question about mf's

[pmaurer74]

We have a December u/y. We became owner Nov. 2 and received points on Dec. 1, 2015. The Mfs were paid by the seller for 2015. Are the 2015 points "free" points? meaning since the MFs were paid for 2015 already? I was told on here awhile back that they were not. Since Mfs are due the same time every year for everyone are my fees I just paid for 2016 for 2016's points or 2015 since I am in my 2015 u/y. Thanks!

 

[suebeelin]

The dec 2015 points are paid as part of 2015 use year. However bc they land at the end of the year, I would consider dec 2015 points to be used for 2016. You will need to bank by July to use them after dec 1 2016.

 

[Dean]

We have a December u/y. We became owner Nov. 2 and received points on Dec. 1, 2015. The Mfs were paid by the seller for 2015. Are the 2015 points "free" points? meaning since the MFs were paid for 2015 already? I was told on here awhile back that they were not. Since Mfs are due the same time every year for everyone are my fees I just paid for 2016 for 2016's points or 2015 since I am in my 2015 u/y. Thanks!

Points are paid on a calendar year basis. In this example the answer is you got one month free but at least you didn't get ripped off paying for 2015 points like most resale buyers so in that sense maybe so if you got a good deal otherwise. The dues you paid in Jan, 16 cover 11 months of the 2015 points.

 

[LAX]

Points are paid on a calendar year basis. In this example the answer is you got one month free but at least you didn't get ripped off paying for 2015 points like most resale buyers so in that sense maybe so if you got a good deal otherwise. The dues you paid in Jan, 16 cover 11 months of the 2015 points.

Is this how it works with direct sales as well (no I am not thinking about buying direct, but I want to understand how MFs and UYs relate to each other)? If I were to buy PVB/AUL later this year with a Dec UY from DVD, I know I will receive current UY (2015) points in addition to the upcoming UY (2016). Will I need to pay MFs on those 2015 UY points at the time of the sale or when MFs are due in Jan 2017?

LAX

 

[Dean]

Is this how it works with direct sales as well (no I am not thinking about buying direct, but I want to understand how MFs and UYs relate to each other)? If I were to buy PVB/AUL later this year with a Dec UY from DVD, I know I will receive current UY (2015) points in addition to the upcoming UY (2016). Will I need to pay MFs on those 2015 UY points at the time of the sale or when MFs are due in Jan 2017?

LAX

This IS how it works for retail and this is the neutral position for resales. The "you get the points you pay the dues" that most of the resale companies take is simply incorrect. For this reason most resale buyers overpay on contracts but it's a necessary evil for the overall savings. The exception is often a fully loaded contract. One just needs to consider it in the process and it's one of the reasons why a fully loaded contract is a much better deal.

Dues on a retail purchase start from the later of 3 dates. The date one signs the contract, the UY when you get the points if you don't get this years points or when the "unit" is online if it's later than the UY. DVC gives you an added benefit of not having to backpay the dues. In this example You'd pay 7 months of dues if you signed on 1 June but only 1 month if you signed on 30 Nov and you'd get the same points. But you'd have less time to use the points and risk a price increase.