Ok, I'm finally going to ask my dumb question....

[MinniesYooHoo]

Please explain to me why your Use Year is so important. If I understand correctly, it's when your points are put into your account every year, right? Why does it matter when it is? Obviously I'm missing something.......Please enlighten me!

 

[disneynutz]

Selecting the correct use year based upon your usual vacation time, gives you time to bank your points if you need to cancel your vacation.

Some people will tell you that they will never cancel, but believe me, things can and do happen that can change your plans. If you don't bank, your points will be forfeited at the end of your use year.

Bill

 

[ChiSoxKeith]

To expand on Bill's point.....

The deadline for banking points is four months before the end of your use year.

Consider the following example

My use year is April. I currently have 148 2010 points remaining, and I plan to use 63 of those points for my February 2011 trip to AKV. Which means after the trip I would have 85 2010 points remaining. I have to make the call on banking those points by November 30th, 2010 (4 months prior to the 2011 points loading in).

Say I go ahead and bank the 85 on 11/30/10 and I decide I need to cancel the trip on 12/1/10. I now have to figure out how to spend the 63 points on short order, because I can't bank them anymore.

 

[robert@dvcstore]

Also, if you are a family that vacations different times during the year, picking a certain use year should not be a concern. If one year you travel in the spring, the next year in the fall and maybe then in winter, any use year will work for you.

As mentioned before, if you tend to travel the same time each year, you may want a use year that is 4 - 5 months before your regular travel dates so that you are still in the banking window if you happen to cancel a reservation.

Robert

 

[LouisianaDisneyFan]

We almost always go to Disney in October and December, and sometimes in April. When looking for resales, we looked for a September UY so that we would be able to cancel any of those vacations and still be able to bank current year's points.

 

[chalee94]

If I understand correctly, it's when your points are put into your account every year, right?

technically, this is not correct either but this issue does confuse a lot of people.

my oct 2011 UY and oct 2012 UY pts are already in my account. i just looked online.

my 2011 pts are valid for stays from oct 1, 2011 to sept 30, 2012 and my 2012 pts are valid for stays from oct 1, 2012 to sept 30, 2013.

if i call in november 2010, i can book a stay for october 2011 at my home resort using those october 2011 pts and borrowed 2012 pts - because they are already in my account. right now, they are in my account but i am still somewhat limited by my 11 month home resort window in how i can use them.

here is a good resource for more info about use year:

http://www.disboards.com/showthread.php?t=1942668

 

[JimMIA]

First of all, there is no such thing as a dumb question on the DIS -- especially if you are researching a purchase. Anything you don't understand is a good question!

For October, December or April visits, I think either September or October UY would work very well...with October being a little better.

April would be the 8th month of a September UY, which means your banking deadline would be the end of April. However, even with an April vacation, you'd have to cancel in March for the points to be bankable anyway (31 days or more in advance of your checkin), so you'd have time.

An October UY would give you an extra month's cushion.

 

[Sandisw]

In addition to what everyone else has shared about points and the ability to bank if a cancellation occurs, you also have to consider simple changes or using borrowed points.

When you travel toward the beginning of your UY, it simply gives you flexiblity to change a vacation to using less points or use up borrowed points if something happens.

We have a June UY because we typically travel in late July or August because I teach. Because I travel at the beginning of my UY, I can make changes to my reservation, up to 31 days prior without having to worry about what to do with any extra points I free up.

If I ever borrow points and cancel, I would have a good 10 months to use up those points before they expire, since borrowed points can not be returned to their UY.

When you travel toward the end of the UY, it doesn't give you a lot of time. I initially bought a contract via resale with an Oct UY (not knowing). I then realized that if I ever cancelled an August reservation, I would only have Sept to use points up, which is impossible for me right now.

If you have no set plan to travel at any given time, then UY is less important as some of your travel will be outside the banking window. But, if you know there are a few times a year that you are probably going to vacation, pick a UY that works well for those times.

 

[hbehrman]

In addition to what everyone else has shared about points and the ability to bank if a cancellation occurs, you also have to consider simple changes or using borrowed points.

When you travel toward the beginning of your UY, it simply gives you flexiblity to change a vacation to using less points or use up borrowed points if something happens.

