Financing your next DVC resale purchase may not be on your radar. But it may be a better financial decision than paying cash up front. We will show you the best reasons to finance your next DVC resale purchase below.
Having cash in hand and sending it to the escrow company at closing is great if you can afford it. But the fact is that many people scrimp and save for several months or years to pay for their DVC points package. Yes, you are saving a lot of money by buying resale, but saving the full cash price takes time. If it is difficult to save, it’s not a good idea to pay for the points in full.
Taking on a loan allows you to spread out some of that cost, so you aren’t parting with all of your money at once. You can use a hefty chunk or as little as 20% of the purchase price as a down payment. Whichever, you decide wiping out your savings is ill-advised. A much wiser decision is to leave an emergency fund in your savings account for those unexpected costs that may arise.
Furthermore, you could use some of that pay-in-full cash to go on vacation to enjoy what you just purchased. This technique is called “balancing the fun with the funds.” Why pay $10,000 today for five years of future accommodations when you can pay $2,000 each year (plus a small amount of interest) for five years and enjoy the same accommodations for the same amount of time.
Financing also allows you to get the vacation package you otherwise cannot afford upfront. This way you have your choice of premium points and the best home resort suited for your family’s lifestyle. Thus, you avoid settling for something not perfect and trying to upgrade later on.
However, this doesn’t mean you should take on a loan bigger than you can afford. Your resale broker here at www.dvcsales.com will provide you with a few options and price ranges on available vacation packages. Use this easy payment calculator created by Vacation Club Loans here https://www.vacationclubloans.com/rates-calculator/ to see prices vs. down payment which results in different monthly payment amounts. You should pick the one that you are most comfortable without stretching your budget.
Disney Vacation Club Is Not Investment
Although this factual statement is true, investing in your family’s happiness is priceless. If you plan on often vacationing with your family, purchasing a DVC is a great choice. Furthermore, they are known for their superior “magical” accommodations over hotels. Therefore bringing many happy memories while avoiding discomforts of sharing small spaces with little amenities.
Financing a DVC purchase can also help increase your credit score. By using a lender that reports to credit bureaus, you will benefit from making those payments on time.