How does this work?

[MountainMouse]

This isn't very important, just something I've wondered about and thought someone here may know. As I understand it resort is divided up into a fixed number of points. Those points are sold with only a few being held by DVD. You would think if a resort was fully booked during a year then the points used would be fixed. Two bedroom lockoffs throw the points a bit out of whack in that the cost of a one bedroom plus studio is greater than the same rooms booked as lockoff. Anyone know how the system compensates for the difference?

 

[CarolMN]

My understanding is that they use a fixed year for the calculation and count all lock off units as a 2 bedroom villa. "Extra" points can be used for admin purposes (unexpected maintenance, temporary imbalances caused by banking and borrowing, etc.) and/or may show up as breakage income if the rooms end up getting rented to the general public for cash..

 

[Sur]

2042 is going to be an interesting year, for DVC (and likely a few prior).

 

[Dean]

2042 is going to be an interesting year, for DVC (and likely a few prior).

You got that right. I hope I am aware enough at the time to read the rants that last 2 to 3 years when people can't use all of the points up until the last day.

 

[DougEMG]

You got that right. I hope I am aware enough at the time to read the rants that last 2 to 3 years when people can't use all of the points up until the last day.

Will be interesting to see what the borrowing rules will be and if people just don't bother to pay their MF if they aren't able to use their points.

 

[BillPA]

I hope they have internet in heaven, or where ever I end up, so I can see what happens.

 

[Dean]

Will be interesting to see what the borrowing rules will be and if people just don't bother to pay their MF if they aren't able to use their points.

Banking rules and other ways to scale back the total points may be even more interesting. There are not enough rooms to use all the points by the end of the RTU. There are several options and they'll likely employ some combination of them.

 

[MountainMouse]

Banking rules and other ways to scale back the total points may be even more interesting. There are not enough rooms to use all the points by the end of the RTU. There are several options and they'll likely employ some combination of them.

Can you explain why there aren't enough rooms to use the points?

 

[Dean]

Can you explain why there aren't enough rooms to use the points?

The numbers don't add up. The ending date is the end of the Feb UY 2041 for the initial issue in question. Count up all the points that will cover the 2041 & Jan 2042 calendar and you get almost 2 years worth of points and 13 months and that's without banking, banking compounds it further. Of course there are many ways they could compensate or adjust including a lottery, voluntary opt out without dues, free for all use or lose, banking limitations, cash exchange specials and I'm sure many more. The bottom line is they have to do something or there will be a lot of unhappy folks the last couple of years though I'm sure either day she will be unhappy. I suspect they have a plan or rather several plans in general but I doubt they've made specific decisions at this points. If they extend they kick the can down the road but don't change the principles. The one some have suggested, that they'll just let you use the resorts the last year, well that's not going to happen.

 

[MountainMouse]

The numbers don't add up. The ending date is the end of the Feb UY 2041 for the initial issue in question. Count up all the points that will cover the 2041 & Jan 2042 calendar and you get almost 2 years worth of points and 13 months and that's without banking, banking compounds it further. Of course there are many ways they could compensate or adjust including a lottery, voluntary opt out without dues, free for all use or lose, banking limitations, cash exchange specials and I'm sure many more. The bottom line is they have to do something or there will be a lot of unhappy folks the last couple of years though I'm sure either day she will be unhappy. I suspect they have a plan or rather several plans in general but I doubt they've made specific decisions at this points. If they extend they kick the can down the road but don't change the principles. The one some have suggested, that they'll just let you use the resorts the last year, well that's not going to happen.

I didn't realize the end date for the 2042 contracts was the Feb use year of 2041...so 31 Jan 2042 is when the points expire? So December UY owners will have 2 months to use their points? I can certainly see the issue there, but where are you coming up with the 2 years points and 13 months?

 

[Dean]

I didn't realize the end date for the 2042 contracts was the Feb use year of 2041...so 31 Jan 2042 is when the points expire? So December UY owners will have 2 months to use their points? I can certainly see the issue there, but where are you coming up with the 2 years points and 13 months?

The Dec 2040 UY will stretch to 30 Nov, 2041.

 

[MountainMouse]

The Dec 2040 UY will stretch to 30 Nov, 2041.

Will the December owners get points on 1 Dec 2041? Thanks for responding, I'm obviously a bit behind on this topic.

 

[supersnoop]

Banking rules and other ways to scale back the total points may be even more interesting. There are not enough rooms to use all the points by the end of the RTU. There are several options and they'll likely employ some combination of them.

There are enough points. Or, rather, there were enough. In the first year, that December use year didn't get points until December, leaving plenty of points for early use years in the months prior.

