Financing??!?

Gaboo414

Earning My Ears
Joined
Jul 21, 2019
I have a really bad case of add on itis. I'm debating whether using Vacation Club Loans or LightStream loans. Any one have any info on either??
 
I know you own a couple of DVC's already. I personally don't think it's a good idea to finance, but only you know the best decision for you and your family. I agree with CanadaDisney05, slow down and breathe. It's not like you can't take a Disney vacation (since you already own), it just that you can't take it as often as you want to.

Having said that (back to your original question), sorry I don't know anything about the above loan companies. Hopefully other that know will chime in.

I know we are giving you un-solicited advice, so feel free to ignore :).

Good Luck on whatever you decide to do.

Great3
 
You know your checkbook better then us.

We used DVC financing just because it was easy. I sent them a few grand every couple months, and a 10 year loan was paid off in 18 months.

It all depends on your down payment and what you can afford. Good luck.
 


If you have excellent credit, Lightstream loans have a lower rate when you take out at least $10,000 for a 2 to 3 year period and is not recorded as "mortgage." It's basically a personal loan that funds to you for a specific reason. Loans for timeshares, car purchases, home improvement have different rates. I had a good experience with them on a resale. Approval within minutes. I like it because the low rates were only available for a 2 to 3 year loan. It forces me to return the loan faster and, therefore, less interest.
 
DVC isn't going anywhere, but I'm not sure I'd be adding on right now. Not trying to be a debbie downer, but I think the economic run we've been on is coming to an end and I'd be hesitant to load up on any debt for a luxury purchase like a dvc timeshare. Besides, prices might get more attractive...
 
I have 3 contracts and am financing all of them via Monera. I'm Canadian and our currency is discounted at around 65%. To be honest, I'm waiting on the US market to decline and our currency to rise to former rates (85% > greater), and then I will pay off the loans in full. Right now, financing at 10% interest makes more sense to me than potentially losing 35% on a currency exchange.
 


I have 3 contracts and am financing all of them via Monera. I'm Canadian and our currency is discounted at around 65%. To be honest, I'm waiting on the US market to decline and our currency to rise to former rates (85% > greater), and then I will pay off the loans in full. Right now, financing at 10% interest makes more sense to me than potentially losing 35% on a currency exchange.
Keep in mind that the exchange isn't bound to come down. Currency exchange is not the stock market where over the long term it will average out. Nothing says it won't remain at 35% or even go to 50 -60%
 
I have used vacation club loans twice. They were great to deal with. We also paid them both off within 3 months no early payoff fees.
 
DVC isn't going anywhere, but I'm not sure I'd be adding on right now. Not trying to be a debbie downer, but I think the economic run we've been on is coming to an end and I'd be hesitant to load up on any debt for a luxury purchase like a dvc timeshare. Besides, prices might get more attractive...

Best quote I've heard today: "In recent history Economists have successfully predicted 9 out of 3 recessions"

But yeah, don't finance DVC unless this is a small add-on. The math on interest payments hardly ever works out in your favor.
 
I really don't get the "don't finance" philosophy. Anyone who bought into DVC several years ago and held onto their points, whether or not they financed, is looking very smart indeed at this point. Obtaining financing to purchase an appreciating asset that you can use for vacations and easily rent out the points for income as an alternative, and pass on to your children, is a very rational thing to do if you otherwise woule not be able to buy the points.
 
I really don't get the "don't finance" philosophy.

I think the "don't finance" philosophy really means "don't finance at a high interest rate". Financing at a low interest rate is generally better than paying cash. Financing at a high interest rate is very likely to lead you to spend more over the life of the contract than simply booking rooms at cash prices.

Anyone who bought into DVC several years ago and held onto their points, whether or not they financed, is looking very smart indeed at this point. Obtaining financing to purchase an appreciating asset that you can use for vacations and easily rent out the points for income as an alternative, and pass on to your children, is a very rational thing to do if you otherwise woule not be able to buy the points.

