DVC show financing

Assuming your parameters, the interest+dues in the first 5 years is $20,398.64 or $15.75/point per year. Slight cost savings when compared to rental points and you're locking in the purchase price now (historically good).

Interesting take for people that meet the parameters you laid out.
 
Just listened to most of the new one for millennials and they did the same thing. If anyone else has seen it I would really like to discuss their examples. Again I think DVC is overall good but I felt they glazed over important details to make it sound like an amazing steal, rather then a good deal with important caveats.

It’s not even about promoting “no one is turned down” financing (although that’s part of it) Sean and Fiasco were haphazardly throwing around numbers. Fiasco and his justification he spends $140 at the movies so why not spend $200 a month on DVC, please no that’s not normal.

Jamie’s advice to put kids on the deed makes sense to me. Sean’s advice to buy in with friends felt like that deserved more words of caution of the risks.
They kept talking about it like your trip is now “free,” the lodging may be free but the vacation itself still has costs (tickets, flights, Disney food, etc.) I felt they overlooked you still need to plan for a significant vacation budget. They also glazed over maintenance fees, Sean’s maintenance fees at Aulani for 175 points at 7.86 is about $1375, is that correct? Poking around next fall, 6 nights at a value in a standard room before price yielding is $695 total. I just looked it up. Saying he is now spending less then his family did all those years of AS seems overstated.

And Fiasco, he kept saying he was coming to WDW several times a year and dropping thousands and thousands each time. I can’t figure this guy out. I remember Steve very specifically calling him out on a B&W of Epcot Festivals saying something along the lines of, “well to be fair this is your first year of experiencing the festivals.” So has he been going for years and years to WDW multiple times a year or not? Or is this like when he implied he was a DL local when he hadn’t actually been in 5 years?

Is DVC probably going to pay off for these two? Yeah probably, and to be fair I may even consider it at some point. I just feel like there were some fair counterpoints that’s were somewhat glazed over.
Did anyone else have any thoughts?
 
Fiasco and his justification he spends $140 at the movies so why not spend $200 a month on DVC, please no that’s not normal.


And Fiasco, he kept saying he was coming to WDW several times a year and dropping thousands and thousands each time. I can’t figure this guy out.

I've said it before, maybe even in this thread; please don't take financial advice from a guy who calls himself "Fiasco".

This movie example shows just how out of it he really is with his justifications.

Average movie ticket price: $15
Average candy price: $15 (I'll use a big number since his total is so outrageous)
Average soda/water price: $10

That right there is $40. He's still standing there in the theater with $100. What else is he buying? Even if we were to double the fees because he's bringing his significant other, that'd mean he still has $60 leftover. That's a whole lot of M&Ms still left to purchase.
 
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That right there is $40. He's still standing there in the theater with $100. What else is he buying? Even if we were to double the fees because he's bringing his significant other, that'd mean he still has $60 leftover. That's a whole lot of M&Ms still left to purchase.
Perhaps he goes more than once a month?
 


I've said it before, maybe even in this thread; please don't take financial advice from a guy who calls himself "Fiasco".

This movie example shows just how out of it he really is with his justifications.

Average movie ticket price: $15
Average candy price: $15 (I'll use a big number since his total is so outrageous)
Average soda/water price: $10

That right there is $40. He's still standing there in the theater with $100. What else is he buying? Even if we were to double the fees because he's bringing his significant other, that'd mean he still has $60 leftover. That's a whole lot of M&Ms still left to purchase.

I assumed that when he said “a night at the movies” he was including dinner in that amount, or an evening of drinking.

I had to laugh at Sean saying he could barely afford the value resorts. This year alone he’s been on an Alaska cruise, to Hawaii, to London and Paris...

I’ve been going on and off since 2002 and have never attended an Epcot festival, so I can let Fiasco off with that.

This show is to be treated more as an infomercial to be fair. I imagine the cruise show will be the same.
 
No. What are the drawbacks?
Well, I guess it depends on the family. Perhaps the children won't want DVC when they get older (Gasp!).
  • There may be some financial consequences as life goes on.
  • If a child is applying for financial aid for advanced education, DVC will be considered an asset of the child.
  • If a child gets married and subsequently divorced, the DVC will be an issue in the settlement.
  • If a child gets into financial difficulties and needs to file bankruptcy, DVC may need to be sold.
 
Oh lol, all good points, I guess I was so flabbergasted by the suggestion of putting your college buddy on your deed, children made a lot more sense in comparison.
 
I didn’t like Sean encouraging people to take out subprime loans to pay for DVC. Not only is it dangerous, but if you take out credit to buy DVC you need to include the cost of continuing to carry your current debt into what DVC is costing you.

