Best format to purchase?

[Chili327]

I’m wondering what the best way is to finance resale, do you put the most possible down to get the best interest rate, or just enough to get the lowest rate then make bigger payments?

I think when I played with the different variables it was like finance for 4 years with 20% down to get the best rate?

Thoughts on financing variables?
Yes I know you shouldn’t and I usually have them paid off within 9 months or so.

But specifically I’m wondering about length of terms, percent down, amount left to close, etc (I usually do the no credit check option just to keep my credit cleaner)

 

[pzw90]

My approach would be to open a card with a sign up bonus, and put down as much as you can immediately pay off.
Then take the financing, I think most of them require 3 months before you can pay it off with no penalty.
Then depending on how long you want to stretch it, some cards send you checks for a balance transfer, 3-5% fee for transfer and then 0% for 12-20ish months beats 14%-20% from the loan company. (Not sure if you could just use those balance transfer check directly to pay for the contract, could cut out the loan and 3 months of their high interest)

 

[Straulin]

My approach would be to open a card with a sign up bonus, and put down as much as you can immediately pay off.
Then take the financing, I think most of them require 3 months before you can pay it off with no penalty.
Then depending on how long you want to stretch it, some cards send you checks for a balance transfer, 3-5% fee for transfer and then 0% for 12-20ish months beats 14%-20% from the loan company. (Not sure if you could just use those balance transfer check directly to pay for the contract, could cut out the loan and 3 months of their high interest)

That works for direct purchases as you can put the whole purchase on your credit card (with a high enough limit or they will split it among three payments over three months) and a number of cards offer interest free payments for a few months for larger purchases (Chase Disney Visa or Sapphire both do for DVC purchases). We did Disney Visa when we bought direct and put the whole thing on there to get more points.

Generally resale is limited to an ernest money deposit submitted with the offer that can be placed on a credit card. The rest needs a wire transfer, cashiers check, or financing. At least I am not aware of any resale brokers that allow full credit card payments.

 

[pzw90]

That works for direct purchases as you can put the whole purchase on your credit card (with a high enough limit or they will split it among three payments over three months) and a number of cards offer interest free payments for a few months for larger purchases (Chase Disney Visa or Sapphire both do for DVC purchases). We did Disney Visa when we bought direct and put the whole thing on there to get more points.

Generally resale is limited to an ernest money deposit submitted with the offer that can be placed on a credit card. The rest needs a wire transfer, cashiers check, or financing. At least I am not aware of any resale brokers that allow full credit card payments.

Yeah, that’s where I was going. Put down as much as you can for the deposit. I’ve read some title companies allow the total to be paid as long as you cover their card fee, forgot which ones exactly

 

[Chili327]

Yeah, that’s where I was going. Put down as much as you can for the deposit. I’ve read some title companies allow the total to be paid as long as you cover their card fee, forgot which ones exactly

I’m thinking out as much down as needed to get the best rate, then pay it off asap.
I’m thinking financing is lower interest than my credit card. (If I use one I already have)

 

[AstroBlasters]

I’m thinking out as much down as needed to get the best rate, then pay it off asap.
I’m thinking financing is lower interest than my credit card. (If I use one I already have)

See if one of your cards has an offer where they’ll give you cash for a “balance transfer” @ 3-5% initial fee and then balance due in 12-18m. They will often just deposit it to your bank account.

 

[Cfabar1]

See if one of your cards has an offer where they’ll give you cash for a “balance transfer” @ 3-5% initial fee and then balance due in 12-18m. They will often just deposit it to your bank account.

this.

 

[Unclelude]

You might even be able to find a 'free balance transfer' introductory offer when opening a new card! I did this financing solar panels ( lol 10KW worth of panels were cheaper than a DVC contract...hehe). This was a few years ago but got free balance xfer to chase ( slate I think )... and after that promo ended, finally put the remainder on a HELOC -

which is my additional suggestion ... if you can do a HELOC, would be way cheaper than credit cards...

 

[AstroBlasters]

You might even be able to find a 'free balance transfer' introductory offer when opening a new card! I did this financing solar panels ( lol 10KW worth of panels were cheaper than a DVC contract...hehe). This was a few years ago but got free balance xfer to chase ( slate I think )... and after that promo ended, finally put the remainder on a HELOC -

which is my additional suggestion ... if you can do a HELOC, would be way cheaper than credit cards...

I wouldn’t ever leverage my primary residence for a timeshare purchase…

 

[Cfabar1]

which is my additional suggestion ... if you can do a HELOC, would be way cheaper than credit cards...

A HELOC is a common strategy for timeshare purchases. I know people who have done it.


My view on HELOCs (in case you care) is they should generally be avoided, and if they are going to be used should be for the purpose of improving the home. That way you are funding the improvements to the home with the home as the collateral.

I would strongly advise against using a HELOC as a Timeshare purchase strategy because you are taking what could otherwise be unsecured debt and making it secured debt with your home as collateral.

I get that the interest rate is lower, but, I wouldn’t take that risk personally. Once again, know people who have done it and it has worked out great for them. I would choose direct financing at a higher interest rate over the HELOC option personally.

 

[Brian Noble]

Agreed. Heck, an unsecured personal loan for someone with stellar credit will probably be between the HELOC rate and the one Disney charges for direct financing. For example, AmEx claims they would give me a surprisingly large amount at a surprisingly modest interest rate as an unsecured loan.

 

[byurick]

Agreed. Heck, an unsecured personal loan for someone with stellar credit will probably be between the HELOC rate and the one Disney charges for direct financing. For example, AmEx claims they would give me a surprisingly large amount at a surprisingly modest interest rate as an unsecured loan.

I've seen that too but timeshares and real estate are not allowed per the fine print (but I guess they wouldn't really know since you get the cash deposited into your bank account)?

 

[atthebeachclub]

I've seen that too but timeshares and real estate are not allowed per the fine print (but I guess they wouldn't really know since you get the cash deposited into your bank account)?

And since money is fungible, this seems nonenforceable? I have seen the fine print and wondered the same.

 

[AstroBlasters]

A HELOC is a common strategy for timeshare purchases. I know people who have done it.


My view on HELOCs (in case you care) is they should generally be avoided, and if they are going to be used should be for the purpose of improving the home. That way you are funding the improvements to the home with the home as the collateral.

I would strongly advise against using a HELOC as a Timeshare purchase strategy because you are taking what could otherwise be unsecured debt and making it secured debt with your home as collateral.

I get that the interest rate is lower, but, I wouldn’t take that risk personally. Once again, know people who have done it and it has worked out great for them. I would choose direct financing at a higher interest rate over the HELOC option personally.

I agree. Scars of 2000, 2008, 2020….