Considering DVC purchase

[hannahryan]

I have a few questions about the DVC. I'm sorry if I appear ignorant. I've been reading these boards, but am still a little confused. We travel to WDW frequently, so I'm trying to figure if it makes economic sense to purchase into the DVC. Is Disney financing attractive? Is it better to buy through Disney or resale?Can you purchase a Florida resident AP if you have vacation ownership? If you rent your points, who makes the reservation and is sales tax paid? Sorry for so many questions. Thanks for your help. Sharon

 

[drusba]

Most members believe it makes economic sense if you are a frequent visitor. In the long run it is cheaper than renting like facility (the prime resorts) annually. Note, if you always go to All-Stars, or off-site and are fine with that, then DVC will actually be more expensive in the long run.

Disney financing is easy. Its interest rate is quite high if you are comparing it to a home equity loan (which, if you own a home, is another way to finance DVC) but somewhat lower than the market interest rate for timeshares.

Resale can be very attractive and cheaper than going through Disney. And all members, resale and from Disney, have same rights and are treated the same. Nevertheless, when you buy resale, you have to do your homework, particularly if you need finanicng. You have to calculate total cost to make sure deal is better than Disney because a higher finance rate can mean that seemingly bargain sale price results in total payments higher than going through Disney. Also, resale is the only way to get sold out resorts (BWV, OKW, VWL).

You cannot get a Florida AP as a DVC member. That is actually spelled out in the official documents.

If you rent, you make the reservation for the guest you are renting to. It is just like being a landlord -- if the guest fails to pay, it is your problem, if the guest destroys the unit, Disney can have you pay for the fix. Unless you rent to the extent that you can be deemed to be in the business of renting units, you do not have to collect or pay the Florida sale tax.

 

[Dean]

drusba has answered your direct questions, let me guess at the indirect ones. DVC is only a good deal if you plan to use it for stays at DVC resorts that are neutral or light on weekend nights. It is a poor deal at best to use for exchanges, cruises or other Disney non DVC resort stays. The absolute best value is 5 day stays avoiding weekends. Financing for a resale is tough. The only options are cash, one high finance option, a credit card or something like a home equity loan. It is my opinion that DVC is RARELY, if ever, a type of purchase that one should finance but everyone's situation is different.

 

[hannahryan]

Thank you so much for your very thorough answer!

 

[DisneyBill]

OMT, with regard to "renting points", I find it much easier to arrange for a transfer to another DVC member. That way you don't make the ressies, nor do you have that potential liability of damage done by your rentors. You can only transfer current year points. I haven't done much of this renting (actually too selfish, would rather use myself), but this is my experience.

 

[eculmone]

I too have been researching DVC and I'm confused. How does one transfer points? If I purchase 150 points and say I need 16 or so to upgrade my stay how does one transfer? Is there a fee involved and a contract? I'm a bit confused. Can someone answer this one?

 

[tjkraz]

Originally posted by eculmone
I too have been researching DVC and I'm confused. How does one transfer points? If I purchase 150 points and say I need 16 or so to upgrade my stay how does one transfer? Is there a fee involved and a contract? I'm a bit confused. Can someone answer this one?

First, you can always borrow from the next Use Year. If you need 166 for a stay in 2005 and that leaves you with 134 points left for 2006. In '06 you either take a shorter trip or borrow again from 2007.

If you'd rather just get the points from another member, that's when you would arrange a transfer. The transaction is largely independent of DVC. You need to find someone with points available (which is pretty easy to do on these boards), compensate them for the points, and then the transfer occurs. The transfer requires a phone call to DVC to complete.

The prevailing rate for a one-time transfer of points is typically $10-12 per point.

 

[eculmone]

Sooo, it IS just like renting Do you sign a contract too?

As well, I'm sooooo confused. IF I like to travel in March do I get a use year in August? That way I can make ressies as soon as I get new points each year? (Assuming I want to stay at another resort besides my home and allowing the max 7 month window?)

We are renting points for a 2005 vacation so we can check out the DVC without the salespeople, but it looks like we'll definitely be sitting down with them. I just want to have some background. I'm getting soooo excited
Liz

 

[elfbo]

When you can book your trips, and when your use year is, isnt really related. You can book any of your trips at 7 and 11 month windows if you will have points availble for those times.

For instance, since you like to travel in march. If your use year is august, then you already have the points needed for the march trip (unless you spent them all already). If you are booking the trip for march 2006 and you used all of your august points for 2005, you can use your next allotment of points for the march trip.

Ok, i dont know if that makes any more sense to you than before, but at least i tried

 

[tjkraz]

Originally posted by eculmone
Sooo, it IS just like renting

Yes and no. When you "rent" points, the owner of the DVC contract retains full control of the points right up until you actually check in. With a transfer, as soon as that call is placed to DVC, the receiver of the points owns them and can do with them as he/she pleases.

Do you sign a contract too?

Probably depends on the person you are dealing with. Someone has to give a little first, either the recipient by sending money or the sender by transferring the points.

As well, I'm sooooo confused. IF I like to travel in March do I get a use year in August? That way I can make ressies as soon as I get new points each year? (Assuming I want to stay at another resort besides my home and allowing the max 7 month window?)

As elfbo said, the UY and bookings have little in common. You can ALWAYS book 11/7 months ahead, as long as the points will be available for the date you want to book.

We are renting points for a 2005 vacation so we can check out the DVC without the salespeople, but it looks like we'll definitely be sitting down with them. I just want to have some background.

Never hurts to get some good info. By and large, the DVC salespeople (Guides) are VERY low pressure and will rarely stretch the truth on questions you ask. That's pretty unique for the timeshare industry.

If you want a referral to a great Guide, send me a PM and I'd be happy to give you his name.