Add-on Use year

[ohioMickey]

Just curious...

I thought that when you do an add-on, it has to have the same use year as the master contract. But lately I have read posts from people who have add-ons with a different use year than the original contract.

What if you do an add-on, but they aren't selling your use year at the time you add-on. Do you have to wait until the use years recycle and they are selling your month again?

For example, I have a December use year. Let's say I want to do an add-on in October. But in October they are only selling June use years. (hypothetical) Do I have to wait until they are selling December again? Will they let me add-on with a june use year? Or do they make an exception and sell me a december one?

any takers?

 

[TnRobin]

Mike, if you buy your add-on from Disney, you will have the same use year. If you buy an add-on thru resale, you may or may not have the same use year.

It doesn't matter when you buy from Disney, if your use year is not sold out, then you will have the same use year as your original contract.

 

[tweck]

Mike, TnRobin is correct. Be sure to clearly understand the allowed banking limits when/if you add on. I recently did an add on (last week) with a Sept use year. As I am now within my 6 month window, I can only bank 50% of the COMBINED total of my original contract and the add on. If you add on in Oct you will be within the last 3 months of your use year (as I did) and if you have already banked points for your original contract, you may find yourself limited on how many points you can bank of the add on, should you wish to do so. Just a tidbit I never thought about.

 

[Dumbo]

Mike,

If you add on through Disney for 149 points or less, you will get the same use year as you other contract. The minimum purchase through Disney for a new contract is 150 points. So if you buy an add on through Disney for 150 points or more, you can pick a differant use year. Because what you are really doing is buying another new 150 point contract.

Dumbo

 

[Caskbill]

Keep in mind that if you buy resale, and get a separate use year, it is a totally new contract and you will get another membership number. Basically you treat each contract separately as far as ressie windows, banking and borrowing guidelines.

You can use points from each contract to make adjoining ressies at a resort, then link the ressies so you don't have to change rooms.

It just takes a little more planning.

 

[Renee']

Unless things have changed from the last time I inquired, IF you buy an add-on under 150 points it must be the same use year as your original contract.

We've only ever puchased resales through Shontell at the TSS. She and I spoke about this in length and unless Disney's policy has changed recently (add on of under 150) must be the same use-year. If you make an offer on an add-on via resale and it is a different use year, under 150 points, Disney will exercise its first right of refusal and buy it back.

If this has changed recently I'm unaware but the last time I inquired this was the policy. Please correct me if I'm wrong.....

 

[Caskbill]

Renee,

We just purchased (2-months ago) an Aug Use year OKW resale for 100 points. Our original ownership is OKW June use year.

The 100 point sale went through fine. Disney had no comments on it. I asked the same question and our agent (Jaki) stated Disney is only buying on first refusal rights if the sale price is at their minimum (which 2-months ago was about $55.

If it was Disney's policy to buy it no matter what, I'd sell my 100 points right now to my brother for $100/point, and then let Disney give me the $100/point for it. Obviously Disney is not going to buy a resale unless it's in their own financial interest. What would keep me from selling to my brother for $1000/point?

Remember the 150 point minimums were conditions Disney set up for their own sales. Once a contract is made, they can no longer control it except through the right of first refusal. That deed is just like any other personal property. If I bought a new car, or a new house, or a new building lot (land), the previous owner can not put any conditions on it's future sale. That is why Disney cannot stop anyone from buying resales with different use years. They can only offer to match the selling price and buy it themselves.

I guess the thing to remember is it's not considered by Disney to be an add-on. It's a whole separate contract, with a new membership number to go with it.

In fact, even if someone didn't own any DVC at all right now, they could still go buy a resale of less than 150 points. Disney can't stop that. The 150 point minimum is for their own internal sales requirements.

If someone likes the idea of DVC, but would only go to Disney about every 3 years, then a 100 point contract might be ideal for them. Bank and Borrow, and have 300 points to use every 3rd year.

