Why is financing so disfavored for DVC on the boards. . . and for that matter, why do so many judge those who use it

[CanadaDisney05]

But selling an asset does have an implication on WHEN you pay them. Might want to defer paying them.

Ah yes. I misread the post.

 

[Lumpy1106]

There is a member of this board that made the statement they financed EVERYTHING at EVERY opportunity and wanted to argue this was a smart plan. They later came back and had made a complete 180 and were on the Dave Ramsey Plan. If you don't understand what the gold standard is you won't know how close or far off you are. Part of the problem is many want to argue about what if you're close but not 100% then use that as an excuse to make bad choices at every turn. If people made great choices, were set for college, retirement, etc and financed a timeshare, who cares. But that's not where people are looking to finance a timeshare, usually they're living month to month. They don't ask how much, they ask how much a month (code for I can't afford it). Will some of them survive the Russian roulette? yes but some won't. My suggestion is to buy things you can afford (pay cash) and avoid the risk and stress. We've seen many examples on this board of bad outcomes the could have been avoided including financing that ended badly or non marriage partnerships.

Unfortunately I think there's a lot of truth in this. FWIW - have you noticed that Disney now lists the season ticket prices at the ticket window ONLY in terms of how much it is per month?

 

[Dean]

Unfortunately I think there's a lot of truth in this. FWIW - have you noticed that Disney now lists the season ticket prices at the ticket window ONLY in terms of how much it is per month?

It's as much about life choices and general approaches rather than just financing DVC. It's not just one bad decision for most, it's about a series of them over time that are cumulative. If you read my posts on the subject over time closely I think you'll see that this is what I've said and that as posted, the negatives would not necessarily apply to one who had the funds and simply decide to finance that one thing they were going to buy anyway. Still, if it was important to them they could have adjusted their situation within a matter of a few months up to a couple of years and been able to pay cash without the added costs/taxes. Again, it's not about not making mistakes but about not making a bunch and not making big ones plus understanding what the bar is. It's like in school where they don't want to give grades or the everyone gets a trophy crowd, you lower the bar rather than reaching for it.

 

[CanadaDisney05]

Again, it's not about not making mistakes but about not making a bunch and not making big ones plus understanding what the bar is. It's like in school where they don't want to give grades or the everyone gets a trophy crowd, you lower the bar rather than reaching for it.

This. Nobody is going to make the correct decision 100% of the time. As long as you win on the larger things (house, retirement, education, cars, etc....), then you can afford to make a few smaller mistakes along the way. For most people, DVC falls into the category of one of those bigger things. It's a relatively large upfront cost, along with recurring costs for many years to come.

 

[rocketriter]

We financed and then paid off a bit ahead of schedule. It never occurred to us, at any point, to worry about what other folks might think.

 

[klbrow11]

Young family with a smaller contract and financed. Call it instant gratification but yes I want it now. I want to enjoy it was my young daughter now. When I die I want her to remember years of priceless family time that has that disney magic. In the past year 2 friends in their 30s with young families have died from colon cancer. I'm not promised tomorrow so I would rather live in today. We still have savings, insurance, and retirement. God forbid if something happened theres always renting out points or selling. Right now we would actually make money but of course the resale market could change at any moment.

So I am YOLO!!!! Vacations make me happy more than money in the bank.

 

[crisi]

Young family with a smaller contract and financed. Call it instant gratification but yes I want it now. I want to enjoy it was my young daughter now. When I die I want her to remember years of priceless family time that has that disney magic. In the past year 2 friends in their 30s with young families have died from colon cancer. I'm not promised tomorrow so I would rather live in today. We still have savings, insurance, and retirement. God forbid if something happened theres always renting out points or selling. Right now we would actually make money but of course the resale market could change at any moment.

So I am YOLO!!!! Vacations make me happy more than money in the bank.

Sorry for your loss. I learned the opposite - that the last thing you want with the loss of someone young is to leave dependents in financial straights. Watched too many people leave kids behind without resources. Almost ended up with both my nephews - I can't afford to raise four kids the way I'd want. Priceless family time can happen at the park, over brownies, "helping" paint the living room.

 

[Dean]

Sorry for your loss. I learned the opposite - that the last thing you want with the loss of someone young is to leave dependents in financial straights. Watched too many people leave kids behind without resources. Almost ended up with both my nephews - I can't afford to raise four kids the way I'd want. Priceless family time can happen at the park, over brownies, "helping" paint the living room.

Exactly, DVC can be a blessing or a curse. You never know when life happens which is why I talk more in terms of risk management as a core recommendation. The idea that memories happen only or mostly at Disney I hope is false. It's not about analysis paralysis or no enjoyment but rather about making good choices that limit risk and avoid stress as much as possible. Responsible adult financial decisions tend to do so. I have to have it and have it right now is the opposite.

 

[MICKIMINI]

I think that after the last recession when housing prices collapsed and people were living off 401K's, many people decided they weren't ever going to go through that again. We made it through, sold our home a few years ago for a large gain (we built thinking about "desirability" 20 years down the road) and downsized paying cash for a nice, smaller home. No mortgage, cars are okay at 0% (glad to use the bank's money). DVC cash only. We buy smaller, loaded (150 or less) contracts, rent excess which offsets costs leaving points for our vacations. My husband and I have a "formula" we created - on paper - in which we can make a financial decision on the viability of a contract in several minutes.

I think it is more experience talking than anything else - after you've been through multiple financial downturns, risk seems scarier and knowing that you can take a "quick exit" off the financial highway and unload DVC quickly and put the cash in the bank makes it easier to sleep at night. Just my opinion....not judging anyone.

