Maintenance Question

[DeeCee735]

Since I can't get MS til Monday, and don't want to further bother my VG, I was wondering if any of you guys could answer a ? for me.

I just added on 25 points at BWV. My use year is October, I purchased the middle of September (there were only 60 left in my use year and I was afraid to wait - to me it was worth the extra $30 to guarantee I'd have them). Judy Kaufman is my guide and she explained that upon purchase of these points I will be billed at a pro-rated amount for the points. It comes out to like $30.00 or so. I wish I could remember how she explained this to me. My question is this....
When we receive our annual bill (I pay in full once a year) at the end of December/beginning of January (don't remember exactly when it comes), will I be charged full maintenance for the new 25 point contract plus my original contract (180 + 25 = 210 total points)? I'm having a duh moment here and am confused. Thank you for your replies -

 

[DebbieB]

That's correct. You will get billed for the new points for 2004 maintenance after closing, pro-rated from your signing date to 12/31/04 ($30 per Judy). When you get your bill for 2005 maintenance, it will be for your new total amount of points (210 points x the 2005 rate).

 

[PamOKW]

Originally posted by DeeCee735
When we receive our annual bill (I pay in full once a year) at the end of December/beginning of January (don't remember exactly when it comes), will I be charged full maintenance for the new 25 point contract plus my original contract (180 + 25 = 210 total points)? I'm having a duh moment here and am confused. Thank you for your replies -

We get the budgets with the billing estimates in November (before the annual meetings). The actual bill usually arrives right after Christmas and is due by January 15. I think it's February 15 when they start adding penalties. If you set up automatic withdrawal the payments are spread over the 12 months. The bill is for the upcoming year. The bill you got in December 2003 was to pay for 2004. The bill we get this December will be the charges for 2005.

Debbie already answered your question -- the pro-rating is for 2004. You'll owe the full year for 2005.

 

[Caskbill]

This is kind of a funny way DVC does things. Remember that Use Year and Maintenance year are separate. The Maintenance year runs a regular calendar year, January to December. That's why when you purchase new points the dues are pro-rated for the remaining months in the calendar year.

Example, suppose someone owns 200 points with an October use year. Let's look at the 2004 maintenance fees (paid last January 2004).

The 2004 use year contains 25% of the total points actually within the calendar year 2004. (3-months out of 12, or Oct, Nov, Dec 2004). The remaining 75% of the Use Year points are in calendar year 2005 (Jan through Sep, or 9/12th of the year)

So last Jan 2004 this member paid the remaining maintenance fees on whatever 2003 points they had, and the maintenance fees on 25% of the 2004 points. This next January, for the calendar year 2005, they will pay maintenance fees for 75% of the 2004 points, and for 25% of the 2005 points, for a total of 100% for the calendar year.

You can actually use the points in any calendar year you want as long as they're in the actual use year. In some cases you could wind up using all the points in a use year before you paid a dime in maintenance fees (through borrowing), or in other cases have paid the maintenance fees way before you actually use the points (through banking).

Another way to look at it is suppose you took your annual allotment of points and received them instead monthly in equal installments. To make it simple, imagine a 120 point contract with an October use year. That's like getting 10 points every month. For 2004 you would start with Oct and go through Sep 2005, then in Oct 2005 you would start receiving your 2005 use year points at the rate of 10 every month. So even during the calendar year of 2005 you still received 10 points per month. The only thing that changed is which use year they were assigned, 2004 for the 1st 9 months, and 2005 for the last 3 months.

The maintenance fees stay consistent. If paying monthly, you essentially pay the maintenance fees on 10 points every month for the full year.

Hope this helps explain.

 

[Dean]

Originally posted by DebbieB
That's correct. You will get billed for the new points for 2004 maintenance after closing, pro-rated from your signing date to 12/31/04 ($30 per Judy). When you get your bill for 2005 maintenance, it will be for your new total amount of points (210 points x the 2005 rate).

To emphasize, in 2005 you would pay a full years fees on ALL of your points including the new 25. But it is not for the points you get in 2005 but rather for the 12 months. Essentially you're paying for part of the 2004 points and part of the 2005.

The prorated dues are calculated from when one signs the paperwork. Thus Sept on an August use year, you're paying essentially all of the dues on those points, just only part of them this year.

 

[crazyaboutdisney]

I'm confused, I have 300 total points. I started with 175 (dues taken out of my checking account),then added on another 25 and then added on 100. On the add ons i get the bill at the end of dec. Am i paying for the calender year or my april use year. Can i have the dues for the add ons also taken out monthly.

 

[Dean]

Originally posted by crazyaboutdisney
I'm confused, I have 300 total points. I started with 175 (dues taken out of my checking account),then added on another 25 and then added on 100. On the add ons i get the bill at the end of dec. Am i paying for the calender year or my april use year. Can i have the dues for the add ons also taken out monthly.

Yes, you can have the entire amount taken out monthly from your bank account. Dues are billed in Dec and due Dec-Jan and are for the 12 months starting Jan, not for the points gotten when your use year comes around. It really only matters in certain situations like buying, selling or the end of the contract. But it can make or break a resale and unfortunately few if any resale agents understand or care about this difference. Thus most people who buy resale overpay on dues.

 

[CarolMN]

Originally posted by crazyaboutdisney
.......(snip).....Can i have the dues for the add ons also taken out monthly.

As Dean already posted, yes. Just give Member Accounting a call (Use the 800 number for MS and listen for the Member Accounting option) and they will set it up for you. You can make the change for 2005.

Best wishes -