We have a June UY because we typically travel in late July or August because I teach. Because I travel at the beginning of my UY, I can make changes to my reservation, up to 31 days prior without having to worry about what to do with any extra points I free up.

If I ever borrow points and cancel, I would have a good 10 months to use up those points before they expire, since borrowed points can not be returned to their UY.

When you travel toward the end of the UY, it doesn't give you a lot of time. I initially bought a contract via resale with an Oct UY (not knowing). I then realized that if I ever cancelled an August reservation, I would only have Sept to use points up, which is impossible for me right now.

If you have no set plan to travel at any given time, then UY is less important as some of your travel will be outside the banking window. But, if you know there are a few times a year that you are probably going to vacation, pick a UY that works well for those times.

Another thing you should consider is multiple contract purchase even if it is at the same resort. That is you want 150 points at SSR with use year, so instead of one 150 point contract you purchase three 50 point contracts at SSR with the same use year.

This has NO disadvantages, but allows you in the future to sell one or more contracts without selling all your interest in DVC. So if you want to buy at another say you wanted another 100 points at AKV (2- 50 point contracts of course), but you don't want 250 points (150 SSR + 100AKV). You could then sell one of your 50 pt SSR contracts to help finance the contract(s) at the other resort. You can also have a contract designated for inheritance purposes. Only disadvantage that I know of is signing seperate papers for each contract.

Other may have more to offer about this, but it is something to think about now, because once the contract(s) are drawn they cannot be split apart (that I am aware of) since it is tied to the deed.

 

[JimMIA]

This has NO disadvantages, but allows you in the future to sell one or more contracts without selling all your interest in DVC. So if you want to buy at another say you wanted another 100 points at AKV (2- 50 point contracts of course), but you don't want 250 points (150 SSR + 100AKV). You could then sell one of your 50 pt SSR contracts to help finance the contract(s) at the other resort.

Oh...I dunno...

If you assume the purchaser is buying directly from Disney, the disadvantage is they would be paying somewhat more than if they purchased resale. Depending on resort, they might be paying a LOT more.

If they are buying resale, they would have three closing fees to pay instead of one.

If they are going to try to fine-tune a DVC portfolio, they will have real estate commissions to pay on each contract they sell ...and if they're buying direct, they'll also have big losses on each contract.

 

[hbehrman]

Oh...I dunno...

If you assume the purchaser is buying directly from Disney, the disadvantage is they would be paying somewhat more than if they purchased resale. Depending on resort, they might be paying a LOT more.

I did not say that you shouldn't do the financial analysis for the transaction. Buying direct for certain properties right now is actually quite competitive with the resale market. This is mainly due to DVC paying all closing costs and giving 2009 points for 2010 contract, and if you are financing DVC has better rates (which the interest may or may not be tax deductible). Also it may be possible with resale to split the contract into 3 deeds out of one (but someone more experienced with the resale process can address that).

If they are buying resale, they would have three closing fees to pay instead of one.

Very true, however you failed to mention that closing costs are charged based upon the number of points in the contract. So you may indeed pay three closing costs which are marginally more than a single. However you can always negotiate with the seller to pay all or a portion of them (helpful if the cost per point is low and you want make a counter but are worried about ROFR). This all of course supports my first response above that it may be more cost effective to buy direct as currently DVC is paying the closing costs.

If they are going to try to fine-tune a DVC portfolio, they will have real estate commissions to pay on each contract they sell ...and if they're buying direct, they'll also have big losses on each contract.

Yes that is true, however if financial hard times hit , it allows one to have options to remain a DVC member with the ability to sell a contract or two to lower the financial burden. Cost is relative and do not forget the opportunity cost of having the flexibility of multiple contracts (which is not necessarily quantifiable in dollars) which may be more valuable at a later time (and perhaps only your estate will have to deal with).

 

[tammymacb]

Also keep in mind that things change. Your routines may not stay routine for as long as you own your contract.

My big travel times to Disney were Oct for F&W, and early Dec. We live within a reasonable drive and often take several short trips a year, but when I bought it was with those trips in mind. I chose a June UY at BWV.

That was all good, until we visited HHI. We instantly fell in love. 2 hours from home, peace, friendly staff and time to just chill out. We added on HHI points immediately with the same UY. Then Dh made it known that he was tired of WDW and would only go once a year if he had to. DD wasn't as excited about the trips anymore and lets face it, with tickets and food thrown in, it's still a pricey trip to take when everyone is just lukewarm about it. I sold my BWV and replaced those points with HHI. I'm also waiting for ROFR on a 3rd HHI contract. They all have my original June UY.