Also, him telling people to rent out the points to pay some of the loan was just flat out wrong. If (points-maintainance fees)<(monthly payments) you are just throwing away money and would be better off saving the money over that period of time and buying later. You will save a lot of money over that period of time.
 
Well, I guess it depends on the family. Perhaps the children won't want DVC when they get older (Gasp!).
  • There may be some financial consequences as life goes on.
  • If a child is applying for financial aid for advanced education, DVC will be considered an asset of the child.
  • If a child gets married and subsequently divorced, the DVC will be an issue in the settlement.
  • If a child gets into financial difficulties and needs to file bankruptcy, DVC may need to be sold.
All excellent points.
This episode was hair raising. I’m still of the mind that unless you pay cash for dvc, you don’t buy. I’ll admit to being fairly financially conservative—never carried a credit card balance, always bought the car outright, paid cash for dvc, rushed to pay the mortgage off.

Vacations are life’s bonus, an extra. All through my youth, I vacationed, but it was always within my means. Once I was working to buy a house, that became the absolute priority and I tightened my belt even further. Buying dvc was something that came much later when there was extra for vacationing.

I think one needs to build wealth before settling into dvc—a house, no credit card debt, paid off student loans. Probably not a popular opinion in this age of instant gratification, but I think it’s a solid plan for financial health.
 
All excellent points.
This episode was hair raising. I’m still of the mind that unless you pay cash for dvc, you don’t buy. I’ll admit to being fairly financially conservative—never carried a credit card balance, always bought the car outright, paid cash for dvc, rushed to pay the mortgage off.

Vacations are life’s bonus, an extra. All through my youth, I vacationed, but it was always within my means. Once I was working to buy a house, that became the absolute priority and I tightened my belt even further. Buying dvc was something that came much later when there was extra for vacationing.

I think one needs to build wealth before settling into dvc—a house, no credit card debt, paid off student loans. Probably not a popular opinion in this age of instant gratification, but I think it’s a solid plan for financial health.
Maybe not popular, but I greatly respect it.
 
Maybe not popular, but I greatly respect it.
I will also add the joy I felt when I first stayed at Port Orleans French Quarter for a whole week! I’d been working full time for two years and could finally afford a whole week! The sweetness of that moment still resonates 25 years later.

Waiting and working for life’s special things makes them even better. Wait on dvc and pay cash.
 
All excellent points.
This episode was hair raising. I’m still of the mind that unless you pay cash for dvc, you don’t buy. I’ll admit to being fairly financially conservative—never carried a credit card balance, always bought the car outright, paid cash for dvc, rushed to pay the mortgage off.

Vacations are life’s bonus, an extra. All through my youth, I vacationed, but it was always within my means. Once I was working to buy a house, that became the absolute priority and I tightened my belt even further. Buying dvc was something that came much later when there was extra for vacationing.

I think one needs to build wealth before settling into dvc—a house, no credit card debt, paid off student loans. Probably not a popular opinion in this age of instant gratification, but I think it’s a solid plan for financial health.
I agree in general, but would like to add one caveat because it actually comes into play in this type of scenario. I may have already mentioned this earlier in the thread when the original podcast was released.

Sometimes it makes sense to use debt to purchase an asset. This is only the case if the financial rewards of the asset (positive cash flow, asset appreciation, or in DVC's case savings over alternatives) is greater than the interest on the loan. Then, even if the financial reward is greater than the interest, the difference has to be large enough to justify the added risk of leverage.

Here is my example. Instead of pulling cash out of my investments (which long term should show returns of 6-8%) to pay for DVC, I refinanced my mortgage at 2.5%. I have a well funded emergency fund & enough investments to cover the loss in the worst case scenario. So the 6-8% returns > 2.5% interest, and the risk is fairly minimal based on the liquid assets I have available. Had my investments had an expected return of 3%, I would just pay in cash because even though 3% > 2.5%, the 0.5% bonus is not worth the added risk in my opinion.

The problem with these episodes is that traditional DVC financing is usually around 10%+, which means the expected rate of return has to be substantially higher than that for financing to make sense. Unfortunately, there is no investment known that can provide returns of those numbers without a substantial amount of speculative risk.
 
Well, I guess it depends on the family. Perhaps the children won't want DVC when they get older (Gasp!).
  • There may be some financial consequences as life goes on.
  • If a child is applying for financial aid for advanced education, DVC will be considered an asset of the child.
  • If a child gets married and subsequently divorced, the DVC will be an issue in the settlement.
  • If a child gets into financial difficulties and needs to file bankruptcy, DVC may need to be sold.

Also, if your name is on the deed, you can make unilateral decisions re DVC. For example, your son decides to throw down 300 points on hotel room space--you can't stop the transaction nor with DVC give you advance notice. You'll only find out when you find out.
 

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