Paying for DVC?

Poll: How did you pay for your DVC membership?

  • Finance directly through Disney

    Votes: 14 30.4%
  • Finance through another lender

    Votes: 5 10.9%
  • Cash

    Votes: 20 43.5%
  • Credit Card

    Votes: 1 2.2%
  • I have not bought yet, still researching

    Votes: 6 13.0%

  • Total voters
    46

Touro1979

Member
Original Poster
Currently researching purchasing DVC contract and wondering how people on this site have paid for their membership.
 

sxeensweet

Love a little Disney every day!! ;)
Some pay cash and some do Disney's financing, or another loan. We did the financing through Disney as it was best for us and we thought long and hard and I did all the math to see what we would pay when it was all said and done, our break even point etc. Some will tell you don't do it unless you have cash but don't listen to anyone and do what is best for YOU and your needs and wants. Hey if that's paying cash do it and if it's financing do it your personal choice. We like that it is considered a mortgage loan and it helps us a lot on our taxes to claim the interest and property taxes. DVC sends us our mortgage interest tax form every January and we claim our home and our DVC. Also if you finance through Disney it (the loan itself)does not go on your credit report. The initial credit check does of corse but the actual loan unless you default will not appear on your credit report. So we liked the upsides to financing with Disney and frankly we wouldn't pay a car in all cash so why pay for DVC in all cash etc.
Again it was what was best for us and everyone is different. :)
 

Seanual757

Well-Known Member
We financed through Disney for our VGF contract (200 points) we purchased in 2015 we paid it off this year and followed that up with a contract for Poly we added (200 points) we will pay this off by next spring if not sooner. We are looking at adding BayLake to finish up the Monorail line to our portfolio.
 

note2001

Well-Known Member
Financed through Disney. It was quick, easy, doesn't show up on the credit report. Made extra payments as I was able to through the DVCmember website, and used my credit card when doing so & built up AMEX points to apply to the next trip.

I don't regret financing. I would not have been able to take my kids on a yearly trip to Disney otherwise and have been in accommodations that I was comfortable with. Add in that I would most likely have rented those points anyway and financing to own was a much smarter choice. I now only wish I had bought more points than I had. (Those 1 bedroom units are addictive. :))

My advice to those looking to buy direct: know your use years and exactly what you want. Watch the deals Disney has on points and when you see one you're comfortable with go for it. In my case through Disney they offered $10 off per point, my account was loaded with the three years of points (2007, 2008 and builder points) and I was surprised with subsidized dues on those 2008 points, and partially subsidized into 2009. I won't tell you what I paid because prices have changed dramatically since then, but my financial side was more than happy with the price per point outcome. Even after taking into account the financing rate, I saved myself thousands over what I would have rented points for.
 
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msb821

New Member
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.
 

Seanual757

Well-Known Member
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.


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 :D
 

CaptainAmerica

Premium Member
This was ideal for my situation, but it's different for everyone - so do what's best for you.
No, it's not different for everyone. It's objectively a bad decision to finance a purchase like this.

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 :D
Financing a car is dumb, too.
 

Touro1979

Member
Original Poster
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.
 

note2001

Well-Known Member
So, what would have been an amazingly civil thread about DVC and financing is derailed by someone judging others. No big surprise there.

I'd like it if we had a rule such that if anyone posts a judgement against how others live their lives, spend their money etc, that post should at least be backed up with what the poster believes to be facts. An an example along with it would be great because on last check I've never met two people who live exactly the same lives. It would be nice to know what sort of people their judgements are based on.
 

21stamps

Well-Known Member
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.
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.

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.
Not always....you need credit in life. Financing taxes on said car- absolutely dumb.
 

CaptainAmerica

Premium Member
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.
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.

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. :)
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.
 

Phonedave

Well-Known Member
When I bought I had $12,000 in cash readily available. I could have transfered the other $4,000 out of CD's or other accounts, but decided not to.

I put $12,000 on my Disney Credit Card, paied that off in full the next month, and finanaced the remaining $4,000 or so through Disney. Why, I have no idea. I could have saved the interest by paying in cash, but I did not want to move money around. So yes, I am "stupid" from a strictly finanacial sense, but leaving the extra $4,000 where it was made me more comfortable.

-dave
 

kniquy

Active Member
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.
 

ford91exploder

Resident Curmudgeon
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.

What you can do is now buy a 25 point contract direct from DVC and get the perks which you did not get with resale purchase.
 
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ford91exploder

Resident Curmudgeon
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.

Have to agree with you on paying cash (or cash equivalent) for cars once you buy a car with cash you will NEVER take a loan out again and the car ends up being cheaper because you are only paying for the CAR not the use of the creditors money.

(cash equivalent being say your high limit rewards card which you pay off as soon as the charge hits as the card gives you protections which cash does not)
 

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