per point in the resort. Of course, this makes no sense whatsoever and I doubt he could produce the math to support this "fact". It also doesn't take into account resale purchases, which despite the recent spike, have seen steadily falling prices over the past five years.

 

[Breyean]

And that's why financing makes sense to me . The inflation is quite ridiculous . Waiting and saving money to purchase , the inflation just doesn't offset the interest you will pay.

I'd like for you, just once, to support these claims of yours with some hard math.

I'm sure you have the numbers to back this up, or do you just "feel" this way?

I'm really curious since you post the same claim in many, many threads, yet never explain how you reached your conclusion.

 

[ImagineerTHAT]

And that's why financing makes sense to me . The inflation is quite ridiculous . Waiting and saving money to purchase , the inflation just doesn't offset the interest you will pay.

Putting saved money in a mutual fund or index fund doesn't beat the current 1.4% inflation rate at all. Oh wait, yes it does. It reverses it. Not only will you make money while saving up to buy, but you won't be paying interest on a loan or mortgage.

Or, if you mean inflation of resale prices...do you think they will inflate until they meet direct prices? Not ever gonna happen.

No matter how you slice it, that comment is false and makes no sense.

 

[Sandisw]

Could you please explain this statement? I'm not sure I'm understanding it correctly.

One of the decisions that everyone has to decide is whether to wait and pay all cash for DVC or possibly use some sort of financing option to buy.

Obviously, buying today at today's prices, without financing costs adding to the cost, will always be cheaper than buying today with financing.

But, because the price per point can go up--and in this case, has for some of the resorts, like VGC--its not as cut and dry as always saying "wait to pay cash".

Take BWV--I bought in 2010 for $55. Some contracts are going in the mid 70's now--for my 150 points, that is about a $3000 increase. Had I needed to finance that purchase back then, even at 10% interest, for a 5 year loan...I wouldn't really be spending more than had I waited to buy now for cash.

Yes, I know this is a simple way to look at it and yes, the price could be down in again, and not everyone is paying those prices, etc., etc., etc.

IMO, as long as one understands what financing does to the cost of the purchase and has decided that it makes sense for their situation, then its a personal choice.

On a side note, let's remember to keep focus of the thread to the topic..thanks all!!!

 

[Missyrose]

One of the decisions that everyone has to decide is whether to wait and pay all cash for DVC or possibly use some sort of financing option to buy.

Obviously, buying today at today's prices, without financing costs adding to the cost, will always be cheaper than buying today with financing.

But, because the price per point can go up--and in this case, has for some of the resorts, like VGC--its not as cut and dry as always saying "wait to pay cash".

Totally agree that with new resorts, there's a bit of hedging your bets against price increases. But, if OP was shocked by the rising costs of resale contracts, then I'm fairly certain that adding financing interest to the overall purchase price wouldn't be the route that the OP could/would take.

 

[ImagineerTHAT]

One of the decisions that everyone has to decide is whether to wait and pay all cash for DVC or possibly use some sort of financing option to buy.

Obviously, buying today at today's prices, without financing costs adding to the cost, will always be cheaper than buying today with financing.

But, because the price per point can go up--and in this case, has for some of the resorts, like VGC--its not as cut and dry as always saying "wait to pay cash".

Take BWV--I bought in 2010 for $55. Some contracts are going in the mid 70's now--for my 150 points, that is about a $3000 increase. Had I needed to finance that purchase back then, even at 10% interest, for a 5 year loan...I wouldn't really be spending more than had I waited to buy now for cash.

Yes, I know this is a simple way to look at it and yes, the price could be down in again, and not everyone is paying those prices, etc., etc., etc.

IMO, as long as one understands what financing does to the cost of the purchase and has decided that it makes sense for their situation, then its a personal choice.

On a side note, let's remember to keep focus of the thread to the topic..thanks all!!!

You got a great deal at $55 though.

The increase argument is logical, although if you invested rather than financed you would have MADE money. Say you had 2,000 as a down payment and you invested rather than financed.

The S & P 500 returned 15% in 2010, 2% in 2011, 16% in 2012, and currently 13% in 2013.

You can do the math, but its obvious what the results are.

Anywho, back to topic. GVC at $120 is steep IMO.

 

[Kauinohea]

Hello from OP! I was surprised at the requesting prices, and saddened when my offer of $110 wasn't accepted...oh we'll! We are paying cash btw. I am just going to wait it out for the right contract

 

[ellab]

I had an offer accepted at $103. We are waiting on ROFR. I'm really nervous because I've seen/heard Disney take ones at $99 and $100.

 

[Kauinohea]

I had an offer accepted at $103. We are waiting on ROFR. I'm really nervous because I've seen/heard Disney take ones at $99 and $100.

103 is a great price! Good luck to you!

 

[DougEMG]

While not a fan of financing since it normally increases your total costs, here is a simple example where financing could work to your advantage.

Assumpition is you want to buy VGF direct. Take VGF at opening price of $145/point, assume you are going to finance at 10% and then pay off the loan in a lump sum after 1 year (say you plan to come into a large sum of money). For simple math the financing charges are $14.5/point. So your price per point was $145.00+$14.50 = $159.50

So if you think the price of VGF after one year will have increased more than $14.50 (your interest charges) it makes sense to buy and finance. If I had to bet, I'd say that VGF will increase in price more than $14.50 in its first year of sales, so given this very limited example, financing would save you money over waiting till you had the cash.

The danger would be your big lump of cash doesn't come through or you decide to spend it on something else instead of paying off your loan.


ANd yes, resale prices have been climbing like crazy lately....

 

[kapicka]

We tried to buy 160 points at $98 per point (though the seller was only asking for $88) and Disney grabbed it. I wish now I'd gone $103 but it was already hard offering a bunch over asking.

 

[ellab]

We tried to buy 160 points at $98 per point (though the seller was only asking for $88) and Disney grabbed it. I wish now I'd gone $103 but it was already hard offering a bunch over asking.

When was this?