Bank and borrow, ever gonna end?

[ShellyLynn3630]

I am wondering, do you think that Disney may ever eliminate the ability to bank and borrow points? For someone like me, who may just be wanting to get thier feet wet with DVC in the next few years or so, I would only want to purchase a small resale contract. Maybe 50 points or less. But I would have to bank, use and borrow my points every three years or so to be able to go. And I will never jump into a large contract with DVC, at first anyways. If they were to eliminate the bank and borrowing conept a very small contract would be worthless to us.

 

[erionm]

I don't think they would ever end banking & borrowing. They can suspend it if there is a point imbalance.

 

[CarolMN]

I don't think they would ever end banking & borrowing. They can suspend it if there is a point imbalance.

I agree. IMO, it is a very small risk until we get a lot closer to 2042, the end date for the older DVC resorts.

 

[disneymath]

I don't think they would ever end banking & borrowing. They can suspend it if there is a point imbalance.

I agree. IMO, it is a very small risk until we get a lot closer to 2042, the end date for the older DVC resorts.

I'm a newbie to the whole DVC process. Can someone explain these statements in more detail please.

 

[Sandisw]

I'm a newbie to the whole DVC process. Can someone explain these statements in more detail please.

DVC has the right to suspend an owners ability to bank and borrow points (it is in the POS). If they feel that somehow there is an imbalnce in the points in any given year, they would do this.

Once we get closer to 2042, when the contracts expire, DVC may decide that it would create too many points in those last few years (some might borrow all their last year points) and suspend things to be sure things are evened out.

 

[disneymath]

DVC has the right to suspend an owners ability to bank and borrow points (it is in the POS). If they feel that somehow there is an imbalnce in the points in any given year, they would do this.

Once we get closer to 2042, when the contracts expire, DVC may decide that it would create too many points in those last few years (some might borrow all their last year points) and suspend things to be sure things are evened out.

Oh, ok. It's making more sense now.

Is it possible that DVC could decide to suspend banking or borrowing at just certain resorts - for example as we approach 2042, could DVC just suspends the process for points owned at the resorts expiring in 2042 but not the ones expring later (such as BLT points in 2060)?

 

[Jason@dvcstore]

I am wondering, do you think that Disney may ever eliminate the ability to bank and borrow points? For someone like me, who may just be wanting to get thier feet wet with DVC in the next few years or so, I would only want to purchase a small resale contract. Maybe 50 points or less. But I would have to bank, use and borrow my points every three years or so to be able to go. And I will never jump into a large contract with DVC, at first anyways. If they were to eliminate the bank and borrowing conept a very small contract would be worthless to us.

In my opinion they will not stop allowing owners to bank or borrow. The only time I am aware that they will not let you bank or borrow is if you are behind on your annual dues or mortgage payment (if financed through Disney).

Jason

 

[mikeandkarla]

DVC has the right to suspend an owners ability to bank and borrow points (it is in the POS). If they feel that somehow there is an imbalnce in the points in any given year, they would do this.

Once we get closer to 2042, when the contracts expire, DVC may decide that it would create too many points in those last few years (some might borrow all their last year points) and suspend things to be sure things are evened out.

I think DVC will offer extended contract lengths to all the resorts that expire in 2042, just like they did with OKW. Precidence has been set, so I think it will likely continue.

FYI---DVC extended OKW(at each owners option for an additional fee per point)contract from ending in 2042 to ending in 2057. I am not an OKW owner so if any info is incorrect please advise.

 

[Coach81]

Don't see that happening as it (B&B) is a major component of the way it operates..

 

[gianjoe]

I am wondering, do you think that Disney may ever eliminate the ability to bank and borrow points? For someone like me, who may just be wanting to get thier feet wet with DVC in the next few years or so, I would only want to purchase a small resale contract. Maybe 50 points or less. But I would have to bank, use and borrow my points every three years or so to be able to go. And I will never jump into a large contract with DVC, at first anyways. If they were to eliminate the bank and borrowing conept a very small contract would be worthless to us.

I do not believe that the bank and borrowing system will ever go away, the salesperson we talked with made that a very specific point of conversation.

I just recently bought a DVC resale. For us, we go a lot, we have small children and we live an hour from the park. If you are not planning to go every year then my belief is that you should not buy a contract. In my opinion, DVC is for the committed Disney traveler, people that know when and how often they go to Disney. We chose Beach Club and the first time we went we only went to the parks on one day out of four (we live an hour away and go many times per year). By the time I bought the DVC I had already stayed in Disney resorts about 8 times and we've been to every major resort except Bay Lake Tower and The Grand Floridian. If you're not going until 2012 I would say save your money and don't buy the DVC. Remember, you'll pay the annual dues which is around $5 per point, that's $250 per year for 50 points even if you don't go.

Take care,

Joe

 

[Chuck S]

I think DVC will offer extended contract lengths to all the resorts that expire in 2042, just like they did with OKW. Precidence has been set, so I think it will likely continue.

FYI---DVC extended OKW(at each owners option for an additional fee per point)contract from ending in 2042 to ending in 2057. I am not an OKW owner so if any info is incorrect please advise.

You are basically correct, but extending OKW has not been without it's problems. And many of the other onsite 2042 resorts are aligned with regular Disney cash resorts...they may be leaving their options open for those properties. Once they extend, their hands are tied.

 

[SuzanneSLO]

As one of my favorite investment writers puts it, never confuse the unlikely with the impossible.

Before you buy, think about how you would handle a period when banking and borrowing is suspended and remember that other DVC owners would be in the same position. I would guess with points transfers, renting reservations and paying cash for nights at DVC or other destinations, most of us could struggle through. And this is coming from someone who has 2 reservations right now, one that includes current 09 points and borrowed '10 points and another that includes banked '09 points, current '10 points and borrowed '11 points! -- Suzanne

 

[CarolMN]

...(snip)..... the salesperson we talked with made that a very specific point of conversation.......

Respectfully, nothing the guides (sales people) say matters if it contradicts what is in the legal paperwork. Those documents rule!

 

[dismedvc]

As one of my favorite investment writers puts it, never confuse the unlikely with the impossible.

While they might limit the number of points that can be banked or borrowed, I do think it would be impossible to totally eliminate it. Since DVC sells points (not nights or weeks) if members could not bank, almost every member would end up with a small amount of points they could not use each year. For example if you had 9 points remaining there would be nothing you could do with them since under the 2011 point charts no DVC room can be reserved for less than 10 points.

 

[wdrl]

Before we bought into DVC, I asked our Guide if Disney had ever suspended banking or borrowing. He said that right after 9/11, there was some concern that DVC members would not travel and that too many members would try to bank their points. If that had happened, then Disney would have needed to impose limits on banking. However, our Guide said that DVC members did not significantly alter their travel plans after 9/11, so there was no need to suspend banking privileges.

As a PP said, "improbable" is not the same as "impossible." Unforeseen future events could impact members' booking patterns, and if they cause imbalances in point usages, then Disney is obligated to consider changes to the banking and borrowing privileges. Having said that, I believe that Disney won't suspend banking or borrowing until the last 1-3 years of a resort's lease.