DVC RESALES
DVC RESALES

Go Back   The DIS Discussion Forums - DISboards.com > Disney Vacation Club > Purchasing DVC
facebooktwitterpinterestgoogle plusyoutubeDIS UpdatesDIS email updates
Register Chat FAQ Tickers Search Today's Posts Mark Forums Read





Reply
 
Thread Tools Rate Thread Display Modes
Old 04-24-2013, 04:26 PM   #31
tjkraz

DVC Owner SSR
 
tjkraz's Avatar
 
Join Date: Feb 2002
Location: Ohio
Posts: 13,105

Quote:
Originally Posted by JessLCH View Post
I cannot see ANY rationale for financing a timeshare ever.
I can...but it's a pretty narrow profile.

I'm sure there are individuals who have a track record of visiting a Disney destination annually, and sufficient means to pay cash for such a trip. But they may not be willing to dip into their savings to the tune of $10-15K to pay for DVC up front. Alternatively they could skip 4-5 years of trips to save up for the purchase, but then that's lost value in the DVC contract...and 4-5 years of no vacations.

Financing at DVC's rates is unwise.

Financing over a full 10 years is unwise.

But I think it would be defensible to finance for +/- 5 years on a low-interest home equity line. In the long run, that approach will still yield much greater savings than paying cash for trips over the next 30-40 years.
__________________
-- Tim

DVC owner at SSR, BWV and VGC
tjkraz is offline   Reply With Quote
Old 04-24-2013, 04:30 PM   #32
bighoo93
Mouseketeer
 
Join Date: Dec 2011
Posts: 363

Quote:
Originally Posted by tjkraz View Post
I can...but it's a pretty narrow profile.
That's a great way to put it.
bighoo93 is offline   Reply With Quote
|
The DIS
Register to remove

Join Date: 1997
Location: Orlando, FL
Posts: 1,000,000
Old 04-24-2013, 09:19 PM   #33
Sandisw
Moderator
 
Sandisw's Avatar
 
Join Date: Nov 2008
Location: Syracuse, NY
Posts: 9,652
DISboards Moderator

Quote:
Originally Posted by JessLCH View Post

I cannot see ANY rationale for financing a timeshare ever.
We almost did...we were going to Disney yearly and did not plan to stop. We had a $5000 to $7000 vacation budget yearly that was spent strictly for vacation. When we decided to buy, we made the decision that we would if our monthly payments, including interest, was no more than the room portion of our typical cash trips. We assumed a 30% discount off the cash rate. We knew that once the loan was paid, we'd be spending less for the room than we need, but even with the charges for those 10 years, DVC wasn't costing us more but we would be getting a bigger room--1 bedroom vs. a room at the CR.

Now, we ended up not having to finance and have since added on so in no way are we saving money, but we were comfortable handling our vacation dollars this way. Of course, DH and I also knew our jobs were stable and that if we had to sell anytime prior to 5 years, even for 50% of what we bought, we'd lose money on the deal but it was a risk we were willing to take.

I guess my point is that everyone is different in terms of how they choose to spend and/or save their money. That's the great thing about it though. We all have our own and if some choose to spend it on finance charges, Disney's cash rates, or whatever, as long as they feel confident that they have planned and know what they are getting into, then it really is a good choice for them.

And, yes, I know people don't agree with me....
__________________
Sandi



Sandisw is offline   Reply With Quote
Old 04-24-2013, 09:30 PM   #34
ToddyLu
Welcome aboard explorers- I love Mr. Ray
 
ToddyLu's Avatar
 
Join Date: Jun 2008
Location: The Drop Off
Posts: 5,150

Lots of people buy lots of things they do not need and finance them..it doesn't mean they are stupid or have no insight...you just decided to spend your money a certain way...It is the tone of these comments that aggrevates me. No one has to give a rationale for their decisions. However, it is important for folks to know WHAT they are purchasing and how to make the best use of it. That to me is a larger error. Regardless of how you get your DVC contract, it is very improtant that you read the fine print and learn how to make the most of those vacation dollars and your investment.
__________________
DH Me kissing DH Trinity
first trip ASMo 2002, ASMo 2003, ASMo 2004 twice, ASMo 2005, POFQ 2006, Pop 2007, Pop 12/2008 with DDP, AKV SV 10/09 with DDP, AKV SV 12/10, AKV 5/11, AKV SV 10/11, AKV 5/12, AKV 10/12, AKV 11/13, AKV 5/14, AKV 10/14, AKV 5/15
My DH loves me for my points!!
ToddyLu is offline   Reply With Quote
Old 04-25-2013, 09:32 AM   #35
rusafee1183
DVC Owner Since 2012!
 