But, now my habits have changed. We travel in June every year to HH, ( though next year we're going in Aug for my B-day ) which is fine with a June UY. But, now we're also traveling to HHI for Spring Break. Something I would have never done when we went onsite as I detest crowds and DH would have had a stroke when he saw the lines. I still use my points at 7 months for F&W, this year I chose AKL, Savannah view for a trip with my best friends. I could have gotten BWV, preferred view but we decided to try something different.

Anyhoo...Spring break totally does NOT work with my UY. If I had to cancel, I'd have very little time to use up the points. But, so far it still works. I guess if someday, something happens, we'd take a quick trip to WDW for Flower and Garden in May. Again though, I can drive, I have a job that I can walk away for a few days and I get that that isn't the case for a lot of people.
So, I guess what I'm trying to say is that even if you know what your best UY is now, it may not always be that way. So, don't get yourself too wrapped up in the what ifs.

 

[MinniesYooHoo]

Thanks for all of the fabulous points of view! It's very helpful hearing everyones delimas. Ok, so now my delima: I have absolutely no idea when we will usually be traveling. I have 1 daughter (5), she will be starting kindergarten this year. While I may be in the minority here, I don't mind taking her out of school to take trips. That being said, if she ever began to struggle with school I obviously wouldn't take her out. So once again, I'm not sure when our "usual" travel time will be. Right now, our usual time would be April/May. But we're taking a trip in October for MNSSHP. I've never been and am sure I'll fall in love with this time of year. Should we even worry about what UY we get?

 

[dbs1228]

We just bought into DVC in Feb and our guide knew we traveled every year in Feb and somehow we got an Aug UY. All we knew was every Aug 1st we get more points. Once I started reading this board I did get a little upset with my guide that he would give us a UY that probably was not the best for Feb travel. (not horribly bad since I still would have time to bank points if had to cancel) With that being said our school system came out with next year school calendar and guess what, my DD no longer has Feb break (high school) and my other 2 DD's are going off to college and do not have Feb break. We are going this year for 6 nights in Feb (pulling DD out for 3 days, plus long weekend) and have decided we will have to change our travel time to Disney. I used 2009 incentive points to go in May with friends, going in the beginning of Dec for DH's birthday (1st time ever seeing holiday decorations so excited) and DD that just graduated is going in Aug with 3 friends using points, so for us in the long run UY does not matter since we have not found our "new" travel time. With our kids getting older we have more flexibility. (go without them) UY is something to consider but from my experience if you keep DVC for the long haul you will find your travel habits do change. We are so excited the days of traveling around the school calendar are almost over, at least if or until we have grand kids!

 

[JimMIA]

I did not say that you shouldn't do the financial analysis for the transaction.

Nor did I say you did. You said "This has NO disadvantages," and I was just pointing out a few potential disadvantages.

Buying direct for certain properties right now is actually quite competitive with the resale market.

Maybe...but you have to look at even the attractive ones with a critical eye. If a purchaser cares where their home resort is (and many are more interested in the price and maintenance fees), they should choose home resort first. Then check the numbers. Unfortunately, people sometimes buy a resort simply because it is the least expensive one Disney is selling directly, and that's a fundamental error, IMHO.

Buying direct for certain properties right now is actually quite competitive with the resale market. This is mainly due to DVC paying all closing costs and giving 2009 points for 2010 contract,

When you analyze any deal - direct or resale - you really need to understand what you are buying...and "giving 2009 points" is a perfect example of timeshare salesman doubletalk and half-truth.

They are not giving you any points -- you are buying during the 2009 UY for that contract and you are receiving the points you are entitled to. If the DVC direct contract is already in the 2010 UY, you can't get the 2009 points because they have expired. They're not "giving" you points.

What they are giving you in that scenario is an extension of the banking deadline...and that is an important benefit, because it allows you to bank the points into the 2010 UY. That's a legitimate benefit, and something a resale company cannot do.

and if you are financing DVC has better rates (which the interest may or may not be tax deductible).

