Can I Get into DVC With a resale purcase of 50 pts?

[tootsiemolly]

My husband and I toured DVC while in DW this last week. I absolutely love it. My husband does not have the disney bug, and is not wanting to purchase. We have had a terrible last 2 years financially. We had to file Bankruptcy on our Buisness and close it in 2002. This spring my husband started a new job and is making really good money. He is in Sales so some months may be 20K and some may be 6K. He thinks we need to continue saving for our 3 children's college and retirement etc. So, when we got home last night I started reading this board. I am wondering based on the info provided above, and the fact we live in Utah. Can I start out with a resale purchase of 50 pts. then if we only go everyother year I don't feel like I have made such a huge commitment. The other question I have is am I buying someone elses contract. If I buy Saratoga I pay 85 a pt. but I have it for 50 years. If I but OKW at 72 a pt. if the person I bought if from has had it since 1991. Do I only have 20 something years left? any help would be greatly appreciated.

Thanks!!!

 

[dianeschlicht]

First of all, yes, you can buy a small resale, but beware that a small contract limits you to the benefits of DVC. If you only have 50 points each year, you would probably need to bank one year into the next and then use those two years of points plus borrowing from the following year to make a reservation. That would give you up to 150 points to use at one time. You will not be able to trade out to other areas, because you will not have enough points for that. It will be basically just for use at WDW.

As to expiration...All resort contracts sold prior to SSR end on 1/31/2042. SSR will have an extra 12 years. It isn't an issue for us, because by 2042, Ill be pushing 95 if I'm still around!

 

[tootsiemolly]

So, does that mean I have to have a balance of 150pts. Before I can make a reservation? In my uninformed head. I thought I would buy 50 pts. Then I could stay at OKW resort on a Sunday-Thursday stay for 40 pts. Then bank 10 pts for the 2nd year. Will that not work?

 

[dianeschlicht]

No, you can make a reservation for whatever amount of points you have, but if you are going that far, I would think you would want to stay in something other than a studio. Especially since you have 3 children, and will need at least a 2 bedroom as soon as one of them is over the age of 2. The occupancy of a studio is 4 plus one child under age 2.

 

[ArnyVee]

Currently we only have a 75 point contract that we purchased via a reseller. The key is to look for a contract that has 'banked' points. It's a big benefit because it lowers your cost per point and you can also take trips right away if you were planning on 'banking' and 'borrowing' to have enough in any given year to plan a trip.

Take a look at the point totals required for your particular stays and then get started! I had the same situation where my wife wasn't nearly the Disney fan that I was. I figured, let's get in small and work our way up. If you are left wanting for those extra 12 years, then just do some add-ons through the years for Saratoga Springs points.

Our contract was purchased via a reseller named Shontell (www.DVCByResale.com) and she helped me find the perfect small contract for my family. It was 75 points with 75 points banked already from the previous year giving us 150 right away! It helped tremendously because I wanted us to stay in a 1BR unit instead of a studio to impress my wife into maybe getting more points in the future. Well, suffice to say, we are on a waiting list with our 'official' DVC guide, Judy Kauffman, looking for some additional OKW points.

Be sure and do the research and get on all of the resellers calling lists. Once they are listed on the websites, they are usually gone in minutes. So, if you let them know exactly what you want and get on their call list, then you can get contacted before they post them out to everyone. That's what we did and Shontell called us while we were taking a quick weekend trip.

Good luck and let me know if you need any information or additional tips because I know what it's like to be in the situation that you are in!

 

[mydogdrew]

We bought a 50 pt contract at VWL so we can accumulate up to 150 points in a single year with banking and borrowing. The other advantage is you can rent additional points from other members and have them transferred to your account rather than relying on others to make reservations. You can get by on smaller contracts nicely. The other advantage to the small contract is once you are a member, you can waitlist for what you really want. For example, we now are waiting on a small add on at BWV which is what we really wanted in the first place. This should come in soon (with 2003 points and no 2003 dues). We have the option of selling either one of these in the future if we want. Finally, keep in mind that you will pay many times more per point in dues than you will for the actual purchase over the life of the contract. It is important to rightsize for your needs (you can always rent a few points when necessary).

 

[Caskbill]

Keep in mind that you cannot purchase an initial 50 point SSR contract direct from Disney. The minimum size contract direct from Disney must be 150 points. After that you can purchase add-on contracts direct from Disney.

Resale, you can purchase any contract any size available for whatever price you can negotiate with the seller. You are buying someone else's contract. If it's under 150 points then it had to be someone's add-on contract. Example someone bought 150 points at BWV, later added 50 points at BCV, and has now decided to sell the BCV contract.

If purchase from Disney (150 point minimum for your first contract), you can finance through Disney. If buying resale you will have to find your own financing.

Disney has ROFR (Right Of First Refusal) on all resales. Example: You negotiate to buy 50 OKW points from someone for $65/point. Disney can then buy that contract for $65/point and you lose out on the purchase and have to start looking again for another resale.

When you purchase the deed will be changed to your name, giving you all membership priviledges.

It might be tough finding an SSR resale since it's so new. It would mean someone purchased there and now is selling their purchase before even staying at the resort. Of course there could be a CM who purchased under discount and then is selling to make a nice little profit.

