The nuts and bolts of purchasing dvc!

hansel1

Member
Original Poster
I have studied these boards and others for many months before deciding to purchase DVC. Finally, the location and options of the Boardwalk villas made the decision easy.

Below is how the process went when I made the call to purchase BWV through DVC. I was a bit worried about financing as I had a blemish on my credit from a few years back.

This should help others that are thinking about purchasing a new (non add-on) contract on a closed resort.

I recieved my big dvc dream book over a year ago. I called this morning and they had my contact information already in the computer. I was transferred to the agent who sent out the book last year (Gibb McCain).

I told him I would like 170 points at Board Walk Villas and I would need financing. I told him i was married and would like to own and finance the contract myself with my wife allowed to make reservations. He asked for my s.s.# and entered it for approval. During the 3 minute wait he asked if I knew my score (686). He said there would definately not be a problem.

Approved for preferred financing, I chose 10 years at 10.75 %. $1700 down payment financing roughly $15,000 would come to $208 per month. I would not have to pay closing costs (normally $320) as this property was a sold out property.

There are currently no contracts available at BWV. I will be put on a waiting list (told around 2 weeks). He took a $500 deposit that will go towards the down payment amount and will call when I recieve the points. He anticipates a USE YEAR of february, march or april.

I used my disney visa card for the $500 deposit and will use it for the remainder as well. If you use your disney chase visa you are eligible to charge the 10% down payment and recieve 0% financing on that for 6 months.

I asked about the closing costs as an FYI, you can add the closing costs into the financing amount if you wish.

Gibb told me that when he calls me back with the points and use year he will give me a membership number immediately so that I may make reservations.

I hope this helps someone.

UPDATE: Gibb called 5 days later and told me I got the contract and that I was able to make reservations that day with my ID number.

He sent me a settlement package with all the property documents and financing documents. They arive within 4 days of his phone call. Enclosed you have paperwork to allow your payments to be debited from your bank account. The documents also told you when the expected closing date would be along with when your first payments for your loan and dues would be (my case July 15th).

I recieved my loan approval letter about a week after originally talking to Gibb.

I recieved my Member ID card about 8 weeks after originally talking to Gibb.


Update #2 06/04/07: I recieved a letter a couple of weeks ago informing me that disney would be withdrawing my dues payment from my bank account on June 1st and then every month on the 1st after that. The letter went on to inform me that my first DVC payment would be withdrawn from my bank account on July 15th.

On June 1st $88 dollars was withdrawn from my bank account as expected.

So, to recap: I called around april 1st to purcase, after a few weeks all the paperwork was finished and I closed around may 12th. My first dues payment was june 1st and my first dvc payment will be July 15th.

Everything has been very painless up to this point with absolutely no problems.
 

George

Liker of Things
thanks for the info

Hansel 1- I just bought points resale through the timeshare store. Did you consider going that route?
 

George

Liker of Things
I was thinking about going that route also. who did you go through to buy the points?

If you click on the link at the top of the page (under the Disney Vacation Club heading), you'll find yourself at the Timeshare Store. They sponsor this section of WDWmagic. Also a google search of Timeshare Store or DVC resale will take you right to them.
 

hansel1

Member
Original Poster
I did consider the timeshare store, in fact I spoke with Jerry A. Sydow II about trying to get prequalified for financing. He gave me the information about the bank and when i spoke to them they really couldn't tell me if i would get qualified.

Since we plan our vacations for january every year I am under kind of a time crunch in purchasing and then be able to make my reservations. The inventory that timeshare store had for boardwalk was kind of limiting in when points would become available as well. When i recieve the disney contract I will get 2007 points and additional 2008 points at my next use year.

Here are the things that sold me on going through disney instead of the timeshare store:

NO ROFR
NO closing costs
Easier Financing
Immediate availability to book reservations
I was able to use my disney chase visa for the down payment.

I believe that if I had CASH and more time I would have chosen the timeshare store. The price for points are better and they are very nice. I would have saved roughly $2000 but it would probably take longer and the 170 points would not have been available until the 2008 use year meaning my january 2008 trip would have been on borrowed points, thus putting me behind from the beginning.
 

