Help a newbie

[photoj]

My head is swimming in information and I need some help please. Sorry if I'm asking questions that have been repeated a hundred times. I'm trying to do research to make a big decision for our family.

We just got back from the Disney Dream and bought 160 DVC points for Bay Lake Towers. We paid $115 a point, plus they paid half the closing costs and gave us a $500 visa gift card. We have 10 days to reconsider and we are having serious doubts! I think we may have drank the water and made a rash decision.

Clearly we couldn't research on the boat and now that I'm looking around the net I'm confused. Here's what has me puzzled, if you use your points to book rooms, aren't you best just to buy into the place that has the cheapest points before the March change. Like why wouldn't I buy 160 points at Vero Beach for half the price and then use the points to book Disney Room. Yes the annual dues are more, but not enough to offset the increased cost per point.

Does it really matter what property you buy if you don't intend to stay there anyway? Is the only difference really the upkeep cost?

Thanks for the help.

 

[mdsd8700]

First of all I will say "yes" you should cancel your contract. A huge financial decision such as this shouldn't be made unless you have researched it and are 100% comfortable with the purchase and are certain DVC is a good fit for you.

There will be people far more knowledgable than myself who will weigh in on this I am certain. However I think a phrase you will read more often than not "is buy where you want to stay". The only thing your DVC membership is guaranteed to give you a room at your home resort at the 11 month booking window. If you want to stay at WDW then you should not buy VB no matter how cheap you can get the points. Of course there are the more expensive MFs to consider over the life of the contract which will add to your total cost. If the resort you want to stay at is not your home resort then you can only book 7 months out; the same as all non owners of that resort. You will be able to get a room at 7 months out, but maybe not at the place you want to stay or in the type of accomodation you were looking for. Many people have success booking at the 7 month window, but there are those that do not especially at certain times of the year.

If you look around and decide to go resale you will need a contract to be submitted by March 20th in order to retain full benefits to the Disney Collection and use of points for cruises. Although neither are considered to be a value for point usage.

I think the bottom line is you need more information to make a good decision and you have definately come to the right place.

Good Luck!

 

[jstarcze]

Welcome Home and Congratulations from Mickey, Goofy, and Me!

Consider Vero
~$50/pt X 160 pts. = $8000
Closing Cost ~ = $400
Maintenance $6.77 X 31 yrs =$33579 I assume BLT and VB increase the same each year. So no need to project the annual increase since this calc relies on the difference
Grand Total = $41979 for the 31 years of the contract

Consider BLT
$115 X 160 pts =$18400
Closing cost = $0
Disney Card = ($500)
Maintenance $3.89 X 31 yrs = $19294
GT for the same 31 yrs = $37194

With BLT you get 18 more years of ownership, that comes at the price of the maintenance fees. But to buy back in at VB or some other villa that point would be even more expensive. If you plan on spending your vacations onsite at WDW parks, then you only have a seven month window to book if you purchase VB. There are many properties especially during the Holidays and Disney Festivals that are simply not available to those who don't have an onsite home resort and 11 month booking window.

So while up front VB looks less expensive - it's not without penalties, but over the 31 years that a VB contract has left to me BLT appears the better value. Ultimately you need to do the calculation based on how many years you plan to own, how you plan to vacation and other things that might be important to you.

 

[chalee94]

Like why wouldn't I buy 160 points at Vero Beach for half the price and then use the points to book Disney Room.

*because sometimes you might not be able to get a disney room at 7 months out.

*because the annual fees are much higher.

*because a storm could damage VB and result in a special assessment (even higher fees) and/or a restriction on your ability to use your contract.

if you can book more than 8 months out, i'd buy onsite. if you don't mind staying at VB if you wind up getting locked out of wdw at 7 months, then i'd buy VB and take my chances if the deal was good enough.

 

[FindingFigment]

A week or two, someone came back from a cruise with the same predicament. After many posts from us saying we think you should cancel and then research, that is what they did. DVC isn't going anywhere. And there is the issue of whether resale would work for you (which can be MUCH cheaper depending on which resort you like the most). If after you do all your research you decide what you had was the best option, you can always buy again.

Congratulations on find this out before your 10 days are up.

 

[palaemon]

Over the course of its life, VB has increased dues by an average 6%, whereas BLT, so far, has increased by only 3%.

If this holds true, then the overall "cost" of BLT is significantly less.

VB
If we assume $45x160pts = $7200
6% annual increase from $6.61
Over the next 30 years, VB will cost $89,000.

