Buying small contract resale and reservation transfer?

[hroyale]

Hi,
We've rented DVC points for stays for the past three years. We've had great experiences but would rather have the reservation in our own names, especially now that you have to pre-pay for the dining plan.

So... If we were to buy a small contract resale (say 50 points or even smaller) could we rent the extra points we'd need for a trip and still have the entire reservation in our name since we'd be DVC owners or would the renter still have to control the part of the reservation made with their points?

I've seen "reservation transfer" listed in the rental boards so I'm thinking that's what we would need to do.

Thanks,
Heather

 

[Granny]

If the points are transferred to you, the entire reservation will be one reservation.

If part of the reservation is made by someone else, you will have two reservations.

 

[dzorn]

And members are only allowed one transfer per year.

Denise in MI

 

[FindingFigment]

I think a reservation transfer means someone has a reservation that they're not going to be able to use and they're trying to rent it out. When you go that route, you're stuck with the dates they've already chosen.

What you're wanting is just a "transfer". And that essentially means buying points from another member and they transfer them to your account. When I first I started out, I thought I was brilliant to come up with that same exact plan. Buy a small contract and then just pay to someone for transfer points. But like PP mentioned, you're only allowed one of those per UY and most people are only willing to do that for a minimum of 100 points (sometimes more) so it could be tricky to rely on. And from watching the R/T board, it looks like (on average) you'll pay a little more for transfer points than rented points.

After playing with the numbers, I decided if one can afford the initial buy-in price and you KNOW you're going to be vacationing at Disney at least every other year, then it's cheaper in the long run to just go ahead purchase a contract with the points you need. After you pay off the buy-in price, then you're only paying about $5 per point per year (depending on the resort you choose) whereas the tranfer price will average abotu $11 per point.

So for example, if you need 200 points per vacation, then the price you'd pay per year if you owned 200 points would be about $1000 as opposed to $1900 ($250 in MF's for the 50 points you own plus $1650 for the points you bought from another member).

So if paying an extra $900 per year is worth it to you to not buy a contract, then it could work. But over a 20 year period, that's $18,000 you could've saved by buying.

Just something to think about.

 

[hroyale]

Thanks everyone.

I figured my plan was a little too easy. I'll stick to renting until I can save up to buy the points I really need.

Thanks again,
heather

 

[FindingFigment]

Thanks everyone.

I figured my plan was a little too easy. I'll stick to renting until I can save up to buy the points I really need.

Thanks again,
heather

My example may be flawed because you really do need to take into consideration how much it costs to buy-in.

If you were thinking of buying resale, then your plan might be the safer route (in light of the new announcement made today) at least until we see if Disney takes any further steps to devalue to the resale market.

 

[ldo]

for someone who is going to rent DVc points, being a small points owner and points transfer is actually a pretty alternative to renting. Although you can only have 1 transfer per year, if you know about how many points you need for the next year or so, it is pretty easy to get a points transfer--cost is about the same as renting and you control the points. You can get a transfer for the exact resort you want to get 11 month booking advantage. I have small contract and we were going to add-on, but then decided to wait another year or so to see where we wanted to add-on. I did a points transfer and it worked really well. You are the "owner" of the points, so you can make reservations/cancel/rebook, etc., plus you can bank transferred points, if it turns out you can't use them that year. You can call for DDP, ME, add names, etc.--and I like having that DVC card for myself! If you are committed to going to DVC and are going to rent anyway, I would highly recommend getting a small points contract. Also, be aware that for resales, closings after 3/20/11 wil not be able to use other things like DCL, etc.--see posts regarding this--but for a small contract, it probably doesn't matter.