Has anyone done this? Should we?

[pattybewdw]

Another question as I try to make this decision-
has anyone purchased several smaller contracts over several years rather than going for the $15000 plunge?

 

[Dennyha]

To buy direct from DVD, the minimum purchase is 150 points. Purchasing smaller contracts would have to be from the resale market. When you purchase resale, you would typically have to pay the closing costs (when you buy direct from Disney, they cover the closing costs), which are 300-400 dollars. Adding $300+ in closing costs to each 25 or 50 point purchase will SIGNIFICANTLY increase the cost per share.

Purchasing from Disney really is very easy. They handle the financing, the closing, they include the 2005 points (kind of a windfall), and you can book your next vacation within hours of giving your downpayment.

The financing can be over 10 years with no pre-payment penalty, so you can keep the monthly payment down, and drop additional funds against the principal in good months.

 

[LIFERBABE]

I agree with Denny,

To purchase several small contracts in a short period of time would be difficult and expensive. You would have to buy resale and although the closing costs have been reduced for smaller contracts, it will still cost significantly more per point than buying direct especially if you are considering the on site DVC's.

Another thing to consider is the UY's. I would not want several small contracts with different UY's. So once you purchase a small contract, you would then be limited in finding other small contracts with the same resort and same UY. Small contracts sell quickly on resale sites and most never make the listing. I think it would be difficult to put together a comprehensive package in a span of a couple of years.

So that said, there really is little advantage to putting together several small contracts as compared to financing 150 points with DVC and paying it off in the couple of years you have planned.

You also have to consider price increases, stripped resale contracts, ROFR, and increased closing times.

 

[Boston5602]

You could always buy a small contract resale and then add on with disney the smallest they do is 25 points if cash and 50 points if finance. Also like another poster stated about use year if you do it this way disney add ons would be with the use year you bought on the resale market. Good luck either/any way you do it.

 

[bom_noite]

I have not ever bought a resale - but - I do keep an eye on the timeshare sites to see what resales are going for.

If you do the same review you will see that the smaller contracts are sold quicker and for more $ per point because of the competition.

You may consider a "mid-size" contract 75 to 125 points?

 

[las3888]

Well, we bought 3 separate resale packages - 2 are 100 points and 1 is 50 points. We just wanted to start small (100 points). Then our family grew, so we bought more points, then we wanted to buy at WVL so more points. It has worked out fine for us. We don't think we got a bad deal with any contract. We paid alot less for the points than we would have through Disney and each time when factoring in the closing costs, we compared to Disney's price and we felt we were saving money or roughly equal.

Our last purchase we thought we would just go through Disney - as many people have commented on the boards how easy it was. Our sales guide wouldn't even return our call...hence, another reason for us to buy resale. I'd rather give my business to somebody who wants it (and returns my calls).

We didn't look out for the same UY's as another poster has mentioned. We have 3 separate UY's for our contracts. This is kind of a pain to keep track of , but it's do-able for us.

It's a very personal choice and I totally understand the feeling of wanting to start small (if that's what you are thinking). It really was a wonderful way for us to get our feet wet and try out DVC after being on the fence about it for years.

Good luck to you!

 

[AFMom]

We started with a 100 point OKW contract through re-sale. It was enought for use to bank and borrow to go in a 1 bdrm every other year - well - 1 year later we added on 150pts through Disney at SSR - we have so many family members that want to come with us, and now that we live in FL, we will be able to drive there and not have to buy plane tickets.
Anyway - I think starting small is a great way to do it - but i would go for more in the 50- 75 point range to save on closing costs if you are pretty sure you'll buy more later. You can certainly buy 25 points re-sale and then add-on through Disney..... many ways to do it and I don't think any are bad!

 

[VLee]

When I bought a 100 pt resale, it was actually two 50 pt contracts combined, which I did not realize. I only paid one closing costs however. I have double checked and I can sell it as a 50 pt contract if I ever desire.

