Need help choosing "month" for DVC points

[Steamboat Girlie]

Hubby and I are seriously considering buying DVC points, but are a bit confused on the whole month thing, when they get deposited, and when you must use them by etc....
We go every year, usually in December or January. Could someone please explain to me how it will work?
We did sit through the whole "schpeal" at BWV, but I was a bit overwhelmed.
Thank you!

 

[CarolMN]

Use year is the month that your annual allotment of points is renewed. It also determines banking deadlines. It is only important if you have to cancel a vacation that is scheduled late in your use year (because points expire at the end of your use year and no banking is allowed during the last two months of your use year).

It is good to have a use year that is up to 4 or 5 months prior to the month you usually travel. Keep in mind that travel patterns change over the years, so what is good now may not be so good later on.

For example, let's say you have an August use year and travel in December.

2005 use year points are deposited into your account on 8/1/2005. They must be used by 7/31/2006. They can be banked into your 2006 use year if you do it prior to the deadlines.

Make your self a little chart like this:

2005 use year points are good for stays between 8/1/2005 and 7/31/2006
2006 use year points are good for stays between 8/1/2006 and 7/31/2007
2007 use year points are good for stays between 8/1/2007 and 7/31/2008
2008 use year points are good for stays between 8/1/2008 and 7/31/2009
etc.

You can bank up to 100% of your annual total if you call to do it before the end of the 6th month following your use year. (If you have an August use year, that would be the following January 31).

You can bank up to 50% if you do it before the end of the 9th month.
You can bank up to 25% if you do it before the end of the 10th month.
No banking at all in the 10th and 11 th month.

An example - you have an August use year (200 points) and schedule a June 2006 vacation that uses all 200 points.. June 2006 falls within your 2005 use year (see chart). You have to cancel the vacation and call to do it at the end of April, 2006. You have to use the 200 points before the end of the use year (7/31/2006) or they expire. You can bank 100 of them (April 30 is your 50% deadline) if you do it before the end of April. The banked points must be use by 7/31/2007. However, you have 100 points to use by 7/31/2006 or they expire.

Now if you had a February use year and scheduled that same June 2006 vacation and had to cancel it in April, no problem! If you couldn't use the points by the end of yourn use year (January 31, 2007) you could bank all 200 of them and now they don't expire until January 31, 2008.

Bottom Line: Use year only matters if you have to cancel a vacation that is scheduled for late in your use year. (You may never have that situation). Travel habits can and do change over time, so what may be "perfect" right now, might be "awful" later on. IMHO, it's not something to worry too much about.

Good luck with your decision.

P.S. We usually travel in December and have an August use year. It works well for us. September, October and December use year would also work well with your pattern (There isn't a November use year).

 

[borncinderella]

The only other reason why the month you choose may be important has to do with whether you plan to buy a minimum amount of points and only use them every two to three years.

This idea was posted by another DISer, but I never forgot it. If you normally travel at the end of a month and beginning of the next month, you actually have 4 years worth of points, not three, at your disposal.

For instance, we normally travel last week of January, first week of February. We purchased February points. If we bank 2005 points for 2006 use year, we can use 2005 and 2006 points the last week of January 2007. PLUS, we have access to 2007 UY points the first week of February 2007 and can borrow from 2008. It is a nice way to get a big bang out of a small amount of points.

In your case, however, it sounds like you are going every year. If that is the case, Carol MN's excellent post is your way to go. Just remember -- if you purchase add-on's through DVC and not resale, if they are less than 150 points each, you are required to add on in your already existing UY month.

Good Luck!

 

[iankh]

I find this interesting and confusing. I infact just bought a 200 point August UY reale. I have not closed yet but am planning a vacation for late August that will use up all the points.

So, am I right in thinking that I will not have any more points until 8/1/2006?

We normally like to go to WDW between late September and early November. When will I be able to book my 2006 trip? Will I need to borrow to do so? If plans change, can borrowed points be banked?

 

[Happy Birthday Cat]

This idea was posted by another DISer, but I never forgot it. If you normally travel at the end of a month and beginning of the next month, you actually have 4 years worth of points, not three, at your disposal.

