DOC, SOMEONE HELP! About to put contract on 230 OKW points!!! HELP!

[* Potential DVC'er *]

Hi, we are about to put a contract on 230 OKW points with a price of $58 per point, seller will accept nothing less, also won't accept paying closing costs, so I'm wondering -- DO WE DO THIS?!

They have 'borrowed' 14 points so we'll get 216 points next June for 2002 and have never exercised that "once in a lifetime banking" issue either.

SOMEONE PLEASE TELL ME WHAT TO DO! I've tried convincing my husband and family that I cannot find ANYWHERE on the internet to say negative things about buying into this wonderful piece of magic, however they are hesitant still.

Please help!

 

[Sheree]

price doesn't seem bad, most sellers don't pay closing costs.

the main thing is can you wait till next June for points to use.

 

[* Potential DVC'er *]

yes, we have no problem waiting till next year for the points. we probably won't be ready to go back until Oct or Nov again.

HOWEVER, now I just heard from someone telling me that since it's $58/point doesn't necessarily mean it's a good thing - ie the contract isn't "loaded" (bunch of points banked etc.,) so hence I'm really not getting that good of a deal.

Any help out there! I mean the girl is literally waiting for my phone call!!

 

[Jimbo]

It sounds like a pretty good deal to me, especially since you're willing to wait until 06/2002 for your first points. I don't see how it can be considered a bad deal, since Disney's selling at $75 per point. So you're saving $17 * 230 = $3,910. If closing costs are $450, that means you're saving $3,460. Not something to sneeze at!

I think you had said elsewhere oin this board that OKW was your preferred, right? If so, jump on this resale. No one will sell for less than $58.

 

[Towncrier]

Considering the price of points from Disney, this looks like a better price than we paid back in 1995 when I initially joined DVC. If you aren't too concerned about the lack of points this year and the fact that they have borrowed some from next year, I would say "go for it". One thing you should do is to make sure to ask (demand?) that they pay the dues on the points that they have borrowed. There is no need for you to get stuck paying dues on points that you can't have.

 

[Firefighter Mickey]

I also don't think it sounds like a bad deal. Wasn't Doc just saying in anthoer thread that the current buy-back value for DVC was at $58/point? Now granted, there aren't any banked points and some have been borrowed, but $58 doesn't really sound too bad.

Another thing you can do is run a quick comparison against some of the listings that the timeshare store has, that might give you a better feel for the deal.

Then, regardless of what decision, everyone has to agree to the "no regrets" clause - none of this shoulda-coulda-woulda stuff. It's just not worth it trying to second guess.

Besides, how much difference is it going to really make? Suppose later you see a contract for $57/point - we're talking about $230 difference; white noise in a purchase this large. I think you'd have to get up into the $4/point range before you start to talk significant amounts, and it really seems unlikely that you're going to find something for $54/point (or if you do, that DVC will let you purchase it).

 

[RobDoc]

I think the $58 is the best you will find for that number of points. DVC isn't apparently allowing anything lower at this time. I'm not surprised at the closing cost issue either (and I wouldn't be too upset about that.)

The only thing I don't like about this deal is that there are no points left from this year- no more until June, 2002 (which could be borrowed if you want to use any before June). You will still have to pay the annaul maintenance fee in January on the 230 points- unless you can get the seller to split that with you. (DVC prorates it's annual fees). IMHO, the annual dues issue is NOT enough to lose this deal over.

I think it is the best you are likely to find at this time- which is the reason they have priced it at the "buy-back" point and won't budge on the other issues.

Your closing costs will likely be in the $500 range and the annual dues will be about $740 for 2002. (DVC will send you a bill for that after closing..but, that expense may also be paid by auto debit and spread out over 12 months- without interest- MS can arrange that for you.)

All-in-all, I think this is an OK deal. There comes a point where you could hold out for something a little better and save maybe $500- but I'd be happy with this and enjoy joining DVC. (I also wouldn't be surprised if DVC raised that minimum buy-back once they start selling BCV- which is also likely to be at a higher price.)

I know there is a lot to think about and it is a lot of money to plunk down at one time, but we've been thru this 4 times (once thru DVC-plus 6 add-ons- and 3 resales) and have become more convinced of the value with each purchase.

Enjoy!