 

[Dean]

I think that after the last recession when housing prices collapsed and people were living off 401K's, many people decided they weren't ever going to go through that again. We made it through, sold our home a few years ago for a large gain (we built thinking about "desirability" 20 years down the road) and downsized paying cash for a nice, smaller home. No mortgage, cars are okay at 0% (glad to use the bank's money). DVC cash only. We buy smaller, loaded (150 or less) contracts, rent excess which offsets costs leaving points for our vacations. My husband and I have a "formula" we created - on paper - in which we can make a financial decision on the viability of a contract in several minutes.

I think it is more experience talking than anything else - after you've been through multiple financial downturns, risk seems scarier and knowing that you can take a "quick exit" off the financial highway and unload DVC quickly and put the cash in the bank makes it easier to sleep at night. Just my opinion....not judging anyone.

It’s really just common sense which isn’t so common anymore.

 

[klbrow11]

Sorry for your loss. I learned the opposite - that the last thing you want with the loss of someone young is to leave dependents in financial straights. Watched too many people leave kids behind without resources. Almost ended up with both my nephews - I can't afford to raise four kids the way I'd want. Priceless family time can happen at the park, over brownies, "helping" paint the living room.

You do you!

We have life insurance and plans in place. We are not irresponsible and forget all that other stuff just because we financed. DVC is not going to put us inthe brink of any financial ruin. If it was we would sell.

And painting is nobodys idea of fun bonding time in my house LOL. Memories may be made but probably not in a good way .

 

[Lynne M]

I don’t see it as judginess so much as people with DVC experience wanting to warn newcomers off of a potentially costly mistake.

Like many who offer financing, DVC presents the costs in terms of monthly payments. If that number seems affordable to you, and you really want to buy, you might not be inclined to look into the details of that monthly payment. And you might not realize that because of that high finance charge, you’re paying significantly more for your membership than someone who doesn’t finance.

Maybe so much more, that your DVC membership isn’t saving you any money at all, and you may do better waiting till you’ve saved the money to pay cash. Or just keeping an eye out for discounts and booking directly with Disney. If you’re financing with Disney for a long period of time, that’s a real possibility.

That’s why I’ll sometimes bring the financing question up, just to get people to look at the numbers.

 

[vacationer1954]

It’s really just common sense which isn’t so common anymore.

While I agree that it isn't a great idea to finance, I wouldn't call it common sense if for no other reason than the term is so often used these days to label a personal opinion that someone is trying to avoid having to defend. Common sense is what we all agree about. If there is any significant amount of disagreement, like we would see in a discussion thread that is over a hundred posts long, then there is no common sense. Instead, what we have is just two or three different opinions. As klbrow11 said:

You do you!

 

[Dean]

While I agree that it isn't a great idea to finance, I wouldn't call it common sense if for no other reason than the term is so often used these days to label a personal opinion that someone is trying to avoid having to defend. Common sense is what we all agree about. If there is any significant amount of disagreement, like we would see in a discussion thread that is over a hundred posts long, then there is no common sense. Instead, what we have is just two or three different opinions. As klbrow11 said:

That's why it isn't common anymore I suspect. The I have to have it now and OOP/finance/CC is so ingrained today. And while 2008 economics made people think about it, most have just picked right up and followed in the risky ways. I don't see why anyone can suggest it's a good idea to finance a TIMESHARE. Some have survived doing so, some have not.

 

[CanadaDisney05]

The idea that memories happen only or mostly at Disney I hope is false.

There are also ways to have priceless memories at disney without DVC.

 

[3threebabies]

I think that after the last recession when housing prices collapsed and people were living off 401K's, many people decided they weren't ever going to go through that again. We made it through, sold our home a few years ago for a large gain (we built thinking about "desirability" 20 years down the road) and downsized paying cash for a nice, smaller home. No mortgage, cars are okay at 0% (glad to use the bank's money). DVC cash only. We buy smaller, loaded (150 or less) contracts, rent excess which offsets costs leaving points for our vacations. My husband and I have a "formula" we created - on paper - in which we can make a financial decision on the viability of a contract in several minutes.

I think it is more experience talking than anything else - after you've been through multiple financial downturns, risk seems scarier and knowing that you can take a "quick exit" off the financial highway and unload DVC quickly and put the cash in the bank makes it easier to sleep at night. Just my opinion....not judging anyone.

 

[3threebabies]

As someone who has been back and forth for 8 years watching DVC direct and resale and WDW hotel prices increase over and over, I think your method is GENIUS @MICKIMINI

Sorry I had trouble with quoting correctly

Edited for spelling.

 

[Dean]

There are also ways to have priceless memories at disney without DVC.

Absolutely and with DVC as well. We chose to be content but we also like to do things, lots of things. Alternating busier/quieter, couple/family/extended family, location or close/far away. Headed soon to HHI staying at a different timeshare with 58 people for example.

 

[MICKIMINI]

As someone who has been back and forth for 8 years watching DVC direct and resale and WDW hotel prices increase over and over, I think your method is GENIUS @MICKIMINI

Sorry I had trouble with quoting correctly

Edited for spelling.

Thank you - I appreciate the kind words. Having fun with family and friends is what makes life worth living and should not be discounted. We make Disney a priority because we love it...we rarely eat out and live within our means because it feels good and leaves us with money for magical vacations and lots of memories...good luck!

 

[gharter]

You do you!

We have life insurance and plans in place. We are not irresponsible and forget all that other stuff just because we financed. DVC is not going to put us inthe brink of any financial ruin. If it was we would sell.

And painting is nobodys idea of fun bonding time in my house LOL. Memories may be made but probably not in a good way .

This is the difference between your financing and many others. You have plans in place.
Many of the people that are financing DVC, don't have their finances figured out. One major problem and they are in financial trouble. Selling at that point is not alway easy.