For instance, we normally travel last week of January, first week of February. We purchased February points. If we bank 2005 points for 2006 use year, we can use 2005 and 2006 points the last week of January 2007. PLUS, we have access to 2007 UY points the first week of February 2007 and can borrow from 2008. It is a nice way to get a big bang out of a small amount of points.

While you can do as described, it is also a sure fire way to lose a lot of points if you have to cancel at the last minute or even in the last couple of months. Any travel at the end of a use year is subject to this problem but packing two yeras worth of points into the last possible time to travel could lead to losing your points if something comes up that is unavoidable.

HBC

 

[Happy Birthday Cat]

I find this interesting and confusing. I infact just bought a 200 point August UY reale. I have not closed yet but am planning a vacation for late August that will use up all the points.

So, am I right in thinking that I will not have any more points until 8/1/2006?

We normally like to go to WDW between late September and early November. When will I be able to book my 2006 trip? Will I need to borrow to do so? If plans change, can borrowed points be banked?

You will get 200 points every August 1. If you use up the 200 that you get in 2005, you will use your August 2006 points for your next trip in September 2006.

You won't have to borrow them if the trip is between August 1, 2006 and July 31, 2007. If you are going in late September 2006, you can make that reservation in late October 2005.

You can always make a reservation 11 months ahead of time for your home resort but if plans change, borrowed points can not be banked. That is the danger of using two years worth of points at the end of a use year.

HBC

 

[borncinderella]

Originally posted by Happy Birthday Cat
While you can do as described, it is also a sure fire way to lose a lot of points if you have to cancel at the last minute or even in the last couple of months. Any travel at the end of a use year is subject to this problem but packing two yeras worth of points into the last possible time to travel could lead to losing your points if something comes up that is unavoidable.

This is very true, and is definitely a gamble. I guess I'm glad ebay exists -- if this ever happens, at least there is someplace that can help to recoup a financial loss! Although, the points would be gone.

Again, not something to use as a consideration if you go every year.

Originally posted by iankh
I find this interesting and confusing. I infact just bought a 200 point August UY reale. I have not closed yet but am planning a vacation for late August that will use up all the points.

So, am I right in thinking that I will not have any more points until 8/1/2006?

That is correct.

We normally like to go to WDW between late September and early November. When will I be able to book my 2006 trip? Will I need to borrow to do so? If plans change, can borrowed points be banked?

You can still book your 2006 trip at the 11 month window for your home resort, in this case October or early December of 2005. You do not need to borrow for your 2006 trip if you are only using 200 of your 2006 points. If you use more than 200 points for the 2006 trip, you will need to borrow.

 

[Dean]

I am in the minority who feels that use year can be important. Is it a deal breaker, not for most people, but it is for some. In your situation, I'd suggest December as being the best but anything August or after should work well for you.

 

[iankh]

Thanks for the clarification. I have now separated in my mind the concepts of "points in hand" and the abiity to make a booking.

 

[Steamboat Girlie]

Thank you all for taking the time to explain things to me. I really appreciate it! I now feel like I have a better understanding of the whole process.

 

[Rpsemont]

We recently bought and our guide suggested Mar UY points when I told him we travel in the fall and Feb. Well, after I thought about it, I realized that this was not a good UY for us. I called him and asked him to switch them to June. Besides the fact that based on our travel habits, we shouldn't have much trouble banking points, if we don't use them all for those two trips (LOL) I know that historically there are some cheap airfares in May for Fla Travel. So if we ever have to use them up last minute, we should be able to get a cheap fare.

 

[Dean]

We recently bought and our guide suggested Mar UY points when I told him we travel in the fall and Feb. Well, after I thought about it, I realized that this was not a good UY for us. I called him and asked him to switch them to June. Besides the fact that based on our travel habits, we shouldn't have much trouble banking points, if we don't use them all for those two trips (LOL) I know that historically there are some cheap airfares in May for Fla Travel. So if we ever have to use them up last minute, we should be able to get a cheap fare.

This is another reason why Use Year is important. If you take short notice trips and have a UY that's not good for you, you may be into your booking window before you decide to visit. Basically you may have had to make a decision to bank your points then later you decide to visit and have to borrow.

 

[Dopey Sharon]

When we bought, my guide asked me when we usually visit WDW. We have been going down in early November/December. She told me that October would be a good UY for us. She said you should get a UY a month or two before you usually visit.