wanting to buy in Direct

[ELMC]

Again, clearly everyone uses a different comparison model or way to compare their numbers. How is any savings at all "wiped out"?

If you actually performed an honest analysis, then you wouldn't have to ask this question. I'll agree with you about one thing, there are many different comparison models. Some are designed to achieve a neutral, unbiased answer and some are used as a tool to justify a financially unsound decision. And yes, I am saying that extending your break even point from 15 to 22 years by paying interest on a DVC purchase is financially unsound.

Are you only comparing using the timeshare for 10 years? Because that's not accurate in my opinion. I realize I am paying more than the person next to me that paid outright. Clearly they will have more a savings than me. But to say that I will have no savings on my future vacations, my children/grandchildren etc, is just not accurate. So I guess it's all that "this is fact" presentation of numbers that throws me off. Everyone compares differently.

You will realize a savings on your vacations. Starting around year 23 you should be paying less per year vs. other options.

The crash of 2008... yes was bad for a lot of people. Most people that were affected by that were not living within their means already, like living off of credit cards, not paying them off, had no savings.

Or perhaps, were financing timeshare purchases?

I guess all I'm trying to say is just because you (general) wouldn't do something a certain way, doesn't mean that somebody else can't or shouldn't.

Nobody's saying that you shouldn't. What we are saying is that it is a bad deal. And it is. Please just admit that it's a bad deal but it makes you happy so you're going to do it anyway. Nobody can argue with that without attacking you personally, and that is not acceptable.

 

[ELMC]

Your right but spending $5K cash wasn't an option at that point . I looked into resale . I knew about it before I purchased . To big things that deterred me were ROFR , and the restrictions .

I'm truly sorry that Disney's scare tactics of ROFR and restrictions deterred you from an option that I feel would have had a significantly smaller financial impact.

 

[Minniesgal]

It's not the "advice" that's pushy and snotty, it's the attitude that some people present it with, that's pushy and snotty. I'm all for soaking up people's advice, but when it's presented in an 'all or nothing' way or a 'if you don't do it this way you're stupid' attitude, it loses its message I think.



Again, clearly everyone uses a different comparison model or way to compare their numbers. How is any savings at all "wiped out"?

Are you only comparing using the timeshare for 10 years? Because that's not accurate in my opinion. I realize I am paying more than the person next to me that paid outright. Clearly they will have more a savings than me. But to say that I will have no savings on my future vacations, my children/grandchildren etc, is just not accurate. So I guess it's all that "this is fact" presentation of numbers that throws me off. Everyone compares differently.

The crash of 2008... yes was bad for a lot of people. Most people that were affected by that were not living within their means already, like living off of credit cards, not paying them off, had no savings. If you believe that if you can't pay cash for something that you can't afford it then that's fine for you. However I have a savings, we don't live off of our credit cards and if I want to finance DVC and have a $130 a month payment instead of paying outright, I can. And, I can still put money in our savings account each month.

I guess all I'm trying to say is just because you (general) wouldn't do something a certain way, doesn't mean that somebody else can't or shouldn't.

I never said you couldn't or shouldn't, I was crystal clear in my post that I was talking about my personal feelings. Why you feel you need to defend your decision to finance so agressively when you are not being attacked speaks volumes.

To me buying something non essential on the never never is my definition of living beyond my means, that is why I do not allow myself to do it. Again speaking about me and my thoughts.

 

[AmyB2006]

It's not the "advice" that's pushy and snotty, it's the attitude that some people present it with, that's pushy and snotty. I'm all for soaking up people's advice, but when it's presented in an 'all or nothing' way or a 'if you don't do it this way you're stupid' attitude, it loses its message I think.

Please read my original message, it was not pushy or snotty. The 'primrose' post was in jest....to demonstrate the difference between a real pushy or snotty reply against a real concern I have about people using credit to purchase a timeshare. I was trying to make light of the adjectives you are using for me.

I wasn't referring to you. That's why I said "some" people. Some are pushy, some are not.