Now, finding a 100 point contract for sale somewhere, that's the hard part.

 

[Renee']

That's interesting. What would keep you from selling off your original contract and only keeping that 100 pointer? Wouldn't that go against the 150 minimum to own? Anyone out there own only 100 or so? I'm willing to bet they may stop those.

Shontell and I talked about this quite a few times. She admitted that a few go through, but she wouldn't even submit an offer if it was under 150 and not the same use year. In the past they (Disney) had purchased those back. Very interesting indeed.... different brokers handle these differently.

I guess nothing is set in stone. Good for you. Now you have that fun job of banking & borrowing between the two use years. I know with our contracts sometimes it's troublesome to keep track.

 

[PamOKW]

Caskbill or anyone else who knows about seperate contracts.....

Just playing "what if".

If you have one contract with a December Use Year and another with a May Use Year, can you use points from each contract to book a single night? (I know I can do this with my current contracts which all have the same Use Year).

 

[Renee']

Pam,

We have two separate contracts with different use years (February & 2 from April). When making reservations you need to transfer enough from one account or the other to make enough points for that ressie. If you're short 30 or so you can't just pull from one account to make the needed total. It's treated exactly the same as if it were two different members. I have on one ressie made all nights with one account but had a night (in the middle of the reservation) made with the other account. It gets confusing and troublesome to say the least.

BTW, even though they're both my contracts/accounts the same "transfer, banking, and borrowing" limitations apply. Once points have been transferred between my accounts I cannot bank or borrow them either.

 

[Caskbill]

Renee, my two contracts are June and August. Being that close makes them easier to manage as the banking and borrowing dates for each are very close. Anyway it's all on my home computer and hasn't been a problem yet.

Remember, I just got this 2 months ago. I recently made some Sept ressies, using one contract for 1 week and the other for a 2nd week. No problems there.

Pam, as Renee said, you can't combine points for a single day's stay. You can however 'combine' points for a vacation timeframe. For example use one contract for the first two days, and the other contract for the next two days. They go in as two separate reservations, then you link them together and you would get 4 days in the same unit.

I haven't actually done this yet, but this is how it works.

Also, as far as owning less than 150 points, I believe that is legal and Disney can't stop it. Remember, the 150 point minimum is what Disney sets when you buy through them. I've been told they cannot stop someone from buying a smaller contract at resale and becoming a member. The only recourse they have in any private sale between two people, is the right of first refusal. There they can only match someone else's offer. Obviously they would not do this if it wasn't a financial benefit for them.

This is what I've been told and it seems to be true. Note that when I bought the 100 points it went in as a totally unique contract and membership number. As far as I know, none of the papers that went to Disney indicated I was already a member. Of course, if they did a cross check on the social security number, then that would show my as a present owner.

I believe theoretically I could sell my original 230 points, and only keep the 100, and still remain a member. Of course that's the exact opposite of what I would ever want to do. I want more points.....who doesn't?

Anybody out there own less than 150 points? We'd love to hear from you.

 

[Dean]

Several points.

1. DVC will usually buy back most resales of less than 150 points that don't match your use year, but not all of them.

2. There is a provision in the POS to sell a use year other than the one you have if points for your use year are not available.

3. It was my understanding that Real Estate brokers in most states were legally required to present all offers and I' pretty certain that's the case in FL.

 

[BIERMUGG]

What does DVC do with the points they but back?

sell them or add the rooms to there inventory for cash ?


George

 

[PamOKW]

I "think" they accumulate the points they buy back and then resell them in the future. When they re-opened sales for the new buildings at OKW they also had "other" points to sell. I'm assuming it was the points they've bought back or repossessed over the years. Possibly in a year or two there might be additional points available through Disney for OKW and BWV.

 

[PamOKW]

Caskbill and Renee thanks for the info. I've been toying with the idea of buying 150 points with a different Use Year (to cover my winter trips). I hadn't considered that they'd be like two memberships. I don't think it's a problem....just another consideration.