Newbie points add on questions

[WhitGB]

Trying to get my husband interested in a resale purchase for a small number of points so we do not have to finance the payments. My questions is, can we buy (example) 50 points this year and then again 50 points next year...all for the same resort of course, and have 100 points or are their minimums or problems doing this?

If there is already a board on this, please redirect me. Thanks in advance.

 

[mecllap]

Trying to get my husband interested in a resale purchase for a small number of points so we do not have to finance the payments. My questions is, can we buy (example) 50 points this year and then again 50 points next year...all for the same resort of course, and have 100 points or are their minimums or problems doing this?

If there is already a board on this, please redirect me. Thanks in advance.

I had been thinking about doing the same thing, but in order to have my points all at the same Use Year and resort, and not have to pay closing costs over and over again, I decided it was really more efficient to buy at least as many as I need/want at once, even with the higher upfront cost. I thought about taking the gamble that resale prices are going to drop some with the ongoing economy strife, but figured that the money I have available might shrink as well, and since I want to do this, I might as well get enough points at one time to make it worthwhile (a 1BR every other year for a week, with some flexibility). I've just started the resale process, and so far, am content with taking this path -- only time will tell.

But if you have to pay the interest involved with financing, my resolution might not work for you -- I guess it's additional closing costs vs financing charges. Since the whole points, UY, ressie window, how to combine points from different resorts and UY's, etc. stuff is confusing, I wanted to have it as simple as possible and all in one package.

 

[chalee94]

Trying to get my husband interested in a resale purchase for a small number of points so we do not have to finance the payments. My questions is, can we buy (example) 50 points this year and then again 50 points next year...all for the same resort of course, and have 100 points or are their minimums or problems doing this?

yes, you can do this.

also, closing costs on the small resale contract may make it more expensive to buy resale for the second contract as there are no closing costs for adding on directly. so you may be better off and find it easier to buy your second 50 pt contract directly from DVC (they will match the use year month as well, which will make it easier to use both contracts). you just have to do the math.

no problems doing this that i am aware of - once you are a member, DVC will sell you pts directly even if you are below 160 pts overall. but you should be aware of the point changes for 2010 - if you intend to book primarily sun-thurs stays, point costs are rising and may change again at any time. (BTW, any detailed discussion of the 2010 changes are restricted to this thread so related followup questions will need to take place there to avoid getting this thread locked).

 

[bookswin]

Buying multiple small contracts gets really expensive, both on the closing costs and the higher price per point generally asked.

Look at the resale sites to compare what a 50 point contract is per point versus a 150 point or 400 point one.

In my opinion, you'd be better off renting for a couple years and saving money like crazy, then buying as much as you want going forward.

Other than the expense, there is no reason one way or the other on the size of contracts, except that if you want to leave some points to each of several people, don't buy a huge one, because contracts can't be split like purchases of stocks or bonds. A reselling broker told me that by FL law, not even Disney can split a contract, after buying it in.

 

[mecllap]

yes, you can do this.

also, closing costs on the small resale contract may make it more expensive to buy resale for the second contract as there are no closing costs for adding on directly. so you may be better off and find it easier to buy your second 50 pt contract directly from DVC (they will match the use year month as well, which will make it easier to use both contracts). you just have to do the math.

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But don't they charge about $20-30 more per point than you can buy resale -- which would be quite a bit more than the closing costs on each resale contract? do they not have any closing costs, or any kind of extra costs for add-on contracts?

 

[chalee94]

do they not have any closing costs, or any kind of extra costs for add-on contracts?

nope. nothing.

But don't they charge about $20-30 more per point than you can buy resale -- which would be quite a bit more than the closing costs on each resale contract?

yes, the price difference depends on the resort. that's why i said you have to do the math...