I paid full in cash to Disney. We bought 200 points in Poly. I know this isn't doable for some people buying into DVC but at least I don't have to worry about financing and such. This was ideal for my situation, but it's different for everyone - so do what's best for you.
My coworker who has been a DVC member for about 3 years now said she financed through disney and said it was very simple and the people at Disney are nice and easy to work with.
No, it's not different for everyone. It's objectively a bad decision to finance a purchase like this.This was ideal for my situation, but it's different for everyone - so do what's best for you.
Financing a car is dumb, too.Yes very easy to finance think of it like financing a car up to 10 years after that you own for a max of 50 years and the way I see if a much better value
I just wanted to comment on this, you are a dream prospect for a timeshare company. I am not saying this in a mean way, what I mean is- this is exactly what a company who is selling any product wants you to think- that "hey, maybe I can't afford to pay the cash for Product X, but I can afford the monthly!" and so a transaction occurs, one that was based on emotions more than finances. It's all about selling a dream, and that doesn't mean it's a bad thing.Nothing wrong with financing something imo if you can afford payment with ease. You may think people are "dumb" for financing but to each there own. Personally I think People who like to call others dumb are mean spirited. Sorry for the rant. I know I am new here but i don't think there is any reason for that.
Not always....you need credit in life. Financing taxes on said car- absolutely dumb.No, it's not different for everyone. It's objectively a bad decision to finance a purchase like this.
Financing a car is dumb, too.
Good luck, and enjoy it!Yea. I may be a dream prospect. No offense taken. I do plan on paying it off in a few years. If I have real good 6 months I could pay it off completely
Certainly glad that you are rich enough to not have to finance a car, but 99% of us aren't in that boat with you.No, it's not different for everyone. It's objectively a bad decision to finance a purchase like this.
Financing a car is dumb, too.
No, it's not different for everyone. It's objectively a bad decision to finance a purchase like this.
Financing a car is dumb, too.
Your model does not go far enough, as it ignores risk. The affordability of future payments is contingent upon less-than-certain assumptions about the borrower's future income and expenses.In general, financing is neither "good" or "bad". What it does is increase the cost of a good or service while providing access to that good or service to someone who might otherwise have been unable to acquire it.
When purchasing something through financing, the true cost of the item should be considered.
Let's take PVB, currently selling for $171/point. Setting aside closing costs, a non-financed purchase of 100 points costs $17,100.
Now let's finance that purchase through Disney for 10 years with 20% down using Disney's Preferred rate which, last time I checked, was 12.0%. That financed purchase ends up costing $26,972.
Two different people have bought identical 100 points at PVB but have paid different prices. In the second case, it's possible that the person financing the purchase might not have been able to afford it or (unlikely at 12%) had a solid investment with a higher rate of return.
With any purchase, one of the important questions is: What is it worth to the buyer?
Based on my number crunching, a DVC purchase eventually saves the buyer money under the right circumstances.
For DVC, the question becomes: How long is this "eventually"?
Under ideal circumstances with a resale, that "eventually" could be a handful of years. At the other extreme, that "eventually" could be several decades with a direct purchase.
Relating this back to the first question: Is this "eventually" worth it to the buyer?
That's a subjective question to be determined by the individual buyer.
You would be if you hadn't bought DVC.Certainly glad that you are rich enough to not have to finance a car, but 99% of us aren't in that boat with you.
We paid cash for a smallish (120 pt) resale contract. We did not want nor could we afford an additional monthly payment. Buying direct would have been much too expensive for us and we did not want PVB or AUL for our home resort. Buying resale fit our needs right now to travel every other year to WDW. We may plan on adding on down the road. We looked at this as a luxury and if we couldn't afford to pay outright we would not have done it. (Unfortunatly i always have Suze Orman in the back of my mind when we spend our money). We would never consider financing a vacation so why would we finance this type of purchase. Many people do finance timeshares and the only way that i see that could make sense is if you pay it off early to avoid significant finance charges. It is a very personal and individual decision and you have to know how you are with paying your bills or taking on too much. The great thing about DVC timeshare it that it does hold more value than most typical time shares, if you have to sell for financial reasons then you will get back some of your money.
Your model does not go far enough, as it ignores risk. The affordability of future payments is contingent upon less-than-certain assumptions about the borrower's future income and expenses.
You would be if you hadn't bought DVC.
Seriously though, once you buy ONE car with cash, it's remarkably easy to buy all future cars with cash. Rather than making payments to the bank for your current financed car, you make a payment to yourself for your next car.
Full disclosure: I financed my first car and leased the second one (even worse), so I'm not judging anybody who goes that route. Rather, I like to share my very positive experience having paid both of them off. There's no greater peace of mind than being debt-free.
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