rusafee1183's Avatar
 
Join Date: Mar 2008
Location: Pittsburgh, PA
Posts: 3,106



This is totally off point from the OP's orginal question, but I also feel the need to jump in here.

While it may be less responsibe of a choice to finance a timeshare, people are entitled to do whatever they choose. I mean, is spending money on a timeshare whether you are financing or not the most responsible thing EITHER WAY? Wouldn't the most responsible choice be to invest it/save it/ wait for something terrible to happen or retirement?

My biggest complaint on the Disboards IN GENERAL is that people always feel the need to put people in their place. It's a small comment here and there, but then the phrase "WELL, I DON'T CARE. IT'S THEIR MONEY" always comes next.

Well, if you don't care - why does everyone feel the need to point it out in the first place??

"Buying direct is stupid, you should only buy re-sale, you should never finance, you should always ... blah, blah, blah....BUT I DON'T CARE. IT'S YOUR MONEY"



Then keep your opinions to yourself. Unless someone specifically asks "Need opinions - is buying direct stupid, is buying re-sale the best way, is financing a bad idea" Then feel free to give your opinion on that matter.

I believe that the title of this thread was not "Is financing a good idea"

So, back to my original suggestion to the OP - people don't buy at the cheapest resort mainly because you may or may not be able to get into the resorts you would really like to stay at the 7 month mark. If you like the cheapest resort, wouldn't mind staying there if all else fails and if that is a risk you are willing to take - GO FOR IT!
__________________
Heather & Bob
rusafee1183 is offline   Reply With Quote
Old 04-25-2013, 10:34 AM   #36
CarolMN
DVC Co-Moderator

 
Join Date: Aug 1999
Posts: 24,240
DISboards Moderator

Quote:
Originally Posted by rusafee1183 View Post
.......(snip)........My biggest complaint on the Disboards IN GENERAL is that people always feel the need to put people in their place. It's a small comment here and there, but then the phrase "WELL, I DON'T CARE. IT'S THEIR MONEY" always comes next........
Respectfully, I think you are assuming motives where none may exist. It is difficult to read intent from the written word. I agree that some of us are not very good good at expressing our thoughts in a positive way. The "I DON"T CARE" comment is probably just an attempt to deflect flames from people who don't agree with them. (As a mod, I can tell you that there are posters who believe that any opposing view to theirs is a flame and those posts should be deleted).

In my experience, many who post about the negatives to financing a luxury purchase only want people to make an informed decision and to consider the potential consequences. Many timeshare purchases (including DVC) are impulse purchases and it is easy to rationalize such a purchase. (For example, no one NEEDS to go to Disney to spend quality time with family or to make special memories).

FWIW, many of those who sold their contracts in the last few years suffered an unexpected job loss or encountered other unplanned financial problems. They lost a lot of money. Those who financed lost the most. I'm quite sure that none of them ever though they'd be in that position when they bought. Worth considering, IMO. It could happen to any of us.
__________________
Best Wishes -



BWV - Early Morning on May 2, 2008
CarolMN is offline   Reply With Quote
Old 04-25-2013, 11:04 AM   #37
lchute1158
Mouseketeer
 
lchute1158's Avatar
 
Join Date: Feb 2013
Location: California
Posts: 163

Back to the original message.... I still do not see a problem with buying a cheaper resort for the points if you plan and book after 7 months and you not looking for high travel time dates and your flexible with amount of days. It's all what you personally are looking for... And perhaps someone wants to have points but don't have the budget for a big one time expenditure.
__________________


