Major headache?

Discussion in 'Purchasing DVC' started by disneydad33, Oct 16, 2013.

  1. disneydad33

    disneydad33 Earning My Ears

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    We just bought DVC direct while at AKL for AKV yesterday! We wanted to buy our first points direct through Disney but I would like to add more points from the resale market in the future. Our sales person said that Use Year is a big issue if adding on resale points in the future. He said if we bought points that have a different UY month than ours that it causes "major headaches" and isn't worth it. Is there truth to this? Should UY be a consideration when buying resale? Or is he just trying to keep us buying direct?
     
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  3. erionm

    erionm DIS Veteran

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    If you purchase a different UY, you will end up with multiple memberships. In order to use the points for a single reservation, you would have to either (1) transfer points from one membership to the other, or (2) book separate reservation using each membership and have them linked. Points transferred retain their original home resort and UY.

    If you purchase the same UY, those points can be added to your existing membership as a subcontract if titled exactly the same way. Using these points for a single reservation is seamless (no transfer, no multiple rooms). If different home resorts, you can combine them for a reservation at 7 months. If the same home resort, you can combine them for reservations at 11 months.
     
  4. disneynutz

    disneynutz DIS Veteran DIS Lifetime Sponsor

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    UY should be a consideration in your case when buying direct. When will you vacation and what UY did they sell you?

    Why did you buy direct if you don't mind me asking?

    :earsboy: Bill
     
  5. bobbiwoz

    bobbiwoz I'm happy to dance with you!

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    Years ago I wanted more BCV points, and I have March UY. I almost bought a different UY, but in the end I wound up buying direct. I am someone who would go out of my way, pay more if I have to, to get the same UY.

    Some people say that it's not that much of a hassle but you do have to transfer the points from one to the other if you want to combine points for a single night. I do not think this can be done on line, and mostly I book on line now.:thumbsup2
     
  6. disneydad33

    disneydad33 Earning My Ears

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    We typically vacation in the fall although and the UY we were given was April, backdated to 2013 to have more points available quickly.

    We bought direct initially to have the flexibility to use all of the "collections" (yes I know it is not usually the 'best' use of points). I would like to buy more points in the future via resale.
     
  7. disneynutz

    disneynutz DIS Veteran DIS Lifetime Sponsor

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    You are currently in your 2013 UY so nothing was back dated. As you have probably read you get added insurance by choosing a UY just prior to your normal vacation dates.

    8 month banking window means that with an April UY, your have to bank by the end of November to save your points. That means that the points for December - May canceled vacations have to used before April or you lose them. Disney picks a UY and puts everyone in it for some reason. My guess it that there is some financial benefit that I am not aware of.

    Think about your UY, you have 10 days from signing your contract to change it. After that the only way to change it is to sell the contract.

    You might want to think about the collections again, buying resale can save you thousands of dollars.

    :earsboy: Bill
     
  8. JimMIA

    JimMIA A little Miami humor...

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    Nothing was backdated, and you got nothing special.

    An April UY runs from April 1 through March 31 of the following calendar year. Since the 2013 April UY runs from April 1, 2013 through March 31, 2014, we are currently IN the 2013 UY.

    You got nothing special at all. All you got was the points you bought.

    If your DVC timeshare salesman told you that you got something special, he/she was intentionally misleading you.

    They may also tell you that you got a "deal" because you are only paying the annual dues from your closing until the end of calendar 2013, but your points can be used through the end of March 2014. Again -- intentionally misleading statement.

    Annual dues have nothing to do with UY; they cover the operation of your home resort (and common services like MS) for the calendar year -- Jan 1 - Dec 31. You are not getting a deal by the prorating of the dues -- you are just paying the dues you owe.

    You obviously know about the resale market.

    With AKV (if that's the home resort you want), you can save a ton of money buying resale. The process will take a little longer than buying direct, but if you're paying 50-60% of what you would pay direct, it's probably worth the wait.

    You have ten days, under Florida real estate law, to rescind (cancel) the purchase and get all your money back without question. My suggestion is that you thoroughly research DVC for the next week and make your decision as an educated consumer. If you can't finish your research in a week, cancel your purchase and finish your research. You have absolutely nothing to lose by following that strategy, and maybe a LOT to gain.

    In particular, research the points costs of all those wonderful "Collections" options. In most cases, I think you'll find those options are cost-prohibitive and therefore something you wouldn't really use anyway.
     
  9. GiantsNiners11

    GiantsNiners11 DVC Pro

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    OP didn't ask about this, but I agree. Rescind and buy resale especially at AKV!

