Is there any downside to buying a fixed week if I won't use that week?

[miTnosnhoJ]

I am looking at adding on and buying points with a fixed week attached for a week that I will rarely need, but the points are priced attractively (resale). Any downside? (besides it being a larger contract, and thus potentially harder to sell.)

If I understand correctly, I can cancel the FW each year and use these points as home resort points.

 

[zavandor]

Exactly. I cannot see any downside if the contract size is good for you.

 

[disneynutz]

Only that a fixed week is sold at a premium direct and it may sell at a premium resale.

Bill

 

[supersnoop]

Only that a fixed week is sold at a premium direct and it may sell at a premium resale.

I didn't think there was a premium when buying direct. You just have to buy extra points. The resale price should be in line with the number of points.

 

[sndral]

I've noticed that the few fixed week contracts listed for resale @ the VGF seem to stay listed a lot longer and have lower asking prices, I suspect that it's too soon to tell whether this is just an anomaly related to things about those particular contracts or an indicator of the future value @ resale of fixed contracts. It's sort of an unknown at this point, as the fixed week option is so new to DVC. I know intellectually that if I buy a fixed week for a studio with a standard view I'm not stuck w/ that villa for that week every year and could, for example, convert it to points and use it every other year for a 1 br. since that is my goal, but I'm hesitant to offer on one of the fixed weeks just because I know I'd never use the fixed week involved and I wonder if people looking to buy resale look at the unit/week the contract has and decide it isn't the way they plan to vacation and move on to offer on a traditional contract.

 

[disneynutz]

I didn't think there was a premium when buying direct. You just have to buy extra points. The resale price should be in line with the number of points.

That's the premium, they make you buy, lets say 326 points when the week actually is 248 points. If you keep the fixed week auto booking, you are overpaying and my guess is that some owners are doing just that.

Bill

 

[JimMIA]

Exactly. I cannot see any downside if the contract size is good for you.

Exactly...IF. If the fixed week premium forces you to buy too many points, as Bill says, you are overpaying.

OTOH...if you don't plan to use the fixed week, what is the benefit of buying a fixed week contract?

 

[KAT4DISNEY]

I've also noticed that the fixed weeks for the larger units tend to stay on the market longer. So, I'd say one risk could be a longer resale and potentially less when selling. I think there are only a very few weeks in the studios that will sell quickly. The rest, I'd likely buy a non-fixed week unless it was something I might use now and then or just happened to be very close to what I needed for points. I've seen some "bad" fixed weeks where the week was at the end of the UY. So, even it you would use it a late cancellation would be a problem. Personally I'd definitely skip those.

 

[disneynutz]

Exactly...IF. If the fixed week premium forces you to buy too many points, as Bill says, you are overpaying.

OTOH...if you don't plan to use the fixed week, what is the benefit of buying a fixed week contract?

We bought our fixed week at VGF to guarantee a reservation for the room size and view category during the Christmas season. If there is availability we can cancel and book ourselves. If there isn't, we let the auto reservation stand.

Bill

 

[jerseyduke]

I think it also depends on the resort.

Due to the size of the Polynesian, I can not foresee 11 month availability being an issue. Assuming that that is the case, the fixed week there, in my eyes, loses some of, if not all of, it's value.

Move over to the Grand Floridian, a Fixed week 48 or Week 49, particularly a studio is worth the premium. On the resale market, I would expect that to go for more than a comparable number of points. (If I could go back in time, my VGF contract would be a fixed week)

I am also speaking under the assumption that if you cancel a fixed week, you actually get the extra points that were the premium. Correct me if I am wrong there.

 

[supersnoop]

Due to the size of the Polynesian, I can not foresee 11 month availability being an issue. Assuming that that is the case, the fixed week there, in my eyes, loses some of, if not all of, it's value.

Buying direct, I can't see any reason to not buy a fixed week. In fact, it's one of the few benefits of buying direct. There's no downside, as far as I can see.

 

[Granny]

Buying direct, I can't see any reason to not buy a fixed week. In fact, it's one of the few benefits of buying direct. There's no downside, as far as I can see.

Makes sense except if you want to sell the contract down the road. As noted by others, fixed week contracts seem to be staying on the market longer. Keep in mind that many first time buyers (and even many current owners) don't understand the nuances of fixed week and may avoid it thinking it is the traditional timeshare fixed week system. That alone will keep away a substantial number of potential buyers.

