Loaded vs Stripped ?

[Syndrome]

In the market for a resale .........just not sure where yet

I was thinking that we don't need a contract with 2014 points because we have 3 rented DVC stays coming up already in 2014. 1 trip to DL - VGC , and another trip to WDW - BWV/VWL, so our vacation budget for 2014 is fully busted now ! No more trips until 2015 ! So we don't need any more points for accommodations in 2014.

SO ........ I was thinking we could get away with buying a stripped contract without any 2014 points. No 2014 points, so no 2014 MF's , and we should get a better price since its stripped. BUT ............
Now I am beginning to think that my thinking is flawed !

If we are not planning any trips until 7/2015 at the earliest .........don't we need the 2014 points so we can book our 2015 trip ???

In other words if we find a contract with 0 2013 points and full 2014 and full 2015 points .........that's really what we need to be able to book our 7/2015 trip. If we buy a contract that has (for argument sake) 300 2014 points with a June UY. The soonest we can use these 300 points to BOOK a stay is June 2014 ? Even if we close in April ..........we still have to wait until June to book a trip because that's when the new points get loaded ?
If we buy a contract with NO 2014 points we will have to wait to reserve a room until 2015 ???

Sorry .........I am sure it obvious to most of you, but I want to make sure I have it correct.

Thanks !

 

[MagicJourney]

2014 points with June UY can be used for travel between 6/1/14-5/31/15. So you need 2015 pts to book your 7/2015 trip. If your UY is Oct, for instance, 2014 points gonna cover your 7/2015 trip, since they are valid from 10/1/14-9/30/15.

When you can book is irrelevant to UY, but related to booking window. For example, on 8/1/2014, you could make a reservation for 7/1/2015 at your home resort (11 month window), no matter your UY is Feb., Jun., or...

 

[tjkraz]

2015 points are used to book trips which occur during the 2015 Use Year. You do NOT need to have points readily available at the time of the booking. As long as they are scheduled to be in your account by the time the trip will occur, you can book your Home resort 11 months out and 7 mos at all others.

If you want to vacation in June 2015, you'll be using 2015 points if you have a Use Year of February - June. That trip can be booked in July '14--11 months out--as long as you haven't committed your 2015 points to some other stay.

If your February - June contract happens to include 2014 points, you could bank them for a June 2015 stay.

If you buy an August - December Use Year, you'll actually be using 2014 points. (To illustrate, the 2014 Use Year for August covers stays from 8/1/14 through 7/31/15.) Or you could borrow 2015 points for the June '15 stay.

 

[disneynutz]

Decide on which UY to buy based on vacation patterns, then start looking for contracts that are the correct size. IMO getting the above is more important than worrying about having the points available for the next vacation.

Bill

 

[Syndrome]

Thanks , that makes sense now.

SO.......if our first trip with said resale purchase will not be until 7/2015. The contract we are looking for has to at least have 2015 points. I guess I shouldn't just turn away a contract with 2014 points if its a good deal. I could always rent them out (or bank them)...........but I would have to pay MF's on them.

So the question now is -
Buy a contract "stripped" (for a better deal) - so we wont have to pay 2014 MF's, since we don't need any 2014 points.
OR ....................
Find a contract that has 2014 points (even though we cant use them in 2014), and either rent them out or bank them for 2015 . BUT ........we would have to pay MF's on the 2014 points.

Kind of liking the ................ bank the 2014 points into our 2015 UY option ! With this option we can always book on our "banked" points every year, and keep the current points for when(and if) we NEED more points in the current year ...............then bank them to the next year.

Sound right ?

Thanks for the help !

 

[tjkraz]

SO.......if our first trip with said resale purchase will not be until 7/2015. The contract we are looking for has to at least have 2015 points.

NO!

It depends on the Use Year of the contract you own.

If the Use Year is February - June, you would be using 2015 points for a July '15 stay.

If the Use Year is August - December, you would be using 2014 points for a July '15 stay.

 

[Syndrome]

Decide on which UY to buy based on vacation patterns, then start looking for contracts that are the correct size. IMO getting the above is more important than worrying about having the points available for the next vacation.

Bill

Our UY is the toughest part of our decision (except what resort we want to buy at, lol ).

We ALWAYS vacation last week of July / first week of August . So a June UY would work our great .
BUT ............. we also take trips (and foresee a lot of our future trips) ............anywhere between December - March .

Tough call on a UY ! Not sure which UY would suit us best ???

 

[Syndrome]

NO!

It depends on the Use Year of the contract you own.

If the Use Year is February - June, you would be using 2015 points for a July '15 stay.

If the Use Year is August - December, you would be using 2014 points for a July '15 stay.

Thanks ......that's what I was thinking.
I just didn't want to post that because people would think I was confusing UY with a booking window. I figure I would have to buy a contract with a June or earlier 2015 UY to be able to use the points in July 2015. (because there is no July UY).

Sound good ?

 

[Sur]

We purchased a few contracts that were considered stripped.... no current year points, for a similar reason as you. They were small add ons, so the prices were higher for that reason alone. I didn't expect any kind of initial cost cut, but here's where the big difference occurred- the prices have increased, by $20-$30 pp for the same contracts with current points (none banked).

We saved on the cost of member fees and ended up getting a better deal than had we waited to buy this year.... about $2500.

You may encounter the same kind of situation, or prices may drop and it would've been better to wait. Good luck on your search.

 

[JWG]

If you're buying resale, maintenance fees are negotiable. We've 1) not paid them, 2) paid a prorated portion of them and 3) paid them in different purchase scenarios. All costs associated with a resale are negotiable between the buyer and seller. Technically, maintenance fees are due in January of each year, the exclusion being if you choose to pay monthly over the course of the year. So, many contracts may have already had the fees paid and sellers are just trying to recoup their investment.

We do not pay monthly as we charge the fees to our Disney VISA so we can then collect the points to have our rewards pay the dues every so often. If we were to sell, the fees would already have been paid (in Disney's eyes).

My opinion on maintenance fees often ties to the price of the contract and how negotiable a seller is willing to be.

 

[Dean]

The issue is that the inherent value of a stripped contract is generally far less than a loaded one. You'd have to buy at least $10 per point less including fees to "break even" on a stripped vs loaded contract. You'll likely be better off buying a few less and getting 2014 points you can bank. Of course it does come down to ultimate overall costs so just compare.

 

[sndral]

Another factor to consider w/ use year is whether you may want to add on going forward, as is my plan. I chose a use year month w/ more contracts, so that I would have an easier time finding another contract w/ the same use year going forward.

 

[Dean]

Another factor to consider w/ use year is whether you may want to add on going forward, as is my plan. I chose a use year month w/ more contracts, so that I would have an easier time finding another contract w/ the same use year going forward.

For those where UY matters (most members), I believe the inherent benefit of a better UY far outweigh any potential minor add on options later on. But that's one of the reasons I think those looking small should look at a cushion of extra points.