Question on Rule of Four for DCL and Banked Points Example

[kalishea]

Hi, we were just reviewing our closing documents and it started a discussion about the Rule of Four and how it effects us. Can someone please verify if our thinking is correct for this hypothetical example?

We just purchased 300 points with a June use year. We are just now closing so we will not be using our 2019 points quite yet so we will need to bank by 1/31/20. Once those are banked we need to use by 5/31/21 (is use mean book a trip by or travel by??)

So June 1, 2020, we will get our new set of 300 points. From what I understand in reading, we could use all 600 points for a cruise January 2021 and not interfere with the "Rule of Four"?
And in a separate example, we could use all 600 points for a cruise in April 2021, as long it is booked over 4 months in advance?

Coming into this with 600 points, we just want to make sure they get used at the right times and we do what we need to do with them to not lose them. And while DCL is a horrible use of points, it might be a fun way to burn these initial points. (or rent them)

Thanks!

 

[crvetter]

The rule of 4 means you can’t reserve your travel in the last 4 months of your use year that would occur in those last 4 months. Though you can travel in the last 4 months as long as you booked the trip before then.

So in your June 2020 UY you can travel anytime but you must book any trips for February to May 2021 before February 1, 2021.

 

[Sandisw]

I assume you bought direct as those are the only points that would be eligible for cruises and the Disney collection in which the rule of 4 comes in to play.

The rule is simply that you can not book and travel in the last 4 months of your UY. You can book ahead of time without issue because it gives DVC a chance to rent your points via cash bookings...it’s now they pay for those options.

So, you can certainly book a cruise in your 2020 UY using all those points, as long as it is booked by Jan 31st, 2021.

When points expire, it means they are no longer valid to be used for nights beyond that date, So, you must stay on the points by then.

 

[CarolMN]

The rule of 4 means you can’t reserve your travel in the last 4 months of your use year that would occur in those last 4 months. Though you can travel in the last 4 months as long as you booked the trip before then.

So in your June 2020 UY you can travel anytime but you must book any trips for February to May 2021 before February 1, 2021.

Just clarifying for others who may be reading: Rule of Four does not apply to booking DVC resorts or the World Passport Collection (RCI trades. There are special rules for late deposits).

 

[ehh]

Coming into this with 600 points, we just want to make sure they get used at the right times and we do what we need to do with them to not lose them. And while DCL is a horrible use of points, it might be a fun way to burn these initial points. (or rent them)

Rent them, book a nicer stateroom with that money.

EDIT: 7-night Eastern Caribbean, 2/20/21, Category 5a, 2 adults: $4706 or 580 points. 580 points can be rented out for about $8400.

At $4706, each of your 580 points is valued at $8.11. I don't know the exact terms of your purchase or your resort, but you're probably paying at least $11/pt for your 2020 UY points if you're not financing, and even higher if you are financing (of course, 2019 UY $/pt will be much lower as you don't have to pay any 2019 dues for them).