DVC isn't really an "appreciating" asset. Yes, in the past 25 years, DVC values have gone up. A good portion of that is strictly inflation. This however won't continue forever. It can't. The very definition of the contracts doesn't allow this to happen. As the contracts come close to expiry, the value will be next to nothing.
 
Financing at a high interest rate is very likely to lead you to spend more over the life of the contract than simply booking rooms at cash prices.

DVC isn't really an "appreciating" asset.

Exactly. Rack room rates with the free-dining etc... deals may come out ahead of: huge down payment, interest payments, and 30 years of Dues.

Price/point values are up now because the economy shot up like a rocket, bonuses were paid, Disney spouses across the country united, and the DVC point supply was NOT there. You read a lot about prices on everything adjusting back down now. Most Americans are at the end of a little windfall. It's been great, hopefully not dead yet.
 
I really don't get the "don't finance" philosophy. Anyone who bought into DVC several years ago and held onto their points, whether or not they financed, is looking very smart indeed at this point. Obtaining financing to purchase an appreciating asset that you can use for vacations and easily rent out the points for income as an alternative, and pass on to your children, is a very rational thing to do if you otherwise woule not be able to buy the points.

Yes, this is true, and if we really know DVC will continue to appreciate so much, than yeah, I would say go ahead and finance, that makes prudent sense. I don't mean don't finance under any circumstances / don't finance at all. In the case of the Canadian vs. American dollar, it makes sense. In the case of paying off in 3 months to 2 years, it can make sense. But if financing is for 10 years at high interest rates, that's another story.

Just like the stock market, "Past performance is no guarantee of future results". Yes, DVC double, triple, or even quadruple from the 1990's, 2000's, and 2010's from about $50 per point to about $100 per point to about $200 per point or greater. I can't see DVC doubling / tripling from here, because that would mean $400 to $600 per points, and with only about 20 years left on some of the most desirable DVC resorts, there's not much time left for it to appreciate before value drop down to near $zeo value due to expiration of the deed.

But, of course, as stated, financing is a very personal decision, and if it makes prudent sense for your family, than by all means, do what is best for your family. It's just money after all, so long as you get the many years of enjoyment and fond family memories out of it. But if it causes financial stress, it's a red flag.

Great3
 
Yes, this is true, and if we really know DVC will continue to appreciate so much, than yeah, I would say go ahead and finance, that makes prudent sense. I don't mean don't finance under any circumstances / don't finance at all. In the case of the Canadian vs. American dollar, it makes sense. In the case of paying off in 3 months to 2 years, it can make sense. But if financing is for 10 years at high interest rates, that's another story.

Just like the stock market, "Past performance is no guarantee of future results". Yes, DVC double, triple, or even quadruple from the 1990's, 2000's, and 2010's from about $50 per point to about $100 per point to about $200 per point or greater. I can't see DVC doubling / tripling from here, because that would mean $400 to $600 per points, and with only about 20 years left on some of the most desirable DVC resorts, there's not much time left for it to appreciate before value drop down to near $zeo value due to expiration of the deed.

But, of course, as stated, financing is a very personal decision, and if it makes prudent sense for your family, than by all means, do what is best for your family. It's just money after all, so long as you get the many years of enjoyment and fond family memories out of it. But if it causes financial stress, it's a red flag.

Great3
Excellent point my friend. Thank you so much for that great example.
 
I’ve done Lightstream and it was easy and great. Paid off after about a year without any fees.
 
Keep in mind that the exchange isn't bound to come down. Currency exchange is not the stock market where over the long term it will average out. Nothing says it won't remain at 35% or even go to 50 -60%

To be honest, I'm hoping the rumored upcoming recession has the same effects the last one did, where currency will be at par or at least a bit better than it is now. It seems to be climbing slowly, so I am holding out hope!
 
For what it's worth I used Monera. It was super easy... I paid it off in less than a year with no penalties. Just made it easier for us to swing buying DVC without having to come up with all the money up front.
 
We used Vacation Club Loans over Lightstream. They do pull your credit but they do not report to the credit bureaus so it tipped the scale for me to use them. no issues at all; they have been great.
 

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