Does 14% financing for an add on at WLV seem high?

[Eeyore#1]

I am considering a add on at WLV for 60 points. I already own at BWV. My guide said the current rate for financing is 14%. I thought I read that people have added on for allot less. Just wanted to know b4 I add on.

 

[mickeyluvr]

We just took out a home equity loan at below prime. I guess it depends on your individual credit status, but with the prime rate as low as it is, 14% seems WAY TOO HIGH!! I'd check out some other sources before agreeing to this.

 

[DVCDAVE]

WOW !!! A LITTLE high is an understatement. The intoductory rate for a new purchase is 10.9%. That offer is good for 30 days after your CM asks you to buy. There are no acceptions to the 30 days. Further that interest rate is only for direct debit, otherwise it is 11.9 %.

You may want to consider other means, like a home equity loan, or even a margin loan on your securities account, which would be about 9 % or even a loan on your 401K. If you do the 401K loan, the neat little factor is the rate of interest is acctually being paid to you, back in to the 401K plan.

 

[doubletrouble_vb]

I think the moral of the story is to finance elsewhere for an add-on. There is a company called tammac that does timeshare financing for 13.5 so I'm a little surprised Disney is at 14...

You might want to ask your guide to double check that figure.

And then since you are only talking $4,500 I'd look into other sources of financing. ...I'm not so sure about the 401K option because you can't just look at the 8% (or so) interest rate you are paying yourself...you also need to look at the interest you would have earned had you left it alone as well as what are the chances you will quit your job & have to pay the loan back.

Home equity is an idea...and depending on your credit you might just want to check out your bank's rates for unsecured loans.

You know what...I just remembered...Disney has a sliding scale based on how much you are paying in cash and how many years you plan to use to pay it back...so you really do want to ask your guide to double check his or her quote.

 

[chris1gill]

Oh boy!! 14% is OUTRAGEOUS!!! I would never agree to that!! That's what you pay on some credit cards, and those aren't secured loans for goodness sake!!! I'm just really shocked at that percentage rate.....

 

[CorbsVWL]

Consider Capital One....
You can get a credit card with 0% financing for 6 months and then a fixed rate of 9.9%....
Better than the Disney rate for sure

Good Luck!

 

[Disney Adventurer]

14% is ludicrous, especially as interest rates have fallen over the last six months. I agree with CorbsVWL, if you don't have home equity or any other option, there are many good credit cards out there with no annual fee and rates much lower than 14%. Shop around. Another option might be to get a loan against an automobile if you have one that's paid off.

Good Luck

 

[Disnydad]

We financed our recent 70 point add on with our Southwest Visa Card and got 5 credits towards a round trip ticket. (need 16) Then we rolled it over to my United States Power Squadron Visa card for 3.9%. It will be paid off in two payments.

 

[deerh]

We are considering an add on at HHI, and this is the interest rate as
of last week:

20% down- 3 years 12%
-5 years 12.5%
-7 years 13%
-10 years 13.5%

50% down 1 year is 9.25%
It is 1% more if only putting 10% down (not sure on this one, but positive
on the ones above).

So, we are considering 20% down and 5 or 7 years, so that is STILL NOT
a great rate, but better than 14%.
Hope this helps......
deerh

 

[deerh]

You also don't want to forget the tax advantages of financing thru
Disney. Although you can put it on a low interest cc, you cannot
claim that interest on your taxes. ME, with Congress in the Democractic
mode they are in, I want all the tax advantages I can get!
deerh

 

[Rob_b]

The rate in 1999 was 10%. We financed for 3 years. 14% is too much. Look else where to financed. We just bought a home and we financed at 6.75. Rate should be down.