Disney Fantasy January 25, 2014 (45th birthday cruise!), Disney Wonder May 17, 2014 (Weekend Getaway), Disney Dream Feb 24, 2013
Hong Kong Disneyland 2011, WDW x4, DLR CA x100 plus (Annual Pass Holder)(frequent visitor since 1969)
DVC Owner - AUL, VGC, HHI



lchute1158 is offline   Reply With Quote
Old 04-25-2013, 11:05 AM   #38
geraghty
Mouseketeer
 
geraghty's Avatar
 
Join Date: Feb 2013
Location: Louisville, Ky
Posts: 230

Quote:
Originally Posted by CarolMN View Post
Respectfully, I think you are assuming motives where none may exist. It is difficult to read intent from the written word. I agree that some of us are not very good good at expressing our thoughts in a positive way. The "I DON"T CARE" comment is probably just an attempt to deflect flames from people who don't agree with them. (As a mod, I can tell you that there are posters who believe that any opposing view to theirs is a flame and those posts should be deleted).

In my experience, many who post about the negatives to financing a luxury purchase only want people to make an informed decision and to consider the potential consequences. Many timeshare purchases (including DVC) are impulse purchases and it is easy to rationalize such a purchase. (For example, no one NEEDS to go to Disney to spend quality time with family or to make special memories).

FWIW, many of those who sold their contracts in the last few years suffered an unexpected job loss or encountered other unplanned financial problems. They lost a lot of money. Those who financed lost the most. I'm quite sure that none of them ever though they'd be in that position when they bought. Worth considering, IMO. It could happen to any of us.
I agree, people want to be helpful. We all feel for those who came on hard times, especially those that there effected the most. Big companies prey on the uninformed and we all just want what's best for our neighbors or soon to be neighbors.
__________________
geraghty is offline   Reply With Quote
Old 04-25-2013, 11:19 AM   #39
tjkraz

DVC Owner SSR
 
tjkraz's Avatar
 
Join Date: Feb 2002
Location: Ohio
Posts: 13,105

Quote:
Originally Posted by lchute1158 View Post
Back to the original message.... I still do not see a problem with buying a cheaper resort for the points if you plan and book after 7 months and you not looking for high travel time dates and your flexible with amount of days. It's all what you personally are looking for... And perhaps someone wants to have points but don't have the budget for a big one time expenditure.
It is important to consider all aspects of the purchase. The up-front cost is just one component. The annual dues and contract duration are also worth factoring into the decision.

As others have pointed out, Vero dues are currently $2 per point, PER YEAR, more than other resorts. A buyer who pays $20 per point less for Vero than SSR will make up that $20 difference in just 8-9 years. Then they'll have another 20 years of paying higher dues than they would have for SSR.

Assuming 3% annual increases in dues rates for the two resorts, the owner of 200 Vero points will pay $23,500 MORE in dues over the next 29 years than the owner of 200 SSR points. That's a pretty steep penalty for saving $4000 on the initial purchase.

Additionally the SSR contract runs 12 years longer than Vero. Depending upon the buyer's age, that may not be of paramount importance. But given the healthy resale market for DVC points, we can safely assume that come 2040-ish, a SSR contract with 14 years remaining will be worth a lot more than Vero points with only 2 years left.

Vero can still be a sensible buy, but only for fans of the resort. If you want the security of booking a beach cottage during spring break, owning Vero points is the way to go.

But it's a poor choice for exclusively booking other destinations at 7 months.
__________________
-- Tim

DVC owner at SSR, BWV and VGC
tjkraz is offline   Reply With Quote
Old 04-25-2013, 12:40 PM   #40
rusafee1183
DVC Owner Since 2012!
 
rusafee1183's Avatar
 
Join Date: Mar 2008
Location: Pittsburgh, PA
Posts: 3,106

Quote:
Originally Posted by CarolMN View Post
Respectfully, I think you are assuming motives where none may exist. It is difficult to read intent from the written word. I agree that some of us are not very good good at expressing our thoughts in a positive way. The "I DON"T CARE" comment is probably just an attempt to deflect flames from people who don't agree with them. (As a mod, I can tell you that there are posters who believe that any opposing view to theirs is a flame and those posts should be deleted).

