Wicked high interest rate from DVC! 15.25%

[tvwalsh]

15.25%! I repeat, 15.25%

How can DVC justify (if they have to) that rate?

I refer you to the purchase information in the reopening of sales of SSR because of the treehouses in case you do not believe me!

I have to admit that rate is unbelievable. The fed funds rate is essentially zero% for goodness sake!

 

[keishashadow]

credit markets r freezing up, institutions who happily took bailout money were able to do as they pleased with it (ie PNC gobbling up the competition National City); others are sitting tight and not making loans worried as to default

FYI, many CC issuers r :

*both increasing interest rates on existing accounts & balances (of course, giving u the opportunity to close account & continue paying as agreed @ original rate)

*lowering lines of credit to well qualified individuals citing 'market conditions'

&

*for zero balance transfers (think life of the loan) adding a monthy surcharge/processing fee of $10 (which Chase did to my DH...we're closing the account) they can keep the rewards as far as im concerned. cannot wait to see if they decide to tinker w/my rate, if so i'll be right behind him

my point, not sure where DVC financing originates from (inhouse, etc. @ this rate yet another way to increase profits from eager purchasers) in this market it doesn't surprise me one bit

 

[jcf]

Rate I got for -add on

 

[sean-1966]

Disney pretty much approves everybody. That's why the interest rate is so high. I thnk they get stiffed a lot.

 

[DISNEY FIX]

Disney pretty much approves everybody. That's why the interest rate is so high. I thnk they get stiffed a lot.

I don't know if they can get stiffed If you don't pay they freeze your account take contract and sell it again, as new no less.

 

[Mommy2JulietJocelyn]

I also have 10.75% according to the papers I rec'd a few minutes ago. They are for BLT.

 

[Disneypirate85]

Disney pretty much approves everybody. That's why the interest rate is so high. I thnk they get stiffed a lot.

I would agree....Disney makes more then there money back same amount of inventory they resell it and charge all the same costs they did in original sell and back in the Pink.

 

[hakepb]

I don't know if they can get stiffed If you don't pay they freeze your account take contract and sell it again, as new no less.

From an investment standpoint, I doubt they'd care, especially if they mandated paying an extra year's member fees in advance. (Which I think would be preferable. You either pay a reasonable interest rate, but pre-pay one year's MF's or a crazy interest rate with higher fees) They can raise points prices next year to make a profit selling this years foreclosures.

Course reality is probably that Disney is a multitude of different companies all trying to make their own profit, so the financing wing does not like eating foreclosures while the sales wing makes a killing, so financing raised everyone's rates...

 

[spiceycat]

I also have 10.75% according to the papers I rec'd a few minutes ago. They are for BLT.

me, too - despite the sales pitch saying 11.25%

so maybe your credit rating will get you a lower interest rate?

 

[DisDaydreamer]

Looks to me like 10.75 is the actual going rate. There are always alternatives like... in my state you can take your car title to "CASH POINT" and get CASH! at a recently state mandated cap of 36%.

I remember the 70's when DW and I purchased a townhouse and our mortgage was 12.75% Don't believe we'd do that again.

It is all a mathematical calculation for each borrower to decide whether to borrow from any lender. I just checked out finance papers from 1998 and we paid 10.95% interest. We survived and are now paid off. And have no regrets. The interest IS tax deductible... As opposed to a personal loan.

So, for those who might be thinking they made a mistake according to this ALARMING thread... well, there ARE cheaper lenders, but still many institutions aren't lending to anyone other the the perfect borrowers... PERFECT!

10.75 seems high when you think that the Feds are at (near zero), but I don't think Disney qualifies for that Fed money and are lending their own money. Nobody has to borrow from them.

Some people will say... if you can't afford to pay cash... don't. Whatever...

If you feel this makes sense to you and the payment works into your budget, and you want to do it. Do it.

We made our choice to finance through Disney and it was probably a higher rate than could have been found somewhere else, but it worked for us and we are happy. Paid off, and happy.

 

[Mattsmommy]

http://www.disboards.com/showthread.php?t=2070241

Why are you opening multiple threads on the same topic?

 

[DisDaydreamer]

http://www.disboards.com/showthread.php?t=2070241

Why are you opening multiple threads on the same topic?

nothing new.

 

[iloveokw]

I agree , don't know why I bother to click on the post

 

[CaptHomer]

They don't care if you stiff them or not. They are not out anything and probably don't have to do any thing in the courts to get it back unlike a foreclosure on a house.

They are going to keep your downpayment and will sell it again.