 

[AmyB2006]

I never said you couldn't or shouldn't, I was crystal clear in my post that I was talking about my personal feelings. Why you feel you need to defend your decision to finance so agressively when you are not being attacked speaks volumes.

To me buying something non essential on the never never is my definition of living beyond my means, that is why I do not allow myself to do it. Again speaking about me and my thoughts.

Again, which is why I put (general) after my statement of "you".

I'm glad it speaks volumes to you. I'm not defending anything. I don't have to defend anything. I'm simply having a discussion with a few people on this board. Is that not ok? Can we not discuss this without it turning into an argument?? ELMC and I were donig just fine on our own. It was quite civil.

However, I am not going to concede that it's a "bad deal" in general. In your opinion, it is a bad deal. In my opinion, it is a different option of paying, which I am well aware incurs interest.

 

[ELMC]

However, I am not going to concede that it's a "bad deal" in general. In your opinion, it is a bad deal. In my opinion, it is a different option of paying, which I am well aware incurs interest.

Ok, it is a different option of paying. A different option of paying that happens to be more expensive for the first 15-25 years depending on the availability of discounts and point rentals. If that's not the definition of a bad deal, I don't know what is.

 

[AmyB2006]

If that's not the definition of a bad deal, I don't know what is.

 

[k3chantal]

Wish interest it was pennies on the dollar ...... financing might be a good idea then.......

 

[AmyB2006]

Wish interest it was pennies on the dollar ...... financing might be a good idea then.......

Oh come on, that was funny LOL

 

[DougEMG]

Duh. This is a given. So offer your "side" of the information you have but don't make general blanket statements like "financing your purchase doesn't make sense". That is not a statement that you can back up with any qualifying information, because you don't know that person's financial situation.

People come on here asking questions. Give them an answer, elaborate and "sell your points" if you want, but do it without saying "if you finance this you're an idiot" kind of attitude. I don't care if you feel that way or not, it's rude and probably not true. (general you again, not directing this solely at you)

One I could care less how people spend their money, two I did clearly state the effects of what financing is on the purchase costs with a example and finally said that people should make their decision based on knowing what that the costs they were paying was. Seems pretty clear to me.

Nothing I said should have implied that you are an idiot if you fianced. If you feel that way after reading what I wrote, that is on you.

 

[Missyrose]

What we are saying is that it is a bad deal. And it is. Please just admit that it's a bad deal but it makes you happy so you're going to do it anyway. Nobody can argue with that without attacking you personally, and that is not acceptable.

Again, which is why I put (general) after my statement of "you".

I'm glad it speaks volumes to you. I'm not defending anything. I don't have to defend anything. I'm simply having a discussion with a few people on this board. Is that not ok? Can we not discuss this without it turning into an argument?? ELMC and I were donig just fine on our own. It was quite civil.

However, I am not going to concede that it's a "bad deal" in general. In your opinion, it is a bad deal. In my opinion, it is a different option of paying, which I am well aware incurs interest.

Here's the thing (and ELMC hit the nail right on the head with this one), I (and many other posters on these boards) have no problem with someone saying "I wanted to buy direct because it was quick/easy" or "I can afford the monthly payment." That's fine and that's your prerogative. No one will argue against that.

Before DVC created a frenzy for the classic resorts with the price increase/wait lists, you could call up your salesperson and say "I want a 75-point BWV contract." And you'd likely have the points in your account the next day. We get it, that's fast and easy and very tempting.

Disney deliberately makes resale harder as a marketing technique for direct sales. Again, that's fine and it's also fine if someone chooses to buy directly because of it.

The frustrating part is when someone starts arguing that financially, buying direct and financing for 10 years will save them any money. It won't, quite simply. DVC is a long-term game, even when buying resale. For my first resale contract, I calculated my break-even moment would come in seven or eight years. Direct prices for BWV are now almost triple what I paid in 2012 on the resale market.

Before VGF was on sale, many people speculated that points would cost upwards of $200 per point and people were freaking out over the thought. $200 per point?!?! And yet, as PPs in this thread have shown, you'd pay very close to that when you buy at today's direct prices and paid for the contract over the course of 10 years.

