Borrowed ahead

[FreeTime]

Are you borrowed ahead on your points? I have already borrowed 200 of my 400 points from next year and am thinking of borrowing more. The thought makes me sick because I keep thinking what if I need them? I know at some point I probably won't use my points for a year, but I just hate borrowing (to me it is the same feeling as having credit card debt! Crazy I know!) So should I borrow more to make my family trip extra special? There will be 12 of us in 3 studios (dh and I usually get a 1 br and I am missing it already) or hang on to them to take more trips next year?

 

[timC]

The thought makes me sick because I keep thinking what if I need them? I know at some point I probably won't use my points for a year, but I just hate borrowing (to me it is the same feeling as having credit card debt! Crazy I know!)

I posted this comment a couple weeks ago... I think it also applies here....

Borrowing is like an interest free loan, and banking is like savings without any interest gained.

Now. Which is would you rather have?

IMO, there seems to be an unwarranted negative perception about borrowing points. Really, it's nothing more than banking in reverse. They accomplish about the same thing.

Borrowing: Have a bigger vacation this year, and a smaller one next year.

Banking: Have a smaller vacation this year, and a bigger one next year.

Any accountants in the house? Wouldn't borrowing points for a vacation this year be better from a NPV perspective?

 

[gmboy95]

Ok answere me this because i often wonder....If I borrow to take a big trip, and then i have to consistently borrow to take a trip yearly, does that not pretty much put the kibosh on any future big trips unless you skip a year?, and would it not be better to rent points, ie, the cost would be the same....about $10 a point one way or the other?

 

[tvwalsh]

I have been a member for over 11 years and have never lost a single point! Why? Because I have always been borrowed into the next year. I have never forgotten to bank points because I have never had any to bank!

I really do think that is the best way to go. This year I have already borrowed over 400 of my 500 points for Kohler (The American Club) in October and for a two BR at OKW in January.

I bought them to use them. I never intend to lose them!

 

[Cruelladeville]

You never know what the future will bring, so enjoy your vacations now. Some year one of the kids may get sick, or you break abone or something, and you can't go, so you will get caught up eventually. If that doesn't happen, you can always rent points to even things out with your borrowing points. While I am not exactly borrowing, most of my points for next year are already allocated, with only a few left over, and I have 700 pts! How is that possible, DH asks every year, and really, I haven't a clue, but it always happens that way.

 

[BraveMom3]

I have been wondering this same thing. I hate to borrow, it's a mental thing, like I'm going to be in debt. I tried to put it on paper, and it seemed that if we continue to take the same 2 week vacation every year that we have been, and I don't see that changing since it's the only thing that saves my sanity, we'll run out of points to borrow in a few years. On the other hand, if I'm able to add-on about another 50-75 points in another 2 years, I'll have all that I'll need for a 1 bedroom for 2 weeks.

Also I figured that if I pay cash for 2 nights of our 2 weeks, I have enough points for the other 10 nights. It seems that cash - 25% DVC discount comes out cheaper that renting at $10/point. I figured about $710 for two nights at VWL in 1 bedroom (including discount and tax). That's $6.34/point for 112 points (Fri & Sat). My guide mentioned that you can't always be guaranteed the DVC discount. I don't really understand that. Can anyone explain? In any event is it worth adding on that additional 112 points ($9968 @ $89/pt), when even at full rack rate of $425 it would take about 10 years to add up to the price of the add-on?

Now, is everyone confused?!!

 

[DeeP]

I also have a mental block against borrowing pts. and it is something I avoid like the plague. When I found myself starting to borrow pts I solved the whole problem by buying more pts., LOL! For me, this works out much better. I feel as though I am in debt when borrowing pts which is something I hate whether it be financial debt or pts debt. Silly maybe, but that is just the way I feel and how I choose to use my DVC membership.
As for paying cash for nights, before you pay cash through MS make sure you check out booking the room through CRO. Many times there are discounts to be found through AP rates and other discounted offers that are much cheaper than the 25% off that MS gives you. I have been offered AP rates through CRO for DVC properties with as much as a 40% discount off rack rates, especially for OKW.

 

[CarolMN]

Originally posted by BraveMom3
....(snip)........ It seems that cash - 25% DVC discount comes out cheaper that renting at $10/point. I figured about $710 for two nights at VWL in 1 bedroom (including discount and tax). That's $6.34/point for 112 points (Fri & Sat). My guide mentioned that you can't always be guaranteed the DVC discount. I don't really understand that. Can anyone explain? .........

Rooms that are available for the 25% Member discount come from "member point inventory". The member discount is only available if MS thinks that members will not reserve all of the rooms in the point inventory for points. That is why you can't be guaranteed that a 25% cash discount will be available. While you will often read reports of members getting the 25% discount, it is by no means "usual or common". I've never been lucky enough to get one for BWV - have tried for late August, early December, President's week and various spring break weeks. IMHO, the cash discounts are harder to get at the sold out resorts and everywhere during the more popular times. They do happen, though.

CRO/WDWTC book rooms for cash from a different "pot" of rooms than does MS. The CRTO/WDWTC inventory is separate from the inventory that MS has to book for points. That is why CRO/WDWTC may have rooms available when MS does not (and vice versa).

The CRO/WDWTC "cash" inventory of rooms comes from the ownership percentage that Disney retains in each DVC resort and also from members that have decided to take advantage of options in the Disney Collection (including the DCL), the Adventurer's Collection and the Conceirge Collection. Every time a member uses one of those options, DVC has to rent out the equivalent number of room nights to "pay" for the non-DVC option. Most of the CRO/WDWTC inventory comes from members who take advantage of the non-DVC options listed.

Hope that helps you understand why the member discount for cash isn't always available.

 

[leanne2255]

Just my 2 cents worth...We are always borrowing points. Right now were are 100 points into our 150 2004 points. So what happens if I want to go next year; Borrow from 2005. I'm thinking that at some point I'll catch up because circumstances will now allow me to take a Disney trip that year.

 

[CarolynFH]

When we got word in Feb. 98 that our DVC purchase had closed and we were full DVC members, the first thing we did was book a week for Spring Break the following month AND a cruise AND five days at WDW following the cruise. That set the pattern for our first few years - always borrowing ahead!! We finally caught up by taking some trips with my parents, staying in THEIR timeshares. We actually didn't think we were going to use all of our 2004 points, so we rented out some of them and planned to bank the rest.

BUT then I got to visit with my parents in September and rode Mission: SPACE. Now we've borrowed again, so that DH and DD and I can make a lightening trip in February to ride MS together!

So, you never know -- don't feel bad about borrowing! It doesn't cost you anything extra! You just might have to plan carefully -- like we will, so we'll have all our 2006 - 2007 - and 2008 points available to take my whole family to WDW in 2007.

 

[MelissathePooh]

In some ways borrowing makes the most sense of all. Then you'll never lose points. We figure as we get close to the end of the contract or just as the years go by even, we'll always borrow ahead to make sure we get to use all of our points while everything is in good condition and we still want to go frequently.