Buy in Small, Add-on Large??

[cashout]

I am in the early stages of contemplating a DVC purchase, and am wondering if their would be a benefit to buying in through a small 25-50 pt re-sale purchase, and then adding on through Disney.
Would their be any savings in the later add-on purchase through Disney that would not available if I already owned a small interest, or would it be better if I purchased a full 160 pt contract through Disney up front? Thanks.

 

[1000th happy haunt]

One advantage that I see is if you add-on direct with Disney, there are no closing costs. We've added on twice, both small add-ons (60 points and 40 points), and since there were no closing costs, it ended up being more cost effective to add-on directly with Disney.

But I don't know how that would work for a larger add-on, since Disney's cost is much higher than resale.

 

[nunzia]

I bought initially very small through resale. My per point cost was good (78.00) but since the closing and admin costs were so high it worked out to quite alot in relation to points. However, I plan a larger add on with Disney when DGC comes available. Since there is no closing costs for add ons, I think it's a good deal, plus with add ons I can choose number of points and never be locked into that 160 point minimum if I'd started with Disney.

 

[senecabeach]

Smaller contracts thru a reseller are usually more $$$ and hard to find.
Add ons later will be more $$$..whomever you go thru.
How long do you normally stay? What will 25-50 pts. really get you, how long/short will the stay be & where.
Take the plunge, but, buy what you can afford.

 

[epicureangirl]

Personally, unless you are set-on getting one of the new resorts and getting developers points I would 'reverse' your strategy.

I would buy the large contract first, through resale (yes, you pay closing but would save quite a bit of money on a large contract) and then go directly to Disney for any add ons.

Disney has first-crack at those small contracts through ROFR, so could probably get you what you need even though you may be on a waitlist.

Have you decided on your resort (or resorts) yet and how many points you need at each to complete the type of reservations you plan to make?

Disney will push SSR and AKV at you, since that's the inventory they have, if you want the other resorts you may want to go directly through resale and PICK what point amount you want to buy -- 160 point minimum is only when buying as a first-timer directly through Disney.

Good luck on your DVC purchase!

 

[chalee94]

yeah, larger resale contracts are generally cheaper than large add-ons and DVC offers more promotional deals for initial buy-ins of 160 pts or more than they typically offer for add-ons (although if you buy at least 100 pts, you may qualify for a discount.)

i don't see any advantage to what you are proposing...

if you would need to borrow to buy 160 pts and can get by for a few years with 50-60 pts a year, it's a good strategy to only buy what you need and avoid paying unnecessary interest. but for the most part, the least expensive option is to buy a larger resale contract for the amount of points you would typically use...(even if it takes a little longer to close than going directly through DVC.)

 

[squidmo]

I can see two advantages to buying small first, then doing a larger add-on later.

1) By already being a member, you can break up the larger "add-on" into multiple small contracts. This way in the future if you want or need to sell some of your points, or hand them down to your children, you have more flexability.

2) If you have your heart set on a new property (AKV, or the coming properties), you aren't going to be able to easily buy resale for a while, and as an existing member Disney foots the closing costs.

We actually are in the process of doing this (small to big)- we became members last year with a small resale contract, and will be doing a large add-on as soon as GCV is available.

 

[drusba]

The only time period I am aware of where it might have been advantageous to buy in small somewhere and then add-on through Disney elsewhere was in the first half of 2007 when they were selling AKV before it opened. For a while the price of AKV for exisitng members was $101 per point with an eight dollar per point reduction if you bought 100 points or more as an add-on while the price to new purchasers was $103 with a eight dollar per point reduction, meaning an existing member could buy for $93 a point while a new purchaser paid $95 per point. Thus, if you bought a small-add on at one of the other resorts in, say, March 2007, you could have then added on large at AKV in May 2007 at the lower member price. That difference in price ended in June 2007 (add-ons went to the $103 price) and there are no price differences now for exisitng versus new members and that is the only time I am aware of where such a price difference existed.

 

[bblanch]

I vote for buy in small, add-on multiple smalls over time until you're comfortable with the amount of points.

 

[epicureangirl]

I don't see anywhere that the OP isn't comfortable with buying a lot of points, or the cost. I thought they were strictly talking about possible cost advantage or penalties if they bought a small contract and then bought a larger contract directly from Disney.

I don't know why someone would want to do the resale route first, and pay way too much in closing fees on a tiny contract, THEN buy a large amount direct from Disney and pay way more per point then resale. If it was a resort not being offered, maybe. Purely from a cost perspective, it would be cheaper to buy big resale and small add ons direct from Disney, no?

But as someone suggested, if they want more than one resort, maybe they should split their large contract into smaller chunks... still which resorts are they pricing out?

 

[boettj]

My DW and I purchased at SSR from The Timeshare Store in 2006. However, I was looking to add more points say 50 or even 100 at Beach Club Villas. If I do so, then how does that effect my annual fees?

