maintanence fees

[stephaniebatesjones]

Hello fellow Disney Fans. I would realy like to join the vacation club, and the info. that I'm reading from you guys is very helpful. I tried to go on the web site to get my questions answered but it was very slow, so can you guys answer them for me?

1: When purchasing through Disney (as opposed to a resale), do you pay it all up front or do you make monthly payments?


2: How much are the maintenance fees? Does it vary depending on your home resort, number of points purchased, or is it a flat fee. I read some threads that said they were pricey, but they did not say how pricey.

3: I know that you purchase in a certain month, but do you purchase a certain week or certain days (example: July 10-15).

4: Is it very hard getting into diffrent resorts other than your home resort.
Thanks, Steph

 

[MikeScott8]

1) if you have the cash you can pay up front or you can apply for financing from DVD (Disney Vacation Development- the corporation that is the "developer").

2) maintenace fees vary by resort and are a certain amount per point you own at that resort.

3) the use year is just an anniversary date. this month you get the points for the year. (ex: I have an Aug use year so each August 1st I get my points for the upcoming "use Year")

4) it depends on what time of year you want to go and how far out you plan, as well as how flexible you are when making the resservations

Mike

 

[drusba]

1. Your option, pay all or finance up to 10 years through Disney's credit company. 20% down requested but will accept 10%.

2. They range, depending on resort, from about $3.20 to about $4.00 per point per year (and thus it depends on where you buy and how many points)

3. You get a "use year" like February (or other starting month). That determines when you get annual allotment of points placed in your account (first day of use year). It has absolutely nothing to do with when you can go, any time of year, or when you can call to reserve, always 11 months or less out at home resort and 7 or less at others.

4. Difficulty in getting non-home resorts at 7 month reservation window depends on resort and time of year. BWV has proven the hardest to get many times of year and OKW the easiest (as it has the most rooms), HH is difficult in summer. Also note that contrary to what one may believe, the highest DVC demand times at WDW tend to be many of the off-seasons and some holidays, and your lower demand times include much of summer.

 

[JonHM]

2 things that are very nice about DVC financing:

First, you can finance it like a car loan, over several years or 5 years, *BUT* you can also finance it out over ten years if you'd like. This *really* helps to keep the monthly payments down, AND there is absolutely no pre-payment penalty. So if you finance over 10 years and 3 years from now come into a lot of money, you could always pay it off with no penalty.

Also, regarding the dues, one thing I don't think has been mentioned yet is that you have two options on how to pay them: you can pay them in one lump sum at the beginning of the year, OR DVC will split it up into 12 equal monthly payments for you, at NO interest. They'll even draft them straight out of your bank account if you'd like, so you hardly have to think about it.

 

[jmminarik]

Originally posted by stephaniebatesjones


1: When purchasing through Disney (as opposed to a resale), do you pay it all up front or do you make monthly payments?


2: How much are the maintenance fees? Does it vary depending on your home resort, number of points purchased, or is it a flat fee. I read some threads that said they were pricey, but they did not say how pricey.


3: I know that you purchase in a certain month, but do you purchase a certain week or certain days (example: July 10-15).

4: Is it very hard getting into diffrent resorts other than your home resort.
Thanks, Steph

1)Assuming you mean the actual purchase of the DVC, as mentioned you can finance through Disney or any other mechanism you wish to use. Paying up front (i.e. Cash) means no interest. Keep in mind, the interest if you finance through Disney (and possible other vehicles) is probably tax deductable. As always, check with your tax advisor.

If you meant dues, they can be paid every month or in one lump sum. Given that Disney doesn't charge interest or a service fee, there's little fiscal incentive to paying dues all at once.

2) As mentioned, dues vary by resort, but are charged on a per point owned basis. From what I've read on this board, the dues are by law only allowed to reflect the cost of running/maintaining the resort, and can only increase at a maximum of 15% per year. The variance in the dues is due in part to what the particular resort offers (i.e. more pools==higher pool maintenance costs), and the taxes (i.e Vero Beach has a higher property tax because of location).

3) As mentioned, your ownership has a 'Use year'. For us, that happens to be September. Every September, we gain access to use that use year's points (assuming we didn't borrow them, but that's a whole seperate topic). I'm not sure if the other explanations are clear enough, but if you think of the 'use' year in the same way we think of school years (i.e. you're a freshman from September to September, regardless of the calender years.)

