OK, more questions

[rt2dz]

Everyone here has helped me so much by filling in "missing" information for me. And I appreciate it very much. I just have a couple more questions...perhaps I'm just stupid, but I'd really like the help.

1)I still don't fully understand how use year affects your ressies. Yes, I know you don't have to have the points to book--just by check-in. How does it affect banking and borrowing??? And changing ressies if something were to come up???

2)I've read the ROFR thread. However, I still don't understand exactly what ROFR *IS* and how it works.

Before any final decisions are made, I want to be has informed as possible by those who don't stand to gain by giving me info.

Thank you!!

 

[spiceycat]

use year effective when you can bank.

my use yes is June

I can bank up to 100% by Nov 30 (if I don't do that)
I can bank up to 50% by February 28 (If I don't do that)
I can bank up to 25% by March 31

this varies with your use year.

borrowing can only happen when all the current years point are used up. and I don't think your use year matters.


2) DVC has the right to buy back your contract if the price you are selling it at is to low in their opinion. You must find a seller on your own. You must be selling it to a individual before DVC will come in and decide if they want it back.

 

[RobDoc]

Use Year is when your annual allotment of points is renewed each year. It does determine banking deadlines.

If you have a June Use Year and , in April, cancel a reservation for May- those points will have to be used by May 31 or they will be lost. It is too late to bank them. If you had borrowed points for that same May reservation, those points will also have to be used by May 31 or they are lost.

If you have the same June Use Year and , in April, cancel a reservation for June, you will have to use those points by May 31 of the next year. If they were current points (not previously banked or borrowed) they may still be banked subject to normal banking deadlines.

In situations where reservations might be cancelled, it's better to have a Use Year that begins in the same month as the reservation or a slightly earlier month.

ROFR just means that Disney will review each offer to buy a DVC contract. If they wish, they have the option (ROFR) to purchase the contract at the same terms. The seller will get exactly what he had already agreed to- the buyer will be out of luck. Disney has 30 days to review each accepted offer.

Hope this helps!

 

[OneMoreTry]

It's bad to have a use year that ends shortly after you want to vacation. BECAUSE, if you cancel you won't be able to bank the points and may lost them.

For example: My use year is October. If I schedule a 250 point trip in September and have to cancel in early August, I will NOT be able to bank those 250 points for later use. I will have to use them by Sept 30 or lose them. YOWZA!

So for summer vacations, October is not a good use year. But is very good for fall, winter and spring vacations.

Decide when you want to vacation and buy a use year that begins shortly BEFOREhand. Not shortly after.

 

[rt2dz]

OK,

So let me get this straight on use year. Basically, if we travel sometime between Sept. and May (which is when we do Disney), Sept. would probbly be the best use year?

And if you are going to bank, do so within 6 months for 100% of your point allotment, 9 months for 50%, 10 months for 25%, and after that use 'em or loose 'em.??? Is that correct??

And then ROFR is basically Disney's way of keeping point value up. So pretty much, make sure you don't get too good of a deal.

And in that case what does Disney do with the points they buy back in ROFR??

 

[Caskbill]

You've pretty much got it.

Remember, which use year you have in regards to your vacation travel dates means absolutely nothing except in cases where you may have to cancel a reservation.

As for banking windows, that's just a points management issue.

If Disney exercises ROFR and buys back the points themselves, they will then make them available to current members for purchase. Disney can split up a contract so if they got for example a 100 point contract via ROFR, they could sell those 100 points at 25 points each for four different members, or any combination you'd like.

Many members who want to do an add-on at one of the sold-out resorts, but prefer getting those points directly from Disney (perhaps a 25 point one, which would be difficult to find in resale) simply let their guides know and are put on a wait list for any points that may open up.

Points bought back by ROFR do retain their original use year month so if you had a June use year and wanted 25 points at OKW, Disney will only sell you a June use year. If they got points back via ROFR but it was an August use year, then a June use year owner could not buy them.

 

[DrTomorrow]

Originally posted by rt2dz
OK,

So let me get this straight on use year. Basically, if we travel sometime between Sept. and May (which is when we do Disney), Sept. would probbly be the best use year? [...]

Just keep in mind that, over the next 30-50 years, your travel habits may change. Children may force a summer vacation schedule (particularly as they get older). Of course, September through May only leaves 3 months, so you should be OK .

 

[MMcCarthy]

rofr-right of first refusal. we bought via resale this year. we haven't gotten to use it much yet but are really lookig forward to it

 

[ErinInCT]

Originally posted by Caskbill
[If Disney exercises ROFR and buys back the points themselves, they will then make them available to current members for purchase. Disney can split up a contract so if they got for example a 100 point contract via ROFR, they could sell those 100 points at 25 points each for four different members, or any combination you'd like.

Many members who want to do an add-on at one of the sold-out resorts, but prefer getting those points directly from Disney (perhaps a 25 point one, which would be difficult to find in resale) simply let their guides know and are put on a wait list for any points that may open up.

So someone selling their points have to sell off the whole amount? If they had 400 points, they cannot try to sell 4 100 point contracts? Always wondered about that.

Just out of curiousity, do these add ons bought from Disney sell for around the same as resales ($72 - $75/point)? And obviously you don't have to go thru ROFR since you are buying direct from Disney right?

Wow, I am learning more & more every day!!

 

[RobDoc]

Originally posted by ErinInCT
So someone selling their points have to sell off the whole amount? If they had 400 points, they cannot try to sell 4 100 point contracts? Always wondered about that.

Just out of curiousity, do these add ons bought from Disney sell for around the same as resales ($72 - $75/point)? And obviously you don't have to go thru ROFR since you are buying direct from Disney right?

Wow, I am learning more & more every day!!

DVC members cannot break up a contract to sell. If the contract is 400 points, it must be sold that way. Many owners have intentionally purchased their contracts in smaller amounts just for that issue.

DVC is currently selling the original resorts (OKW, VB, HH, BWV, VWL and BCV) at $89 per point. There will be no ROFR and also there will be no closing costs when purchased directly thru DVC. In addition, DVC will also prorate the maintenance fees - you will pay the fees only on the days remaining in the calendar year. In most cases, you will get current points and another full compliment on the next Use Year date. (If you have a February Use Year and purchase tomorow, you would get all points from this February, pay maintence fees from November 7 thru the end of the year and get another ful compliment of points on February 1, 2005.)

 

[FOTM_Ring_Bearer]

Doc - in your example above. Since the use year is February and you've passed your banking deadline. Would DVC let you bank those points anyway, since you just bought them? Or would you have to use them before February?

 

[RobDoc]

They would probably need to be used before February since the banking deadline has passed. It would certainly be worthwhile asking your guide to bank them as a condition of sale- but that isn't always allowed.

DVC does have a little flexibility and there is an unwritten once-per-member banking extension that could be used to extend the use of points in some situations. I'd be choosy when to use it though - save it for that drastic situation rather than use it so save the 25 points just purchased.