BLT
If we assume $115x160pts = $18,400
3% annual increase from $3.90
Over the next 30 years, BLT will cost $49,600
Or Over the next 50 years $86,000.

Obviously, this assumes a lot - but you see tbe point.

Add this to the fact that BLT is: 20 years newer, larger, next to MK in WDW, and on a monorail.

It's a no-brainer. Plus if you ever want to rent it out, you have the advantage of being in WDW as opposed to VB.

 

[Sammie]

If you are having any doubts, cancel. Then do more research.

As it becomes more and more difficult to book at 7 months, I would definitely say buy where you will be happy to stay if you can't get anything else.

If you can not book prior to 7 months due to work or schedules then go for the best price with lowest dues.

 

[Mjkre]

The only decisions one should make while cruising is whether to have a pink or yellow little umbrella in one's drink--not a major financial commitment for decades to come.

That said, after extensive research and soul searching we chose to purchase a less expensive resort via resale with a longer contract but higher maintenance fees (then BLT) because we are happy with that resort (SSR) and will be happy if we can stay there or trade elsewhere. We also would have needed to purchase many more points to be able to book a 2 bedroom at BLT than at SSR. I also rarely book vacations at the 11 month window so that benefit is really lost on me. So I needed to look at where we would be happy, how many points we needed to get there and how much I was willing to spend both upfront and on a yearly basis. For me, I do want to be at Disney World however, so I would not purchase Vero should the ability to trade be restricted in the future.

As far as I can tell, resale rocks, although I am sure others on this board who have many more years of experience with this than me will offer their wisdom on this issue.

My two cents, put down the Koolaid and cancel the contract.

 

[JimMIA]

Folks can offer you a thousand rationalizations for selecting BLT over whatever.

But the most telling argument is that you have a little queasy feeling in the pit of your stomach. That is a survival instinct thing -- LISTEN TO IT.

If you have even the slightest doubt about a purchase like this, rescind.

The reason for that provision is that Florida law recognizes the nature of the timeshare industry and the fact that buyers make decisions they later regret. The recision period is there to protect YOU.

*****
For your eventual purchase -- if a calm, reasoned, analytical decision after careful research leads you to purchase -- I would certainly NOT compare VB and BLT.

I would compare your favorite WDW resort resale and BLT resale, versus BLT direct.

The reason is simple -- if you have a WDW home resort that you're satisfied with, you should be able to get something at WDW at 11 months. During many times of the year, you absolutely will NOT be able to get a reservation anywhere at WDW at 7 months.

The first question I would ask is whether or not your family can reliably plan, book, and stick to vacations more than 7 months in advance. If not, home resort matters only with regard to your annual dues.

If you can reliably book 7+ months out, I would look at where you would want to book. I personally don't ascribe to the "buy where you want to stay" mantra, but I definitely believe you should NOT "buy where you would be disappointed to stay."

I'd also take a long, hard look at the DVC timeshare salesman pitch about length of contract. Do you really anticipate owning DVC for 50 years? Yes, you can pass it on to your kids (or anyone else), but are you sure they will welcome becoming saddled with annual dues X number of years from now...which might be LONG after the WDW allure has worn off?

Rescind...take your time and do your research, for your family. Question every sales point, every mantra, every cliche' -- some of them have value to some, but not all of them will apply to your family. And your family is all that counts.

 

[JimMIA]

The only decisions one should make while cruising is whether to have a pink or yellow little umbrella in one's drink--not a major financial commitment for decades to come.

Just want to say that I absolutely LOVE this statement!!!

 

[photoj]

Thank you for the excellent advice. We called today to let them know we're out. It's clear we need to do way more research. They didn't mention the part about different period for booking and that's critical for us. We have no interest in staying at BLT, we would much prefer the AKL or an older resort.

I also never book a vacation 11 or even 7 months out. Usually we book less than two months before. However we also travel in the low season, like September or October.

So if we got a resale, how hard is it to book a room in less than three months? Is it easier at the place you bought?

Thanks for the help folks. Gosh usually we end up buying Mickey clothing we regret...this time was much worse. I swear it's the water.

 

[Deb & Bill]

...I also never book a vacation 11 or even 7 months out. Usually we book less than two months before. However we also travel in the low season, like September or October. ....

September isn't too difficult, but October is very popular with members because of Food & Wine, Mickey's Not So Scary, and other events. Late January, early February, May isn't too bad.

And I agree with everyone that rescinding your purchase was a wise move.

