Who is the best for financing a DVC resale?

[Dean]

Debt is so cheap with today's interest rate you are stupid to pay cash for many things. You can get a car for 2.5% or a house for 4% or lower. Home equity etc.. Then you keep your cash to earn 7% to 12% a year on a good investment and you come out ahead.

If you burn through all your cash you lose out on the money it can make for you

This leaves out the element of risk which is compounded when you apply that risk directly to one's home as with a HELOC. IMO it's unreasonable to finance a luxury purchase or a timeshare (DVC is both). I don't buy the idea of skimming on OPM, the margin is too small and the risk too great. The idea that one will outsmart the system and make money on them is laughable. There's always a gotcha even with a zero interest situation and that's esp true when it applies to CC and car purchases. For example, I've seen somewhere that Best Buy makes more off financial products than all other sales combined.

 

[jnamadison]

There is risk in everything you do financially. You just have to be comfortable with the risk you take.

How do you feel about your job for the next few years? If the economy DOES do a 180, will that affect you and to what degree?

How is your financial situation? Are you already on the edge?

Realistically financing your DVC purchase is just an added cost. At 7.15% APR, 5 years on 20k is around 3800 with a payment of about 400 a month. This doesn't include your MFs. Is this payment acceptable to you?

If you paid 100 pp at BLT for 200 points, and paid closing/15 MFs out of pocket you're looking at 20000 + say 575 closing and 3800 in fees totalling 24375 for 200 points. That's 121. 88 pp. Still less than buying direct. And it allows you to vacation via DVC for the 4-5 years you own before you would saving up that money (not including any money you'd spend on vacations in the mean time)

Financially sound? Maybe not compared to paying cash. But then, when was a trip to WDW ever a financially sound decision?
Taking a risk? Everything is a risk these days.

But only you can answer whether that that risk and the extra money spent financing is something you're ok with.

 

[Dean]

There is risk in everything you do financially. You just have to be comfortable with the risk you take.

How do you feel about your job for the next few years? If the economy DOES do a 180, will that affect you and to what degree?

How is your financial situation? Are you already on the edge?

Realistically financing your DVC purchase is just an added cost. At 7.15% APR, 5 years on 20k is around 3800 with a payment of about 400 a month. This doesn't include your MFs. Is this payment acceptable to you?

If you paid 100 pp at BLT for 200 points, and paid closing/15 MFs out of pocket you're looking at 20000 + say 575 closing and 3800 in fees totalling 24375 for 200 points. That's 121. 88 pp. Still less than buying direct. And it allows you to vacation via DVC for the 4-5 years you own before you would saving up that money (not including any money you'd spend on vacations in the mean time)

Financially sound? Maybe not compared to paying cash. But then, when was a trip to WDW ever a financially sound decision?
Taking a risk? Everything is a risk these days.

But only you can answer whether that that risk and the extra money spent financing is something you're ok with.

Obviously the risk varies from one situation to another based on many factor, a number of which you delineated. While I'd agree that the individual has to be the one to make such decisions, that doesn't necessarily make them good decisions. IMO a large % of people, even those who investigate on DIS and buy resale, make less than stellar purchase decisions that may or may not work out in the end. .

 

[summabreeze85]

Of course everyone's first idea is to go to a HELOC...I would like to know the percentage of people that actually qualify for one. Most big banks will only finance up to 80% of the value with credit unions and some local banks going to 90 or 95% with perfect credit. Last time I checked the housing market hasn't completely rebounded from blowout and this isn't an option for most.

I am all about financing DVC. I'd much rather keep my cash on hand so I can put it into my investments currently bringing me a 20% return. Bought direct from disney with a 10.75% interest rate at the time and transferred the balance onto a 0% credit card. I've also financed a few contracts with Monera Financial...they are EXTREMELY easy. No credit checks, no income verification, you are automatically approved. They just improved their loan terms too; interest rates are slightly high but you can finance anywhere from 1-10 years.

