point question

[hygienejean]

I am considering buying a DVC resale at BWV. I see different point charts for different years....I thought the points never changed? When I buy the resale will there be a different point chart than what I see on the Dis and Mouse Planet?
How far ahead can I borrow points? We want to travel to WDW on this contract in 4/2004(3rd week). This particular contract doesn't have points available until 4/04. We would book at the 11 month window in 5/03. Can I borrow the points from 4/2005 when I book in 5/03? It all seems too confusing!
What would be a fair offer for that contract? It is for 204 points and I figured it out to be about 68.5 per point. That seems a bit high. Does anyone think 66 is an unreasonable offer? This is new to me so any advice would be appreciated!
Thank you!

 

[RobDoc]

The points have not changed since 1996 - except that the dates for Easter (Premier Season) and Thanksgiving (Magic Season) will vary slightly each year depending on when those Holidays fall.

You can borrow from the next use year into the current use year when making reservations. With an April use year- you will not need to borrow when you make a reservation in May,03 for an April,04 trip (your trip is in the 04 use year and so are the points). If you need more points than you have in the contract for that vacation, you may borrow from your April,05 use year for that reservation.

As for what is a fair price- keep in mind that you will paying dues for 2003- even though you apparently have no points to use during that time. You should negotiate that issue with your original offer. You will also be paying dues in 2004 on points you won't get until April- so also include that in your computation.

Even $66 seems high to me for a contract with no points for 18 months. I assume you have planned to ask the seller to pay all closing costs.

Good Luck!

 

[lehrsj]

I think $68 a point is too high if there are no points until April 2004. I look at it this way.

If you go to Disney and buy 204 points for BCV at $80 a point you pay $16,320. You could get an April use year that starts in April 2002. You would have 204 points for 2002 (which could be banked) and another 204 points starting in April 2003. You have 408 points for use that you don't get with the resale.

So rent those extra points (for comparison's sake) and subtract the rental amount from the amount you would have paid for BCV. You can then compare prices.

What is the value of those 408 points? The going rental rate is $10 a point. Be a little conservative and figure that you would have no problem renting them at $9 a point. Take $9 x 408 points and you get $3672. Subtract this $3,672 from the $16,320 for the BCV purchase and you get $12,648.

Now compare the $12,648 to the price of the resale. But also add in another $500 to the resale price for closing.

Today I would think the price ought to be no more than $58 a point. Now at some point ( a month, 2 or 3? ) when purchasing at BCV no longer gets you any '2002' points then $66 a point seems good.

Now if anyone sees anything wrong with my logic please comment.

Sherry

 

[Caskbill]

Sherry's example is good. However she did leave out the fact that you would have dues to pay on all those points. The 2002 year points would be pro-rated but the 2003 points would have full dues applied. So you would have to figure their rental value and then subtract dues paid on them to get a net number and use that number when comparing the resale to Disney direct.

Also, don't forget that on the resale there will be dues required on Jan 15, 2003. Since the seller has already used those points I'm assuming they're willing to reimburse you the dues amount as part of the sale.

 

[missyndda]

I agree with Sherry...$66 even seems too high.

We just closed on 350 points at BWV with a use year of August and 166 points available for 2002. We paid $62/point, but also reimbursed the sellers for the dues they had already paid on the remaining 166 points.

I would not pay any more than $60 for one with no points for 17 months because after you buy, you are just itching to go ASAP.

 

[Dean]

Originally posted by missyndda
I agree with Sherry...$66 even seems too high.

We just closed on 350 points at BWV with a use year of August and 166 points available for 2002. We paid $62/point, but also reimbursed the sellers for the dues they had already paid on the remaining 166 points.

I would not pay any more than $60 for one with no points for 17 months because after you buy, you are just itching to go ASAP.

I agree but would go one further. I wouldn't pay mor than around $60 pp with seller paying closign costs and the fees due January.

 

[hygienejean]

Thanks to all who replied. I have really learned a lot! Dean I think I will go with your idea in your previous post and see what happens. You are all right. $66 IS too much to pay for something I wouldn't be able to use for 17 months!

Did I hear that Disney has first refusal on all of these contract resales? How does that work?

I just heard back from the guy who is handling the resale and he said I would not be able to borrow the 2005 points until 4/2004. Webmaster Doc posted that I could as long as the points are available. Now I am confused! Who is right? We would definitely need those points for the trip. (UY is April/ plan to travel 3rd week in April 2004/ no points available till 4/04/ need to borrow from 2005...)

Thanks to all!

 

[Terry S]

If you are getting a new allotment of point in 4/2004, why do you need to borrow from 2005? Unless you need more points for the 4/04 trip then 204 (That is the number of points that this contract is for correct?). Either way you would be fine. The points need to be available for the date of the reservation, not on the date you actually make the reservation. So on 5/03 you can meake a reservation for 4/04 using both your 204 points for 4/04 and your borrowed 4/05 points.