Questions about purchasing DVC

Leleluvsdis · Apr 27, 2015

My husband and I have been talking about buying into DVC within the next couple of years, but we want to make sure it is the right decision for us. My parents own two RCI timeshares and we love the option of having it to use, but it isn't the easiest thing to transfer into DVC because of the lack of availability. The questions we currently have, I feel like, are simple, but we are unable to find the answer, and they are slightly opinionated in origin. I greatly appreciate any feedback anyone is willing and able to provide to our questions

1. What happens when contract is up?

2. How does re-sell work?

a. Do you have a new contract or do you carry out the remainder of the contract?

b. What are finance options with re-sell?

3. What are advantages/disadvantages of re-sell vs. buying new?

4. Why did you choose the type of contract you did and why?

3pletprincesses · Apr 27, 2015

1.the contract no longer belong to you, it belongs to Disney
2a. you carry out the remainder of the contract no matter if you buy that contract direct from disney or resale the deed will be dated the same for the same DVC
2b. I know you can finance with your home but unsure how it's done in the US but you can also get a loan with companies like Monera
3. advantages, it's cheaper by a fair bit
cons: it takes longer to get a contract as Disney can execute the ROFR and they are having fun making us all way to finally get our member numbers. It take take easily if all goes well 60 days vs direct is done in a couple of days at most.
Also by buying resale you loose some "perks" like you can use your points for cruises, adventure trips or to book other hotels like say port orleans riverside or what ever
4. we bought resale because of the price. we bought enough points to go roughly every second year and if we need more we'll buy more later. we bought at BLT but were really looking at AKL but couldn't pass a very good deal.

I'm sure someone else can answer these questions and correct me if I'm wrong as I'm still new to dvc

LisaS · Apr 27, 2015

I can answer some of your questions.

1. What happens when contract is up?

The contract goes back to Disney. You don't get any more points nor do you owe any more dues.

2. How does re-sell work?

a. Do you have a new contract or do you carry out the remainder of the contract?

No matter whether you purchase directly from Disney or buy a contract on the resale market, the end date of the contract is the same. For example, if you purchased BWV from either Disney or resale, the end date would be Jan 31, 2042.

3. What are advantages/disadvantages of re-sell vs. buying new?

If you purchase directly from Disney you can use your points for Disney cruises and some other options that are not available to those who purchased resale after March 2011. Many of these options are not a good use of your points (too many points and less flexibility compared to paying cash). RCI trades are available to everyone no matter how you acquired your points.

Except for the newest resorts, buying on the resale market will cost you significantly less money. The process will take longer (a few months rather than a few days) but you can save thousands of dollars.

Leleluvsdis · Apr 27, 2015

3pletprincesses said:
1.the contract no longer belong to you, it belongs to Disney
2a. you carry out the remainder of the contract no matter if you buy that contract direct from disney or resale the deed will be dated the same for the same DVC
2b. I know you can finance with your home but unsure how it's done in the US but you can also get a loan with companies like Monera
3. advantages, it's cheaper by a fair bit
cons: it takes longer to get a contract as Disney can execute the ROFR and they are having fun making us all way to finally get our member numbers. It take take easily if all goes well 60 days vs direct is done in a couple of days at most.
Also by buying resale you loose some "perks" like you can use your points for cruises, adventure trips or to book other hotels like say port orleans riverside or what ever
4. we bought resale because of the price. we bought enough points to go roughly every second year and if we need more we'll buy more later. we bought at BLT but were really looking at AKL but couldn't pass a very good deal.

I'm sure someone else can answer these questions and correct me if I'm wrong as I'm still new to dvc

Thank you! This is very helpful!!

LisaS said:
I can answer some of your questions.

The contract goes back to Disney. You don't get any more points nor do you owe any more dues.

No matter whether you purchase directly from Disney or buy a contract on the resale market, the end date of the contract is the same. For example, if you purchased BWV from either Disney or resale, the end date would be Jan 31, 2042.

This is what I'm most confused about. Does this mean you won't be able to use the points after this date and will have to repurchase?

If you purchase directly from Disney you can use your points for Disney cruises and some other options that are not available to those who purchased resale after March 2011. Many of these options are not a good use of your points (too many points and less flexibility compared to paying cash). RCI trades are available to everyone no matter how you acquired your points.

Except for the newest resorts, buying on the resale market will cost you significantly less money. The process will take longer (a few months rather than a few days) but you can save thousands of dollars.

The contract goes back to Disney. You don't get any more points nor do you owe any more dues.

"No matter whether you purchase directly from Disney or buy a contract on the resale market, the end date of the contract is the same. For example, if you purchased BWV from either Disney or resale, the end date would be Jan 31, 2042."

