Buying Multiple Contracts via Resale?

[calleger]

I am 100% certian I am not the first genius to think of this, however, I would like to know if it works.

The resale market for the non-Disney Land/World DVC locations is obviously much weaker than the on property locations. Has anyone tried purchasing the bulk of their points from Vero Beach (for example) and then purchasing a small contract for their perferred DVC resort?

The primary purpose would be to transer all the points from the cheaper contract onto the preferred DVC location when setting up a reservation.

In the end, it really is just pinching pennies. I was wondering if anyone has tried this approach and what the result was.

 

[SFlaDisneyfans]

I had the same idea when I started my research. I found two issues (up to you if they are deal breakers for you). One - The higher MF times the large block of points will increase your long term costs. Second - the "possibility" Disney could eventually remove the perk of using your points at any resort.

Those were the two potential downfalls I saw. For the money, I would suggest buying at SSR (if price consideration is the major component of your search criteria). The price per point is not "that" much larger than VB, and the MF is substantially smaller (which will over the long haul cover the price per point difference).

 

[DisneyRegulars]

I'm pretty sure if you transferred points from your Vero Beach contract to lets say a BWV contract, you would only be able to use the VB points at the 7 month mark. The transferred in points wouldn't magically become BWV points available for use at the 11 month booking window. So the small onsite contract wouldn't really help you any, you'd still have to wait for the 7 month booking window to use the other points.

 

[robinb]

I am 100% certian I am not the first genius to think of this, however, I would like to know if it works.

The resale market for the non-Disney Land/World DVC locations is obviously much weaker than the on property locations. Has anyone tried purchasing the bulk of their points from Vero Beach (for example) and then purchasing a small contract for their perferred DVC resort?

The primary purpose would be to transer all the points from the cheaper contract onto the preferred DVC location when setting up a reservation.

In the end, it really is just pinching pennies. I was wondering if anyone has tried this approach and what the result was.

I don't think that will work. I believe the transferred points retain the original resort priority and use year when transferred.

Another thing to consider is that while Vero Beach's resale prices are quite low, the maintenance fees are quite high compared to the other resorts. Look here for a history of fees: http://www.disboards.com/showthread.php?t=2823943 If you keep your contract long enough there will come a time where your total outlay for VB will be more than if you purchased a resort on WDW property.

 

[calleger]

I think the fees alone would be enough of a turn off. In the end that would be like bending over to pick up pennies while dollars fly over my head.

Thanks for the quick response.

 

[dbs1228]

You would not have to buy onsite small contract at all since any transferred points retain their home resort and UY. You would not be able to book any resort on site until the 7 month mark (except the small onsite contract you are thinking about) which you could do anyway with just VB points. If you did have a small on site contract you would be able to use those points and only those points to book at 11 months out. You could potentially use 3 years worth of onsite points to complete a reservation. Again MF at VB are high.

 

[disneynutz]

Disney has all of the bases covered. Buy where you love to stay.

Bill

 

[chalee94]

I am 100% certian I am not the first genius to think of this, however, I would like to know if it works.

The resale market for the non-Disney Land/World DVC locations is obviously much weaker than the on property locations. Has anyone tried purchasing the bulk of their points from Vero Beach (for example) and then purchasing a small contract for their perferred DVC resort?

disney was way ahead of you.

if you buy 300 VB pts and 25 BLT pts and want to book BLT at 11 months out...you'll only have access to that 25 pt BLT contract while the VB pts are on the sidelines till the 7 month window.

you can transfer those VB pts or bank them or borrow them...but they are still going to be VB pts and useless for booking anywhere but VB at 11 months out.

 

[twinsouvenirs]

EDITED FOR DISCLAIMER-- my assumptions on increase may be afield. I did some calculations at VB is only a 4.54% average increase annually... Beach Club is 3.74% and SSR is 2.66%. The general ratio is still accurate though.

One - The higher MF times the large block of points will increase your long term costs.

This to me is the biggest reason. Long term, the %10-20 the initial amount is only %10-20 the cost of DVC ownership. You'll have matched the upfront cost very quickly in membership fees. Also, I was told that the seaside off resort properties have a higher rate of increase year to year on maintenance fees because of increased weathering due to location.

Estimated maintenance fees with %7 increase per year on Vero Beach at $42 a point for 160 points over the 29 year contract: -$103,565.16

Estimated maintenance fees with %5.5 increase per year on Beach club at $83 a point for 160 points over the 29 year contract: -$61,215.79

Total 29 yr cost to own Vero with those assumptions? -$110,285.16
Total 29 yr cost to own the more expensive Beach Club? -$74,495.79

I could add in SSR but you have to remember there are 12 more years on that contract.

So Total 41 yr costs for SSR (assumption is $60 a point, %3 yearly MF increase because of size and lack of specialty maintenance--i.e. Stormalong Bay for Beach Club)
= -$70,142.63. Less than the BC membership, and with 12 more years.


Mainenancy fees

Second - the "possibility" Disney could eventually remove the perk of using your points at any resort.

).

I read this as contractually guaranteed as a part of the point system, at least until the expiration of each resort?

 

[Missyrose]

I read this as contractually guaranteed as a part of the point system, at least until the expiration of each resort?

It's possible Disney could remove one of beach resorts from the club (VB or HHI) if a storm damages them.

 

[Deb & Bill]

If you want to book anything but late Jan to mid-Feb (but not MLK holiday), early May, late Aug to mid-Sept, you'll want an onsite resort as your home resort. It is getting harder and harder to book onsite at seven months out unles you don't mind moving around a few nights here and a few nights there and still a few more nights at a third resort.

Buy VB is you want a Beach Cottage or any villa at VB during summer months.

 

[Dean]

I am 100% certian I am not the first genius to think of this, however, I would like to know if it works.

The resale market for the non-Disney Land/World DVC locations is obviously much weaker than the on property locations. Has anyone tried purchasing the bulk of their points from Vero Beach (for example) and then purchasing a small contract for their perferred DVC resort?

The primary purpose would be to transer all the points from the cheaper contract onto the preferred DVC location when setting up a reservation.

In the end, it really is just pinching pennies. I was wondering if anyone has tried this approach and what the result was.

For WDW, the only advantage you'd get would be somewhat cheaper points but higher fees. The long term costs compared to say SSR will almost certainly be higher for HH and much higher for VB and you've given up any chance of an 11 month window. Now if one wants HH or BG, that's a different matter but just to get cheaper points it's not a reasonable choice even if you can find a subsidized VB contract for the cheaper price. If DVC makes sense for anyone and WDW is their focus, just buy the cheapest on property options, almost always SSR when looking big picture.