Has Anyone Every Divided a Contract to Sell Some Points?

[Yensid67]

I'm considering selling some of my DVC points and was curious as to what the process is? I currently have one contract at Boardwalk with 160 points and wanted to sell 60 of them. Is this possible?

Thanks for the help.

 

[BillPA]

You cannot split a contract, it's all or nothing. Sorry.

 

[KAT4DISNEY]

You would have to sell the entire contact and buy a new smaller one.

 

[Yensid67]

Thanks for letting me know. I appreciate it.

 

[Dean]

I'm considering selling some of my DVC points and was curious as to what the process is? I currently have one contract at Boardwalk with 160 points and wanted to sell 60 of them. Is this possible?

Thanks for the help.

You're normally better off just keeping them and renting occasionally. Exceptions are if you also want to change resorts or you have something that's more valuable and are moving to something cheaper, like BCV or VGF to SSR. Selling and rebuying for 60 points less will cost you maybe $3K for example going from 260 to 200. The more points you have the more it will cost and vice versa until you get to under 120-150 on the replacement where the cost per point goes up as well. Going from 160 to 100 as a sell and rebuy would likely cost around $3K as well.

 

[kniquy]

Your contract is exacty that - a legal binding contract which can not be altered. It probably doesn't make sense to sell to then buy a smaller 100 point contract. You could rent or transfer those 60 points you don't need either on this board under the rent/transfer forum or you could go through a rental company to rent out those points. This is either an issue of really not need the points or not wanting to pay the MF on these points. Renting either yourself or through a company would be your best route vs selling and rebuying a smaller contract. You would earn a little money renting/transferring (usual costs per points to rent/transfer yourself would be $13-14pp - so you could make $780-840). With BW being such a popular location for F&W _ i would think you would not have any problem getting rid of those points.

If going through a rental company you would need to look into the minimum required points for renting through the rental companies. This is the route i would go if in your shoes because what if you change your mind down the road and realize that a 100point is just not enough.

 

[Yensid67]

Thanks for all the info everyone. I really appreciate you taking the time to provide me (and anyone else interested) with the details.

 

[Maistre Gracey]

Back when I was a member I had 21 separate, smaller contracts for that very reason. Many were 25 or 50 pointers.

MG

 

[DVC Doctor]

Back when I was a member I had 21 separate, smaller contracts for that very reason. Many were 25 or 50 pointers.

Wow, that's a crazy number of contracts. But I assume you sold them all for a profit, so you should be happy with that decision.

 

[Maistre Gracey]

Wow, that's a crazy number of contracts. But I assume you sold them all for a profit, so you should be happy with that decision.

Not all at a profit...
we owned DVC for 12 years and roughly broke even on our sales. We vacationed 12 years for the cost of dues, perhaps a little less.

The key to quick sales is small contracts. Our smallest contracts sold in less than 5 minutes.

MG

 

[ScubaCat]

Yet another point to consider is if you sell your one 160 point contract and buy a separate 100 point one resale, you lose all the perks and discounts.

 

[Maistre Gracey]

Yet another point to consider is if you sell your one 160 point contract and buy a separate 100 point one resale, you lose all the perks and discounts.

Unfortunately there are very few discounts here... At 100 points I'm guessing they have little interest in an AP. Perhaps I'm wrong on that. The other discounts are basically negligible.

MG

 

[Dean]

Back when I was a member I had 21 separate, smaller contracts for that very reason. Many were 25 or 50 pointers.

MG

For other reading it should be noted the cost to get there at 25-50 point contracts today would easily exceed $10 a point or more because of higher up front prices on smaller contracts, closing costs and/or retail purchases over resale. Back when the difference in retail and resale was 15% or so and there was no closing on retail, it often did make more sense if one was buying retail. It is my opinion that the cost of "insurance" for this option is rarely worth it but might be for some.

 

[Maistre Gracey]

For other reading it should be noted the cost to get there at 25-50 point contracts today would easily exceed $10 a point or more because of higher up front prices on smaller contracts, closing costs and/or retail purchases over resale. Back when the difference in retail and resale was 15% or so and there was no closing on retail, it often did make more sense if one was buying retail. It is my opinion that the cost of "insurance" for this option is rarely worth it but might be for some.

Yup. There is definitely a premium to be paid if you go the small contract route. I should have pointed that out, and glad Dean did.
As Dean said, the premium used to be less. I Would have to give a lot of thought if I would go that route today or not.

MG

 

[Dean]

Yup. There is definitely a premium to be paid if you go the small contract route. I should have pointed that out, and glad Dean did.
As Dean said, the premium used to be less. I Would have to give a lot of thought if I would go that route today or not.

MG

IMO it's rarely worth it to do so as an exit strategy or as a legacy planning issue. Normally selling and rebuying if needed is a better choice. The small point contacts are in right now but the reality is that it does cost more and that there is a real chance (as in 50% or better IMO) that something will change to make them not such a cool deal. Certainly if one gets the chance to do it for "free" such as multiples in one listing resale or if they are going to do a retail purchase anyway, it can be very worthwhile. Once one gets up to around 300-400 points total planned, I'd definitely break them up, maybe even at as low as 250. Now there are other situations where having smaller contracts is the byproduct of other plans such as multiple home resorts.