 

[crisi]

Of course everyone's first idea is to go to a HELOC...I would like to know the percentage of people that actually qualify for one. Most big banks will only finance up to 80% of the value with credit unions and some local banks going to 90 or 95% with perfect credit. Last time I checked the housing market hasn't completely rebounded from blowout and this isn't an option for most.

I am all about financing DVC. I'd much rather keep my cash on hand so I can put it into my investments currently bringing me a 20% return. Bought direct from disney with a 10.75% interest rate at the time and transferred the balance onto a 0% credit card. I've also financed a few contracts with Monera Financial...they are EXTREMELY easy. No credit checks, no income verification, you are automatically approved. They just improved their loan terms too; interest rates are slightly high but you can finance anywhere from 1-10 years.

To me, that's when not financing starts to look dogmatic - although financing direct I wouldn't have done - if you have a sufficient portfolio, its EASY to get a bank loan - if your portfolio is that healthy - its easy to pay down the house to the point where the bank asks you to borrow money via a HELOC or home equity loan every time you go in. No reason to fuss with Disney's high interest rates or the small print on a 0% card Its possible that the market will crash and go into an extended slump and you'd have done better paying cash for DVC.

But that not only assumes you can get a good return (you don't even need last years 20% - you just need a few percents better than you are paying), but that your portfolio is healthy enough to take on the risk. To me, that would mean that it is at least twice what your liabilities are (including your mortgage and any student loans), diverse, not tied at all into your employer or any retirement accounts. And the reason for that is when the market crashes, people lose jobs - if you find yourself suddenly unemployed with your portfolio worth 70% of what it was - you need to be able to live off it (and whatever unemployment or severance you'd get) AND make all those payments for as long as it takes you to build up your cash flow to positive again.

Which means that, like a HELOC, this isn't an option for most people.

Which gets to the nub of the advice - the less you need to finance, the more it moves from being a bad idea to a good one. The more you need to finance to be able to purchase, the more it moves from being a good idea to a bad one. Statistically, its likely that more people talk about financing because they need to finance in order to afford it - not because they want to finance to play with marginal interest rates.

 

[jodifla]

To me, that's when not financing starts to look dogmatic - although financing direct I wouldn't have done - if you have a sufficient portfolio, its EASY to get a bank loan - if your portfolio is that healthy - its easy to pay down the house to the point where the bank asks you to borrow money via a HELOC or home equity loan every time you go in. No reason to fuss with Disney's high interest rates or the small print on a 0% card Its possible that the market will crash and go into an extended slump and you'd have done better paying cash for DVC.

But that not only assumes you can get a good return (you don't even need last years 20% - you just need a few percents better than you are paying), but that your portfolio is healthy enough to take on the risk. To me, that would mean that it is at least twice what your liabilities are (including your mortgage and any student loans), diverse, not tied at all into your employer or any retirement accounts. And the reason for that is when the market crashes, people lose jobs - if you find yourself suddenly unemployed with your portfolio worth 70% of what it was - you need to be able to live off it (and whatever unemployment or severance you'd get) AND make all those payments for as long as it takes you to build up your cash flow to positive again.

Which means that, like a HELOC, this isn't an option for most people.

Which gets to the nub of the advice - the less you need to finance, the more it moves from being a bad idea to a good one. The more you need to finance to be able to purchase, the more it moves from being a good idea to a bad one. Statistically, its likely that more people talk about financing because they need to finance in order to afford it - not because they want to finance to play with marginal interest rates.

Typically, we finance one thing at a time besides our house. We prefer to stockpile our money, and once it goes into savings, it stays there. So financing -- especially DVC, which we were using the whole time we were paying it off -- simply wasn't the dire situation a certain group on the DISboards wants to insist it is.

The scolding people get here when they come to ask a simple question like WHERE to finance (not IF) is so out of line to me. Not everyone will handle their finances just like you do.

