Hello!!! Just starting out :)

[EliciaKeys]

Hello everyone! My name is Elicia and we are just starting out in the research and (hopefully) purchase process. We have a great DVC rep and are looking to start small - probably purchasing 120 points for my husband, my 1 year old daughter, and myself. We live in the FL Keys, so we would drive to our DVC vacation, which is a huge plus for us. I have loved reading all the information here, and look forward to pouring over the threads and learning even more for you all!

 

[crisi]

So there are a few things you'll see a lot of....

1) Think SERIOUSLY about resale. The savings is a lot, the real disadvantages are rather small
2) Since you are local, understand that short term availability is limited. You are best off booking when the eleven month window opens at home. At some times of year, yes, some rooms go that fast. Availability can be very limited five or six months out - although if you are flexible and/or lucky, you might find just what you are looking for much close. Or not. No guarantees.
3) Understand banking/borrowing and cancellation policies. This is much less flexible than cash.

 

[disneynutz]

Welcome and happy reading.

Bill

 

[EliciaKeys]

So there are a few things you'll see a lot of....

1) Think SERIOUSLY about resale. The savings is a lot, the real disadvantages are rather small
2) Since you are local, understand that short term availability is limited. You are best off booking when the eleven month window opens at home. At some times of year, yes, some rooms go that fast. Availability can be very limited five or six months out - although if you are flexible and/or lucky, you might find just what you are looking for much close. Or not. No guarantees.
3) Understand banking/borrowing and cancellation policies. This is much less flexible than cash.

Thank you for this!
I will definitely have to check out resale. I think the major issue there would be cash out of pocket versus financing options. Regarding #3 - you mean banking/borrowing of points from year to year? My understanding is used or banked within a 2 year window?

 

[DisneyfromDeland]

I think the major issue there would be cash out of pocket versus financing options.

If you have decided to finance, you can still purchase resale and finance your purchase. There are a few financing companies, LightStream and Monera come to mind.

 

[CookieandOatmeal]

Thank you for this!
I will definitely have to check out resale. I think the major issue there would be cash out of pocket versus financing options.

Since DVC is a luxury item, I would suggest saving so you can pay in full. If you finance, any interest you pay takes you further away from achieving the savings that DVC can give you.

 

[crisi]

Since DVC is a luxury item, I would suggest saving so you can pay in full. If you finance, any interest you pay takes you further away from achieving the savings that DVC can give you.

I tend to agree. You are far better off buying a small resale contract when you can pay cash for it - even if it means a few years of shorter or less expensive Disney trips to save up.

 

[crisi]

Thank you for this!
I will definitely have to check out resale. I think the major issue there would be cash out of pocket versus financing options. Regarding #3 - you mean banking/borrowing of points from year to year? My understanding is used or banked within a 2 year window?

A little more complicated than that - your points are good during your use year. They are good into the next use year, IF you bank them. But you have to bank six months BEFORE your use year ends. Banking is a final transaction - once points are banked they can't be reclaimed into the current use year. And they can only be banked once. You can also borrow from your next use year - but that too is a final transaction, if your trip is cancelled, you'll have to use those points before the use year ends. This can make cancelling a DVC reservation - even more than 31 days out - tricky, since availability to use your points when you can use them can be limited. Cancellations within 30 days go into holding - they can only be used for reservations within 60 days - again, availability can be a challenge that close to vacation time.

It can be very easy for a cancelled vacation to become a money losing proposition with a timeshare. Although you can rent out an existing reservation to cover dues - if you know far enough in advance to find someone who wants it.

DVC is for planners - its also for people who can take a little financial risk.

 

[ELMC]

Thank you for this!
I will definitely have to check out resale. I think the major issue there would be cash out of pocket versus financing options.

There are those for whom "membership" in a "club" is important. Those people place a value on owning DVC separate from its actual use. Personally I am not one of those people. To me, it's a timeshare plain and simple. So the value to me is the ability to stay in timeshare type accommodations for a lower long term cost than renting points or making a reservation directly through Disney Central Reservations. When you buy direct and finance your purchase, you are significantly extending out the time frame that it would take to break even vs. these other options. Roughly to about 14-16 years vs. booking directly through Disney and about 18-20 years vs. renting points from another owner.

So basically it comes down to knowing yourself. If you are the type of person who values "owning a little piece of Disney" or the ability to control your own reservations, then that is going to be your justification for financing your purchase. And that's fine. Different strokes for different folks. But if you're going into it with cost savings being your major driver, purchasing and financing eats into that significantly (albeit slightly less if you finance a resale purchase).

One thing I'll add because you mentioned that you have a 1 year old...kids get more expensive as they get older, so that's something you should factor into your plan. I would hate to see you get involved in a direct financed purchased and then have to turn it back to Disney because the payments (plus annual maintenance fees) became too much of a burden. Remember, you don't need DVC to have magical Disney vacations.

Good luck with the process!

 

[ScubaCat]

But you have to bank six months BEFORE your use year ends.

4 months (not 6).

 

[gharter]

*** others have said, read, read, read and do your research. There is a lot of great information about DVC here and how it works. Read all of it. At the top of this forum is the DVC information thread, a ton of information there if you haven't read it.
You can save a LOT of money buying resale, if the loss of a few perks doesn't bother you.
Good luck with your decision. Take your time and make the right decision for you.

 

[crisi]

4 months (not 6).

I can never remember. We tend to have two year cycles, so I bank when my points arrive instead of sitting on them

 

[ScubaCat]

I can never remember. We tend to have two year cycles, so I bank when my points arrive instead of sitting on them

Well to be fair, it has changed. It used to be something like you could bank 100% at 6 months, 75% at 4 months, 50% at 3 months, etc. (That's made up - I don't recall the exact increments.)

We BORROW all our points so we don't sit on them.