    You can more than DOUBLE the points for the same price.

    We just got a 250 contract at AKV that was loaded with 500 points with no MF's at all (that's REAL FREE points, not salesmen talk). It was $67 per point....nearly $80 per point CHEAPER than retail. That's a savings of $20,000!!! Giving up the collection is not a huge loss imho since they are just a terrible way to burn points at WDW anyway.

    If we rent out all the 2012/2013 FREE Points, it brings our per point cost to $41 per point with all points coming in 2014 UY just a few months away. Compare $41 per point to $140+ per point. No brainer.
     
  10. blessed2BaMama

    blessed2BaMama Earning My Ears

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    I agree with this completely!! A loaded contract is worth so much more the "extras" from buying direct (in my opinion)!!
     
  11. DisK

    DisK Mouseketeer

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    I disagree. It's the OP's money, let him/her spend it where he/she wants. Maybe they trust Disney more. Maybe they felt more comfortable dealing with them. There could be a number of reasons to deal directly with Disney. If we (my fiance and I) were that worried about money, we would have looked at a resale. Instead, we knew, regardless of where we bought, that our first contract was going to be direct. The added perk was that the VGF just opened.
     
  12. Annielkd22222

    Annielkd22222 Mouseketeer

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    How does buying direct help with that? I get the trust issue.....but other than that the price difference doesn't equate.
     
  13. JimMIA

    JimMIA A little Miami humor...

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    A LOT of people buy DVC who would never dream of buying a timeshare. :scared1:

    For that target market group, the fact that they are buying from Disney gives them a comfort level they would not have purchasing resale...despite the fact that they probably bought their HOME resale through a real estate broker, and despite the fact that resale timeshare brokers are governed exactly the same as DVC by the same laws, regulations, and regulatory agencies.

    We're talking about timeshares...it's not supposed to make sense!
     
  14. GiantsNiners11

    GiantsNiners11 DVC Pro

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    Of course. In no way do I want to tell people how to spend their money. Trust is a good point....and I would add that the convenience of having your points "NOW" is another instant gratification reward. I envy those that buy direct and get their points instantly!!!

    HOWEVER....

    We can afford to buy direct. But I'm wired to get good deals....I would not sleep well if we paid double or triple when we could have gotten nearly the exact same thing for 1/2 to 2/3 cheaper! That's just the way I am. The "comfort" I get is in the savings. Some people get comfort from dealing with a company. That's totally fine! I just think the OP should know that it's an option and it will save him thousands upon thousands of dollars. I would've been glad for someone to educate me first (In fact...someone did and I owe him a big thank you!).

    If he doesn't like the advice or agree that saving the money is worth it, he is still free to spend the money any way he wants and nobody here should/would fault him for that. I totally get why people buy direct. It's the exact same reason why I hope people respect why I probably never will buy direct. We have the money to burn, sure. But it would keep me up at night because I'm a weirdo like that. It would probably even ruin some of my vacations thinking about it....and that's never a healthy thing.
     
  15. disneynutz

    disneynutz DIS Veteran DIS Lifetime Sponsor

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    Of course people can spend their money as they see fit. The OP is a new poster who may not understand UY or resale so we volunteer the info in an effort to share our knowledge and to level the DVC purchase playing field. It may seem like overkill preaching the same thing over and over but I do get emails and PM's from buyers thanking me for providing the info.

    :earsboy: Bill
     
  16. disneydad33

    disneydad33 Earning My Ears

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    I have been considering DVC for four years, and am more familiar with the options than I may have come across. Although I did go into the presentation having not researched current point prices direct vs. resale in over six months. My sales rep overstated the current situation when I asked about the resale market and inferred that Disney is now excercising ROFR much more than in the past. While that may be true, it does not seem to be true specific to AKV from what I have been reading on these boards today.

    In addition to liking the flexibility of the various collections(I have researched these and while I would never cruise with points, there are a few reasonable options we may use down the line), I also wanted to finance for a one year period only. While I know any financial advisor would say never to do this, for us it made sense as we have predictable income coming in mid 2014 that will allow us to completely pay it off, yet experience the benefits of the points right away.

    I may still be misunderstanding the month and date for our use year, but it does sound like an advantage to me. By dating it to April (as opposed to October for example), my points 2014 points will come through six months sooner and we can plan a very big vacation for next fall using 2013 and 2014 points. "Back dating" was my terminology - not the sales rep's. This was sold as a promotional benefit. Is April always the month in which AKV is sold?

    I will be looking at resale rates throughout this week to consider that option.