Since then I have added two more smaller contracts direct through Disney, without closing costs. All four contracts have the same use year and are for the same resort. This makes it nice if I decide in the future that I do not need 215 pts every year or makes it possible for me to give one over to my daughter in her name so that she can become a member herself and begin to add on to her membership with the small add-ons through Disney.

 

[Halle]

I'm a little confused. If I buy an add on from DVC will I get the points from 2005 too? Thanks.

 

[keys2kingdom]

You could always buy a small contract resale and then add on with disney the smallest they do is 25 points if cash and 50 points if finance. Also like another poster stated about use year if you do it this way disney add ons would be with the use year you bought on the resale market. Good luck either/any way you do it.

I like Boston's suggestion. It's a pretty painless way to do it. If you really need to spread it out I think this is the way to go. Just watch out for those price increases.

 

[Dennyha]

I'm a little confused. If I buy an add on from DVC will I get the points from 2005 too? Thanks.

I believe the answer is yes, as long as you haven't hit your 2006 use year. For example, if your use year is June, you would get 2005 points. If your UY is Mar, then you would not get 2005 points. I'm not so sure if your UY would be April or May, since the April points would already have been allocated, and any closing would not occur prior to May 1.

 

[Mrs Potato Head]

I'm a little confused. If I buy an add on from DVC will I get the points from 2005 too? Thanks.

Talk to your guide at Disney. There is a new promo coming out that might make this answer different than it has been in recent months.

 

[abner1776]

On getting the 2005 points from Disney, the answer is yes, no and maybe. I just bought from Disney and got the 2005 points with an OCT UY. Since I was within the 6 month banking window I banked the points into 2006. If I had bought a UY between April and Sept, I would also have gotten the 2005 points but my ability to bank would have been limited or non-existant depending on the month. If I bought a UY earlier than April, then I would not have received the 2005 points.

 

[NJOYURLIFE]

I think this is a great way to do it. Especially if you would normally need to finance a 150 point package. Find a small contract and then for what you normally would have used for your down payment, you own the points outright. If you purchase less than 150 initially, then you have no choice but to get them on the resale market. You then have your choice of doing add ons through Disney or again through resale.

I also like having 3 50 point contracts rather than 1 - 150 point contract. We have 3 children and one 50 point contract will easily transfer to each one of them eventually. We don't own all 3 contracts yet, but we are working on it.

Be aware though that it appears like Disney is trying to close the resale avenue of purchasing small contracts through resale. They have been aggressively doing ROFR on the small contracts especially when the person buying does not already own DVC.

And you do need to count closing costs into the whole picture. But, 9 times out of 10 resale will still come out cheaper even with closing costs. The one major drawback with resale is that you need alot of patience because it can seem like forever.

 

[Dis13]

Talk to your guide at Disney. There is a new promo coming out that might make this answer different than it has been in recent months.

Hi Mrs. Potato Head. Do you have any details on the new promo that's coming out? Thanks!

 

[Dennyha]

I understand they are re-visiting the Magical Beginnings program, where you can buy into the program, and trade your first year's points back to DVD for $13, to be applied toward the down payment. Makes it easier to get into the program, but it would be difficult to be in the program but not able to go home in the first year. They may be a great option if your UY is only a few months away for your 2006 points.

 

[Dis13]

Is it just going to be for SSR points, or for the other "sold out" resorts as well?

 

[Mrs Potato Head]

Only SSR and only if you are paying the increased price of $101 - even add-ons at SSR.

 

[dvc-NE]

I like Boston's suggestion. It's a pretty painless way to do it.

I vote that way as well. You could start out with a 100 pt contract from the Timeshare Store and add on as you see fit with as little as 25 pts each. Obviously, you will stick with the same UY. You can do a full week in a studio for 100 pts.

 

[Boas]

i did the 100 point TSS approach... in ROFR right now.

stay-tuned