Financing Our Disney Vacation Club Membership Was The Best Decision
Let’s be honest. There are a lot of differing opinions out there when it comes to buying a Disney Vacation Club contract. For some members, it’s cash or nothing. And that’s an understandable point of view. Others like to finance. We are a finance company, so it’s no surprise we think financing is a great option. But right now, I want to talk not as an employee of Monera Financial, but as a former borrower of multiple DVC loans with Monera Financial and Disney directly. I say former because as of August, all four of our contracts are paid off!
When we first decided to purchase DVC in 2018, we weren’t ready to shell out thousands of dollars from our savings accounts. We wanted that money for emergencies, possible home improvement projects, or anything that may come up. Had we decided to wait until we had the spare cash on hand, it would have taken at least three years.
Instead of waiting to save up, we borrowed. We purchased our first DVC contract financing with Monera Financial in January 2018, a 160 point Animal Kingdom contract at $97 a point. We were comfortable making the payments, comfortable enough to finance two more contracts down the road and paid cash for a fourth. Eventually, we paid each of our contracts off early, making our final payments on all three this year.
Since then, a few things have happened that make me thankful to have financed to purchase our contracts as soon as possible. First, the average prices of resale contracts has gone up. Animal Kingdom contracts are now going for between $130-$140 per point. I looked up the total interest on our Animal Kingdom contract through Monera. Had we paid our loan to term, we would have paid a total of $3,640.64 in interest. It was a 4 year loan at 12.9%. We paid it off 8 months early, so the total interest paid is less overall. For simplicity, let’s go with the $3,640.64. Since we just paid this loan off in August, maybe by now we would have finally saved up the money to pay cash for a contract. Taking the lower end of what Animal Kingdom contracts are going for currently at $130 a point for 160 points ($20,800) and subtracting what we paid at $97 a point ($15,520), we are looking at a difference of $5,280 more for an Animal Kingdom contract today vs when we financed in 2018.
I tell you this not in an effort to lead you into bad financial decisions, but to show you there are times when financing can makes sense. Everyone’s situation is different. Each person has to do their homework, decide their own priorities, and figure out what’s best for them.
It would not have been worth it financially for us to wait until we had the cash. Waiting would have resulted in spending more for a contract than the interest we paid. For our direct contract, financing allowed us to get the coveted blue card at the 25 point minimum. Had we waited until today, that minimum is now 150 points.
The most important thing we gained by financing was time. Because we financed, we gained three extra years of membership, three extra years of memories and fun. We have been able to share Disney with loved ones, made new friendships with fellow members, we I have stayed at every DVC resort on Disney World property, and gotten to experience Aulani in Hawaii. I couldn’t imagine a life where I didn’t have those last three years of amazing trips with my husband as members. For us, financing our Disney Vacation Club membership was the best decision.
Monera Financial is here to make your dream of owning a piece of the magic possible. If you would like to speak to a team member to further discuss financing, don’t hesitate to contact us at 1-855-DVC-FUND (382-3863) or email us at firstname.lastname@example.org. We look forward to hearing from you!