Yes, some people finance big purchases, which means they get to have a little fun in life without the huge wad of cash in the bank (Or they prefer to keep their cash in the bank, so it accrues). And guess what! Nothing bad happens to many of these people, who are adults and understand the choices they are making.

 

[lawboy2001]

OP, I hope you're able to get some leads on good financing companies. I haven't used any so I can't provide input.

And to all the posters giving the OP financial advice, I ask this:

Prove your point with a real world example. Demonstrate how someone who financed a BLT purchase five years ago, for 112$ or whatever the sale price was at the time, would be worse off than someone who saved up the money and is today approaching DVD to make a purchase.....for 165$. (I use five years as the reference because the OP plans to pay off their DVC over a five year period.)

By my rough calculations, the financer is NOT worse off...these two scenarios are roughly equivalent, by the numbers. So the option you choose will depend on your personal preferences. But obviously, the BLT financer has had five years of vacations by this point...

 

[ontheuptick]

OP, I hope you're able to get some leads on good financing companies. I haven't used any so I can't provide input.

And to all the posters giving the OP financial advice, I ask this:

Prove your point with a real world example. Demonstrate how someone who financed a BLT purchase five years ago, for 112$ or whatever the sale price was at the time, would be worse off than someone who saved up the money and is today approaching DVD to make a purchase.....for 165$. (I use five years as the reference because the OP plans to pay off their DVC over a five year period.)

By my rough calculations, the financer is NOT worse off...these two scenarios are roughly equivalent, by the numbers. So the option you choose will depend on your personal preferences. But obviously, the BLT financer has had five years of vacations by this point...

But that is irrelevant in the OP's case. The OP isn't comparing buying at $112 vs buying 5 years from now at $165.

The OP is likely considering either buying now at (ballpark) $100 and financing for 5 years at 10% interest (and maint fees, etc) OR saving for a few years and paying $100 cash. In that scenario, it's clearly better to save/invest and then pay cash. People trying to justify a good financial decision while talking about interest rates north of 7-8% are out of their mind.

Justify it by saying you want to improve your quality of life by owning more. Justify it by saying you're a redblooded American and "damn it, I deserve this!". That's fine. But don't justify and say it's a smart financial decision to buy a non-necessity and finance it at 10%.

 

[ontheuptick]

The scolding people get here when they come to ask a simple question like WHERE to finance (not IF) is so out of line to me. Not everyone will handle their finances just like you do.

Fair point. I wouldn't want to think of it as scolding, and I apologize if my recommendation came off as such. I simply want to point out - there are other ways besides financing. Some people never realize this. Oh wait, you don't have to get a car loan to buy a car? I don't have to get a loan to purchase DVC? Some people have never experienced breathing room in their budget and don't know how comforting it is to buy something with cash, and not worry about making the payment. Obviously, we are all different.

And guess what! Nothing bad happens to many of these people, who are adults and understand the choices they are making.

The problem with this statement is - I have found through 15 years of financial planning and investment management that the vast, vast majority of people do NOT understand the choices they are making when it comes to their finances. It's good in theory to think that they do, but they don't. (not speaking specifically to the OP, just stating my experience in meeting and talking with many, many people about their finances).

 

[dankil13]

Of course everyone's first idea is to go to a HELOC...I would like to know the percentage of people that actually qualify for one. Most big banks will only finance up to 80% of the value with credit unions and some local banks going to 90 or 95% with perfect credit. Last time I checked the housing market hasn't completely rebounded from blowout and this isn't an option for most.

I am all about financing DVC. I'd much rather keep my cash on hand so I can put it into my investments currently bringing me a 20% return. Bought direct from disney with a 10.75% interest rate at the time and transferred the balance onto a 0% credit card. I've also financed a few contracts with Monera Financial...they are EXTREMELY easy. No credit checks, no income verification, you are automatically approved. They just improved their loan terms too; interest rates are slightly high but you can finance anywhere from 1-10 years.

