What interest rate is DVC charging

[RweTHEREyet]

now for financed contracts?

[Bizo]

10.8% for ten years with 10% down is what they quoted me. I just just listened to the presentation on the Disney Wonder on Saturday. I can't remember what the shorter term rates were. They also offered 10.00 off per point (in the form of a down payment match) and June 07 use year with 160 points included if I bought on the cruise that day. The rep basically said I would end up with 160 to bank and get 160 more on June 1, 2008.

[Canadian Mom]

Do you recall whether or not the finance rate of 10.8% was fixed or simple interest? :scratchch

[Bizo]

Do you recall whether or not the finance rate of 10.8% was fixed or simple interest? :scratchch

It was simple interest.

[Canadian Mom]

Thanks, it makes a difference when trying to decide on financing options.

[shortypots]

The 10.75% is also based on having the payments automatically withdrawn from your checking account. If you ask for a statement monthly, they will charge you and additional 1%.

[Laxmom]

Is there a minimum that you must buy to finance? Paid cash for our small 50 points - well, will pay cash when we close- but might consider an add on if the incentives stay attractive. We still haven't decided how many points we want eventually.

[DVC Mike]

Is there a minimum that you must buy to finance?

Minimum add-on to finance is 50 points.

[Laxmom]

Thanks, Mike! You never know when the mouse might bite again!!

[gblast123]

In general, DVC financiing is pretty terrible.

Many credit cards are offering 6-8% financing for the purchases for the life of the purchase...ie 10 years.

You also have to think about the fact that when you opt for the financing, you are essentially throwing away any financial advantage to purchasing DVC in the first place. If you need financing, you are much better off renting points every year.

Assume that you purchase AKV now and pay $98 per point. You put 10% down, which is $9.80. You finance $88.20, the cost of yearly financing is $8.82 per point. Add on $4 per points for maint. That means that the extra points are costing you $12.82 per point per year. Not only that, you are losing the interest on the 10% which you put down.. not much but something.

You should be able to rent points for about the same amount without putting any money down.!!

Think carefully about financing... in general if you need financing, you shouldn't buy DVC!!

David

[Laxmom]

That is pretty much the norm for any ts financing. Financing, long term, is never a good idea for something like this and I agree, should be avoided. If we ever did, it would be short term - under a year- most have no prepayment penalties. No way would I finance for 10 years!!! We paid cash for the first contract and I plan on doing that with the second. But, never say never!!!

Those low interest/no interest rate offers from credit card companies have become harder to find with the downturn in the economy.

[cheapmom]

Laxmom- I think if you are doing short term- (12 months) you can get a 5% simple interest loan from Disney- think you need 50% down and a 12 month term to get that rate.

[Laxmom]

That's something I hadn't heard. We are in no rush to add on and plan on paying cash again but it is nice to know we have options! Thanks!

[cheapmom]

That's something I hadn't heard. We are in no rush to add on and plan on paying cash again but it is nice to know we have options! Thanks!
Hey- now you can buy twice as many points! 50% down... OK this is how we all get in trouble. :sick:adonitis:sick:

[Laxmom]

Thanks, Cheapmom! You are soooo much help!!! I do like your logic though!