Unlike 'traditional' timeshares, you're not stuck with a particular week or unit size with DVC. Your points allow you to reserve any combination of rooms at any time during your use year, assuming the room(s) are available and that you have enough points. You could, in theory, reserve every Monday throughout the year in a studio at Boardwalk assuming availability and you have enough points.

You can use your DVC points at any DVC resort (Boardwalk, OldKeyWest, VeroBeach,HiltonHead, Villas at Wilderness Lodge, and soon the Beach Club Villas) with no 'penalty'. The restriction comes in as to _when_ you may make a reservation. At your home resort, you can reserve 11 months in advance of the date. At the other resorts, 7th months.

I won't go into it, but you can use your DVC points outside of the DVC resorts as well.

The Common Wisdom on these boards is to buy your points at the resort you wish to stay in most of the time. In WDW, that means beach club. The 'old' resorts can be bought via resale. By buying at the resort you wish to use most of the time, you expand your window of opportunity to actually get the rooms and dates that you want.

4. Well, I just re-read #4, so maybe you did understand the resort hopping... See the last paragraph of number 3 for the common wisdom on where to buy.

From my anecdotal experience, we've not had any problem getting ressies for when we wanted, but I think I'm just lucky compared to some on the boards.


Odds are good you'll be able to get the resort you want at 7 months, assuming it is not a busy time of year for the resort. (This might mean going on a wait list, but it seems to me reading these boards, the wait list works for alot of people.) Assuming you want WDW resorts, that is mostly whenever kids are in school, though that is changing. The only potential problem outside of summer and the school year holiday weeks is the first two weeks of december....these seem to be popular with DVCers because they have a low point cost, the parks are generally at their lowest usage, and all of the christmas decorations and stuff are up.

I hope this helps,
Joe

 

[luvindisneyworld]

hi, as far as your maintenence fees they draft them out of our bank account on the same day the take our payment out, this is alot easier than coming up with one lump sum at one time,and our maintenence fees are like 62.00 a month so it just makes it easier to do it once a month,BTW those fees are based on 210 points. hope this helps, misty

 

[MikeScott8]

For the monthly withdrawal for our dues we had a choice of the first or the 15th of the month to have it occur. To give you an idea of the dues for our 150 points at VWL the monthly payment is $55 and change.

When financing through Disney if you have automatic withdraw for the payments, those are on the First only. So if you have the dues payment taken out on the first as well, they will be like one monthly payment for both.

Mike

 

[Terry S]

Mike, I was asked when I wanted both my dues and payment withdrawn, since my house payment is due on the 1st I picked the 15th for both payment and dues.

Steph, No one has given you the exact amount for dues on the current for sale property at WDW which is BCV so I will, the amount is $3.77 per point currently.

Also, to determine how many points you will need you can go to the point chart here on the Dis http://www.wdwinfo.com/resort/dvcpoint.shtml if your looking to purchase through Disney, Beach Club Villas is the only one available, you will have to select Wilderness Lodge Villas as your sample since Beach Club Villas is not there yet, they are the exact same number of points to stay at either one, then select the dates you would normally vacation and that is how many points you would purchase. This would be based on if you go every year, if you plan to go every other year you can cut that number in half.

 

[stephaniebatesjones]

hey guys, it's me again. You guys have given me alot of great information, but I still have a few more questions.


1:Can you make your yearly payment at the begining of the year in one lump sum or do they have to draft it from your account every month?

Also, after your initial purchase, do you have to wait untill the next year before you get your points? (for example, if I purchased today do I get my points right away or do I have to wait untill May 2003 to get them.

Next, can you purchase meal and activity packages at wdw when you are a dvc member or are you stuck paying for everything seperatley...and do you get any substantial discounts on tickets, meals, etc.

Last, if you buy a re-sale can you pay monthly or do you have to have the entire purchase amount up front? (If anyone knows)

Thanks again guys,

Steph,

 

[PamOKW]

The bill for the upcoming year's dues arrives at the end of December (Merry Christmas). At that point, you have the option of paying the entire amount (I think it's due Jan. 15) or using the monthly direct withdrawal.

When you purchase you are given a Use Year. This is the month you will receive an allotment of points that are good for the next 12 months. If you bought today, you wouldn't necessarily be getting a May Use Year (not even sure if there is one -- some months are skipped.) But, you would get points to use upon closing. You wouldn't be waiting a year to use them. As an example, f you got an April Use Year you would be getting the April 2002-2003 points to use.

