How Is This Possible?

[ziravan]

DVD now clearly defined in its current MEADs a member as a direct purchaser in good standing. If they intended to exclude direct members below a certain threshold, then that new definition should have included it.

If DVC raises bar for new members above 50, it will hurt sales at current price per point.

So. At this point, even IF DVD changes the rules for minimum points for perks, I have trouble believing it'll go above 50. Any higher would hurt direct sales and that's exactly not the point.

So. A 150 point resale BWV contract is $6500 cheaper than direct, and $3500 cheaper even if 50 points becomes the new minimum to qualify for perks.

The real question isn't whether the perks (being a real member) are worth $6500 more to buy direct, but if they're worth buying a combination that gets you there at the cost of a few thousand extra dollars...

 

[supersnoop]

DVD can change the minimum purchase for new buyers or add-ons at any time, they have changed before. IMO they will be changing it soon, why sell 25 or 50 point contracts when you can sell 100's.

Bill

What about one-time-use points, then? Im under the impression the 24 point limit is based on the fact that, if you need more than 24, you should buy another contract. If they raise the minimum to 50 points, they pretty much have to raise the one-time-use limit to 49. And I don't see that happening.

 

[Dean]

Dean: What would be the benefit of purchasing 2 x 25 point contracts as mentioned (for 50 pt min to finance) other than to have 2 different home resorts? Curious...

In addition there's no downside to buying 2*25 points. If one wants to use or resell them, it's easy and the same to do as if it were one 50 pt contract. The other advantage is is opens up the door if they only have the smaller contract in the unit in question. Say they only have 25 pts in unit A and unit B, you'll have to do 2*25 in that situation to get 50.

regarding the booking windows: Unless the small contract is at the same resort as your regular contract, it is not very useful since you won't have the benefit of using it for book at 11 mths, right? And while you can book on the small contract at 11 mths, you can't use your larger contract points to book because it's a different resort. The only way this works is if you like staying at two different resorts during your vacation. But still, a 25pt contract will get you only a studio for a night or 2, depending on the season.

That's correct, the reasons to do so would include to get retail perks, because you need the extra 25 pts and/or because you could use the 25 pt contract in some way. 25 pts are usually best to buy retail ainyway.

Even so. If that trick doesn't work, reverse the order. Buy resale first then add on. Until DVD amends what it will take to be a member, that should work as well.

My opinions is it's almost always to best to buy the resale prior to the retail trying to get both. It opens you up to an infinite large pool of resale options and avoids the possibiity they might not be combined.

 

[alisonslp]

Let's say you want 150 pts at BWV but you want to actually be a member instead of a 2nd class purchaser:

BWV 150 pts at current resale rate of $105 or so is $15,750.

Retail: 150 x 140 = $21,000.

Resale would be $5,250 cheaper.

25 point Poly contract at $168: $4200.

So. It's cheaper (by $1025) to have 175 points, 150 at BWV and 25 at Poly than to have just 150 direct at BWV.

The Poly contract is a bonus. So is the extra grand in savings.

OK, that makes more sense, but what about the maintenancefees ? Even at an even $4 - $100 a year - Over the course of 40 years, that's $4000, assuming there is no increase, which we all know that doesn't happen. Over the course of the contract, you will pay more with the add on. Not to mention the cost of the sales themselves? Around $500 each, right? Just sounds like a whole lot of trouble for just a few dollars in savings across 40 years. Now, I suppose if you don't actually plan to use those points, you can then rent them to earn back money and that would certainly put you in a better position financially. We have never rented our points but it just seems like it can be a pain in the butt but for those who do it regularly, it probably is no big deal.

ETA: not to mention any additional bonuses. When we bought in AKL (on a cruise), we ended up with an extra year's worth of points due to AKL not being opened yet (though they had to be used at SSR, which was not clearly told to us), and a significantly reduced price per point. I think they were currently at $98, increasing to 106 the next week, but we got it for either $92 or 95. Can't remember now. And maint. fees were deferred 9 months as well due to it not being opened yet. I don't know, maybe we just hit it at the right time and got 'lucky' but we did our math after the fact (yes, it was a bit of an impulse buy) and it worked out in our favor to buy direct as opposed to resale a few years later.

 

[Dean]

OK, that makes more sense, but what about the MF? Enven at an even $4 - $100 a year - Over the course of 40 years, that's $4000, assuming there is no increase, which we all know that doesn't happen. Over the course of the contract, you will pay more with the add on. Not to mention the cost of the sales themselves? Around $500 each, right? Just sounds like a whole lot of trouble for just a few dollars in savings across 40 years. Now, I suppose if you don't actually plan to use those points, you can then rent them to earn back money and that would certainly put you in a better position financially. We have never rented our points but it just seems like it can be a pain in the butt but for those who do it regularly, it probably is no big deal.

It is but it might be worth it for some. And someone who knows this going in can plan accordingly. Maybe they really need 200 but only buy 175 resale and 25 retail. For the right situation the perks can be worth that much but not enough to buy completely retail. I know people who bought only 25 resale just to get the perks but they were very knowledgeable and had a very specific purpose to do so. Some of those don't even stay in the room but use the points to get a night here and there to pool hop, get the DP for a couple of days, have a place to rest, etc. And some use them for a day or 2 at the beginning or end of an off property trip. The reality is that while some of the specifics have change slightly, the principles haven't at all. You've still got to see where you are going in, account for the risks and variables and make decisions accordingly.