This is what I'm most confused about. Does this mean you won't be able to use the points after this date and will have to repurchase?
We aren't really concerned about how long it would take because we can't go on a whim with a 12 hour drive to get there

disneynutz · Apr 27, 2015

Leleluvsdis said:
Thank you! This is very helpful!!
The contract goes back to Disney. You don't get any more points nor do you owe any more dues.

"No matter whether you purchase directly from Disney or buy a contract on the resale market, the end date of the contract is the same. For example, if you purchased BWV from either Disney or resale, the end date would be Jan 31, 2042."
This is what I'm most confused about. Does this mean you won't be able to use the points after this date and will have to repurchase?
We aren't really concerned about how long it would take because we can't go on a whim with a 12 hour drive to get there

All contracts have an end date. After that date you own nothing, it's almost like a deeded lease with a termination date.

:earsboy:

Bill

LisaS · Apr 27, 2015

Leleluvsdis said:
This is what I'm most confused about. Does this mean you won't be able to use the points after this date and will have to repurchase?

Yes. As an example, AKV contracts end on Jan 31, 2057. The last night I can stay in a DVC room booked with AKV points is the night of Jan 31, 2057. After that, AKV ceases to be part of DVC and any AKV points I have left in my account are useless.

suebeelin · Apr 27, 2015

The end dates, depending on the property, are 2042, 2054, 2057, 2060 and 2064. There are 13 (?) properties and various end dates.

For example, I own at two properties. My boardwalk property expires 2042. After 2042, I no longer own there. I pay yearly maintenance and have rights to stay there until 2042. I have 27 more years of enjoyment there until the contract ends.

Similarly, I own at bay lake. That contract ends in 2060. I have 45 more years to stay there. Once the contract ends, I no longer "own" there.

No one knows whether Disney will offer people the opportunity to buy more years when the contract end date approaches.

Hope this helps!

supersnoop · Apr 27, 2015

To be clear on "end dates," The Walt Disney Company (WDC) owns the land and leased it to DVD (Disney Vacation Development), who then built the property and sells the buildings as timeshares. After the 50 year lease is up, WDC gets the land back and takes ownership of any improvements on the property. As owners, we hold a deeded interest in the improvements, but not the land.

LisaS · Apr 28, 2015

suebeelin said:
The end dates, depending on the property, are 2042, 2054, 2057, 2060 and 2064. There are 13 (?) properties and various end dates.

And so that the OP is aware, in all cases the expiration date is January 31 of the years posted above so your ownership in the year of expiration is for only one month. When calculating the years left on a contract, I always subtract one from the expiration year since that is the last full year of ownership.

It will be interesting to see if Disney charges us any dues in the final year. Will they charge us one month's worth of dues that year or will that final month of ownership be dues free? I suspect that a lot of people will opt out of paying that final month of dues if they do charge us.

suebeelin · Apr 28, 2015

LisaS said:
And so that the OP is aware, in all cases the expiration date is January 31 of the years posted above so your ownership in the year of expiration is for only one month. When calculating the years left on a contract, I always subtract one from the expiration year since that is the last full year of ownership.

It will be interesting to see if Disney charges us any dues in the final year. Will they charge us one month's worth of dues that year or will that final month of ownership be dues free? I suspect that a lot of people will opt out of paying that final month of dues if they do charge us.

Yes, my msg was a little ambiguous. And I agree about the last years dues. That should be interesting, particularly bc I have a feb use year and will neither receive points nor use of the property post january 31st....

Leleluvsdis · Apr 28, 2015

How do you find out the end date? For example, I found on WDWINFO the expiration date for WDW properties, but nothing for HHI and Vero.

LisaS · Apr 28, 2015

Leleluvsdis said:
How do you find out the end date? For example, I found on WDWINFO the expiration date for WDW properties, but nothing for HHI and Vero.

At the top of this forum is a "sticky" thread titled "DVC Resource Center". Open that thread and in the 6th post you will find a list of all of the resorts along with their expiration dates.

ETA: You will also find a chart of the dues (per point) at each resort in one of the other posts in that thread. Dues vary from resort to resort and go up every year. Over the lifetime of your contract your dues will be the most expensive part of your ownership.

Deb & Bill · Apr 28, 2015

Leleluvsdis said:
How do you find out the end date? For example, I found on WDWINFO the expiration date for WDW properties, but nothing for HHI and Vero.

If you are considering HHI and VB because of their cost, be aware that the annual member fees are the highest there. And if you want to use your points specifically at WDW, you really want to own a WDW resort. It is getting harder to book a non-home resort at seven months out.

Also, if you are considering trading with RCI, there are lot cheaper timeshares to use to trade out.

Leleluvsdis · Apr 29, 2015

Thanks everyone! We were considering HHI because of the proximity to home, and we enjoy a beach vacation every year, but did not realize their dues are more expensive.

I apologize for the confusion I created regarding RCI. My parents currently own two RCI timeshares, so we have been trading them into DVC when we visit; however, the availability is very limited.

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