DVC members do not have any packages to purchase. We do receive changing discounts at various restaurants and for various activiites. The pass discount is a stumbling point. We get a 10% discount on Length of Stay passes but no discount whatsoever on any other pass option.

Buying a resale I believe you have to provide the seller with the cash and find financing on your own.

 

[Happy Birthday Cat]

(If anyone knows)

stephaniebatesjones:

Someone on these boards always knows!

Regarding discounts: When you check in you receive a list of the most current discounts for DVC members. It usually has quite a few good ones on it. Like a 50% discount at Winter-Summerland (I think that was it).

HBC

 

[drusba]

As to the question on paying monthly if you buy resale: If you buy resale you need to pay the entire amount of the purchase price by the time of closing. You can likely finance that purchase but you need to find it separate from Disney--for example get a home equity loan to cover it on existing home or get financing from a timeshare lender (but note that timeshare lenders are usually charging a percentage rate of 2 points or more above what Disney charges when you buy new through Disney). As to maintenance fees in a resale, all fees still due for the calendar year you are in when you buy will be paid off to Disney at time of closing if seller has not already paid all such dues and depending on what is negotiated you will likely have to pay at closing at least some part of those dues. After closing you can arrange through Member Services to have dues paid monthly beginning with the next calendar year.

As to meal or activity packages, there are none. DVC actually did have the meal package at one time but it was discontinued beginning with the year 2000 apparently due to the lack of interest. Most veterans of WDW believe, correctly, that those packages are not really worth having anyway as you will find that you actually spend less money overall if you just purchase things separately.

As to points you get when you buy from Disney, you will get current points with a use year month that usually begins before you purchase (not sure what month they are selling now although likely March or April for BCV and February for VB and HH--note they have purchase incentives under which you can 'sell" those first year points back to Disney to receive a reduction in point price). There are no use years that begin January, May, July or November.

 

[jmminarik]

Originally posted by stephaniebatesjones
hey guys, it's me again. You guys have given me alot of great information, but I still have a few more questions.


1:Can you make your yearly payment at the begining of the year in one lump sum or do they have to draft it from your account every month?

As mentioned, you can do either. Since there is no interest or service charge by paying monthly, there's little fiscal incentive to do so however. Well, maybe something can be done with taxes if you have a crafty tax accountant, but generally there's no incentive.

Also, after your initial purchase, do you have to wait until the next year before you get your points? (for example, if I purchased today do I get my points right away or do I have to wait untill May 2003 to get them.

As a general rule, buying through Disney, your points are for the year you're currently in. So if you bought right now with a use year of June, you'll have access to the points starting June, usable through May 31st of 2003.

If you buy a resale, you have to be careful about the current point availability. With a resale, it's possible that all of the current year's points are used, as well as next years points. That diminishes the value. Conversely, its possible that _last_ year's points are banked to this year, all of this year's points are still available, as well as next years. THat would increase the resale's value.

Next, can you purchase meal and activity packages at wdw when you are a dvc member or are you stuck paying for everything seperatley...and do you get any substantial discounts on tickets, meals, etc.

The only current 'discount' that I am aware of is a 10% off the Unlimited Magic pass. This is the pass which allows full access to all the parks from check-in to day of check out. It was previously called the length of stay pass. I won't go into all of the merits/demerits of the UMpass, but it is generally considered to be less of a bargain that it seems.

Getting the UM pass, you can't order before hand. You must buy it the day you check in, and all people in your rooms must buy them.

Please note that the UM pass is really designed to be sold as part of the 'package' tours you can buy from AAA and other travel agents. THis is pretty true of the 'meal' plans at disney. Based on what I've read, and what my family who has gone to WDW has said, the meal plans aren't worth the price since you feel ripped off unless you order alot of food...then you feel bloated and miserable since you can't not eat it since you paid for it...

Besides, though I seem to be a minority in this regard, I like to cook while on vacation. That's why I want a room with a kitchen.

Last, if you buy a re-sale can you pay monthly or do you have to have the entire purchase amount up front? (If anyone knows)

As someone mentioned, you have to pay the seller everything up front. Unless of course, the seller is willing to take a promissory note from you. I can see _that_ happening with a close friend or family, but very unlikely otherwise. So, the seller almost always needs the full amount up front. How you acquire the money to pay is up to you...home refinance...raid savings...timeshare loan....credit card check....uncle louie....and so on.

Thanks again guys,

Steph,

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