The folly of Borrowing points

[gchiker]

We are disciplined and prudent spenders. We don't borrow money unnecessarily and we pay back the debt ASAP. We pay our credit card in full each month and pay no interest. We save for a rainy day and prefund our vacations. We don't face big bills upon our return from WDW or other vacations. But when it comes to borrowing DVC points, we have no problem. In fact, we prefer to be "out of points." USE IT OR LOSE IT! I don't want to be in a situation where we have lost the value of our points because they expired. If we have no points available to us and we want to go to WDW, we will either pay for a hotel or rent points.

So what if you want to sell and have to take a lower price because the points are not there any more. Sour grapes! The points are gone because you used them and got value for them. You can't have your cake and eat it too. Either save the points and sell for a higher price, or use them and accept the lower price you deserve.

 

[JimC]

The contract sales that I have watched indicate that the market is pretty efficient at pricing. The prices paid for the points remaining on the terms of the contracts are ending up in a fairly tight range. So I question the real "discount" that stripped contracts have as well as the "premiums" that contracts with banked points claim.

 

[bobbiwoz]

Thanks Doc and Family!

Bobbi Sometimes it's hard for me to say what I mean!

 

[LIFERBABE]

The contract sales that I have watched indicate that the market is pretty efficient at pricing. The prices paid for the points remaining on the terms of the contracts are ending up in a fairly tight range. So I question the real "discount" that stripped contracts have as well as the "premiums" that contracts with banked points claim.

I have been noticing this too. Most of the BCV and BWV contracts listed have been stripped and they are still selling for $74 ppt and have sales pending. Not only are the 2004 points depleted, but most of the 2005 points too. I have been waiting on an add-on thru DVC because when it finally comes through, at least it will have points before 2006.

So borrowing seems to have very little impact right now if you own the smaller resorts.

 

[Boardwalk4us]

I have never looked at borrowing points in a negative way. We paid cash for our points and know we have to use them or lose them (or rent them). Would rather use them. At this point in our lives we like to bless others in our family with the DVC experience and have done so for the last 7 years. We would not be able to have a grand gathering with 12 family members at the Boardwalk this December without borrowing. All of us going look at this as possibly a once in a lifetime opportunity as one family member is ill and as younger families grow.

DH & I planned how many points we would want per year as we near the empty nester stage without borrowing points. We also planned for a few left over points to spend with the future grandchildren.

We are very pleased with the flexibilty of DVC, it fits into so many lifestyles and schedules. By the rate of sales at SSR so are a few other members.

Nancy

 

[Doc and Family]

Thank you Bobbi!

I was not having a particularly good day and reading that made me smile. I knew what you meant and also have a way of taking a simple concept and making it damn near impossible for anyone to understand.
By the way, we agree with you.

Have a great one!

 

[CarolMN]

If it weren't for borrowing, there wouldn't be any banking!

If borrowing and banking get too far out of sync, DVC will have to suspend both.

Therefore, those of us who borrow make it possible for the "savers" among us to bank!

Borrowers perform a vital service for their fellow members! How could there be any shame in doing that!!!!!

 

[TDC Nala]

"Reallocating" would have been a better word that "borrowing."

I think the only downside to being in "point debt" in my situation is if I had to sell my contract and do it quickly (which I don't anticipate doing).

 

[Desperado]

Sorry, but worrying about borrowing points seems a bit silly to me. We borrow and bank. When you borrow, there's no worries about loosing points because you missed a banking deadline. It's let have some wonderful large family vacations with parents, that may not be possible in the future. Bank, borrow, do whatever you want to arrange for nice vacations, that's what we purchased with the flexibility of DVC. Calling borrowing folly is itself folly. Vacation!!! You can't get that family time back. My $0.02.

 

[disneycrazed139]

We have Zero Dec 2003 points (current UY), we have Zero 2004 points left, and I just started making ressies in 2005 with borrowed points from our Dec 2005 UY.

I am new to this and in a borrowed state, with the same reasoning about the December use year. What struck me about the above is that you said "borrowed points from our Dec 2005 UY"

I thought you could only borrow 1 use year ahead--meaning that you could borrow Dec 2004 now for use whenever. You can borrow Dec 2005 now too?

 

[SleepyatDVC]

disneycrazed139,

You can borrow from Dec 2005 points to make reservations anytime between 12/1/04 to 11/30/05 - only one use year prior.

 

[Laurabearz]

Originally posted by disneycrazed139
I am new to this and in a borrowed state, with the same reasoning about the December use year. What struck me about the above is that you said "borrowed points from our Dec 2005 UY"

I thought you could only borrow 1 use year ahead--meaning that you could borrow Dec 2004 now for use whenever. You can borrow Dec 2005 now too?

Like Sleepy said.... I borrowed 2005 points for a reservation in January 2004, IN my 2004 UY, thus only borrowing 1 UY ahead. As long as your within the booking windows.

 

[John Lesley and Sam]

Borrowing was key to our decision to buy DVC. We live in Europe and plan to visit every two years. We purchased 200 points, and this means we can stay in a 1br for 12 nights each stay.

If Disney ever remove the banking and borrowing then I guess we will need to rent points, but I see this as much more work for us, with more risk than just banking and borrowing.

I think the banking and borrowing is one of the bestt things about DVC.