Again, no one will quibble with you if you say "I bought direct because it was an easier way for me to buy." But it's hard to let the financial savings arguments fly in a discussion such as this.

 

[DougEMG]

The only reason to own DVC is to save money since you can already stay in a DVC room by booking through Disney.

Owning DVC will not always save you money.

Buying direct will normally cost more than buying resale.

Financing will always cost more than not financing.

People will use whatever comparisons they like to justify their purchase.

 

[AmyB2006]

The only reason to own DVC is to save money since you can already stay in a DVC room by booking through Disney.

Owning DVC will not always save you money.

Buying direct will normally cost more than buying resale.

Financing will always cost more than not financing.

People will use whatever comparisons they like to justify their purchase.

Why is the ONLY reason to buy, for everyone, to save money? Technically, I'm spending more money than I would have regardless of how we bought because my parents are locals, and before this we stayed for FREE!! So I'm not saving anything compared to how we stayed before.

I would rather make a small monthly payment that fits my budget and go to Disney when I want rather than have to worry about coming up with a vacation allowance or large sum of cash for a vacation to pay for DVC rooms outright for cash, each time I go.

So no, unfortunately it is not the only reason for everyone to buy. For you, maybe, not for me. Not only am I purchasing a timeshare, it's the convenience factor as well. Booking when I want, on my own points, not having to depend on someone else.

The frustrating part is when someone starts arguing that financially, buying direct and financing for 10 years will save them any money

Well, clearly this is the most expensive way to purchase. I am not arguing that fact. But to say that it could never save anyone money over the life of the timeshare, compared with paying cash for reservations for the same amount of time, just isn't accurate either.

But, I can't keep going round and round about this. There will always be differing opinions on this.

 

[BestDadEver]

Why is the ONLY reason to buy, for everyone, to save money? Technically, I'm spending more money than I would have regardless of how we bought because my parents are locals, and before this we stayed for FREE!! So I'm not saving anything compared to how we stayed before.

I would rather make a small monthly payment that fits my budget and go to Disney when I want rather than have to worry about coming up with a vacation allowance or large sum of cash for a vacation to pay for DVC rooms outright for cash, each time I go.

So no, unfortunately it is not the only reason for everyone to buy. For you, maybe, not for me. Not only am I purchasing a timeshare, it's the convenience factor as well. Booking when I want, on my own points, not having to depend on someone else.



Well, clearly this is the most expensive way to purchase. I am not arguing that fact. But to say that it could never save anyone money over the life of the timeshare, compared with paying cash for reservations for the same amount of time, just isn't accurate either.

But, I can't keep going round and round about this. There will always be differing opinions on this.

I find it hard to believe that with inflation and the amount of time you can own DVC that if you finance it won't cost you less in the long run . It would just take longer .

 

[nyck]

I find it hard to believe that with inflation and the amount of time you can own DVC that if you finance it won't cost you less in the long run . It would just take longer .

These are all the reasons why I bought. I looked at what I was spending on the Yacht Club for 4 nights 10 years ago was close to $4000, so I decided to use that money instead to finances DVC BCV purchase. I did a 10 year loan and I paid it off in less than 5 years. I am so glad I bought when I did. Even if the resale is in the $70s now I have had wonderful trips in the last 10 years I would not have had if I bought today. The cost is reflective of how many years are left on these contracts too, and I do not feel I have wasted or lost any money buying direct. I bought my DVCs for life, and everyone has to look at their own financial situation and determine what works for them. Period. Others will approve, others will comment as usual. Life goes on.

 

[DizBub]

These are all the reasons why I bought. I looked at what I was spending on the Yacht Club for 4 nights 10 years ago was close to $4000, so I decided to use that money instead to finances DVC BCV purchase. I did a 10 year loan and I paid it off in less than 5 years. I am so glad I bought when I did. Even if the resale is in the $70s now I have had wonderful trips in the last 10 years I would not have had if I bought today. The cost is reflective of how many years are left on these contracts too, and I do not feel I have wasted or lost any money buying direct. I bought my DVCs for life, and everyone has to look at their own financial situation and determine what works for them. Period. Others will approve, others will comment as usual. Life goes on.

