confusion, confusion, confusion... -Updated question

[jfinke]

So, I have been reading posts on the message board and watching the video from DVC. I am even more confused than I was earlier!

From what I understand there are two ways to purchase points. One is to buy them directly from Disney. Disney will also give you financing. Also, they are advertising "up to $1500 off". With this method it looks like there is no waiting for anything. However, you can only purchase at a couple of DVCs that have open points.

The second way to purchase points is to buy them through a reseller. However, it seems that there are a couple of issues with that. One, is that Disney has the ROFR. The next is that you have to find your own financing. The third is that you have to play closing costs ($500??). But, you don't have to buy 150 minimum points. And there is a possibility of getting banked points.

So, which is the better deal? I know, a pretty open question.

What is the interest rate that Disney charges?

Is the only difference between the actual points of the resorts the fact that I can reserve 11 months in advance at my home resort and 7 months in advance at the others? (I realize that the dues are different.)

However, using the above assumptions, I could buy 50 pts for $62 pp at Vero Beach for a total of $3100. I could then just use those points at say, Old Key West. Is there anything wrong with the above logic?

Any opinions?? (I am sure there are!)

Thanks!

Jeremy

 

[Happy Birthday Cat]

However, using the above assumptions, I could buy 50 pts for $62 pp at Vero Beach for a total of $3100. I could then just use those points at say, Old Key West. Is there anything wrong with the above logic?

Yes you could end up disappointed the first time you can't get the room you want at the resort you want to go to. You will hear it over and over on these boards..."buy where you want to stay." Don't try buying cheaper points with the intention of staying somewhere else. The 11 month booking window is important, especially around holidays, busy DVC times or for hard to get rooms.

If you want OKWor BWV, buy resale. If you want BCV, you would probably have to go through Disney because there are not too many resales out there.

I think the best financing is a home equity which would allow you to pay by cash through Disney or through a re-seller.

Add in the closing costs on a small 50 point re-sale and it drives the total cost way up per point well beyond the 62.00 per point in your example.

HBC

 

[castleri]

You seem to have most of it correct but at $62 a point Disney will almost certainly exercise ROFR. Don't know if you can just buy small quantities like that if you are not already a member.

 

[Disney Doll]

I have to agree with HBC. Buy where you want to stay. If you think you are going to want to use your points at WDW more often than a VB, then don't buy at VB. With points at VB, you can only book DVC properties at the other resorts 7 months out, and depending on the time of year, there could be problems with regard to availability.

We bought a resale just before Disney seemed to tighten up on their ROFR, because we got a second contract at OKW for a very good cost per point.

As HBC said, if you want to buy OKW,BWV,VWL, look into resale with private financing or home equity line of credit. If you want BCV, you'll have to buy through Disney, as I don't think there are any resales available yet. Some flks have also heard rumors that there are DVC contracts on E-bay, but I don't know about that. If there are, does Disney's ROFR still hold?

 

[Richyams]

We have had reports of small contracts to non-members being approved and also rejected.....that small may just get rejected.

We have also had reports or Disney exercising their ROFR more quickly and at lower prices for non-members buying resale.

$65 per point, plus $450 / 50 = $74 per point.

If you think you are going to want to use your points at WDW more often than a VB, then don't buy at VB. With points at VB, you can only book DVC properties at the other resorts 7 months out, and depending on the time of year, there could be problems with regard to availability.

ESPECIALLY if you are looking for a studio....with that small of a contract, I assume you are looking at studios. Studios go first. Buying at VB would be especially bad if you are planning studio stays at WDW DVC resorts.

 

[Disney On The Bayou]

I'm not sure about buying that little points, Disney may require more, however, I see nothing that blocks you from purchasing those few points that I have heard or read other than Disney's right of first refusal. I would like an answer to that one as well. It appears that you are trying to get in at the bottom floor, I don't blame you, however, you should realize that the vacation club is not a discount program. In general when you decide to purchase into this program, you are making a commitment to vacationing at Disney for the next 39 years in first class accomodations. For that you will have to pay annual dues and whatever travel it takes to go to WDW. Its not the least expensive way of doing Disney, but for myself and many more who are members, its the best way. I would think this decision over, you should consider purchasing the minimum point value to get the best use of your membership. By the way, you are correct about the 11 / 7 booking guidelines. Many members here will tell you that you should buy where you want to stay. It's sound advice, but my experience is that, that may be a little overrated. If you have limited flexibility in scheduling it can be a big concern, however, with just a little flexibility you can just about always get OKW at 7 months and other resorts as well. Some people on this board want the exact room they requested, with everything just perfect, including the view, the sun and moon alignment with the balcony and anything else. LOL

Good luck with your purchase, I wish I would have joined soonner. That seems to be the biggest gripe for most of us members. Read the post with the folks who joined 10 years ago.

