Financing... Worth it to get in sooner, or wait it out while saving?

[RamblinWreck]

So now that we had gone in head first on the whole swan and dolphin thing can we agree is maybe, depending on the time of year, more expensive to say there, then the cost to finance DVC ?

Yes

And that’s even before you figure in the fact that your contract will still likely have significant resale value down the line.

 

[Bo1203]

Financing also looks better if you would otherwise pay rack rate to stay at disney resorts like GF and RIV at $700+ per night. That's the real apples to apples.

 

[RamblinWreck]

Financing also looks better if you would otherwise pay rack rate to stay at disney resorts like GF and RIV at $700+ per night. That's the real apples to apples.

That’s really only the real apples to apples comparison if you are wedded to staying at those resorts though.

 

[Robbie Cottam]

Financing also looks better if you would otherwise pay rack rate to stay at disney resorts like GF and RIV at $700+ per night. That's the real apples to apples.

OH GOD YES,
Rack rate is 40 to 60 percent more..... never pay rack rate.... rent points or buy more..... but never pay rack rate

 

[smileyanna]

Given the parameters of your financing plan, it sounds the amount of money you could save or "lose" by

financing-using points to travel-paying the loan back early
instead of
saving-paying cash for travel-buying DVC later

will not be huge in the grand scheme of things. Certainly, the $ amounts of these two options over the next year or two are negligible in a decades-long contract. Hopefully that takes some stress off the decision either way.

I'm sure you've thought about this, since you sound financially conservative, but putting this out there: There is the "black swan" risk of the payback period. You may experience a hit to your earnings for lots of unlucky and unlikely reasons, your pipes could burst etc. Will financing impact your ability to withstand unlikely adverse events easily during the payback time?

 

[GrumpyInPhilly]

I just stayed at the Swan last month for 4 nights. Total was $1532. incl. taxes & fees. This was with a Mousesavers discount. I did not need parking.

 

[RKS03]

After some great advice on the board I used the Disney credit card to buy 6 months of financing. In addition, Disney agreed to give me 3 months for the direct purchase, meaning I have about 9 months total to pay off the purchase without any lending fees or charges (granted I am paying about half of the total cost in months 0-2). This gave me enough time to line up payment and sell existing contracts resale.

 

[RoseGold]

Financing also looks better if you would otherwise pay rack rate to stay at disney resorts like GF and RIV at $700+ per night. That's the real apples to apples.

I’m not sure who is paying rack rate for RIV, if anyone. But sure, if that’s you then DVC will work great.

 

[Sandisw]

I’m not sure who is paying rack rate for RIV, if anyone. But sure, if that’s you then DVC will work great.

More than one would think based on my conversation with people at the resort and the pool. It’s how DVC comes up as a topic!

 

[Suzabella]

I do have the Disney Chase Visa... that's interesting... I never thought of that as an option.

Check in to see if they still offer the 6 months - no interest to pay for Disney vacation packages. It used to be that buying points direct counted and that would give you 6 months to save more cash toward purchase. (monthly payments do still apply)

Last week, Dolphin was in the 170s for Thanksgiving and Christmas. It can regularly be booked with minimal notice in the 300s.

Current DVC math will never work against a 170s Dolphin room. Buy in is too expensive. It particularly won't work against RIV's brutal chart.

Add in parking fees, resort fees and the money we save by eating breakfast and sometimes lunch in our room when we stay DVC and that difference narrows quite a bit. It goes beyond cash though. We enjoy more space and the w&d in the room.

It all depends on what you value more and that is, as always, a personal choice.

 

[Sandisw]

I do have the Disney Chase Visa... that's interesting... I never thought of that as an option.

It is still an option for those buying direct, I did that with my nee VGF purchase to stretch it out! And I got DVD to spread it out over 90 days. I bought March 3rd, and they billed me the deposit, and then did 3 payments for balance….April 2nd, May 2nd, and June 1st!

 

[Suzabella]

That's great advice!

When did you get your points? After it was paid in full or after deposit?

 

[Robbie Cottam]

It is still an option for those buying direct, I did that with my nee VGF purchase to stretch it out! And I got DVD to spread it out over 90 days. I bought March 3rd, and they billed me the deposit, and then did 3 payments for balance….April 2nd, May 2nd, and June 1st!

When they spread it out over three months like that do they charge interest or is the gratis?

 

[Sandisw]

That's great advice!

When did you get your points? After it was paid in full or after deposit?

Points load right away…already booked with them through next March! Just dont close until then, which means I won’t get my luggage set until summer!

 

[Sandisw]

When they spread it out over three months like that do they charge interest or is the gratis?

No interest….You do have to ask and they do have to seek approval…they will tell you its 30 days but I just asked my guide to see if he could get approval for 90 days and they did!

 

[Suzabella]

No interest….You do have to ask and they do have to seek approval…they will tell you its 30 days but I just asked my guide to see if he could get approval for 90 days and they did!

That's awesome! I wondered if you bought more GF points when they released them.

 

[Robbie Cottam]

No interest….You do have to ask and they do have to seek approval…they will tell you its 30 days but I just asked my guide to see if he could get approval for 90 days and they did!

I have noticed they have guidelines not rules a lot of times

 

[mistysue]

As for the original question, I can say that I bought resale points a little under two years ago for 112 per point. I could easily sell them today for about 30% more, which means that I would be at a significant disadvantage if I had tried to wait 2 years to get more saved up. The prices have gone up in a rather extreme way the last few years but I would not be shocked to see another year of extreme price gains.
Like anything with real estate it's sort of a gamble.

 

[Robbie Cottam]

As for the original question, I can say that I bought resale points a little under two years ago for 112 per point. I could easily sell them today for about 30% more, which means that I would be at a significant disadvantage if I had tried to wait 2 years to get more saved up. The prices have gone up in a rather extreme way the last few years but I would not be shocked to see another year of extreme price gains.
Like anything with real estate it's sort of a gamble.

Every purchase is a gamble.
Buying a new car,
A new house,
Taking a new girlfriend out on a first date.....
The only guarantee in life is death (I removed taxes because some have figured out of to get money out of the government.... and I'm jealous)

 

[Bellex917]

Wow- you have all given me so many thoughtful responses. Thank you for this! I greatly appreciate it. I can't say I'm any more clear on my decision, but I don't expect to be at this point. I want to take my time on this one... but perhaps not TOO MUCH time haha!