If I were financing DVC the last option for me would be to put my house at risk for a timeshare. If things go bad and you can no longer afford to Vacation at Disney and you can't sell it why would you want to put your home at risk to save $2.5k or so in interest costs (on a 5 year loan at 3.9% vs 9.9%)? The difference is $40/month

 

[lawboy2001]

But that is irrelevant in the OP's case. The OP isn't comparing buying at $112 vs buying 5 years from now at $165.

The OP is likely considering either buying now at (ballpark) $100 and financing for 5 years at 10% interest (and maint fees, etc) OR saving for a few years and paying $100 cash. In that scenario, it's clearly better to save/invest and then pay cash. People trying to justify a good financial decision while talking about interest rates north of 7-8% are out of their mind.

Justify it by saying you want to improve your quality of life by owning more. Justify it by saying you're a redblooded American and "damn it, I deserve this!". That's fine. But don't justify and say it's a smart financial decision to buy a non-necessity and finance it at 10%.

Fair enough, mine was just an example...the OP is making a different purchase. But my point is that a recent, real world example, does not support the claims that dvc financing is a bad deal. I suspect all the people posting about how bad financing is would have had the same view five years ago, and as my example demonstrates, they would have been wrong...

 

[Dean]

OP, I hope you're able to get some leads on good financing companies. I haven't used any so I can't provide input.

And to all the posters giving the OP financial advice, I ask this:

Prove your point with a real world example. Demonstrate how someone who financed a BLT purchase five years ago, for 112$ or whatever the sale price was at the time, would be worse off than someone who saved up the money and is today approaching DVD to make a purchase.....for 165$. (I use five years as the reference because the OP plans to pay off their DVC over a five year period.)

By my rough calculations, the financer is NOT worse off...these two scenarios are roughly equivalent, by the numbers. So the option you choose will depend on your personal preferences. But obviously, the BLT financer has had five years of vacations by this point...

Fair enough, mine was just an example...the OP is making a different purchase. But my point is that a recent, real world example, does not support the claims that dvc financing is a bad deal. I suspect all the people posting about how bad financing is would have had the same view five years ago, and as my example demonstrates, they would have been wrong...

Financial decisions in general and timeshares in general are about 80% psychology and only 20% math. To prove the point related to risk all you've got to find are examples of people who had financial issues who had put themselves at risk, those that survived are somewhat irrelevant to the discussion. While most who were in such a predicament likely wouldn't be posting here, there have certainly been examples over the years of people who lost a job, were overextended, foreclosures, etc, etc. I remember a couple of posts of people looking at bankruptcy and trying to figure out how to keep DVC in the process including some looking at illegal ways to do so. That some, likely most, survive the gamble is irrelevant, IMO. From my point of view it's almost totally an issue of risk, not numbers for that one item or interest rate. The other problem is that those doing so aren't only taking risk in this one area but often across the board such as cars (lease the worst), running CC balance etc. Part of the issue is that people tend to pay more in such situations, for example, I've seen that those who use a CC consistently and pay it off spend roughly 15% more in principle than those who don't. My view in a nutshell is that if you can't pay cash for it you can't afford it and if you could but chose not to, it's not important enough to buy.

 

[crisi]

Fair enough, mine was just an example...the OP is making a different purchase. But my point is that a recent, real world example, does not support the claims that dvc financing is a bad deal. I suspect all the people posting about how bad financing is would have had the same view five years ago, and as my example demonstrates, they would have been wrong...

If you'd been here in 2009 and watched people post about being upside down, needing to sell and recoup in order to make house payments or having financed via a HELOC and now having their homes at risk - you might feel differently.

A few members here did have their homes foreclosed on and lost their DVC. The lucky ones were the ones that DVC could simply foreclose on - the unlucky ones had done HELOCs with overinflated home values supporting their loan buying DVC for almost twice what it was worth in the middle of 2009.

