How did you pay for resale?

[4ParkFamily]

Looking to buy resale points but do not know where to look for financing. Does anyone get a loan for there resale or typically pay cash? Do the resale companies offer financing? I have enough saved for a good down payment but do not want to keep paying for resorts for my upcoming trips when that money can be spent on the DVC. Just curious to hear others experience. Thanks, hope to see you all soon!

 

[Louis morrell]

Cash. If financing was my only option I would have waited to buy.

 

[Roxyfire]

I paid cash but was waiting on proceeds from an estate. The resale company would have referred me to a loan company if I needed one. I noticed there's some additional paperwork and possibly other fees. You'd want to pay close attention to the interest rate of course, nothing worse than having a large loan at a 10% or more interest rate.

 

[gillep]

Cash.

 

[Lola_Stark42]

I plan on financing my purchase, but certainly not for the entire life of the loan. I have been waiting several years to make the move to buy, and the prices continue to go up as I wait. The amount I’ve spent on Disney vacations over the last few years would ha e easily paid for a resale contract by now. Since I am still planning on going to Disney for the foreseeable future, and have yet another trip I’d like to take in January, I decided to make the move and purchase resale. I used the payment I would have made for the reservation as my down payment, and yes for the time being I am going to finance. The goal is to have it paid off early, which there is no penalty to do so. There are a lot of people that will advise you against financing. I think if you can set a goal to have it paid off in a couple of years as opposed to keeping the loan for 7-10 years, it’s still a good option.

 

[sndral]

I paid cash for both of my resale purchases.
I know the DVC brokers can refer you to loan companies that will finance your DVC purchase.
I’ve read that some people take out a lower interest loan against their equity in their home to finance their purchase.
I believe I’ve read that the Chase Disney VISA credit card gives you 6 months w/out interest on a DVC purchase - but I’m not positive on that - maybe it’s just your MFs?
Financing the purchase delays your break even for return on your investment, however, anyone who waited from last year to this year to buy so they could save up the money and pay cash might have found buying last year and paying interest to be cheaper than waiting a year to buy as the price per point seems to have increased quite a bit in the last year.
For example, looking at the ROFR thread, $75 per point for AKV was a typical price for Jan. - March 2017. For a 160 point contract the cost would be $12000. The cost of financing $10000 a year @ 10% is roughly $1,000 per year.
Per the ROFR thread for Jan. - March 2018, $100 per point was a typical price for AKV. So the cost for that same 160 point contract would be $16000.
IMO there’s no hard and fast rule about what’s best for each person, so much depends on what each individual’s circumstances are and on things we can’t know, such as will the price of resale points continue to go up rapidly, go up slowly, stay even, or go down.

 

[Best Aunt]

Don't forget that the price of the contract is not the sole expense - you will have to pay maintenance fees every year.

An email from the broker of my resale purchase included instructions:
If you plan on using Monera Financial to finance this property...
If you plan on using Lightstream to finance this property...
If you plan on using Vacation Club Loans to finance this property...

 

[Ben E N]

Not just cash, but literally cash I had no other use for. I was throwing it into bonds because I had nowhere else to put it. Disney was getting all of my other money, so why not give them this as well? (Even though it technically went to the seller)

 

[Bing Showei]

The amount I’ve spent on Disney vacations over the last few years would ha e easily paid for a resale contract by now.

The Disney spigot is one you can choose to turn off at will when you pay cash. Lose a job? Skip a year. You’re in control.

Buying into DVC with a loan increases your risk exposure significantly if the economy heads south. The risk is further exacerbated by the nature of how DVC will get you to spend a lot more money than you would on cash. Because now the room is “free” and the your shiny new annual pass means the park is “free” and all you pay for is flight and food.

 

[lovin'fl]

We have 8 contracts. We've always paid cash. Mostly buying smaller contracts as we had the money. But our first contract was 200 points and we had just come into a small inheritance that we used.

 

[Marionnette]

Looking to buy resale points but do not know where to look for financing. Does anyone get a loan for there resale or typically pay cash? Do the resale companies offer financing? I have enough saved for a good down payment but do not want to keep paying for resorts for my upcoming trips when that money can be spent on the DVC. Just curious to hear others experience. Thanks, hope to see you all soon!

Cash. Every single one of them. Like others pointed out, you still have annual dues to pay on the contracts and sadly that bill arrives right after Christmas. It's not like you're getting 50 years of "free" vacations once you make your purchase. You still have to set money aside to pay those dues.

Resale companies themselves do not do financing. However, they can link you to businesses that will finance your purchase. Their rates can be extremely high, so you might want to explore other financial institutions for a personal loan.

 

[Amanda&Mike]

Cash for both of our DVC purchases. We bought as many points as we were comfortable paying cash for. We can always add more points on later if we need.

 

[Dean]

Looking to buy resale points but do not know where to look for financing. Does anyone get a loan for there resale or typically pay cash? Do the resale companies offer financing? I have enough saved for a good down payment but do not want to keep paying for resorts for my upcoming trips when that money can be spent on the DVC. Just curious to hear others experience. Thanks, hope to see you all soon!

I would recommend not financing a luxury purchase but if that is your plan, Monera & Timesharelending.net are places you can finance as a mortgage. Lightstream is often cheaper as a personal loan, the interest isn't deductible but it wouldn't be enough to matter and with the tax changes likely wouldn't matter anyway. I'd look for a personal loan through a local credit union or community bank if you currently work with one or are thinking about them anyway. I would absolutely recommend against a 401K loan or a HELOC for this option, the lower interest doesn't come close to justifying the associated risk.

My suggestion would be to save up and buy cash, maybe skip a trip, stay off site or rent privately in the interim. If one can't save up and buy cash within around 2 years, either it's not important to them or they can't afford it anyway.

 

[disneynutz]

If you are going to finance, add that cost to your purchase price and dues, then compare that price against renting from an owner. Renting may be a better deal.

Bill

 

[Ben E N]

If you are going to finance, add that cost to your purchase price and dues, then compare that price against renting from an owner. Renting may be a better deal.

Bill

I fully agree with you there. In looking at a 20 year plan, purchasing resale saves me only a decent amount total. That was also when resale was cheaper. I traded out flexibility of when, where, and how long I wanted to vacation for when I made that purchase. Financing would have tipped the scales much too far towards renting for me.

 

[skippytx]

Most people pay cash, I wouldn't every pay the financing APR that the timeshare lending companies charge, I have credit cards with lower APR's than that.

That being said, if you had access to low interest financing the argument could be made to use that while you put your cash somewhere else.

 

[narcisa]

We paid cash. I agree with what all the other cash buyers are saying.

 

[DisneyDiana]

Yes, I paid cash for all three of my contracts. We bought our first contract after saving for several years then waited until we had plenty of disposable income to add on the other two.

 

[Sleepy425]

We paid cash for our points. We waited until we had the money to do so. The interest rates that you can get through the companies that will finance it for you are crazy.

 

[gergy9]

Cash or not at all. Skip a trip if you must. Financing kills any ROI for these.