Think of it this way: If everyone with a February use year used their points in February, there would be enough rooms just for them. They cannot sell more points than rooms, and that applies to the end of term, too. There are enough rooms for all points.

 

[LisaS]

Will the December owners get points on 1 Dec 2041? Thanks for responding, I'm obviously a bit behind on this topic.

Unless they are charged reduced dues in Jan 2041, they will be owed at least one month's worth of points for their Dec 2041 UY (for Dec 1-31, 2041) since they will have paid for that month's points as part of their 2041 calendar year dues.

 

[Dean]

Will the December owners get points on 1 Dec 2041? Thanks for responding, I'm obviously a bit behind on this topic.

We simply don't know how they'll prorate it.

There are enough points. Or, rather, there were enough. In the first year, that December use year didn't get points until December, leaving plenty of points for early use years in the months prior.

Think of it this way: If everyone with a February use year used their points in February, there would be enough rooms just for them. They cannot sell more points than rooms, and that applies to the end of term, too. There are enough rooms for all points.

Not necessarily accurate. There MAY have been enough rooms at the time the villas were declared but by the time they sold them and gave everyone a full years worth of points and allowed them to bank them up until the last day of the UY, they actually did oversell them in a sense. Regardless, the last couple of years there won't be enough points for everyone to get points and use them all for DVC villas.

 

[MountainMouse]

We simply don't know how they'll prorate it.

Thanks for the insight.

 

[LAX]

Unless they are charged reduced dues in Jan 2041, they will be owed at least one month's worth of points for their Dec 2041 UY (for Dec 1-31, 2041) since they will have paid for that month's points as part of their 2041 calendar year dues.

Unless owners of other UYs won't be getting their full complement of points for 2041, I can't imagine how December UY owners won't get their shares. If everyone get their fair share of points in 2041, it would be interesting to see how the contract expiration affects expiration of points as well as annual dues in 2042. I wonder if DVD might end up allowing those points to keep their 1-year expiration even though the contracts will have technically expired with banking suspended for the last year. This is assuming DVD would be planning to sell new contracts at those resorts after some refurbishment.

LAX

 

[LisaS]

Unless owners of other UYs won't be getting their full complement of points for 2041, I can't imagine how December UY owners won't get their shares. If everyone get their fair share of points in 2041, it would be interesting to see how the contract expiration affects expiration of points as well as annual dues in 2042. I wonder if DVD might end up allowing those points to keep their 1-year expiration even though the contracts will have technically expired with banking suspended for the last year. This is assuming DVD would be planning to sell new contracts at those resorts after some refurbishment.

LAX

I wasn't singling out those with a Dec UY. MountainMouse asked about Dec UY contract owners so I answered that specific question. The more general answer is that the dues paid in January 2041 will cover the portion of the two UYs that fall within calendar year 2041. I have an Oct UY so my 2041 calendar year dues will cover the last 9 months of my Oct 2040 UY and the first 3 months of my Oct 2041 UY. If I am charged a full year's dues in Jan 2041, then I would expect to receive at least 3/12ths of my Oct 2041 UY points. For someone with a Feb UY, the 2041 calendar year dues cover the last month of their Feb 2040 UY and the first 11 months of their Feb 2041 UY. If those folks are charged a full year's dues in Jan 2041, they are owed at least 11/12ths of their Feb 2041 UY points, and so on for the various UYs.

So in regards to "everyone getting their fair share of points in 2041", Disney could opt to give us only the points that are covered by our calendar year 2041 dues and no more, especially if they opt not to charge us anything for Jan 1-31, 2042. On the other hand if they do charge a month's worth of dues for Jan 1-31, 2042, then I would expect to get another month's worth of points in exchange for that month of dues.

 

[Dean]

Unless owners of other UYs won't be getting their full complement of points for 2041, I can't imagine how December UY owners won't get their shares. If everyone get their fair share of points in 2041, it would be interesting to see how the contract expiration affects expiration of points as well as annual dues in 2042. I wonder if DVD might end up allowing those points to keep their 1-year expiration even though the contracts will have technically expired with banking suspended for the last year. This is assuming DVD would be planning to sell new contracts at those resorts after some refurbishment.

LAX

If they limit borrowing, getting the full complement and paying dues might not be a good thing, esp if you get the points but can't use them. The other issue is the dues by calendar year rather than UY. I suspect they'll use a combination of several measures that includes banking limitations and some type of lottery or preference list combined with paying dues only on points used.

 

[MountainMouse]

Have there been any other timeshare companies using a point system with expiring leases? If so, how have those been handled?