 

[chalee94]

My DW and I purchased at SSR from The Timeshare Store in 2006. However, I was looking to add more points say 50 or even 100 at Beach Club Villas. If I do so, then how does that effect my annual fees?

what do you mean? you just add 50 (or 100) times the BCV annual fee per point of $4.80 on top of what you're already paying.


historical annual fees, if you're curious:

Year OKW BWV VB VB(sub) HH VWL BCV SSR AKV
2008 4.56 5.04 6.04 4.71 5.16 4.87 4.80 4.21 4.71
2007 4.40 4.85 5.63 4.39 4.98 4.73 4.63 4.12 4.62
2006 4.24 4.69 5.27 4.12 4.34 4.61 4.48 3.98
2005 3.86 4.41 4.87 3.84 3.86 4.35 4.27 3.83
2004 3.68 4.25 4.67 3.67 3.70 4.22 4.18 3.80
2003 3.49 4.11 4.37 4.37 3.69 4.05 3.97
2002 3.22 3.92 4.17 3.33 3.49 3.80 3.77
2001 3.13 3.83 3.98 2.70 3.32 3.63
2000 3.16 3.94 4.07 2.87 3.25 3.62
1999 3.16 4.02 3.99 2.82 3.18
1998 3.17 3.94 ---- 2.76 3.20
1997 3.14 3.84 ---- 2.90 3.16
1996 2.99 3.70 ---- 2.82 3.16
1995 2.84
1994 2.70
1993 2.63
1992 2.56
1991 2.51

 

[50 years Too!]

I started out less than two years ago with a 70 point BCV resale.
I now own 740 points! It's addictive. But as someone else mentioned,
smaller contracts are easier to sell if, heaven forbid, I need to do that.
I also have two children that might someday want contracts, but may not be able to afford the dues on a large contract, or have the vacation time or desire to go more than every other year or more.
My smallest contract is 30 points and my largest is 110. All same UY.
I might decide to sell some points to buy Grand Cal or maybe in a few years I'll decide I don't need so many points. Right now I am loving the fact that I have 4 trips planned and am going to treat extended family in a few years.
Long story short--lots of advantages to small contracts.

Deb

 

[boettj]

what do you mean? you just add 50 (or 100) times the BCV annual fee per point of $4.80 on top of what you're already paying.


historical annual fees, if you're curious:

Year OKW BWV VB VB(sub) HH VWL BCV SSR AKV
2008 4.56 5.04 6.04 4.71 5.16 4.87 4.80 4.21 4.71
2007 4.40 4.85 5.63 4.39 4.98 4.73 4.63 4.12 4.62
2006 4.24 4.69 5.27 4.12 4.34 4.61 4.48 3.98
2005 3.86 4.41 4.87 3.84 3.86 4.35 4.27 3.83
2004 3.68 4.25 4.67 3.67 3.70 4.22 4.18 3.80
2003 3.49 4.11 4.37 4.37 3.69 4.05 3.97
2002 3.22 3.92 4.17 3.33 3.49 3.80 3.77
2001 3.13 3.83 3.98 2.70 3.32 3.63
2000 3.16 3.94 4.07 2.87 3.25 3.62
1999 3.16 4.02 3.99 2.82 3.18
1998 3.17 3.94 ---- 2.76 3.20
1997 3.14 3.84 ---- 2.90 3.16
1996 2.99 3.70 ---- 2.82 3.16
1995 2.84
1994 2.70
1993 2.63
1992 2.56
1991 2.51

Ok, I have 175 now with SSR. Should I add 100 points at BCV then my fees would be:

175 X 4.21 = 736.75 for SSR
100 X 4.80 = 480.00 for BCV
totaling 1216.75.


Jason

 

[chalee94]

Ok, I have 175 now with SSR. Should I add 100 points at BCV then my fees would be:

175 X 4.21 = 736.75 for SSR
100 X 4.80 = 480.00 for BCV
totaling 1216.75.


Jason

yep, there may be a small adjustment down since you're not buying on jan 1, but that's basically it...

 

[boettj]

yep, there may be a small adjustment down since you're not buying on jan 1, but that's basically it...

Thank you. We are not adding on just yet. Though, I did see 100 points on The Timeshare Store's site for $86/point. I just don't want to spend my tax return that will be coming in Feb and my Q4 bonus on that. I have some more pressing needs.

Does anyone have any recommendations for adding either 50 or 100?

Maybe I should start my own thread instead of hijacking this one. Sorry about that.

 

[keishashadow]

Thank you. We are not adding on just yet. Though, I did see 100 points on The Timeshare Store's site for $86/point. I just don't want to spend my tax return that will be coming in Feb and my Q4 bonus on that. I have some more pressing needs.

Does anyone have any recommendations for adding either 50 or 100?

Maybe I should start my own thread instead of hijacking this one. Sorry about that.

get on their "call list" for the #of points you'd be interested in buying via resale

or

tell your guide the same 25 min (cash), think it needs to be 50 if you want to finance?

note: smallish contracts tend to fetch much higher per point averages than the big ones; evidently plenty of people who bank & borrow or transfer

 

[mdorgan]

.
Long story short--lots of advantages to small contracts.

agree...

 

[dheinle]

Well for me, I couldn't spend / didn't want to finance 160 points. So we have been looking at small re-sales where I can pay cash to become a member. And then do small add-ons based on yearly bonus's.

If you can afford 225 points you get 160 developer points free right now.

We have been looking for about 6 weeks and just found the perfect resale for us.

Dennis

 

[boettj]

Well for me, I couldn't spend / didn't want to finance 160 points. So we have been looking at small re-sales where I can pay cash to become a member. And then do small add-ons based on yearly bonus's.

If you can afford 225 points you get 160 developer points free right now.

We have been looking for about 6 weeks and just found the perfect resale for us.

Dennis

Yeah we were able to buy 175 points from The TimeShare Store. No financing thank god.

DVC is addictive for me. 175 is just shy of a 1 bedroom for us. We would like to add enough to get into a 1 bedroom for now. And then later down the road say 4 years when our DS becomes a teenager, add enough points for 2 Bedroom.

That's the plan. If I could sell our Cypress Pointe week, we might up our time frame.