 

[jerseyduke]

Buying direct, I can't see any reason to not buy a fixed week. In fact, it's one of the few benefits of buying direct. There's no downside, as far as I can see.

As long as you get the extra points if you cancel (and even rebook), then I would tend to agree. That way, in the event, that you do not need the safety it provides, you are never overpaying for a week, and if you do need the safety it provides, then you are getting the value out of the premium you paid. If i were to buy the Poly, I would by a fixed week myself as long as the previous statement is true.

I just think it is not "needed" at the Poly, which makes it potentially less valuable on the resale market. (People do not understand it). Due to the size of the VGF, i think it can add to resale value.

 

[supersnoop]

As long as you get the extra points if you cancel (and even rebook), then I would tend to agree. That way, in the event, that you do not need the safety it provides, you are never overpaying for a week, and if you do need the safety it provides, then you are getting the value out of the premium you paid. If i were to buy the Poly, I would by a fixed week myself as long as the previous statement is true.

I just think it is not "needed" at the Poly, which makes it potentially less valuable on the resale market. (People do not understand it). Due to the size of the VGF, i think it can add to resale value.

That's exactly how it works. I suspect it will be "needed" for a few years shortly after they sell out. Fixed weeks for the first week of December, and even around Food & Wine will be valuable. There should be no downside on the resale market. It's simply a "138 point contract" with the added bonus of a guaranteed reservation if you want it.

 

[miTnosnhoJ]

Thanks everyone. Your comments were very helpful. There seems to be no downside except when you need to sell, but this risk can be mitigated by buying it at a good price initially.

 

[suebeelin]

Hi everyone-- I do find the fixed week puzzling... One curious notion about the fixed week- let's say you borrowed from the following year to see if you can book the category of your fixed week, and you get it.

Then you can cancel your fixed week, get extra points, and bank it to the next year? That way you avoid using the "extra" points but still get your room category.

Would they (the powers that be) then take from your banked points the following year for the fixed week?

What if you use your points from this year and borrow from the next use year? Does your fixed week automatically cancel? Or, do they borrow from the following year for your fixed week?

Just very curious...

 

[jerseyduke]

I would assume that if you cancel your next years Fixed Week, and borrow those points in, you lose your fixed week the next year altogether.

My guess would be that the week is fixed, only if current UY points are there to make the reservation.

It would seem that it basically breaks the 11 month rule(legally). Your week 10 reservation in 2024 is already made. In the even you cancel to borrow, then you try to make it at the 11 month window with everyone else.

But there are people who know more about the ins and outs of this that I do.

 

[pangyal]

Hi everyone-- I do find the fixed week puzzling... One curious notion about the fixed week- let's say you borrowed from the following year to see if you can book the category of your fixed week, and you get it.

Then you can cancel your fixed week, get extra points, and bank it to the next year? That way you avoid using the "extra" points but still get your room category.

Would they (the powers that be) then take from your banked points the following year for the fixed week?

What if you use your points from this year and borrow from the next use year? Does your fixed week automatically cancel? Or, do they borrow from the following year for your fixed week?

Just very curious...

We have a fixed week at VGF and have had a really hard time getting answers to questions just like these from MS. They seem completely lost on the topic and need supervisor input at every turn. Anyways, if you don't have the points available in your year to book the fixed week, it simply doesn't get booked. They won't go ahead and borrow.

Eta: it is still unclear as to whether they would use banked points toward the fixed week. They haven't been able to tell us this definitively.

 

[Dean]

I am looking at adding on and buying points with a fixed week attached for a week that I will rarely need, but the points are priced attractively (resale). Any downside? (besides it being a larger contract, and thus potentially harder to sell.)

If I understand correctly, I can cancel the FW each year and use these points as home resort points.

Personally I'd say no and I've suggested potential members buy a fixed week even if it didn't match up with their plans. There actually are two potential downsides though. That it may not match up with some the number of points you need and that I believe it will preclude you from buying a combination of smaller contracts.

 

[ziravan]

You have a fixed week irrespective of points. If DVC reallocates, your week remains fixed.

The fixed week isn't point dependent.

Now, you can use your fixed week OR the point value attached to it. But any move to use the points (borrowing, use in another reservation, etc) "breaks" the guarantee.

For example, I borrowed my points from next year in my fixed Poly contract. When I went to borrow, I got a "do you really want to do this" prompt reminding me that by borrowing points attached to a fixed use, the fixed reservation would be cancelled and that was a final action that cannot be undone.