Financing something is one of those things that when it works - it can work great. And when it doesn't work and you go about it wrong - you can risk your home and your credit. So understand the risk. Maybe you are one of those people for whom that risk is really small - because financing isn't something you need to do. Maybe you have really small debt obligations - your DVC loan would be pretty much it - and maybe a cell phone contract. Thats a different situation than someone with two car loans and five figures of credit card debt and a mortgage and a student loan.

But next time we hit a recession, I'm not going to have any regrets about the advice I gave here. Because there was one case in particular that kept me awake nights - not that I encouraged financing, but because when other people had, I didn't say anything. And she lost her house, her marriage fell apart - it was horrible (and I think it may have happened not here, but on the budget board). I'll not be guilty of the sin of omission. Not when the upside is a stupid overpriced timeshare and the potential downside is losing your house, facing bankruptcy, and seeing your marriage end.

 

[davedmaine]

But that is irrelevant in the OP's case. The OP isn't comparing buying at $112 vs buying 5 years from now at $165.

The OP is likely considering either buying now at (ballpark) $100 and financing for 5 years at 10% interest (and maint fees, etc) OR saving for a few years and paying $100 cash. In that scenario, it's clearly better to save/invest and then pay cash. People trying to justify a good financial decision while talking about interest rates north of 7-8% are out of their mind.

Justify it by saying you want to improve your quality of life by owning more. Justify it by saying you're a redblooded American and "damn it, I deserve this!". That's fine. But don't justify and say it's a smart financial decision to buy a non-necessity and finance it at 10%.

Finally, a voice of reason. My thought is that if you have to finance DVC, you can't afford it. You may think you deserve it, but you can't afford it. And you shouldn't do it. I scratch my head when I hear people talk about not paying off their homes because they have low mortgage interest and are making more on investments. Maybe today, but what about tomorrow. It's true what they say - a paid-off home has never been foreclosed upon..

 

[jnamadison]

So he should wait 5 years to pay cash for something that may very well go up in price to erode any savings in interest?

This while still having to shell out money for vacations, and missing the great memories he could be making with his kids that will never be that age again.

Disney has and never will be a GOOD financial decision. It's an emotional response to that feeling you get on property. You don't buy DVC for your finances. You do it for the memories. For the enjoyment.

This isn't just business, it's personal.

So I guess I can at least admit financing was not a financial decision, but it was one I'm fine with and glad I made for my family.

To the OP, I just went with my local credit union. Better rates than I could find elsewhere.

 

[Dean]

So he should wait 5 years to pay cash for something that may very well go up in price to erode any savings in interest?

This while still having to shell out money for vacations, and missing the great memories he could be making with his kids that will never be that age again.

Disney has and never will be a GOOD financial decision. It's an emotional response to that feeling you get on property. You don't buy DVC for your finances. You do it for the memories. For the enjoyment.

This isn't just business, it's personal.

So I guess I can at least admit financing was not a financial decision, but it was one I'm fine with and glad I made for my family.

To the OP, I just went with my local credit union. Better rates than I could find elsewhere.

I don't think any of us can make the decision for the OP but in general, I feel that if it's important to someone, they'll find a way to save and do it much quicker than the 5 years. But then again I don't think people should go on expensive vacations having consumer debt either. That it's money one doesn't have to spend does not relieve the necessity of doing math and making reasonable decisions.

 

[crisi]

So he should wait 5 years to pay cash for something that may very well go up in price to erode any savings in interest?

This while still having to shell out money for vacations, and missing the great memories he could be making with his kids that will never be that age again.

Disney has and never will be a GOOD financial decision. It's an emotional response to that feeling you get on property. You don't buy DVC for your finances. You do it for the memories. For the enjoyment.

This isn't just business, it's personal.

So I guess I can at least admit financing was not a financial decision, but it was one I'm fine with and glad I made for my family.

To the OP, I just went with my local credit union. Better rates than I could find elsewhere.

