DVC question

[KrystalR83]

Hi

I was just wondering how Disney does the financing for the DVC. We are thinking of buying into the DVC and wondering how it all works.

Thanks

[Ian]

They offer 10 year financing at (I think) 10.25% interest.

The upside of Disney's financing is that it's treated like a mortgage, so the interest is tax deductible.

That is, unless you're already deducting interest from two homes.

[GreenBeetle]

Another nice thing when we purchased in 2005 was that Disney made all the arrangements for closing. They sent someone to our house with all the paperwork AND paid all closing costs.

Paying the closing costs may have been a Disney incentive to purchase at that time . . . I honestly can't remember. But the whole process was extremely easy and enjoyable.

[seanyred]

Yes if you are pre-approved for the loan the process is very painless. If the documents are sent to your home, you have to get at least on document nortarized. Also with their financing the interest his a little high but no penalty for paying off early.

[DVC2004]

Yes as other said financing is available with Disney and has the benefits of tax deductible interest in most circumstances. It's very simple and Disney requires very little info from you. I believe it's 10% down but you can put more if you like. Clsoing costs could also be rolled in as well.

[lockedoutlogic]

Just gonna throw out another standard musing:

Instead of financing vacations....save up for the purchase cost up front and then do a cash sale....

several reasons:

1. It's a vacation...not health insurance....a completely optional purchase...a luxury...frivolity...
2. The model only makes sense (i.e. saves you money on accomodations in the longterm) if you don't do something like pay more than the sticker price upfront....paying at a 10 percent rate bascially means you'll pay more for your room than the person next to you that paid cash...and there's no way to recoup that cost.

Americans...in particular...have little patience these days....as evident by our gambling with real estate and retirement accounts....
i really think that something like a DVC purchase should be done as economically responsible as possible....

And i weep not for Disney's lost money...as they are only selling you this to whack you with associated costs well into your golden years....truly....anyway

again...opinion:mickey:

[Ian]

Very true. The paypack on DVC is much more significant if you don't finance.