Maint. fees for addon

[Hogzilla]

How do these work?

We are thinking of adding on before 3/1 (Guide says interest rates will go up for DVC financing after 3/1). I asked about 2006 fees and was told that we would start paying fees from closing until the end of the year (we have December use-year). I asked what would happen if I bought in November and she said we would just pay from Nov-Dec. Seems silly that no matter when we buy, we still get our 2006 points in December, but we basically get punished with more maintenance fees if we buy now.

Is she correct?

 

[RobDoc]

Yes, DVC has always prorated the annual fees based on when you purchase. In the scenario you describe, if you wait until Nov to purchase, the 2005 points would only be usable until November 30 unless you could talk MS into extending the banking deadline (many have reported not being allowed to bank at such a late date for an add-on). You will stil get your 2006 points on December 1.

When we've added on, the fees were prorated from the time we made the deposit- not from closing.

Enjoy!

 

[WithFaith50]

Hi,

I wanted to add that I just added some points this month and my use year starts March 1. My guide said that the 2005 points would be banked into my 2006 use year. I confirmed this with MS when I called to follow up the next day and sure enough...The points were in my account and banked to my 2006 use year!

 

[LisaS]

How do these work?

We are thinking of adding on before 3/1 (Guide says interest rates will go up for DVC financing after 3/1). I asked about 2006 fees and was told that we would start paying fees from closing until the end of the year (we have December use-year). I asked what would happen if I bought in November and she said we would just pay from Nov-Dec. Seems silly that no matter when we buy, we still get our 2006 points in December, but we basically get punished with more maintenance fees if we buy now.

Is she correct?

Remember, you also get current-year points with your add-on. You will get the Dec '05 points right away and can use them for stays until Nov 30, 2006 or you can bank them into your 2006 Use Year. If you wait until November to buy, you would have a month or less to use those '05 points before they expired unless they made an exception and let you bank them. Some people get the banking exception and some don't, so you could end up saving 8 months worth of dues but losing out on the Dec '05 points. Personally, I would rather pay more of the pro-rated dues and get the '05 points in time to use them or bank them.

 

[Hogzilla]

Remember, you also get current-year points with your add-on. You will get the Dec '05 points right away and can use them for stays until Nov 30, 2006 or you can bank them into your 2006 Use Year. If you wait until November to buy, you would have a month or less to use those '05 points before they expired unless they made an exception and let you bank them. Some people get the banking exception and some don't, so you could end up saving 8 months worth of dues but losing out on the Dec '05 points. Personally, I would rather pay more of the pro-rated dues and get the '05 points in time to use them or bank them.

Believe me, I have considered this and I know this would be a bad trade, but as you can see with the post above, DVC let someone do just that ....... buy and bank immediately a few days before they got their 2006 points.