George

Liker of Things
I did consider the timeshare store, in fact I spoke with Jerry A. Sydow II about trying to get prequalified for financing. He gave me the information about the bank and when i spoke to them they really couldn't tell me if i would get qualified.

Since we plan our vacations for january every year I am under kind of a time crunch in purchasing and then be able to make my reservations. The inventory that timeshare store had for boardwalk was kind of limiting in when points would become available as well. When i recieve the disney contract I will get 2007 points and additional 2008 points at my next use year.

Here are the things that sold me on going through disney instead of the timeshare store:

NO ROFR
NO closing costs
Easier Financing
Immediate availability to book reservations
I was able to use my disney chase visa for the down payment.

I believe that if I had CASH and more time I would have chosen the timeshare store. The price for points are better and they are very nice. I would have saved roughly $2000 but it would probably take longer and the 170 points would not have been available until the 2008 use year meaning my january 2008 trip would have been on borrowed points, thus putting me behind from the beginning.

Great Explanation! In fact, I had cash and more time!
 

slappy magoo

Well-Known Member
None of my business, but why did you opt to buy directly into BWV, as opposed to buying SSR (or waiting for the Animal Kingdom Villas)? Won't your deed end about 10 to 11 years earlier at BWV? Or will DVC extend deed rights to people who buy older resorts directly through them? It just seems like you're getting less and (unless you pay off your financing ASAP) paying more.
 

hansel1

Member
Original Poster
My primary reason was location. We spend quite a bit of time at epcot on our trips and we can either walk or catch the boat to epcot or MGM. My wife will give birth in may so our newborn will be 8 months old on our first vacation at BWV. We will be able to use our own stroller without having to fold it up and hold the baby. Stroller over to mgm or epcot, stroller onto the boats, stroller over to epcot then onto the monorail to get to Magic Kingdom. No busses our entire trip unless we go to downtown disney or animal kingdom.

My second reason was that we will pay off our financed portion in a few years as I get my yearly bonus. We will then purchase another 170 points at the newest DVC Resort. After that we can alternate resorts using 240 each year (the 170 for that year and borrow the other 170). If you alternate years and have two contracts you can get a better room at your HOME resort during the 11 month window.

I'm not sure what they will do with the expirations on the BWV, but I will probably re-up at BWV if they let us.
 

GoofyforWDW

New Member
Closed resorts

Hi there,

Your original post was very informative, many thanks.

Can you tell me how you bought points at a closed resort from Disney? I thought the only way to buy points at the closed resorts was resale with the likes of the timeshare store. I would be very interested to buy from Disney if possible.

If you dont mind me asking was the cost of the points when buying from Disney the same as if buying at a new resort (ie $104 i think)?

Many thanks for help in advance.
 

k.hunter30

New Member
Ok... I'm just popping in this thread out of curiosity. I admit I don't know much about timeshares; however when I read 10.75% I was quite shocked! Is paying that much interest normal for timeshares?!
 

DisneyPhD

Well-Known Member
Hi there,

Your original post was very informative, many thanks.

Can you tell me how you bought points at a closed resort from Disney? I thought the only way to buy points at the closed resorts was resale with the likes of the timeshare store. I would be very interested to buy from Disney if possible.

If you dont mind me asking was the cost of the points when buying from Disney the same as if buying at a new resort (ie $104 i think)?

Many thanks for help in advance.

You can purchase any of the DVC resorts through Disney. Whenever someone is selling their contract (through the Timeshare store or anyplace else) and an offer is made, DVC gets the right of first refusal. In other words, DVC can buy the contract back under the same conditions the buyer has offered and the buyer is out of luck. DVC can then turn around and resell the points to a buyer of its choosing (of course for more money than they paid). This alows Disney to control resale prices (keeping them high). It also works out pretty well for the sellers too since many people are selling either for the same price they paid or in most cases for more than they paid.
 

hansel1

Member
Original Poster
I paid $98 per point. This was prior to the price increase, so I'm not sure what they are now.

When buying resale through disney, the minimum initial points you must buy is 160. Once you own dvc that point minimum drops I believe to 25 points.

After looking around for financing, a 10 year 10.75 is a little higher than average. Most were around 10.25 percent. But disney does their own in house financing, so it makes things much easier. I don't mind paying the extra .50 percent for the convenience.
 

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