DVC points special

[zurgswife]

The current DVC points special.....VWL and BCV $74 and VB $69 if you turn your 2003 points back to Disney....

Do you think it is a sound add on if one already wants to purchase one of these properties as an addon???

 

[poohbear7]

We just did an add on at the BCV this week and we gave back 2002 points $74. a point Magical Beginnings. I just made a reservation with BCV 2003 points.

 

[erikthewise]

I think it's sensible if you were already thinking about adding on.

We added on for less than 100 points and (because of our use year) still got the 2002 points. We didn't have the option of selling them back, but I'm just as happy banking them. I think it's just as good a deal to keep the points, unless you're one of those rare people with too many points, in which case you shouldn't be adding on at all!

 

[CaptainMidnight]

If your OK with the 100 point minimum, absolutely, go for it. It's a good price, matched with your use year.

 

[mikesmom]

It makes as mush sense as a resale at this point. For example, apparently the magic number for a resale now is $71 (Disney doing ROFR below that). Add to that a closing cost of about $450. $450 divided by 100 point s adds $4.50/pooint to the purchase price. Now you're at $75.50 for a resale!! Disney suddenly is lower and you can make ressies almost instantly. We'd probably do it if we could get MB at OKW.

 

[Dean]

As long as you don't buy more points than you need or can afford it is a reasonable price.

 

[WDWLVR]

We did an add-on at Vero last October. We own at Boardwalk and love it, but we often give DH's parents a week at Vero. We also thought it would be a great place for us to visit after WDW to relax. So it made sense for us. At that time it was $65/point with Magical Beginnings which is the same price we paid in 2000 for Boardwalk. Since we had already planned out our points for the year before we thought of this giving back these points was not a problem at all.

 

[Richyams]

Now you're at $75.50 for a resale!! Disney suddenly is lower and you can make ressies almost instantly.

Not picking on you, this wrong math is used constantly. Disney is NOT lower than the resale. You have to give up your first year's points to get that number.

A resale with nothing banked and all current points available, is a MUCH better deal than from Disney.....one with banked points is MUCH, MUCH better.

The individual deals need to be looked at, but even small add ons can be had cheaper than from Disney. Larger contracts lessen the per point effect of closing costs and can be even better deals.

There are reasons to buy from Disney, ease, financing, ease(again, its a big one), available use year, there are many reasons to buy from Disney, price isn't one of them.

 

[DebbieB]

I think you have to consider your use year. If you have a fall use year and they give you 2002 points to sell back or bank and you get your 2003 points in 6 months, it's a good deal. If you have a spring use year and have to sellback 2003 points and have to wait a year for more points, then it's not so good.

 

[Simba's Mom]

Exactly right , DebbieB. We have an August use year. When we bought last month, we'd already made all our ressies for this year, and weren't planning on vacationing at BCV until November. So not only was it no problem to sell back our 2002 BCV points (since we had already planned not having them), it allowed us to reserve for November right then with the new 2003 points. Otherwise we would have had to wait until April to reserve. Remember, even though you're returning your 2002 BCV points, you can reserve at 11 months based on the BCV points you will have at the time the ressie is for. That made it well worth it for us!

 

[Caskbill]

Rich is correct in that when comparing resale vs. Disney you MUST also compare points available, banked, borrowed or otherwise.

Example: Take for example an August use year, resale 150 point contract for $70/point plus $500 closing cost. Say this contract has all 2003 points available and 50 banked 2002 points available. Your cost is $11,000 ($70 x 150 + $500)

Disney offers you an August use year, magical beginnings for $74 / point. So your 150 points costs $11,100 or seemingly close to the resale deal.

But to make the DVC deal equivalent to the resale, you go and rent 200 points somewhere so you have the equivalent points the resale gives you because of banked and current year points.

Point rentals go for about $10/point. So to make the DVC purchase equivalent to the resale purchase, your total cost is $13,100 ($11,100 + $2000).

I'm not sure about this last item, but with Disney MB, don't you still pay the maintenance fees on those points you give back? If so that reduces their value. If not then the value is the $10 / point they are offering. As to resales, paid maintenance fees are negotiable between buyer and seller, so that can make a difference one way or the other also.

The biggest difference in this example, in the resale you have 50 points to use right now, and will receive another 150 in August 2003. (for $11,000), while with Disney, you receive no points at all until August 2004 (for $11,100)

While MB can have it's advantages such as Disney financing, lower down payment or lower mortgage balance, it is not the same when comparing it's comparable 'value' to many resales. What they offer is equivalent to buying a resale where the owner had used all their 2002 points and had borrowed and used all their 2003 points, leaving nothing but the 2004 points available.

 

[ArnyVee]

Originally posted by Caskbill
While MB can have it's advantages such as Disney financing, lower down payment or lower mortgage balance, it is not the same when comparing it's comparable 'value' to many resales. What they offer is equivalent to buying a resale where the owner had used all their 2002 points and had borrowed and used all their 2003 points, leaving nothing but the 2004 points available.

One of the things that I'd like to do is to charge my purchase into DVC using the Disney Rewards Visa. This way, I can earn 1% back in Disney Rewards ($12K charge yields $120.00 reward towards an annual pass). Is it true that I cannot charge anything if buying a resale? If so, then I would have to do it via Disney.

Although, depending on the deal, I guess I could come out ahead and maybe even 'rent' out some points if the resale came with points already that I wasn't going to utilize. With renting out those points, then I could afford to pay for my full annual pass. Sheesh...so many options...

 

[erikthewise]

Caskbill,

What I'm told (I'll soon find out!) is that we are charged dues for 2002 use year points from the time of purchase, but not charged for back dues. In my case, that means I'm paying almost exactly 1/2 year of dues on them.

You and Richyams are right that the first year's points are important. From a time-value-of-money accounting point of view, the first year's points are worth more than those that follow. Many people seem to take the point of view that each year's points are equally valuable. But using an annual percentage rate of 3%, the first year's points are worth about as much as the last three years combined. At higher rates the effect is even more dramatic.

 

[RobDoc]

The biggest difference in this example, in the resale you have 50 points to use right now, and will receive another 150 in August 2003. (for $11,000), while with Disney, you receive no points at all until August 2004 (for $11,100)

If you purchase that contract from Disney right now, you will get all of the August 2002 USe Year points to use and then will get another allotment of points on August 1, 2003. You will pay maintenance fees prorated from today. Thus you will have 150 points to use today and another 150 in August 2003.

 

[Caskbill]

Doc, can you clarify because I'm not certain myself on this.

In the MB we're talking about, which points does someone give up? 2002 points or 2003 points? In other words if they purchased an August use year today, when would they first receive points to use if they had purchased using MB. (Aug 2003 or Aug 2004?)

And, what kind of maintenance fees to they still pay. Any for 2002 points, any for 2003 points?

Thanks,
Bill

 

[loveswdw]

I'm not Doc but we're currently closing on 150 pts. at BCV. We did MB because we weren't planning to travel until Dec. so we didn't need the points anyway. Our use year is Sept. and the MB points sold back are 2002. We will pay approx. 6 months dues this year and we will have all 2003 points available to us on Sept. 1, 2003. Hope this helps.

loveswdw

 

[zurgswife]

Unfortunately our use year is Feb. so the points going back would be 2003. But I don't need any points for 2003. so, I'm still debating..