Buying 2 smaller contracts direct vs one larger

Rustygirl84

Momma, wife, nurse
Joined
Jun 18, 2020
So I purchased my first resale contract over the summer. I am kind of kicking myself for not buying direct when the min was 100 points. My question is would you buy 2 smaller contracts? 1. 50 point and 1 75 point or just go all in with the full 125 points?


Please don’t start a debate over is it worth it buying direct or just buy resale. I think that is discussed on almost every thread on here and I am well aware of the price differences. But when they bring back the AP, I am hoping to take advantage of it, with a family of 5, every little bit helps.
 

The Jackal

DIS Veteran
Joined
Oct 24, 2017
If you split it you will be paying 2 closing costs. But the smaller contracts when and if you sell usually bring a higher price per point than 100+ point contracts. If you sold either of them you would lose Blue card status, but remain eligible to use the points at all resorts. One contract is easier to maintain and use, two is a slightly more difficult, but once you figure it out it is OK. We own 4 contracts, 150, 100, 75 and a 25, with one being at a different resort. It is personal preference. If I was buying 400 or so points, I would break it up to smaller ones. 125, probably not. Good luck and hopefully Welcome Home soon.
 

RoseGold

DIS Veteran
Joined
Jan 21, 2020
I don't know if they allow you to split that small. If they do, it's a no brainer to me.

1. You can downgrade and sell one if you want less DVC
2. Smaller resale contracts are easier to sell and go for higher rates.
3. You can estate plan better with multiple kids.
 

Rustygirl84

Momma, wife, nurse
Joined
Jun 18, 2020
Yea, I am on the fence right now. We have plenty of points purchased resale and we saved a lot of money that way. I have a direct contract for the full 125 points but I am thinking of canceling it.
 

Lumee23

Earning My Ears
Joined
Jan 16, 2014
We are debating this as well mostly for some extra resale value protection and potential downgrade options. I haven't decided if it is better to give each kid their own smaller contract or have them share all of the contracts we buy but if we split it smaller at least the option is still there. I think the extra cost is $600 for each split? Can anybody confirm?
 

Rustygirl84

Momma, wife, nurse
Joined
Jun 18, 2020
My closing costs for the 125 paying cash was $395 if financing, the guide said it would be $595 round about
 

princesscinderella

DIS Veteran
Joined
May 27, 2011
I think it also depends on what resort you are buying direct. I think for RIV the smaller contracts will hold their value better than larger because current DVC owners would buy there resale knowing they can only use them there. They wouldn’t be saddled with a big contract there with the potential to not be able to use their points during high demand times when the competition can be fierce.
 

Rustygirl84

Momma, wife, nurse
Joined
Jun 18, 2020
I actually just did this today! I bought 2 75 point direct contracts at OKW. The only extra charge is an additional 250. document fee for the additional contract, which I thought was well worth it.
I am going to cancel my 125 point contract and do it this way. I was buying into AKV and I am going to ask to have it broken up into 2 smaller ones. Thanks
 

princesscinderella

DIS Veteran
Joined
May 27, 2011
I am going to cancel my 125 point contract and do it this way. I was buying into AKV and I am going to ask to have it broken up into 2 smaller ones. Thanks
I think it’s a good choice 😊. I love AKV and have 125 points there myself. We bought those resale but our direct VGF we broke up into three 50 pt contracts for each of our kids later on.
 

vicarrieous

DIS Veteran
Joined
Feb 12, 2015
I am going to cancel my 125 point contract and do it this way. I was buying into AKV and I am going to ask to have it broken up into 2 smaller ones. Thanks
So exciting doing this while you wait for your BCV one to come through! Making me jelly hahhaha. One thing to think of, if you sell one of your 75 point contracts will you use blue card benefits?
 

Lorana

DIS Veteran
Joined
Jan 30, 2001
So exciting doing this while you wait for your BCV one to come through! Making me jelly hahhaha. One thing to think of, if you sell one of your 75 point contracts will you use blue card benefits?
Yes, you’d lose blue card benefits if you did.

I’m a fan of small contracts. They command more money if you have to sell, and if you’re in a situation where you need to reduce DVC ownership, you can sell 1 contract and keep the other.
 

KSR0330

DIS Veteran
Joined
Jan 1, 2015
So my guide just called and said that quality assurance told him that if I buy 2 75 points, I wouldn’t get the member benefits because at least 1 contract has to be 125 pts.
 

Momtomouselover

DIS Veteran
Joined
Jun 10, 2009
So my guide just called and said that quality assurance told him that if I buy 2 75 points, I wouldn’t get the member benefits because at least 1 contract has to be 125 pts.
Huh. That would be a new policy then (or you were given errant info). I asked this question last year of my guide and was told it was cumulative.
 

Rustygirl84

Momma, wife, nurse
Joined
Jun 18, 2020
So my guide just called and said that quality assurance told him that if I buy 2 75 points, I wouldn’t get the member benefits because at least 1 contract has to be 125 pts.
yea, I think they are mistaken. My guide just verified that I can buy the 75 now and then add the 50 later on to get the benefits.
 

KSR0330

DIS Veteran
Joined
Jan 1, 2015
That’s right, because you would have a contract with 125 points. I wouldn’t have a 125 point contract, just 2 75s.
 

Rustygirl84

Momma, wife, nurse
Joined
Jun 18, 2020
That’s right, because you would have a contract with 125 points. I wouldn’t have a 125 point contract, just 2 75s.
mhmm, I just changed my contract to 75 from the 125 and then I am buying another 50 point contract the end of summer. My guide said that as long as it adds up to 125, it doesn’t matter how many small contracts you buy. They all equal 125 total and you would therefore qualify for the blue card. I have this in writing from him as well.
 

4luv2cdisney

DIS Veteran
Joined
Mar 30, 2008
That’s right, because you would have a contract with 125 points. I wouldn’t have a 125 point contract, just 2 75s.
Pretty sure your info is incorrect. Unless they've made a sudden change and haven't updated their documents.

From Disney Vacaton Club website:

Important Information about Membership Extras:

Membership Extras, such as vacation options in the Disney and Concierge Collections, certain discounts, offers, and special events are incidental benefits. These incidental benefits are subject to change or termination without notice, may require the payment of a fee and cannot be combined with any other offers or promotions. Membership Extras are also subject to availability and block-out dates may apply, including high periods of demand such as Christmas and New Year’s Day. To receive any Membership Extras, purchasers must present a valid Disney Vacation Club Membership Card along with a corresponding valid photo ID. Effective October 19, 2020, to obtain a Disney Vacation Club Membership Card, Members must accumulate a total of at least 125 Vacation Points purchased directly from Disney Vacation Development, Inc. Disney and Concierge Collections options are not available for ownership interests not purchased directly from Disney Vacation Development, Inc. after March 21, 2011, and, effective April 4, 2016, Members who have not purchased an ownership interest directly from Disney Vacation Development, Inc. will not have access to Membership Extras.

****key word being accumulate***

If I were you and have a real interest in buying, I would email the guide with a direct link to the information and ask him to define accumulate.

 

Lisa_M

DIS Veteran
Joined
Feb 25, 2006
I don't know if they allow you to split that small. If they do, it's a no brainer to me.

1. You can downgrade and sell one if you want less DVC
2. Smaller resale contracts are easier to sell and go for higher rates.
3. You can estate plan better with multiple kids.
We did this in September with two 50 point contracts for the above reasons. It was about $250 more if I remember correctly in closing to do this.
 

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