Questions about buying a membership

[ChristineLynne]

Hi everyone! We are interested in buying a DVC membership, for a vacation this October. I have a few questions for the seasoned veterans here.

We are vacationing from October 22 to October 29. Considering our financial resources and family needs, we'd probably want to get a two bedroom at the Boardwalk Villas. We have about $14,900 to spend on a membership.

I'm thinking we need to buy 150-200 points, and borrow from next year to get to the 236-282 range needed for this vacation. We generally go to Disney every 2-3 years, so this would work pretty well in the future too. Also, we won't be going with three grandparents every time like we are this year, so I think using as little as 300 points every two years would work out OK.

Here's my perspective on the pros and cons - let me know if I'm off track or missing something.

The advantage to buying from Disney is 12 extra years of ownership, and no dues this year. But it looks like there are a few SSRs at The Timeshare Store, so maybe that would be even better, as long as there are enough points available for this year's vacation.

The advantage to buying used is lower cost per point and the ability to get priority at, say, OKW, which we really like.

My big question about buying used is when banked points expire, and how the use year works. For instance, there's one with a use year of October, 119 points currently available, and 170 coming on 10/1/05. If we bought now, could we use the 119, plus the 170, and also borrow from next year (which would let us get a three-bedroom!), or will the 119 expire before we can borrow from the next year?

I was also wondering how much tickets will cost us at DVC members.

Thanks a lot - this place is a fantastic resource!

 

[CarolMN]

Hi everyone! We are interested in buying a DVC membership, for a vacation this October. I have a few questions for the seasoned veterans here.

We are vacationing from October 22 to October 29. Considering our financial resources and family needs, we'd probably want to get a two bedroom at the Boardwalk Villas. We have about $14,900 to spend on a membership.

I'm thinking we need to buy 150-200 points, and borrow from next year to get to the 236-282 range needed for this vacation. We generally go to Disney every 2-3 years, so this would work pretty well in the future too. Also, we won't be going with three grandparents every time like we are this year, so I think using as little as 300 points every two years would work out OK.

Here's my perspective on the pros and cons - let me know if I'm off track or missing something.

The advantage to buying from Disney is 12 extra years of ownership, and no dues this year. But it looks like there are a few SSRs at The Timeshare Store, so maybe that would be even better, as long as there are enough points available for this year's vacation.

The advantage to buying used is lower cost per point and the ability to get priority at, say, OKW, which we really like.

My big question about buying used is when banked points expire, and how the use year works. For instance, there's one with a use year of October, 119 points currently available, and 170 coming on 10/1/05. If we bought now, could we use the 119, plus the 170, and also borrow from next year (which would let us get a three-bedroom!), or will the 119 expire before we can borrow from the next year?

I was also wondering how much tickets will cost us at DVC members.

Thanks a lot - this place is a fantastic resource!

Let me try to help with the use year question -

Banked points expire at the end of the year into which they were banked. If the 119 points are in th banked status now, they would originally have been 2003 use year points. Since they were banked into 2004, they would expire on 9/30/2005.

However, it sounds as though the 119 points are current year points (from the 2004 use year). Those will expire on 9/30/2005 unless they are banked into the 2005 use year.

Make yourself a chart like this:

With an October use year -

Your 2003 points were good for stays between 10/1/2004 and 9/30/2005.
Your 2004 points are good for stays between 10/1/2004 and 9/30/2005.
Your 2005 points are good for stays between 10/1/2005 and 9/30/2006.
Your 2006 points are good for stays between 10/1/2006 and 9/30/2007.
etc.


You can bank forward one year. Then the points expire at the end of the year into which they were banked.

You can borrow one use year ahead. Then the points exprie at the end of the year into which they were borrowed.

You can bank your entire year's allotment if you do it before the end of the 6th month following the beginning of your use year. So to bank all of your 2004 October use year points to 2005, you would have to do it before the end of March, 2005.

It soubnds like the resale has 119 current year points (from 2004) and will have all of the 2005 use year points available October 1.

So since you are buying resale, and want to use the 119 points from the 2004 use year for your October 2005 trip (that trip falls within your 2005 use year. See the chart), the 119 points would have to be banked. Because 119 is more than 50% of 170, the 119 points have to be banked before March 31, 2005. That means the seller will have to do it because it is unlikely that you will close prior to the deadline. Make it part of your offer.

If the 119 points are banked, you can use them, as well as the 170 points from your 2005 use year and if you need more than that, you can borrow the entire allotment from 2006.

