newbie questions

[luvsTink]

Hi all. I am beginning the contemplation process and have a couple of questions.

1. Why is usage year month so important (I am usually not this dim)
2. I keep seeing an abbreviation when it comes to resales. ROFR or something like that...what is that?
3. What are the benefits to buying direct from Disney rather than resale.

thanks! I am sure there are more where those came from!

anne

 

[new_yawka]

1. It is not "so" important. Use year is, for the most part, used to determine when you need to bank your unused points. Accordingly, picking a use year that is a month shortly before the time of year you most often go the WDW is convenient for giving you the most time within which to bank unused points. Not, however, a crucial issue.

2. ROFR - Right of First Refusal. DVC has a ROFR on all resales. This prevents resales from being sold at too cheap a price. After an offer on a resale is accepted, you have to wait until DVC either exercises or chooses not to exercise its ROFR prior to closing. This process takes up to 30 days.

3. Convenience and financing are the two biggest reasons I can see for buying direct from Disney. Buying resale you can often get a good deal and save significant $$ (you may also get banked points - allowing quicker vacations ). Buying from Disney it is an almost guaranteed hastle free process and you can easily arrange for financing. You do pay for this, however, to the toon of between $10 to $15 per point.

Good luck in your decision!

 

[tjkraz]

1. Why is usage year month so important (I am usually not this dim)

1. It determines when you receive your allocation of points each year.

2. It determines the banking windows if you will not be able to use your points in any given Use Year. If you travel at roughly the same time every year, you ideally want your Use Year to immediately preceed your travel dates. Example: If you frequently visit in March or April, a February Use Year would work well.

With a bad Use Year, it can really tie your hands if you ever have to cancel on short notice. Let's say you have a trip booked for April and your Use Year is June. Your points must be used or banked by May 31st or they are forfeit. If you should have to cancel that April trip on short notice, you may already be past the point at which you could bank the points. You will only have a very short period of time to reschedule or otherwise get rid of the points.

If you anticipate traveling at many different times of year, this issue is irrelevant since there will be no one Use Year that is better than another.

2. I keep seeing an abbreviation when it comes to resales. ROFR or something like that...what is that?

Right of First Refusal. Whenver a contract changes hands, DVC has a contractual right to buy the contract at the terms that have been negotiated. They keep resale prices somewhat inflated by exercising ROFR on contracts they may feel are changing hands at too low of a price.

3. What are the benefits to buying direct from Disney rather than resale.

There are several:

1. Ease of purchase. You can literally do it in one phone call, and book your first reservation that same day.

2. There are no hidden costs. With resales you have to deal with closing costs, maintenance fees, etc.

3. DVC can finance the purchase for you. If you buy a resale, you must pay cash or come up with your own financing. Also DVC's financing is considered secured debt and most folks can deduct the interest from their income taxes.

4. You can choose any contract size or Use Year that you want. Resale contracts are as-is...you cannot sub-divide the points or change the Use Year.

All of that said, if you go resale, you WILL save a few dollars and it's much easier to get points at resorts other than Saratoga Springs. Whether you buy direct or resale, you are treated the same as any other member.