All SSR contracts expire Jan 31, 2054. All other DVC contracts expire Jan 31, 2042.

Also keep in mind that when purchasing resale, most likely you will have to pay closing costs. These costs are basically the same whether it's for 50 points or 200 points. At about $450 closing, that means on a 50 point purchase an extra $9/point you'd be paying. So if you found a resale for $70/point, after closing costs it'd be $79/point for a 50 point contract as compared to about $72.25/point if it were a 200 point contract.

If you purchase direct from Disney, Disney pays the closing costs.

Using banking and borrowing, with a 50 point contract, you could have up to a maximum of 150 points available to use once every 3-years.

But you don't have to do that. You can make any reservation you want for any time you want as long as you have enought points. The minimum reservation you can make is for 1-night. Points per night depend on the resort, room type, and season. The cheapest anywhere is 6-points/night for a Studio at HH Sun-Thurs in Adventure Season

For the 5 Disney seasons, the least expensive points are always in Adventure season and the most expensive are all in premier season.

Studios in Adventure season are HH-6 pts/night, VB-8 to 10, OKW-8, BWV-Std-9, SSR-11, and BWV-Pref, BCV, VWL all 12 points/night.

During Premier season the points are anywhere from 60% - 90% higher.

Points for a weekend, Friday or Saturday nights run from about 90% to 150% higher than their Sun-Thurs night counterpart points.

Example: OKW Studio Adventure Season, Sunday = 8 points. Same room Friday, Premier season = 36 points. (Adventure season Fri = 150% more than Sun = 20 points, and Premier season = 80% more than adventure = 36 points.

If you want to conserve points as much as possible then you will need to stay in Studios. However the best value of using points is probably the 1-B/R units where you really get more of a condo as opposed to a more glorified hotel room (Studios are slightly larger than hotel rooms and have microwave, mini-fridge).

Example, a 1-B/R Sun-Thurs at OKW in adventure season is only 80 points (16 pts/night)

With 3-children you'll eventually need a 2-B/R. Putting 5-people in a Studio or 1-B/R exceeds Disney's sleeping accommodations for that villa. (You can go to the debate board here on the DIS and find discussions on that topic).

A 2-B/R villa at OKW, Adventure season, Sun-Thurs will cost 22 points/night or 110 points for 5-nights. If you went during the summer months of mid June through mid August, a 2-B/R is 30 pts/night or 150 points for a Sun-Thurs stay.

If you wanted then for a 50 point contract you could have a 2-B/R unit at OKW for 5-nights once every three years.

Hope this helps.

You can check out point requirements using the Points chart and/or points calculator here on the DIS (click the buttons at the top of this page), or feel free to download my free DVC Planner program using the link in the signature block below.

 

[Cruelladeville]

It seems that a 50 pt contract might be the smartest move for you now, even if it is a little pricier initially. Your husband may come around after he has stayed in a DVC unit--I did--and then you could buy a larger contract when you can better afford it financially. You could also rent another member's points if you wanted to try DVC out before buying any contract. that could also convince your husband. Many members rented points first before buying.

 

[tootsiemolly]

Thanks So much for all of your help. Tomorrow I have to get back to the DVC agent. I am wondering if the incentives are good, or if I can wait to purchase later. Will all of you experienced DVC owners please help me.
1. Right now SSR is 89.00 a point. They will knock off 5.00 a point at let me use it towards the down payment.

2. That gives me $750 toward my down payment.

3. If I purchase 150 pts I will need to pay $1950 out of pocket. He told me I would ne 20% down. Can I pay 10%?

4. 9.75% APR
5. No interest on loan until May 1, 2004
6. No annual Dues until June 7, 2004
7. No Loan payment until June or July 1st.
8. No closing cost.

So, are these incentives the usual deal? or are they great? Can I get better if I wait? please let me know

Thanks

 

[Cruelladeville]

You can't use this program to buy 50 pts if you don't already own a contract of 150 pts or more. Disney does not sell contracts of less than 150 pts. If you are planning on anything less than 150 pts. you must go thru a resale agent, and pay the closing cost.

Personally, I don't think the current price on SSR is anything to write home about, but it won't get any better. I guess that since I paid on $54 per point back in 1997, it figures that I would have that attitude, though. Good luck.

 

[WDWguru]

Greetings from a fellow Utahn! (We've lived in SLC for 10 years now.)

It sounds to me like you should wait until your financial situation is more stable. DVC is really more of a "luxury" item and not something to buy just because it's on sale. It's great if you're already going to WDW every year and staying in moderate or deluxe resorts, but it's really more of a pre-paid plan than an overall savings.

I'd make sure you've got your finances straightened out, have a little savings just in case something happens to DH's great job and get some money put away for your kids' college fund, THEN look at DVC.

I always wish we had bought sooner, but when I truly think about it, we couldn't have afforded to buy in sooner than we did and it would have been a strain. Even though we paid a little more, in proportion to our finances it was much more affordable. It's all relative.

 

[sdamico71]

Does anyone know the discount for the CMs to purchase into DVC? Also does this apply to all CMs, including store personnel.

 

[WDWguru]

CMs get 15% off and yes, that includes Disney Store employees.