Using Financing - Tammac Financial??

[HGVCnewbie]

http://www.tammacfinancial.com/resale.htm

I am looking at bidding a timeshare on ebay and it is upwards of $10,500.

I have the money saved up - and I know "cash is king". I know that paying ZERO interest is better than ANY interest.

So my question is NOT if it is a good idea to finance a timeshare.

I was thinking though it may be better to not tie up so much cash right away and pay it off over 6 months with my existing cash combined with money I will earn the next 6 months. Just so I am not depleting my savings all at once.

Has anyone used this Tammac Financial? Good company or bad one? Easy to work with or a pain in the rear?

 

[middleoforchid]

Hi,if I'm faced w/the same scenario,I would go to the bank where I have the cash and use the $10000 as a collateral for a line of credit loan at Prime interest rate.Since it's an open loan you can pay in any amt anytime you want plus you still have the $10000 collateral in a term deposit making interest.But you have to be deligent to pay off the loan asap because unlike mortgages, personal loan's interest rates are usually calculated daily.JMHO and wishing you have lots of memorable vacations from your purchase............. Angela

 

[Bill4728]

Most Tuggers say if you want to finance, for any reason, that the best way to do that is with a home equity line of credit .

 

[krissydee]

If you're certain you have the cash to pay it off within 6 months - 1 year why not just open a credit card with a 0% interest rate for that amount of time? That way you're not depleting your cash supply all at once, but still paying 0% interest.

 

[HGVCnewbie]

Thanks for the great ideas everyone. I will look into those!

I figured this company would, at the very least, be an option. Their rates aren't bad at all for a timeshare (but I like the 0% CC option better!!!).

If anyone else knows about the reputation of this company (just in case), please post.

Thanks again everyone for the input.

 

[Phill12]

DELETED! By PHIL

 

[HGVCnewbie]

Even though we did finance our timeshare,we paid it off in two years and last month was last payment I agree not to finance.

If you have to finance to buy a timeshare then maybe you shouldn't buy one.

I will say like in our case we knew we could drag payments out for two years but could always pay it off anytime if needed.

The credit card no interest not a bad idea as long as you know you will have it paid off before the year is up.

Problem with this is most people will not just use the card one time and cut it up. They will find other uses and next thing you know your deep in debt.

Best rule is pay cash and if your worried about your savings then maybe look for better deal down the road .

I appreciate everyone's input. As I said in my original question, I was not asking for advice on whether I should finance a timeshare or not. Thank you for the concern though.

I was wanting to find out any info on Tammac Financial and if they are a good company/bad company, etc.

Does anyone here know any details about Tammac and if they are a reputable company to work with??

 

[Dave M]

Tammac Financial is a reputable company and has been around for a number of years. I did an extensive interview with the owner about six years ago for an article I wrote for Timesharing Today. The problem is that their rates are high (starting at 10.99%) and the interest doesn't meet the IRS rules for tax deductibility.

Thus, you should finance with them rather than using your savings only if you expect to earn at an after-tax rate greater than that 10.99% on your savings that you could have used for the timeshare purchase.

You can get a lower rate (likely 7.99%) from First Again, the only other lender I know of that makes timeshare loans. Again, the interest isn't deductible, so you'll need to earn at an after-tax rate of more than that on your savings to come out even.

For example, if you are in the 30% tax bracket, you would need to earn at an 11.4% rate on your savings to offset the non-deductible 7.99% interest expense.

A better deal, if your circumstances permit, is to get a home equity loan. The rate should be lower and the interest in almost all cases will be tax deductible.

 

[richardm]

Dave's info is fantastic! The only thing I wanted to add is that these finance sources are also available to current owners trying to sell who are upside down.. A home equity line of credit, or a personal loan via sources such as Tammac or FirstAgain can give a seller the opportunity to free themselves from the mortage attached to the timeshare..

Currently, the only developer loan I'm aware of that can be transferred is the Trendwest program.. Someone let me know if I'm missing any others!

 

[HGVCnewbie]

Tammac Financial is a reputable company and has been around for a number of years. I did an extensive interview with the owner about six years ago for an article I wrote for Timesharing Today. The problem is that their rates are high (starting at 10.99%) and the interest doesn't meet the IRS rules for tax deductibility.

Thus, you should finance with them rather than using your savings only if you expect to earn at an after-tax rate greater than that 10.99% on your savings that you could have used for the timeshare purchase.

You can get a lower rate (likely 7.99%) from First Again, the only other lender I know of that makes timeshare loans. Again, the interest isn't deductible, so you'll need to earn at an after-tax rate of more than that on your savings to come out even.

For example, if you are in the 30% tax bracket, you would need to earn at an 11.4% rate on your savings to offset the non-deductible 7.99% interest expense.

A better deal, if your circumstances permit, is to get a home equity loan. The rate should be lower and the interest in almost all cases will be tax deductible.

Thank you for your input Dave.

Glad to hear Tammac has good reviews. I will also check out FirstAgain.com.