Discount for No Points until 2017

[bwbuddy5]

I've noticed occasionally a resale will pop up for which no points are available until 2017. As a general rule, what per point discount would you ask from avg resale in that situation? Would you ask for a steeper discount for one resort vs another?

 

[pangyal]

I would value the points missing at $11 per point or higher, which would be the minimum amount you'd get for them if you rented them through a broker. However, if they are not asking for the MFs for the zero year, I would knock $5-6 off that.

 

[supersnoop]

I've noticed occasionally a resale will pop up for which no points are available until 2017. As a general rule, what per point discount would you ask from avg resale in that situation? Would you ask for a steeper discount for one resort vs another?

In my experience, "stripped" contracts sell for way to much, and "loaded" contracts are a much better deal. While I agree that the points should be valued at $11-$14 per point, the contracts on the market tend to value the missing points only at the cost of maintenance; $5-$7 each. Since maintenance fees have already been paid on the extra points in "loaded" contracts, those are worth a lot more. But you don't see $25/point swings in asking prices between loaded and stripped contracts. I don't know if there's every a good enough deal on a stripped contract to make it worth purchasing.

 

[Popouri DVC]

I don't know snoop,

I bought two stripped VGF contracts because they were small: 50 points each and they matched my exact use-year. Since I bought my first VGF direct from Disney last October, I didn't think that $150 pp wasn't worth it.

Of course I am new, and may be in the minority, but we are stoked that we were able to increase our VGF stays.

 

[DVC Mike]

When there are more buyers than sellers, there doesn't seem to be as great a price differential between the different types of contracts listed below.

• Fully loaded: All prior UY points banked, all current UY points available, none borrowed from next UY
• Loaded: All current UY points available, none borrowed from next UY
• Stripped: No current UY points available, some points coming from next UY
• Fully Stripped: No current UY points available, and no points coming in the next UY

When there are more sellers than buyers, then you'll see sales where that is taken into account more aggressively in the price.

 

[Dean]

I've noticed occasionally a resale will pop up for which no points are available until 2017. As a general rule, what per point discount would you ask from avg resale in that situation? Would you ask for a steeper discount for one resort vs another?

Realistically the difference would be ROUGHLY 2 yrs worth of dues and $6 per point times the points difference (2 yrs of points) compared to the same contract with 2015 & 2016 points. The potential difference is even greater depending on UY and banked points. The difference between a loaded contract for say a Dec UY with banked 2013, all 2014 points banked and all future points compared to no points until Dec 2016 is roughly $30 a point minus any dues you don't have to pay. Realistically in this example you'd likely only pay the 2015 dues and no extra for the additional points but would have to pay the 2016 & 2017 dues on points you don't get (2017 dues would be for 11 months of 2016 points). That should end up being $20-25 a point difference depending on whether you get a credit for the 2016 points as part of the deal.

I would value the points missing at $10-11 per point or higher, which would be the minimum amount you'd get for them if you rented them through a broker. However, if they are not asking for the MFs for the zero year, I would knock $5-6 off that.

I agree, that is my approach. I value banked/borrowed points less, say $5-6 per points assuming I'm not paying dues on those and short notice points get no monetary value, they are a freebie/bonus IMO.

In my experience, "stripped" contracts sell for way to much, and "loaded" contracts are a much better deal. While I agree that the points should be valued at $11-$14 per point, the contracts on the market tend to value the missing points only at the cost of maintenance; $5-$7 each. Since maintenance fees have already been paid on the extra points in "loaded" contracts, those are worth a lot more. But you don't see $25/point swings in asking prices between loaded and stripped contracts. I don't know if there's every a good enough deal on a stripped contract to make it worth purchasing.

It's not difficult to compare when you adjust for UY and points status. Generally stripped contracts aren't discounted enough to make them worthwhile but there are sometimes special situations such as a difficult to get resort or perfect contract otherwise.

 

[DenLo]

. . . . Generally stripped contracts aren't discounted enough to make them worthwhile but there are sometimes special situations such as a difficult to get resort or perfect contract otherwise.

I think Dean hit the nail on the head with this last comment. I think I would never buy a stripped nor especially a fully stripped contract. But then I remembered how hard it was to buy a resale contract for the number of points we wanted in our UY. You really never know what you'll do until you are in that situation.

I do think that when there are more buyers than sellers people act like they do with auctions or bidding situations, they over bid for something just to get it now before anyone else can get it.

 

[Dean]

I think Dean hit the nail on the head with this last comment. I think I would never buy a stripped nor especially a fully stripped contract. But then I remembered how hard it was to buy a resale contract for the number of points we wanted in our UY. You really never know what you'll do until you are in that situation.

I do think that when there are more buyers than sellers people act like they do with auctions or bidding situations, they over bid for something just to get it now before anyone else can get it.

I would turn it around as well and suggest that there is a point where it's not reasonable to buy if you can't find a contract that's reasonable. I think prices are actually getting into that range currently.

 

[maburke]

I just had a frustrating situation this week where I couldn't get sellers to reduce the price of a fully stripped contract to what I thought was reasonable. In my experience, stripped contracts don't sell as quickly, so I had hoped that the seller would be willing to bargain since it had been on the market a few months. But they went from way overpriced to just overpriced.

Silly me, I ended up contracting for too much because it's an extremely rare contract (right size, right UY, subsidized dues). And I can wait for the points. A classic mistake, don't fall in love with the car.

 

[bwbuddy5]

I just had a frustrating situation this week where I couldn't get sellers to reduce the price of a fully stripped contract to what I thought was reasonable. In my experience, stripped contracts don't sell as quickly, so I had hoped that the seller would be willing to bargain since it had been on the market a few months. But they went from way overpriced to just overpriced.

Silly me, I ended up contracting for too much because it's an extremely rare contract (right size, right UY, subsidized dues). And I can wait for the points. A classic mistake, don't fall in love with the car.

Don't beat yourself up. If it was a perfect configuration for you, it was worth a little more. Don't look back.