In my experience, many who post about the negatives to financing a luxury purchase only want people to make an informed decision and to consider the potential consequences. Many timeshare purchases (including DVC) are impulse purchases and it is easy to rationalize such a purchase. (For example, no one NEEDS to go to Disney to spend quality time with family or to make special memories).

FWIW, many of those who sold their contracts in the last few years suffered an unexpected job loss or encountered other unplanned financial problems. They lost a lot of money. Those who financed lost the most. I'm quite sure that none of them ever though they'd be in that position when they bought. Worth considering, IMO. It could happen to any of us.
I think I am one of the people who is just tired of the snide comments about the under educated "fools" who do things a different way than most people agree with. It doesn't come across as caring most times, it just comes off as snarky and condescending.

You're probably right though, and honestly - I felt bad being so defensive as soon as I hit "submit"

Either way, I hope that the OP found the answers they were searching for and can buy and love their DVC as much as most people here do
__________________
Heather & Bob
rusafee1183 is offline   Reply With Quote
Old 04-25-2013, 01:17 PM   #41
bighoo93
Mouseketeer
 
Join Date: Dec 2011
Posts: 363

Quote:
Originally Posted by rusafee1183 View Post
My biggest complaint on the Disboards IN GENERAL is that people always feel the need to put people in their place. It's a small comment here and there, but then the phrase "WELL, I DON'T CARE. IT'S THEIR MONEY" always comes next.

Well, if you don't care - why does everyone feel the need to point it out in the first place??

"Buying direct is stupid, you should only buy re-sale, you should never finance, you should always ... blah, blah, blah....BUT I DON'T CARE. IT'S YOUR MONEY"



Then keep your opinions to yourself. Unless someone specifically asks "Need opinions - is buying direct stupid, is buying re-sale the best way, is financing a bad idea" Then feel free to give your opinion on that matter.

I believe that the title of this thread was not "Is financing a good idea"
Just speaking for myself of course...since these are discussion boards, I'll discuss it when it comes up and seems appropriate. There is one reason why I will almost always add a qualifier like "it doesn't matter what people do with their own money": to head off the otherwise inevitable responses of "it's none of your business! Why do you care what someone else does with THEIR money!!!" That's it. I've been on message boards enough to know that even things that seem like they should be self-evident often aren't. So I throw that in there.

And to be honest with you, I do worry about hurting feelings or making people feel bad about a decision they've already made. I really don't want that, and I know that is a risk. But I know there are also people who are considering it (e.g., financing a purchase through Disney), and I'd like to present a rational case for why I think that isn't a good idea in case they haven't considered it that way. Not--NEVER--"you're stupid, everyone knows financing a timeshare is dumb", but a logical explanation of the reasoning. With regard to financing a timeshare purchase, again I don't want anyone to feel bad, but I feel strongly that it is almost always a very poor financial decision. If someone in my family or I knew and cared about were going to do this, I would just about chain myself to their car to get my point across. That's how strongly I feel about it and how it would matter to me if it were someone I actually knew. But its just a message board, so all I can do is explain my reasoning. I don't think I've ever said or implied that someone who does this is stupid and I don't just assert it as a fact, I'd rather explain my reasoning. It is the same kind of thing I like to read from people who hold a different perspective on any issue. Tell us why you think what you do, and it is always an interesting discussion, IMO.

But I do apologize for any hurt feelings, because that really is not only not intended, but something I hope to avoid.
bighoo93 is offline   Reply With Quote
Reply



Thread Tools
Display Modes Rate This Thread
Rate This Thread:

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

Forum Jump

DVC-Resales.com | 1-800-550-6493 (Contact The Timeshare Store) | DVC Resale Listings

facebooktwittergoogle plus youtube itunesDIS Updates
GET OUR DIS UPDATES DELIVERED BY EMAIL



All times are GMT -5. The time now is 02:37 PM.

Powered by vBulletin® Version 3.8.4
Copyright ©2000 - 2014, Jelsoft Enterprises Ltd.

Copyright © 1997-2014, Werner Technologies, LLC. All Rights Reserved.