My kids are at the age where the adults in my life are financing college. Most assumed that their kids would get far more grant money and aid than they did. Many assumed that scholarships would be qualified for and won. Many assumed that their kid would go to a state school - only to have them fall in love with an out of state or private school and then find themselves unable to reign in their 18 year old dreams.

Most of them regret emotional decisions now made that meant they didn't save for college. Sunroofs on cars. Vacations. Designer purses.

When you make an emotional financial decision (or any financial decision really) you have to decide if the emotional benefit now is with whatever you give up later - opportunity cost.

So you might take your family to Disney now, and be giving up getting your kids through college without debt. Or traveling in your own retirement.

Me, I'm a compromise person. I think that its perfectly reasonable for middle class folks to get their kids to Disney. But it doesn't need to be every year and it can be done much cheaper than DVC or the Poly. AND be able to get your kids through college with minimal debt. AND be able to travel a bit in retirement - although it might not be the entire Winter in San Diego. But in order to do those things, money is too tight to pay it where you don't need to pay it - unless you make more than we do. For us, that's meant paying very little interest - but getting paid a lot in interest and dividends. Its meant not necessarily booking the room on the beach in Hawaii - but we did get to go to Hawaii - we just had to look at a parking lot and had a long layover to make it more affordable. My husband has a nice car - but we pay cash for it - he can't buy it until the car fund permits it - and its used - never new. I drive a practical car that gets me where I go.

I don't know how old you are, or how old your kids are - mine are in high school and I'm almost 50. Neither my husband and I want to work until social security kicks in - we are feeling done. I didn't realize this version of Senioritis would hit so young....but it has. And thus we adjust - but because we've made good financial decisions not merely emotionally based for years - we have SOME flexibility with this one, which is both emotional and financial - and which involved me taking a sabbatical and my husband starting a consulting company in the past two years. At the same time, the kids being high school age has involved expenses I heard of...but weren't really real until now - $2000 worth of Spring Break trips - my daughter and the band/choir/drama groups to NYC, my son to Florida for baseball camp with the team. Booster "donations" that might as well be fees. Drivers ed and INSURANCE!

And we didn't get to the point of looking at fifty and having a realistic semi retirement until 68 by living like poor hermits - as I said, we went to Hawaii. My daughter and I have been to Europe twice (my son and husband once, my son wanted to be home for baseball for the second trip). Three Disney cruises. Camp for the kids. That nice (but used) car. It isn't that we don't emotionally spend - we just make sure we are spending wisely and only what we feel we can afford to spend and continue to meet most of our financial goals - and definitely the ones we think are important.

Now, it may be that when you write down your life goals that involve money - annual Disney trips are the most important thing to you and your family. In which case, DVC is perfect, and financing to get in as soon as possible is probably not a bad idea. But if that is the case, we don't share enough values to even have a meaningful conversation. For us, vacation has come below retirement, college, financial security through a year job loss, living a comfortable day to day life that includes dinners out and treating friends to pizza, good bourbon and wine - and some surprises that became priorities - financially supporting my brother in law through a terminal illness, infertility and adoption, significant co-pays for some health issues with my son, giving my sister a hand through recovery.

 

[jodifla]

Finally, a voice of reason. My thought is that if you have to finance DVC, you can't afford it. You may think you deserve it, but you can't afford it. And you shouldn't do it. I scratch my head when I hear people talk about not paying off their homes because they have low mortgage interest and are making more on investments. Maybe today, but what about tomorrow. It's true what they say - a paid-off home has never been foreclosed upon..

Unless you can't afford the taxes. Then they can and do get foreclosed.

 

[jodifla]

My kids are at the age where the adults in my life are financing college. Most assumed that their kids would get far more grant money and aid than they did. Many assumed that scholarships would be qualified for and won. Many assumed that their kid would go to a state school - only to have them fall in love with an out of state or private school and then find themselves unable to reign in their 18 year old dreams.

Most of them regret emotional decisions now made that meant they didn't save for college. Sunroofs on cars. Vacations. Designer purses.

