More DVC Resale Questions

[dmoore22]

Has anyone had any luck purchasing points for less than $60 a point or is a Disney buyback pretty much a sure thing at prices below a certain level? Also how does the borrowing of points work, eg. borrowing points from the upcoming year?

Thanks

 

[Dean]

Having had one bought back and one go through that was close this past spring, I feel I have a decent feel for this. I think it depends on the contract, size, home resort, points availability and price per point. I think that anything less than $60 per point is very shaky and unless you're willing to lose it, I'd suggest not taking many chances in that area. If the points are stripped from the contract or it's a larger contract, over 300, you're chances of it getting through may be better. After the points increase to $84 in December, I think that price will be an impossibility and we will see the buy back price increase again, likely to around $65 pp or so.

 

[dmoore22]

We're looking at 400 pts. at BWV. Also how does borrowing points work? One more question. When purchasing resale is there any benefit to one with points banked as opposed to purchasing then borrowing the extra one would need.

 

[Shontell_Crawford]

A resale with banked points is almost like getting an extra year. They usually sell for more than one with just current or borrowed points.

It really depends on your budget and when you plan on traveling again. If you just got back from WDW and don't plan on going anywhere soon, you may be financially better off with one without banked points. On the other hand, I can NEVER get enough points and would opt for banked points if I could swing the extra cost.

Just my .02.

Good luck,
Shontell

 

[Luvdisney]

Dean,

What do you mean "buy back" or willing to loose it if Disney strips them out?

 

[dianeschlicht]

Buy back means the price at which Disney will nix a sale. They have right of first refusal on all resales. If they think the price is too low, they will buy it back at that price and put it in their inventory.

 

[Dean]

Originally posted by Luvdisney
Dean,

What do you mean "buy back" or willing to loose it if Disney strips them out?

dianeschlicht has answered you're question about buy backs. Stripped means a contract that doens't have much or any points available currently.

 

[drtpaper]

You have a good shot at getting anything above $57 or $58. The key is how you set up the contract and who is paying what costs. We got in last year under $60 and were told some went through at $57. Also depends on the use month. Pay high price per point and have the seller assume closing costs helps from what I was told. Also, banked points make all the difference. At $9 a point rent value, you can come out pretty far ahead, so don't just focus on price, also current value. We had 150 banked points and 150 coming prior to our next vacation. We rented the banked points and paid for airfare and park tickets. We could have turned around and resold the points in the open market and broken even and been ahead an entire vacation for free.

 

[Dean]

The official level for buy back was quoted as $58 per point until the price increase in June when it was reported at $62 per point. I think it's possible to get one through under these levels but it is difficult.

 

[dmoore22]

I believe I understand the concept of "Banking" points. I do need some clarification on the "borrowing" side. I would assume that a DVC resale that has neither banked points or not all points available for the use year would be a bargaining chip for a buyer. However, is borrowing like banking in reverse? Can a DVCer borrow only the points needed from the upcoming year and bank the rest for the upcoming year(2004) then, when the next year begins borrow from the upcoming year(2005)only those needed, etc., etc. In other words, if borrowed points are budgeted wisely can it be as effective as banking points? What are the restrictions/limitations to borrowing points?

Thanks

 

[Dean]

Borrowing is like getting an advance on next years pay. It may help now but the points won't be there next year. You can bank and borrow for one year aggregating as many as 3 years points into one.

 

[Peterd]

With the BCV prices going up to $84 per point soon, will this rise the Disney buy back amount?

 

[Dean]

Originally posted by Peterd
With the BCV prices going up to $84 per point soon, will this rise the Disney buy back amount?

With the relative lack of points to sell and DVC's past history, I'd say yes. I'd guess it will rise to $64 or maybe even $66 per point.

 

[crisi]

Dean -

You make borrowing sound like credit card debt!

If you go to Disney every year, you want to have enough points to avoid borrowing. For us less than every year folks, the banking/borrowing combination is how we maximize our points.

I have 7 points banked into next 2003, will get 150 for 2003, and take a trip in 2003 that costs 227. So I'll borrow 70 2004 points from 2004. Then I bank 120 2004 points into 2005, get 150 points in 2005 take a trip that uses 314 points in 2005, borrow 44 points from 2006, bank the remaining 106 points into 2007......rinse, repeat,

(all years are use years.....the math may be wrong).

When buying resale, look for a contract that doesn't have a lot of points borrowed - unless you are getting a bargain and the cost is a big factor.

 

[crisi]

dmoore,

You'd asked about restrictions and I didn't address them.

Both banking and borrowing require some planning. Once points are banked or borrowed you can't return them to their original use year.

We book using a combination of this years points and banked and borrowed points, then decide we need to cut our vacation short. We have to use any banked/borrowed points we didn't use in the current use year. We could rent them. We could plan a mini vacation. We could let them go to waste. We could book a bigger unit. But we can't "rebank" banked points. We can't "unborrow" borrowed points. We could bank any current year points into the next use year (assuming we hadn't missed the banking window) - but that probably wouldn't do us any good. This becomes more problematic the later in your use year you travel. Ours is April - so any plans for a Feburary or March trip had best go through as planned. Fortunately, our favorite time of year to travel is the fall, giving us the winter to make up any missed trips. As our kids get older and I become more reluctant to pull them from school, our April use year will work well with a first thing when school lets out June trip.

 

[Dean]

Originally posted by crisi
Dean -

You make borrowing sound like credit card debt!

No, more like pay at work. If you borrow, there's less for next year.

 

[dmoore22]

I want to thank all the responded to my post. Today we submitted our offer for a resale at OKW. Your input was so valuable in helping my DW and I make the decision to go with DVC. Thanks again and cross your fingers that all goes through without a hitch.