Loaded contract buying thru Disney. What's that mean?

[a Really Bad Egg]

Greetings all.

I've heard on the DIS that one of the pros buying through Disney rather than resale is you get a 'loaded contract.' What is meant by that?

We are thinking of adding points and have been reading through posts on advantages/disadvantages and ran across the term, but no real explanation of it.

TIA.

 

[LisaS]

A loaded contract has all of the previous Use Year's points banked, all of the current UY's points available and all of the next UY's points available. You can find contracts like that via resale if you're lucky!

Disney doesn't sell loaded contracts since they don't include points from the previous UY. When you purchase an add-on, Disney gives you all of the current UY's points and will usually let you bank those points even if you are past all of your banking deadlines. If you purchase an add-on near the end of your UY, you are getting pretty much the same thing as a loaded contract since you will be able to bank those points and then will get your next allotment in another month or two at the start of your next UY.

 

[RobDoc]

There may a variety of definitions for a "loaded" contract. With a direct purchase you will get all points from the current Use Year and the points will be renewed at the start of the next Use Year. If you have a June Use Year, you would get all points from the June, 2006 Use Year and then get the next allotment on June 1, 2007.

With a resale purchase it's possible to get even more points ("loaded" contract), since there could be points banked from 2005, points banked from 2006 and then the upcoming allotment.

In reality, many resales will not come with banked points and may even have some (or all) of the current points already used as well as points borrowed from the following Use Year. There have been some resales offered with no points from 2006 and all 2007 points already borrowed - thus meaning no points would be available until June, 2008 - a "stripped" contract.

When looking at any purchase, be sure to look at all components of the contract, price, closing costs and maintenance fees to have an accurate comparison regarding the "value" of a contract.

Enoy!