HTH.

Best wishes -

 

[RobDoc]

The advantage to buying from Disney is 12 extra years of ownership, and no dues this year. But it looks like there are a few SSRs at The Timeshare Store, so maybe that would be even better, as long as there are enough points available for this year's vacation.

The extra 12 years are available only for a SSR purchase and will be there whether purchased thru DVC or resale. All other resorts end on January 31, 2042 - SSR is January 31, 2054.

The advantage to buying used is lower cost per point and the ability to get priority at, say, OKW, which we really like.

Yes, you cam generally find a lower purchase thru resale. Do the math though, as resales usually expect the buyer to pay all closing costs and a full year's maintenance fees. DVC purchases have no closing costs and fees are prorated based on date of purchase.

My big question about buying used is when banked points expire, and how the use year works. For instance, there's one with a use year of October, 119 points currently available, and 170 coming on 10/1/05. If we bought now, could we use the 119, plus the 170, and also borrow from next year (which would let us get a three-bedroom!), or will the 119 expire before we can borrow from the next year?

The 119 points sound like they are October, 2004 Use Year points. These will expire on September 30, 2005 unless they are banked. These will have to be banked by March 31, 2005. You can ask the seller to bank them since you will not likely be closed by that time to do it yourself. You will then have 119 + 170 to use for an October , 2005 trip and can also borrow from your 2006 allotment.

I was also wondering how much tickets will cost us at DVC members.

DVC members can get a $100 discount of the purchase of an Annual Pass. You should also look at the Magic Your Way (MYW) passes, since that may be more cost effective for stays of 7 days or less. There is no DVC discount on MYW passes.

Enjoy!

 

[CarolMN]

....(snip)......
I was also wondering how much tickets will cost us at DVC members.......

DVC members get a discount on annual passes - $100 off the AP and $125 off the PAP. There are also discount on renewals and on Fllorida resident annual passes.

There are also discounts on individual admission tickets to DQ, PI and the water parks (believe it is $4 off an adult admission).

There are no discounts unique to DVC for MYW tickets.

Best wishes -

 

[Scoootch]

The advantage to buying used is lower cost per point and the ability to get priority at, say, OKW, which we really like.

The only way to get priority at OKW or any of the DVC's would be to have that resort as your HOME RESORT. You can book 11 months in advance at your home resort vs. only 7 months in advance at non-home resorts giving you an extra 4 months priority advantage. If you buy at SSR for example, you would have to wait until that 7 month mark to book at OKW BUT you could book SSR at 11 months.

That said, OKW is one of the largest DVC's and not usually hard to get into but just wanted to clarify that for you

As mentioned, the advantage to buying resale is often lower per point cost but you do have to do the math. Buying directly through Disney, you won't have the closing costs and you won't have to pass ROFR so it really all depends.

HTH's and Welcome to the DIS!

 

[ChristineLynne]

Wow! Thanks for all the great information! We will be sitting down and looking at some options today, and it looks like I will be calling to get closing cost and maintenance fee info so we can compare and contrast.

Buying directly through Disney, you won't have the closing costs and you won't have to pass ROFR so it really all depends.

I give up - what's ROFR?

Another question: how are the fold-out couches as beds? If we get a 2 BR, we will need to use one, and the last time I slept on a fold-out at a friend's house, I was practically crippled the next day.

Oh and one more thing - my husband wants to look on e-bay for memberships, but I think it would be safer and saner to just use a known, reputable agency. Any thoughts?

 

[Happy Birthday Cat]

I give up - what's ROFR?

Another question: how are the fold-out couches as beds? If we get a 2 BR, we will need to use one, and the last time I slept on a fold-out at a friend's house, I was practically crippled the next day.

Oh and one more thing - my husband wants to look on e-bay for memberships, but I think it would be safer and saner to just use a known, reputable agency. Any thoughts?

ROFR is Disney's Right of First Refusal on all sold contracts. They get to review the terms and decide if they want the contract or not. All contracts give Disney this right.

The fold outs are better in some places than others. It is being said that those at SSR are excellent, some new kind of mattress.

On e-bay it seems that buyers are actually paying a premium. There was a thread on that a week or two ago. Take a look at the re-sellers, one of which is a major Board sponsor and see what looks good to you. If you can get a deal on e-bay, chances are that Disney will just take it by ROFR, so it won't really be a deal at all.

Good luck.

HBC