Thanks for the continued discussion and feedback.
What would you do in this scenario? We're looking to buy about 200-225 points.
We will have about $6-$8k to throw towards this in the spring, with the same amount going towards it the following year (and the year after that). We don't need to vacation at Disney next year as our intention is to take our family every other year and we did Disney last month. We would like to use our
DVC in 2014 for sure. Ideally, we are looking then at Hawaii OR splitting our time between Disney/Vero Beach.
(a) Would you purchase what you want (e.g., 225 points at BCV) through Disney putting a significant down payment down with the intention to pay it all off in 2-3 years?
(b) Or would you purchase a third of the points you really want in cash next year (e.g., 75 BCV points)/a third of the same points the following year/and a third of the final points the third year? And cross your fingers you get your use years to line up?
(c) Or would you buy as much as you could with the cheapest contract available next year with the intention to only buy ONE more contract the following year paying no attention to park resort/use year?
This is pretty much what I'm trying to decide on at this point. Thoughts are greatly appreciated.
I wouldn't choose option (a) for reasons I will get into later.
I wouldn't choose option (b) because that has headache and disaster written all over it.
I would consider option (c) if you had a vacation scheduled in 2013, but since you don't, I wouldn't go that route either.
I would choose option (d), none of the above. Helpful right?
Please allow me to explain. First off, I'm not sure why BCV is so important to you if you're talking about going to Hawaii, Disney and Vero Beach. So, like others have said, if where you stay on Disney property isn't that important to you, I would definitely buy SSR resale. It's the best bang for the buck and the lowest maintenance fees relative to purchase price.
However, if owning at BCV is that important to you, this is what I would advise. Take the $6,000-8,000 you have now and put it in the bank, under your mattress, in the cookie jar, whatever. Next year, take another $6,000-8,000 that you will have available, combine it with the first $6,000-8,000 and buy a 200-250 point BCV resale contract, in cash.
Here are the numbers behind my opinion (keep in mind that the numbers could change, but most likely not too significantly).
Buying direct in 2012 with financing, paying over three years:
225 points x $115 a point = $25,875 + $5,625 interest = $31,500 total purchase price
(assumes 10% interest for 4 years)
Buying resale in 2013 paying cash at closing:
225 points at $75 a point = $16,875. That's it.
Your savings in this case is significant and you will still have the points you need for your 2014 vacation. Plus, if the contract has any previous year's points in it you could rent them out for $10 a piece through a point rental broker. (I didn't include that in the calculations because some people are not comfortable with that, but if you did that it would reduce your buy in cost. I also think that $75 is a very conservative estimate for what a BCV contract will cost you. My thought is that you could easily get one for closer to $70.)
I know it takes patience to wait a year, but if you're not going until 2014 I don't see any reason why you need to buy a contract this year. I would look to buy a contract about 14 months prior to when you want to vacation in 2014. This gives you three months to find a contract and close and then you will be right at the 11 month booking window when you do.
Good luck making your decision. If you ask me, it's pretty clear.
