Buyers can now opt for a longer payoff period for a direct purchase of Disney Vacation Club points, lowering the monthly payment while increasing the total interest.
Disney Vacation Club has revealed a new 15-year finance option for both first-time buyers and current owners adding-on. Interest rates for new owners start at 12.5% for either a 10 or 15 year term. Those rates are reduced to 12% by opting into direct debit of monthly payments.
Existing DVC owners start slightly lower, with a base interest rate of 11.5% or 11% with monthly debits.
The longer payment period does help reduce the monthly expense for buying into Disney's timeshare program. Taking into account current promotional discounts. a first-time buyer of 150 points at Disney's Polynesian Villas & Bungalows will pay $445.48 per month over 10 years. The monthly obligation is reduced to $372.65 if spread over 15 years. However, the longer payoff will add more than $13,600 of additional interest over the term of the loan.
A current owner will pay $420.28 per month over 10 years or $346.78 over 15 years for the same 150 points. The longer payment term adds around $12,000 of additional interest.
Both of these illustrations use the lower direct debit rates. A 10% down payment of around $3400 is required. Interest rates may be higher for some individuals. These figures do not include annual dues.
The 15-year term is available at all properties currently being sold. Ownership at most Disney Vacation Club resorts extends for several decades, with Polynesian points expiring on January 31, 2066 and The Cabins at Disney's Fort Wilderness Resort as far out as January 2075.
Buyers may wish to consider a Disney Vacation Club resale purchase. DVCNews.com sponsor The Timeshare Store offers dozens of lower-priced ownership options across all DVC resorts, while Vacation Club Loans can finance the purchase at rates comparable to Disney.
