Pay cash or finance

[Tech4444]

I don't need to be in your situation to know financing a luxury timeshare is a poor decision. I don't have anything confused.


You stated:

Okay nothing is risk free but DVC is inherently riskier if financing (which this whole thread is about)

Then you say:

Except that is not the alternative. As I stated there are tons of options that are amazing vacation options regardless of your interests, location, sex, religion, or anything else.

So many people seemingly want to say their either finance DVC or they sit at home on their couch. Its not an accurate statement. There are places in the world where they only have possibly once choice for doing something fun or a vacation but in the US that is far from tr

 

[Tech4444]

I financed DVC because I really enjoy going to Disney and staying in deluxe resorts for cheaper. If I did not like Disney and wanted to instead vacation at another location in the US then I wouldn't have purchased DVC. Seems pretty simple.

 

[J-Dog]

Except there are tons of great vacation locations for less money while you save a touch more to buy DVC. Also never a better time than now to wait it out on the resale side as we see no ROFR and reduction in prices it seems.

I don't need to be in your situation to know financing a luxury timeshare is a poor decision. I don't have anything confused.


You stated:

Okay nothing is risk free but DVC is inherently riskier if financing (which this whole thread is about)

Then you say:

Except that is not the alternative. As I stated there are tons of options that are amazing vacation options regardless of your interests, location, sex, religion, or anything else.

So many people seemingly want to say their either finance DVC or they sit at home on their couch. Its not an accurate statement. There are places in the world where they only have possibly once choice for doing something fun or a vacation but in the US that is far from true.

My comment about you being confused is because you suggested that I wait it out to buy. But I never said that I was in the market for buying points right now.

Per Sandi, I'm not arguing anything else. I was offering an opinion on how I successfully financed DVC, nothing more.

 

[sethschroeder]

If I randomly bet on Red and win money it doesn't make it a sound strategy on making money. Yes 50% of the time it works out but 50% of the time it doesn't as well.

I can't remember the data but its not an insignificant number of people get foreclosed on by Disney with direct purchases. Its highly likely going to be less people on resale but you are not going to find a solid data point either like foreclosures by Disney in the county records. Its so many foreclosures that Disney doesn't even have to ROFR new resorts much for a while since they claw back a good number of points via foreclosure.

Thats the thing with these threads you have people saying "I did it" (people hitting on red) but plenty of people also came out on the wrong side of things and simply don't go to DVC forums anymore.

Finally if finance you are losing a portion of the savings if you didn't have to finance and depending on how higher your interest rate is and how long you take to pay it off you might find altering your vacation habit for a single trip could see substantial reduction in costs and risk.

Oh and none of this includes savings you might find right now by waiting out the current market that has pretty much no ROFR and prices sliding.

 

[sethschroeder]

I financed DVC because I really enjoy going to Disney and staying in deluxe resorts for cheaper. If I did not like Disney and wanted to instead vacation at another location in the US then I wouldn't have purchased DVC. Seems pretty simple.

I like lots of vacation ideas but I don't put those on my credit card and finance them either. Lots of ways to do Disney cheaper as well without taking out a 5 figure loan.

Seems pretty simple that at a certain point I would say I can't really afford this yet.

Thing is the goal of the finance companies is to make you think you can easily afford it regardless of your actual situation.

 

[ark101]

I get your point of making sure DVC is affordable but I also think you need to accept that some people may want to finance and it is ok for THEM to do so. 'Being able to afford something' is not the same as 'not having to finance' in my opinion.

 

[Jack Kerouac]

What's the difference between founding a bank and robbing a bank? Nothing. Either way, someone is getting robbed. That's a paraphrase of a quote by Slavoj Zizek.

Ideally, money decisions would be made rationally. Working in finance, I've found that many people, even those of decent means, can't help themselves from making decisions that are less than ideal financially. Money and how we use it is almost never entirely rational. Even my own. Money and our decisions with it are probably more psychological (how we were raised, how we saw those around us use it, etc.) than we realize. I know people who are entirely okay with debt and see it almost as a tool (both rich and poor). I also know people who would never go into debt for something like DVC (both rich and poor). And a lot of what separates them is their personal experiences. Read "The Psychology of Money" by Morgan House and we will all probably realize that no matter how good we believe our argument around DVC and financing versus paying cash, won't convert someone with a different perspective on the subject.

 

[Sandisw]

I like lots of vacation ideas but I don't put those on my credit card and finance them either. Lots of ways to do Disney cheaper as well without taking out a 5 figure loan.

Seems pretty simple that at a certain point I would say I can't really afford this yet.

Thing is the goal of the finance companies is to make you think you can easily afford it regardless of your actual situation.

Except not everyone has the same financial goals and the point is that we don’t have to, no matter the circumstance.

Whether people finance or not, use CC, HELOC, etc, it still remains a personal choice we all get to make. And it’s not a wrong one just because it is for someone else.

Some people’s goal is to accumulate as much wealth as possible within their own circumstances but some people put a higher value on using the money.l.and guess what, that is okay.

So, to sum up the thread because it’s still a back and forth, whether one pays cash or finances is up each person based on their own needs, desires, and risk tolerance.