When you make an emotional financial decision (or any financial decision really) you have to decide if the emotional benefit now is with whatever you give up later - opportunity cost.

So you might take your family to Disney now, and be giving up getting your kids through college without debt. Or traveling in your own retirement.

Me, I'm a compromise person. I think that its perfectly reasonable for middle class folks to get their kids to Disney. But it doesn't need to be every year and it can be done much cheaper than DVC or the Poly. AND be able to get your kids through college with minimal debt. AND be able to travel a bit in retirement - although it might not be the entire Winter in San Diego. But in order to do those things, money is too tight to pay it where you don't need to pay it - unless you make more than we do. For us, that's meant paying very little interest - but getting paid a lot in interest and dividends. Its meant not necessarily booking the room on the beach in Hawaii - but we did get to go to Hawaii - we just had to look at a parking lot and had a long layover to make it more affordable. My husband has a nice car - but we pay cash for it - he can't buy it until the car fund permits it - and its used - never new. I drive a practical car that gets me where I go.

I don't know how old you are, or how old your kids are - mine are in high school and I'm almost 50. Neither my husband and I want to work until social security kicks in - we are feeling done. I didn't realize this version of Senioritis would hit so young....but it has. And thus we adjust - but because we've made good financial decisions not merely emotionally based for years - we have SOME flexibility with this one, which is both emotional and financial - and which involved me taking a sabbatical and my husband starting a consulting company in the past two years. At the same time, the kids being high school age has involved expenses I heard of...but weren't really real until now - $2000 worth of Spring Break trips - my daughter and the band/choir/drama groups to NYC, my son to Florida for baseball camp with the team. Booster "donations" that might as well be fees. Drivers ed and INSURANCE!

And we didn't get to the point of looking at fifty and having a realistic semi retirement until 68 by living like poor hermits - as I said, we went to Hawaii. My daughter and I have been to Europe twice (my son and husband once, my son wanted to be home for baseball for the second trip). Three Disney cruises. Camp for the kids. That nice (but used) car. It isn't that we don't emotionally spend - we just make sure we are spending wisely and only what we feel we can afford to spend and continue to meet most of our financial goals - and definitely the ones we think are important.

Now, it may be that when you write down your life goals that involve money - annual Disney trips are the most important thing to you and your family. In which case, DVC is perfect, and financing to get in as soon as possible is probably not a bad idea. But if that is the case, we don't share enough values to even have a meaningful conversation. For us, vacation has come below retirement, college, financial security through a year job loss, living a comfortable day to day life that includes dinners out and treating friends to pizza, good bourbon and wine - and some surprises that became priorities - financially supporting my brother in law through a terminal illness, infertility and adoption, significant co-pays for some health issues with my son, giving my sister a hand through recovery.

Goodness gracious. Do you hear yourself?

We financed Disney -- and yet we have saved for our retirement, have my son's college paid for, live comfortably day to day, supported both my mother and father in their retirement, etc. etc.

Not everyone is going to look at their finances and make the same choices you do.

 

[jodifla]

So he should wait 5 years to pay cash for something that may very well go up in price to erode any savings in interest?

This while still having to shell out money for vacations, and missing the great memories he could be making with his kids that will never be that age again.

Disney has and never will be a GOOD financial decision. It's an emotional response to that feeling you get on property. You don't buy DVC for your finances. You do it for the memories. For the enjoyment.

This isn't just business, it's personal.

So I guess I can at least admit financing was not a financial decision, but it was one I'm fine with and glad I made for my family.

To the OP, I just went with my local credit union. Better rates than I could find elsewhere.

Great points! We bought, we financed -- and think it was one of the best decisions we ever made. It won't be right for everyone, but most of the middle class finances things.

Nothing dire happened to us because we decided to finance. And I would bet that nothing dire happens to most people who decide to finance, in fact.

Do they pay more money because they financed? Perhaps. Depends who quickly the cost of DVC rises, and how much they spent out of pocket on Disney accommodations.