Hi Craig, what happens is that a buyer purchases a number of points (the minimum number is 150). I think the going rate from Disney is around $80 per point, but it is possible to get "contract" second hand for considerably less. Once purchased, the points are used in the same manner as one would use money. They can be exchanged for nights at Disney Vacation Resorts - Old Key West, Boardwalk, Wilderness Lodge Resort, the new one - Beach Club Villas, Vero Beach, Hilton Head Island and they can be used to stay at the Disney hotels, although this latter option is expensive. As with money, the more popular the time of the year, the more it costs in points. Also Friday and Saturday nights are more expensive than the other five nights of the week. Although Disney can jiggle the required points per night around, the total annual requirement will not increase, so that your points are always worth the same in any one year as they were when they were purchased. In other words the required number of points, for DVC resorts that is, does not rise with inflation!
In January of each year every owner gets a bill for maintenance costs, which is based on the number of points owned. I think that is in the region of $2.5 per point, although Vernon usually has all this info at his finger tips.
In addition to staying at Disney, the points are exchangeable at a large number of other resorts around the world,
Disney Cruise Line and Holland America Alaska cruise. In fact, we might be using some for a stay in Salzburg if our DD and her boyfriend do decide to get married there next Feb.
Each owner has a "use year". Ours starts in April. If an owner does not want to use either all or some of their points one year they have the opportunity to bank all or some points, and there are rules about banking deadlines. One may also borrow points from the following year. So in theory, it is possible to use three years points in one holiday.
I expect all that is as clear as mud. So if you have any further questions, please fire away.
