DVC Financing: How Loan Terms and Down Payments Affect Your Total Cost

A Disney Vacation Club contract is a considerable financial investment. One way to make a contract more affordable is to finance your purchase. With DVC financing, you can break down the cost into more manageable monthly payments. The amount you pay monthly is influenced not only by the cost of the contract but also factors like the down payment amount and loan length. However, the down payment amount and financing terms can change the total amount paid over time.  

Let’s take a look at how the down payment and DVC financing terms can change your monthly payment and the total amount paid for a DVC contract.

What Is the Purchase Cost of a DVC Contract?

Before jumping into financing and monthly payments, let’s review what makes up the purchase cost of a DVC contract. The cost is the price of the contract plus any applicable fees. These fees can include:

• Annual dues: These are the annual fees DVC Members pay for the maintenance and taxes related to their home resort.  
• Closing costs
• Contract administration fee: Disney Vacation Club Management, LLC charges a $500 contract administration fee for all resale contracts at closing.

Let’s say you’re interested in a 200-point Grand Floridian contract that is priced at $165 per point for a total of $33,000. The estimated total cost of purchase (including the estimated 2027 annual dues, closing costs, and the Disney Contract Administration Fee) is $35,802. 

Disney’s Grand Floridian Resort & Spa

How Can Down Payment and DVC Financing Terms Impact Monthly Payments?

If you want to keep your monthly payment lower, you could put more money down and/or extend the financing term. By putting more money down, you decrease the loan amount, and by extending the financing term, you spread out your payments over more time. Both of these changes reduce your monthly payment.

Referring to the same 200-point Grand Floridian contract, a down payment of $1,650 (5% of the contract price) would mean a loan amount of $31,350. For an 8-year financing term, the monthly payment would be $597.59 with the no credit check financing option.

The table below shows that if you were to increase the down payment from $1,650 to $4,950, the monthly payments decrease to $485.68. If you increase the financing term from 8 years to 12 years, the monthly payments decrease to $530.55.

The Tradeoff Between Lower Monthly Payments and Total Amount Paid Over Time

While reducing the monthly payment can certainly make a DVC contract more accessible, there is a tradeoff between a longer financing term and a higher total cost. With a longer financing term, you ultimately pay more interest over time, which increases the total amount paid for your DVC contract.    

To illustrate, let’s compare 8-year and 12-year financing terms and the resulting total amounts paid. With the no credit check financing option, the interest rate is 16.9% for an 8-year financing term, whereas the interest rate is 17.9% for a 12-year financing term.

Over time, these differences matter. Increasing the financing term to 12 years may lead to a lower monthly payment, but due to the interest paid over those 4 extra years, you end up paying $19,032.55 more for your DVC contract.

If you’re curious about financing options for your DVC contract, DVC Resale Market recommends Monera Financial, which has the lowest rates and most flexible options in the industry. Get a free quote with their instant quote tool.

Access all available Disney Vacation Club resale listings, or learn more about buying and selling with DVC Resale Market.

If you’d like to make an offer or request a free consultation about buying or adding to your DVC contract, the DVC Resale Market team is here to help!