    On another note, what opinions do you have regarding buying non-discounted GFV instead of our discounted AKV? Would that be a better purchase since selling those points - if we ever needed to consider selling - would most likely demand a better rate? Or should we wait for those to go on the resale market a few years down the line? In addition GFV would be our favorite destination once complete, and I imagine without owning there, it would be a long time before points from other resorts would be able to secure reservations there.
     
  17. GiantsNiners11

    GiantsNiners11 DVC Pro

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    My opinion would be to buy GFV if you have to buy direct. It will likely hold its value longer due to its more limited availability and location. It is also not really available on the resale market. AKV is a large resort and the biggest advantage to owning there is the access to the concierge/value rooms at 11 months. Other than that, you don't really need the 11 month window there so I'd opt for GFV direct if DIRECT is the way you are going to go.

    The financing thing makes sense and I totally get that. Still, really think about how much you are paying EXTRA to get those points now. It's not just the short term financing, it's the difference between resale and direct.

    On 200 points, if you buy direct, you're paying $15000 more plus interest just to have access to those points "now". That's a pretty penny for just a half year!!! If you waited until you get this guaranteed predictable income, you can use that money to buy resale AKV and get a lot more bang for your buck.

    If direct is the way you decide, GFV is probably the smarter buy right now if you love it there.

    Buy where you want to stay.
     
  18. disneynutz

    disneynutz DIS Veteran DIS Lifetime Sponsor

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    Your understanding of UY is still a little off. Think of the UY as a shifted calendar. The first 8 months of the UY you can bank points into the next UY. Months 9 - 12 you have to use them or lose them.

    Points have to be available for your reservation dates, not your booking dates.

    We hate hot weather and we own an April contract and several October contracts. We prefer the October contract UY. We vacation October - May each UY, and twice we had to cancel our December vacations, once due to a death in the family and once due to a forced job location change. We banked our points and used them the following UY. If we had used the April points for those reservations we would have to vacation before the end of March or we would have lost the points. After a death and moving to a new town, taking a WDW vacation was the last thing on our minds.

    It's a little free added insurance. :thumbsup2

    Disney has all UY's available for sale, but they seem to want to sell more of one UY month than the others and they don't really tell you about your options. They have a "they didn't ask so I won't tell policy".

    DVC really is a good way to stay in larger rooms at a discounted price but there are rules, policies, strategies, and a lot of information to learn. To make it more of a challenge we have had 3 recent DVD/DVC executive changes as well as policy and rule changes to deal with.

    :earsboy: Bill

     
  19. Deb & Bill

    Deb & Bill DVC-Trivia Contest, Apr-2006: Honorable Mention

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    You have to remember that all the perks for direct buyers could disappear tomorrow. The number of points needed for that special collection could increase by 25% if Disney decides they want more points for the reservation. All you are guaranteed is a DVC villa. That's it. Direct or resale.

    Also, by getting an April UY, you lost nearly six months to use those points. You'll need to bank them before Dec 1 if you plan to use them in your April 2014 UY.
     
  20. KAT4DISNEY

    KAT4DISNEY Glad to be a test subject

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    If you bought a Sept or Oct UY you still could use your 2013 and 2014 points for a vacation next year. IMO it's more important to think about the long term for the "insurance" that can be provided with the proper UY. April works but it isn't the most ideal for you.

    Buying AKV direct means that the second you close you've lost at least 30%-40% if you needed to sell immediately. At the moment with VGF being so new and virtually nothing available resale you would lose much less. And considering that it is a much smaller resort it's reasonable to assume it will hold it's value better longer.

    For AKV there are very very few good arguments to buy direct and to use in other collections is not one. You state that you only are doing that to have the option and that's an expensive cost for an option. Also, the point cost of using outside of DVC is high - have you even bought enough points to use it for other things? If not then it's an expensive payment for an option that may not even be possible.
     
  21. Disney Dreams

    Disney Dreams Proudly afflicted with TDMA!

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    Sigh.

    Everytime someone comes on DIS and excitedly posts that they just bought DVC, people start in about "Why did you buy direct?" and "Why didn't you buy resale?"

    We bought direct.
    Resale makes us nervous.
    Yes, it's a trust thing.
    Yes, it's a "not all points are the same" thing.
    Yes, we feel 100% comfortable with the decision we made.

    OP, it sounds like you have done your research. It soulnds like you understand what you bought. If you are hapy with your purchase, please do not let people get you down about resale vs. direct. It's a choice and it has pluses and minuses either way.

    Welcome home!

    - Dreams (AKV owner who LOVES her DVC direct purchase)

    P.S. Yes, I bought my house direct as well. :goodvibes
     

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