Buying more than a fixed week

[Doberge]

I'm curious how points "on top" of a fixed point contract are sold and managed.

For example, I believe Riviera week 52 standard studio costs 196 points, so if wanted 4 more points to reach 200 discount threshold, how are the 4 points sold and managed? Would it be a separate contract and require separate closing? Thrown into the fixed week contract for one closing? Or maybe not allowed at all because only 4 points?

 

[Lorana]

Excellent question. I imagine you’d be restricted to the same minimums for an add-on contract, which would mean 25 points minimum for extra points, 50 for Riviera, but it’s also possible they’d make an exception? After all, the direct sales statistics show that some folks have added on 25-point Riviera contracts and my guide had told me that 50 was the minimum even when paying cash.

 

[Sandisw]

From what I understand, the fixed week is its own contract. I don’t believe you can add more points to it.

 

[cmrdgrs]

From what I understand, the fixed week is its own contract. I don’t believe you can add more points to it.

I agree Sandisw -- a fixed week contract would be a stand alone contract. A person can't own a fixed week with more points than needed to fulfill the fixed week contract.

 

[cmrdgrs]

I'm curious how points "on top" of a fixed point contract are sold and managed.

For example, I believe Riviera week 52 standard studio costs 196 points, so if wanted 4 more points to reach 200 discount threshold, how are the 4 points sold and managed? Would it be a separate contract and require separate closing? Thrown into the fixed week contract for one closing? Or maybe not allowed at all because only 4 points?

You could buy the 196 point fixed week, but than you would have a separate contract for an additional amount "on top" to reach the discount threshold. You'd have to talk to your guide to see how small that second contract could be, but I'd guess it might be 50 points.

ETA: Yes the "on top" of contract to the fixed week would be a separate contract with a separate closing cost.

 

[Duckbug.Ducktales]

I believe @sethschroeder did something similar where he needed 3 or so points on top of his FW and it was allowed

 

[Roughians_satchel]

Does the discount apply to FW contracts? I thought those were priced higher - are they currently at the going rate?

 

[Duckbug.Ducktales]

Yes, for CCV and RVA there discounts count for the FW contracts!

 

[Lorana]

Yes, can confirm that FWs get the discount, as I added on 2 FWs at CCV and then added on at RIV to hit the 300-point mark across all of them and was able to get the discount for all of them

 

[sethschroeder]

https://www.disboards.com/threads/a...iv-ccv-aul-charts-vgf-poly-no-charts.3806985/
You can absolutely have more points on a Fixed Week but it has to do with needing additional points for a pricing incentive that would be too small of a contract. All points are consumed for the fixed week and will only get your full points if you cancel your fixed week.

I have 2 Fixed Week contracts currently one of which was a Fixed Week #48 in a preferred studio. Based on it being 147 points I would have ended up with 297 (with my FW#49).

I told them they either could:
Give me the discount for 297
Give me the extra 22 points to get to a 25 point contract (minimum)
Let me buy 3 extra points on the contract

They came back with the extra 3 points. I was also offered Fixed Week 50 which was 130 points and again there they would add on 20 points, I didn't go for it because of only getting the 20 points back if you cancel the Fixed Week.

Talk to your guide about wanting the 200 point discount and ask them to apply it to the contract or give you the option to add on 4 points. If your guide will not do that then PM me and I can give you my guides information.

 

[Doberge]

https://www.disboards.com/threads/a...iv-ccv-aul-charts-vgf-poly-no-charts.3806985/
They came back with the extra 3 points. I was also offered Fixed Week 50 which was 130 points and again there they would add on 20 points, I didn't go for it because of only getting the 20 points back if you cancel the Fixed Week.

EDITED TO REDUCE CONFUSION.

I read the link and it makes more sense, the extra "top off' points are only given back if cancelling the fixed week, so one would get *both* the FW points and "top-off" points. But using the fixed week means essentially not receiving the 4 top-off points. Essentially it becomes paying for more points than necessary for the fixed week, but paying less because of the discount threshold. Is this correct?

This seems to make my idea of 196 for week 52 and topping off with 4 still a good idea, especially with Riviera fixed weeks selling at 2020 chart values when it'll be more expensive in 2021, meaning "losing" 4 points by using the fixed week isn't bad.

 

[cmrdgrs]

For me, personally, I wouldn't add 4 extra unneeded points to a fixed week. I thought there was already a "premium" of 10% more added to fixed weeks. I understand that you would get a discount for hitting a threshold, but I'd rather just have an additional 25 point contract that is separate from the fixed week.