 

[johde]

If your goal is to stay at WDW and don't really care where, I would not buy a Vero Beach contract. I would buy an OKW or BW resale. I picked OKW because of the lowest dues and BW in case you may want to try for a standard view.

I think your idea of buying 50 or 60 points sounds just fine. Just make sure you have enough points for what you want to use. I purchased 60 OKW points last year. Closing costs for this small of a contract were $350 or about $6 or $7 a point. I purchased through Jaki at .atimeshare.com and she was great. She walked me through the whole process. Hope this helps you out.

Jeremy

 

[jfinke]

Thanks for all the help and information!!

Another question... How many people use their points at non Disney resorts?? Has it been a good deal??

Thanks again!!

Jeremy

 

[Happy Birthday Cat]

I have used my points at a non Disney Resort only once and that was at the Sagamore over Thanksgiving. On the other hand I went to the Woodstock Inn and paid cash.

I use the $10.00 rule per point to determine if I pay cash or use points. The nights at the Sagamore were 23 points per night but the room at that time was $299.00 plus tax. Therefore the points were worth more than $10.00 and I used them. I use $10.00 because I know I could rent the points for that if I wanted to.

Most of the time the best use of points is at DVC Resorts. Most other places either don't measure up in quality or end up costing a lot of points.

HBC

 

[Lesley]

Theoretically your assumptions are correct...however...the chances of you finding a resale contract of that size at that price, and then being able to successfully use the VB points at a WDW DVC resort will vary. Yes, OKW usually has rooms available on fairly short notice...but they may not be studios. By doing what you stated above, you leave yourself at the mercy of a lot of factors that are beyond your control....and I think with an investment of this size its generally preferable to be able to use it to its full advantage.

So as others have said....buy where you want to stay. If that's what DVC's selling and you need Disney financing that's the way to go. If Disney's financing is the only way you can go....you're stuck with what they're selling or waiting for the next property to become available. If you have your own financing, its generally considered a better deal to buy a resale.

 

[brucec32]

Originally posted by Disney On The Bayou
I'm not sure about buying that little points, Disney may require more, however, I see nothing that blocks you from purchasing those few points that I have heard or read other than Disney's right of first refusal. I would like an answer to that one as well. It appears that you are trying to get in at the bottom floor, I don't blame you, however, you should realize that the vacation club is not a discount program. In general when you decide to purchase into this program, you are making a commitment to vacationing at Disney for the next 39 years in first class accomodations. For that you will have to pay annual dues and whatever travel it takes to go to WDW. Its not the least expensive way of doing Disney, but for myself and many more who are members, its the best way. I would think this decision over, you should consider purchasing the minimum point value to get the best use of your membership. By the way, you are correct about the 11 / 7 booking guidelines. Many members here will tell you that you should buy where you want to stay. It's sound advice, but my experience is that, that may be a little overrated. If you have limited flexibility in scheduling it can be a big concern, however, with just a little flexibility you can just about always get OKW at 7 months and other resorts as well. Some people on this board want the exact room they requested, with everything just perfect, including the view, the sun and moon alignment with the balcony and anything else. LOL

Good luck with your purchase, I wish I would have joined soonner. That seems to be the biggest gripe for most of us members. Read the post with the folks who joined 10 years ago.

Good advice, but I have a few subtle clarifications based on what I've learned.

For people like myself with the flexibility to travel in slower times and stay only Sun-Thurs, it certainly seems like a discount program. I did the math and at my cost-of-money (4% net after taxes) and dues for 50 points I can stay 5 nights (45 points at BWV studio) in a $289/night room that after sales/hotel tax costs $321/night for only $81.60, or only about 25% of regular value season price. Looks pretty discounted to me! I realize that buying larger numbers of points, staying on weekends and holidays may be a different situation

You're not necessarily making a commitment to staying at a Disney resort each year for 40 years. You can bank points and go on alternate years and stay longer or in bigger or different accomodations, or you can rent your points for cash and recoup your costs for the year.

It's not the least expensive way of doing a Disney trip, but it's darn close and is certainly worth it if someone is going regularly anyway.

Even buying direct from Disney (with the $1500 discount recently offered) at 150 points, it's still pretty cheap with current low returns on investments (and interest rates if you're borrowing the money). $11250 invested x 4% cost of funds (net after tax deductibility) equals $450/year. Add in another $650 or so in dues and you've got a cost of $1100/year. 150 points would buy me and my wife a studio at OKW for almost 2 weeks (short 10 points) or a 1bedroom for one week. Spend $100 to rent the extra points needed and you've got $1200 in your room each year. $1200 divided by 14 nights equals $85.71 a night, with no taxes added, or $172/night for a one bedroom place. Hard to beat for staying on-site.

As long as you plan to go at least every other year, or do the work needed to rent your points to recoup costs, I can't see how you can lose, barring a complete collapse of the DisneyWorld vacation system. You will also probably see your points appreciate in price somewhat as their value increases over time.