I don't finance, so I'm not current on Disney financing rates. (But I thought they were about 10.75%, which is certainly not a very good rate!)

A few years ago, Disney was an eager participant in the sub-prime bubble, financing at low rates and then bundling and reselling the mortgages. But that market went away, so they have to self-finance now and they have raised their rates accordingly.

Also it may be possible with resale to split the contract into 3 deeds out of one (but someone more experienced with the resale process can address that).

NOT possible -- only Disney can repackage points. (And if it were possible to repackage resale points, that would destroy your whole argument! )

If they are buying resale, they would have three closing fees to pay instead of one.

Very true, however you failed to mention that closing costs are charged based upon the number of points in the contract. So you may indeed pay three closing costs which are marginally more than a single.

I don't know about "marginally more." I know TTS' lowest closing cost is $322. If you were buying three 50 point contracts in lieu of a 150-point contract, that's $966. I don't know the number, but I'm sure closing on a single 150-pointer would be WAY less than $966.

Sure, you can negotiate closing costs, but that's a maybe-yes, maybe-no kind of thing and you'll have to give somewhere else to get that. I think the main usefullness of negotiating closing fees is to get to a higher per-point selling price which will clear ROFR.

If they are going to try to fine-tune a DVC portfolio, they will have real estate commissions to pay on each contract they sell ...and if they're buying direct, they'll also have big losses on each contract. [/

Yes that is true, however if financial hard times hit , it allows one to have options to remain a DVC member with the ability to sell a contract or two to lower the financial burden.

That's a good point, but keep it in perspective.

If someone bought SSR direct two years ago, they probably paid mid-90's. If they sell today, they will probably get mid-60's (maybe less, especially if they have to sell) -- less 10% commission, they're looking at a net loss of about $35 per point ($95-$65 = $30 + $6.50 commission = $36.50 net loss).

This may be a great time to buy resale, but the opposite side of that coin ain't so pretty!

___________
Technical suggestion: When you break up quotes, you have to go back and check the HTML tags. At the end of the other person's quote, you have to have [/quote]. Often, when we "cut," we cut off the [/ part and the quote doesn't get displayed properly. If you preview your posts and see messed up quotes, that's usually the problem...which can be fixed by editing either before or after posting.

 

[Sandisw]

Thanks for all of the fabulous points of view! It's very helpful hearing everyones delimas. Ok, so now my delima: I have absolutely no idea when we will usually be traveling. I have 1 daughter (5), she will be starting kindergarten this year. While I may be in the minority here, I don't mind taking her out of school to take trips. That being said, if she ever began to struggle with school I obviously wouldn't take her out. So once again, I'm not sure when our "usual" travel time will be. Right now, our usual time would be April/May. But we're taking a trip in October for MNSSHP. I've never been and am sure I'll fall in love with this time of year. Should we even worry about what UY we get?

Well, if tried to get an April UY, that would work well for your current April/May trips, summers (if you decide you will go then when daughter is older) and fall trips.

The banking deadline for an April UY is November 30th. That would give you flexibility to still bank points from cancelled trips through December (as trips must be cancelled at least 31 days in advance to avoid holding).

The times that would be more vulnerable with this UY are Jan/Feb/Mar. But, if you really have no idea when you want to travel, then I would not stress to much about it.

As I mentioned previously, we chose June UY because we know we travel primarily in the summer so for at least 9 years, it will be perfect.

Good luck!!!

 

[Lucia_27]

We typically travel in mid-June. Would a good use year for us be October or November? We are close enough that we can use up points for weekend visits, and typically do a weekend at F&W, so does that make a difference?

Better question, what months would consitute bad UY for June travel?

 

[chalee94]

We typically travel in mid-June. Would a good use year for us be October or November?

a june UY would be better.

We are close enough that we can use up points for weekend visits, and typically do a weekend at F&W, so does that make a difference?

a june UY would still work fine for oct visits.

Better question, what months would consitute bad UY for June travel?

august and september would be the worst because you'd be past your banking window even if you canceled more than a month out.

 

[MinniesYooHoo]

Ok, so next "dumb" question: So other than selling your current contract and buying one with a UY that you want, there's no way to change your UY?

 

[JimMIA]

Ok, so next "dumb" question: So other than selling your current contract and buying one with a UY that you want, there's no way to change your UY?

That's correct.