That's just me, I get that this decision my make sense to you.

 

[Doberge]

For me, personally, I wouldn't add 4 extra unneeded points to a fixed week. I thought there was already a "premium" of 10% more added to fixed weeks. I understand that you would get a discount for hitting a threshold, but I'd rather just have an additional 25 point contract that is separate from the fixed week.

That's just me, I get that this decision my make sense to you.

I'm thinking most years I won't use the FW buy will decline to use the points. We've been considering 200 points so I've been weighing 200 in one contract, splitting into two 100 point contracts, or a popular FW with a few on top.

I hear about the baked in premium, but it's somewhat reduced by point chart increases next year while fixed week charts have not changed (yet). In 2021 the last week of the year through January 31, encompassing all of week 52, goes up 1 point/night. So it really depends which week is chosen, at least to my understanding.

 

[CarolMN]

I assume you would pay the maintenance fees on the extra fixed week points, too.

 

[sethschroeder]

EDITED TO REDUCE CONFUSION.

I read the link and it makes more sense, the extra "top off' points are only given back if cancelling the fixed week, so one would get *both* the FW points and "top-off" points. But using the fixed week means essentially not receiving the 4 top-off points. Essentially it becomes paying for more points than necessary for the fixed week, but paying less because of the discount threshold. Is this correct?

This seems to make my idea of 196 for week 52 and topping off with 4 still a good idea, especially with Riviera fixed weeks selling at 2020 chart values when it'll be more expensive in 2021, meaning "losing" 4 points by using the fixed week isn't bad.

Correct and week 52 is a good week because if I am not mistaken it's already cheaper but you would have to check.

For me, personally, I wouldn't add 4 extra unneeded points to a fixed week. I thought there was already a "premium" of 10% more added to fixed weeks. I understand that you would get a discount for hitting a threshold, but I'd rather just have an additional 25 point contract that is separate from the fixed week.

That's just me, I get that this decision my make sense to you.

Actually with point changes going on depends on time of year if it's 10% or not. Like all the early December dates got point increases which drops it down.

You might find over time that these fixed weeks are even less than the point chart.

Getting the extra points is fine if you want them but an extra 20 points is another 3k or more plus the MFs.

In 2021 as an example that week 52 if you just booked it yourself would be 196 so no real premium. I would expect we see point increases to all December dates in future point charts.

 

[sethschroeder]

I assume you would pay the maintenance fees on the extra fixed week points, too.

Correct you pay the full MFs. It works in situations where you won't use the FW every single year.

If you are using the FW 50%+ then it's really a math equation of discount vs extra points vs higher up front cost.

For me it was simply about an alternative fixed week which only falls to first full week of December like 20% of the time my other fixed week is the other 80% of first weeks of December.

 

[Duckbug.Ducktales]

To chime in here and reiterate what I think is an important point: the FW uses the 2020 point chart, so in certain seasons that are going up in points in 2021 (a trend that may continue in 2022 and beyond) the 10% premium is much lessened. I have fixed week 48 which costs 120 pts--in 2021, that only comes at a 1 point premium!

For the OP, you could consider the 4 pts part of the premium for the FW, which might still be a good deal depending on your circumstances. Even if you never use the FW and just always have your points free (by cancelling the FW every year), I would still get the FW because I think it will increase the value of your contract.

 

[Doberge]

I would still get the FW because I think it will increase the value of your contract.

The value is where I'm currently hung up, whether a ~200 point FW or two 100 point contracts would sell for more per point resale. There's very little FW data.

 

[Duckbug.Ducktales]

The value is where I'm currently hung up, whether a ~200 point FW or two 100 point contracts would sell for more per point resale. There's very little FW data.

Ah, good point. Yes, we don't really know. What I would do is think about whether I would use the FW often. If my family gets to have our preferred vacation guaranteed, then it's worth it regardless of resale value (in my book!). But if you're mostly getting the FW to safeguard resale value, I would do the 2 100s instead as it seems safer to me. Or you could do a different FW.

My sense is that you would use the week often if you were even considering it.

 

[cmrdgrs]

The value is where I'm currently hung up, whether a ~200 point FW or two 100 point contracts would sell for more per point resale. There's very little FW data.

I've been an owner since 2006 and own 13 contracts - IMO you would be much better off with 2 100 point contracts or even 4 50 point contracts. It gives you maximum flexibility down the road if you want to sell off a few points, but keep some points. 50 point contracts are always desirable on the resale market.

You will pay closing on 4 contracts, this is the #1 reason people don't want to split contracts up in tbis way.