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DVC Direct Sale Interest Rates

ParentsOf4

Well-Known Member
Original Poster
For those of you thinking about purchasing points in the Disney Vacation Club (DVC) directly from Disney and were planning to finance, Disney just announced new (mostly higher) interest rates:

"Premium" credit with 20% down: 9.99% (was 9.0%)
"Premium" credit with 10% down: 12.0% (was 11.5%)
"Preferred" credit with 20% down: 12.0% (was 10.5%)
"Preferred" credit with 10% down: 14.5% (unchanged)
"Standard" credit with 20% down: 14.5% (was 12.5%)
"Standard" credit with 10% down: 17.5% (unchanged)
Current DVC member with 20% down: 8.99% (new category)
Current DVC member with 10% down: 11.0% (new category)

Disney is actively marketing Aulani (Hawaii), Animal Kingdom Villas (AKV), and Villas at the Grand Floridian (VGF), with sales at a strongly rumored DVC at the Polynesian (Disney's worst kept secret;)) likely to start in 2-to-3 years. In addition, all other DVC properties are available for purchase directly from Disney.

Or you could buy resale and save a bundle.:)
 

artvandelay

Well-Known Member
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Those rates are very high, even for Premium Credit. Des DVC do they're own financing or do they have a partnership with another company (eg Wells Fargo, GMAC)?
 

GoofGoof

Premium Member
Those rates are very high, even for Premium Credit. Des DVC do they're own financing or do they have a partnership with another company (eg Wells Fargo, GMAC)?
As far as I know they still sell the loans to an investment bank. A few years back Disney had a deal to sell the loans to Citi but I'm not sure if its still in place. Under the terms Disney agreed to back or guarantee a pretty large portion of the loans in order to get the bank to continue to buy the loans after the credit crisis in 2008. I believe what Disney would do is bundle a bunch of loans and sell off the portfolio to the bank. If someone defaulted they would swap out the default loan with a new loan and then Disney would quietly foreclose on the points and resell them. Disney still services the loans so they get a cut of the interest payment but the bulk goes to the bank and it needs to be pretty high to justify the risk.
 

artvandelay

Well-Known Member
As far as I know they still sell the loans to an investment bank. A few years back Disney had a deal to sell the loans to Citi but I'm not sure if its still in place. Under the terms Disney agreed to back or guarantee a pretty large portion of the loans in order to get the bank to continue to buy the loans after the credit crisis in 2008. I believe what Disney would do is bundle a bunch of loans and sell off the portfolio to the bank. If someone defaulted they would swap out the default loan with a new loan and then Disney would quietly foreclose on the points and resell them. Disney still services the loans so they get a cut of the interest payment but the bulk goes to the bank and it needs to be pretty high to justify the risk.
Thank you.
 
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