Good post. You paid it off early. People seem to ignore the paid off part.

 

[Missyrose]

These are all the reasons why I bought. I looked at what I was spending on the Yacht Club for 4 nights 10 years ago was close to $4000, so I decided to use that money instead to finances DVC BCV purchase. I did a 10 year loan and I paid it off in less than 5 years. I am so glad I bought when I did. Even if the resale is in the $70s now I have had wonderful trips in the last 10 years I would not have had if I bought today. The cost is reflective of how many years are left on these contracts too, and I do not feel I have wasted or lost any money buying direct. I bought my DVCs for life, and everyone has to look at their own financial situation and determine what works for them. Period. Others will approve, others will comment as usual. Life goes on.

Good post. You paid it off early. People seem to ignore the paid off part.

Bingo. And also, I'm sure the price PP paid for BCV direct from Disney all those years ago was far more reasonable than they are now.

 

[DougEMG]

Why is the ONLY reason to buy, for everyone, to save money? Technically, I'm spending more money than I would have regardless of how we bought because my parents are locals, and before this we stayed for FREE!! So I'm not saving anything compared to how we stayed before.

I would rather make a small monthly payment that fits my budget and go to Disney when I want rather than have to worry about coming up with a vacation allowance or large sum of cash for a vacation to pay for DVC rooms outright for cash, each time I go.

So no, unfortunately it is not the only reason for everyone to buy. For you, maybe, not for me. Not only am I purchasing a timeshare, it's the convenience factor as well. Booking when I want, on my own points, not having to depend on someone else.

Option 1 - Buy DVC
Option 2 - Book DVC room with Disney paying cash

The only reason for anyone at anytime to do option 1 is because it is cheaper in the long run then paying for that same room with cash. It is always easier to get a room under option 2 than option 1 as is evident by the amount of owners always complaining that they can't get what they want with their points yet they could book the same room with cash.

 

[Airb330]

Why is the ONLY reason to buy, for everyone, to save money? Technically, I'm spending more money than I would have regardless of how we bought because my parents are locals, and before this we stayed for FREE!! So I'm not saving anything compared to how we stayed before.

I would rather make a small monthly payment that fits my budget and go to Disney when I want rather than have to worry about coming up with a vacation allowance or large sum of cash for a vacation to pay for DVC rooms outright for cash, each time I go.

So no, unfortunately it is not the only reason for everyone to buy. For you, maybe, not for me. Not only am I purchasing a timeshare, it's the convenience factor as well. Booking when I want, on my own points, not having to depend on someone else.

Well, clearly this is the most expensive way to purchase. I am not arguing that fact. But to say that it could never save anyone money over the life of the timeshare, compared with paying cash for reservations for the same amount of time, just isn't accurate either.

But, I can't keep going round and round about this. There will always be differing opinions on this.

Well I wouldn't compare to staying free with in-laws... That isn't quite the same as staying on property!

I don't agree with the "convenience" of DVC... I'd say booking with cash is the easiest option.

In the end, I think all of us dis'ers hope all board members enjoy their DVC memberships in the best manner for each member. Not all people will be making the best financial move, but even those who do manage to pay all in cash, could get sick of Disney and lose money on DVC. There's risk for all of us DVC members, but some of us may enjoy knowing they'll travel every year or save money. Risk is just a part of it.

 

[AmyB2006]

Option 1 - Buy DVC
Option 2 - Book DVC room with Disney paying cash

The only reason for anyone at anytime to do option 1 is because it is cheaper in the long run then paying for that same room with cash. It is always easier to get a room under option 2 than option 1 as is evident by the amount of owners always complaining that they can't get what they want with their points yet they could book the same room with cash.

Ok so for my reservation in December that I have right now... Two studios for three nights, online if I booked right now would cost me $4570. I have an annual pass so don't need tickets. I will drive there so no airfare. Pretty much no package options out there other than to pay cash.

How is buying not cheaper in the long run?

Eta make that 4950.