 

[Dean]

What about one-time-use points, then? Im under the impression the 24 point limit is based on the fact that, if you need more than 24, you should buy another contract. If they raise the minimum to 50 points, they pretty much have to raise the one-time-use limit to 49. And I don't see that happening.

Not necessarily. They could continue the 25 pt limit but increase the minimum sale to 50, they could sell less than 50 but not give retail benefits until you reach 50, etc. The reason for the 24 limit is speculation, likely correct, but still speculation.

 

[disneynutz]

What about one-time-use points, then? Im under the impression the 24 point limit is based on the fact that, if you need more than 24, you should buy another contract. If they raise the minimum to 50 points, they pretty much have to raise the one-time-use limit to 49. And I don't see that happening.

One-time use points were introduced when Disney decided to increase the point requirements for THV. THV's were advertised as a 3 bedroom for the nightly point cost of a 2 bedroom. As soon as they sold out, the point requirements were raised.

Because some buyers were now short points, they introduced the one-time use points. Now instead of being the bad guy, they were wonderful for letting owners get points at $15 per point.

Bill

 

[Meandnevaeh]

This is all great information. Thank you all so much.

Another newbie question if I may.

I am completely confused by this use year aspect and its impact. Say my DW and I like participating in the annual WDW Marathon each January. I hear and read how DVC rooms at WDW become sold out 11 months prior by home resort DVC owners.

Does it matter if our DVC contract (thru resale or direct) has a use year of December of July? Is it all that matters that we have enough total points on, for example, Feb. 1st 2017 to reserve a room Marathon weekend 2018?

And on this, does it matter if we have one DVC contract for 50 points with a February use year yet the second with a June use year?

Thank you very much for the clarity.

You can make your reservation at 11 mos out as long as you will have points available when the trip takes place.

 

[Meandnevaeh]

I just got a quote for SSR a few days ago so it is definitely not sold out....you should ask him again or ask to speak with someone else if he won't show you all of the options you are requesting.

They processed quite a few ROFR on SSR contracts last month-could be why they have SSR available direct, but you would still save about $50/point buying resale for SSR

 

[wdrl]

One-time use points were introduced when Disney decided to increase the point requirements for THV. THV's were advertised as a 3 bedroom for the nightly point cost of a 2 bedroom. As soon as they sold out, the point requirements were raised.

Because some buyers were now short points, they introduced the one-time use points. Now instead of being the bad guy, they were wonderful for letting owners get points at $15 per point.

Bill

DVC introduced the One-Time-Points in early 2010. The Treehouse Villa point reallocation was not announced until late December 2011 and was effective with the point chart for calendar year 2013.

 

[disneynutz]

DVC introduced the One-Time-Points in early 2010. The Treehouse Villa point reallocation was not announced until late December 2011 and was effective with the point chart for calendar year 2013.

Then I made a mistake with THV but what happened in early 2010 as far as reallocations? I thought that the one-time use points were offered after a reallocation.

Bill

 

[DebbieB]

Then I made a mistake with THV but what happened in early 2010 as far as reallocations? I thought that the one-time use points were offered after a reallocation.

Bill

It was when they did the first reallocation for all the resorts. They knew some members would end up short.

 

[bumbershoot]

When I talked to them they said the only resort they had available was Poly and that everything else was sold out..

That's because the guide wanted to sell you Poly.

The whole point of Right of First Refusal (ROFR) in the "selling your DVC" process is that Disney can and often does buy back those contracts. The point of that is so they can sell them, direct, to customers. There are waiting lists for the resorts, and they buy back contracts to fill those waiting lists.

If you want a different resort and you want to buy direct, you just have to be firm with your guide that THAT is what you want.

There's no point of ROFR if you can't ever buy a different resort directly.

 

[Dan1]

What is the expiration of banked DVC points?

We found one potential resale that has points from August 2015.

Thank you very much.

 

[ziravan]

What is the expiration of banked DVC points?

We found one potential resale that has points from August 2015.

Thank you very much.

I'm not sure if you're asking about the deadline to bank or how long they're good to use if already banked....

If not already banked, points must be banked before 4 months before end of UY. So. If my math is correct, if Aug 2015 UY points weren't banked by Mar 31, they'll expire on Jul 31, 2016.

There would be almost no way to complete the transaction and use the points in time.

If banked into the 2016 UY, they're good until Jul 31, 2017.

If it looks like they weren't banked, ask the broker if they were. It would have been in the sellers interest to do so. Maybe they did.

 

[Dan1]

I'm not sure if you're asking about the deadline to bank or how long they're good to use if already banked....

If not already banked, points must be banked before 4 months before end of UY. So. If my math is correct, if Aug 2015 UY points weren't banked by Mar 31, they'll expire on Jul 31, 2016.

There would be almost no way to complete the transaction and use the points in time.

If banked into the 2016 UY, they're good until Jul 31, 2017.

If it looks like they weren't banked, ask the broker if they were. It would have been in the sellers interest to do so. Maybe they did.

Wow

Thank you so much.