 

[Sandisw]

Thank you for the excellent advice. We called today to let them know we're out. It's clear we need to do way more research. They didn't mention the part about different period for booking and that's critical for us. We have no interest in staying at BLT, we would much prefer the AKL or an older resort.

I also never book a vacation 11 or even 7 months out. Usually we book less than two months before. However we also travel in the low season, like September or October.

So if we got a resale, how hard is it to book a room in less than three months? Is it easier at the place you bought?

Thanks for the help folks. Gosh usually we end up buying Mickey clothing we regret...this time was much worse. I swear it's the water.

I think it is a good idea that you cancelled. I would also really take the time to research whether DVC will be a good fit for you if you don't book on a regular basis until around 2 months out. DVC works best for those that plan in advance and you may find getting things difficult. Are you okay with a split stay? That is a real possibility if you are booking that close to your trip.

Good luck!

 

[JimMIA]

Thank you for the excellent advice. We called today to let them know we're out.

Good. That's a good start.

Just be sure a call is sufficient to exercise your rights. I'd read the purchase contract and be sure to do whatever it specifies, even if someone has told you you're fine with just a phone call. Don't leave this to chance.

So if we got a resale, how hard is it to book a room in less than three months?

Honestly...I have never tried at three months. My sense is that getting a room somewhere would often be possible, but doing that reliably would not be likely.

Is it easier at the place you bought?

Yes. I own at OKW, and getting a reservation at OKW or SSR (not THV) at three months would be easier than many other resorts.

But would I bet on it? No.

The more important question here is whether DVC -- or any timeshare -- is right for a "three-months-out" booking strategy. Personally -- despite the fact that my daughters have had some success booking at three months -- I doubt if DVC is the right timeshare for that strategy.

I can tell you that I have successfully booked at Wyndham's Bonnet Creek Resort (just offsite) at less than three months. Once (1 for 1)...but for May, not December.

Bottom line, my advice is to start over completely from the top.

Learn how DVC works. Learn when DVC is difficult to use...and how that difficulty can be managed for those who can reliably plan far in advance. Learn about booking windows, use year, banking and borrowing, banking deadlines, and the ramifications of a cancellation.

Then -- when you understand all that -- begin to consider your options.

You'll make a much better choice...even if it's the same choice you made on the cruise (it won't be).

Good luck!

 

[mtquinn]

We bought 150 points at BWV resale. No way we could have afforded to by direct, especially BLT. Got a contract for $50 per point, we pay 2011 MF's. Total of $8200, I believe. Still waiting on the ROFR, which is the most difficult part IMO, but so worth the wait.
Then, while waiting for the ROFR, we decided that 150 wasn't quite enough and planned on picking up another resale 50 point contract at SSR. We crunched the numbers and it turns out going direct for that small of a contract was almost the same price as resale. So, we went direct.

What I am saying is that there is no need to purchase direct unless you really want to stay at BLT. We love Boardwalk, so we are thrilled to buy into that resort.

Good luck!

 

[CarolMN]

You've received some good advice (in my opinion). Just want to add two things -

Booking 3 months out will be hit or miss. You will read posts here that say they do it all the time. But there are many more who try and fail. While you may get something 2 -3 months ahead of planned arrival, it's very possible it won't be the villa size you prefer (maybe you take a 1 bedroom instead of a studio) ,and it's also very possible that you won't be able to get all of your nights at the same resort. (Some like to switch resorts during their stay, others hate to move). It's also very likely that you will have to waitlist. That can be a problem if you are planning to fly. Truly, DVC works best for those who can plan at least 7 months in advance.

Since you bought while on a cruise, you may be thinking that you will use your points to cruise. Keep in mind that there are no guarantees that you will be able to do so. The total number of points DVC & DCL allow to be used for this purpose is limited. (Recently, that limit for the year was reached and many here were very disappointed)! The number of points needed to cruise have no "inflation protection" built into the contract. They can ( and usually do) go up every year. The best value of a DVC point comes when you use it to stay at a DVC resort.

Good luck with your research!

 

[BlackRock]

You would want BLT as your home so you could book your rooms 11 months out if you do not plan on using them there than you are right you do not need to worry about where you have your points.

Blackrock

 

[diding]

I definitely agree, you should not go into any purchase of this kind unless you are 100% sure. For us, we bought into BLT because it is where we want to stay and because of the convenience of the closeness to MK. Also the 11 month window has been of much convenience. Hope this is of help and good luck.