Sell me on buying a slightly larger contract

[moose81]

My husband and I are in the market for our first contract. He isn't a huge Disney fan but he knows that the kids and I love it, and we've been averaging a short trip every 2 years at a Deluxe resort so I've managed to convince him. We did the math ourselves plus we talked with a DVC guide who did his own math, and based on our needs, we all came up with 125 points. The trouble is, I can't seem to find a contract of this size easily on the resale market, whereas there are plenty of 150 point contracts up for grabs. I am all for getting some extra points but I need some good convincing arguments to bring to my husband to justify the extra cost, both upfront and annually. Since we only plan to travel every 2 years, this would be the equivalent of 50 extra points per trip.

 

[James Rhoades]

two reasons. 1.) you will go more often than you planned or want to take longer trips. 2.) its very easy to a bank points and/or rent them out if you have an excess

 

[Matty B13]

Up till recently, DVC didn't really sell contracts smaller than 150/160 point minimum. It's only a recent phenomenon, probably starting with VGF.

So depending on the resort you want to buy, the older ones will usually only have large point contracts.

 

[EYL]

Buy extra. The extra 25 points can serve as a cushion when, and if, DVC decides to up its point requirements for certain types of rooms. They tried this once for 2020 point charts, and I don't doubt for a second that they won't try again (and succeed this time). Worst comes to worst, bank them.

 

[jerseyduke]

an extra 25 points on the resale market is still cheaper than 2 less direct.
You could hunt for that 125 for months and only end up having it get ROFR'ed

The annual difference in dues is less than 10 bucks a month.

You will find a way to use those extra points. Thats 75 points every 3 years - what about a weekend getaway?

Disney can change point totals and your room could go up a point or two a night.

You can rent them out.

I almost bought 120 points with my first contract (direct) then at the last minute upped it to 150. I now wish I had upped it further.

 

[Jack_Sparrow_NJ]

You will find a way to use the extra points or bank them
You may want to stay in a different resort with larger points / night
Point charts can and do change.
Get the contract now and start enjoying it rather than waiting for one that is smaller.
In the grand scheme of things 25 points is really almost negligible.

 

[Deb & Bill]

The problem with going every other year is making sure you use all those two years worth of points somehow. Otherwise, you will just lose them. So you bank a year and use a year for Trip #1 and have 30 points left over that you bank. But you don't go the next year, so those points are lost. You may have to get creative with your stays so you don't lose any points. Or just go every year. Take husband to Food & Wine, just the two of you, and he might like it.

 

[RichVIII]

We thought 160 points was PLENTY. 325 points later we have borrowed almost all of next year's points as well. You will be more than glad you purchased them now.

 

[KAT4DISNEY]

My husband and I are in the market for our first contract. He isn't a huge Disney fan but he knows that the kids and I love it, and we've been averaging a short trip every 2 years at a Deluxe resort so I've managed to convince him. We did the math ourselves plus we talked with a DVC guide who did his own math, and based on our needs, we all came up with 125 points. The trouble is, I can't seem to find a contract of this size easily on the resale market, whereas there are plenty of 150 point contracts up for grabs. I am all for getting some extra points but I need some good convincing arguments to bring to my husband to justify the extra cost, both upfront and annually. Since we only plan to travel every 2 years, this would be the equivalent of 50 extra points per trip.

There's a lot of difference in point requirements at different resorts. If you plan to try out many of the resorts you'll find you're using more points one year and fewer points another. So unless you're buying at the only place you're ever going to stay you'll find the amounts will vary. You can also use banking and borrowing until you use up the points you have and then do a stay on cash or transfer in points for a trip. There's a lot of ways you can work with a contract that differs from what you feel is the "perfect" size. I'd just look for contracts around the preferred amount.

 

[SG131]

More points gives you more flexibility. One year you may want to travel at a busier time of the year and having the flexibility to get a one bedroom unit instead of a studio will give you a better chance of getting what you want. Or if you book a trip under the 7 month mark the more points the more likely you are to be able to find something. As your kids get older you may need to start going in the summer or spring break due to their activities. And you can always take a long weekend trip with just you and your husband if you have extra points one year!

 

[*pixie*]

We thought 160 points was PLENTY. 325 points later we have borrowed almost all of next year's points as well. You will be more than glad you purchased them now.

Same here. Bought 160 five years ago, and it was plenty at first for the four of us. But then the kids got older and their friends/significant others started joining us. Just added on for a total of 430 points, which again, seems like more than enough, but we will see!

 

[zavandor]

With the rolled back 2020 point reallocation, DVC has tried to increase the cost of both 1BR and studios without balancing it with a decrease elsewhere (increasing the lockoff premium). They also increased the cost of some unit types like THV and moved points between the seasons a bit. Buying the exact number of points you need now may mean that as soons as 2021, after a probable reallocation published at the end of the year, you might not have enough points for your usual vacation.
A bit of extra points, if they are within your budget, give you the flexibility to try different resorts, unit types, seasons without much of a worry.
Also, a larger contract may be easier to find and probably be cheaper.

 

[goofy kc]

Those kids will get older and bigger! You'll want those extra 25 when you are looking at 2 bedrooms. Let us all know when you add on after this first purchase

 

[MICKIMINI]

Buy those extra points now. Closing costs for a small points contract can be as much as $20 per point whereas you are probably paying about $4 per point now for a 125-150 contract. You will end up using them and as others have mentioned at some point you will likely regret not buying even more. I don't know what you consider a "short trip" but if you have to pack up anyway, why not extend your trip by a couple days and have some pool/down time

 

[Networth]

Our first contract was 170 points, I couldn’t fathom the idea of needing more. Fast forward to now and we just signed the documents for a 3rd contract, that has 400 points. So yeah...I don’t feel like having 25 “extra” is really going to be an issue once you become a member.

 

[ElizabethG]

The extra points will be helpful with the plan to go every other year. We have started going every other year. You have to use enough to go through all of your current year points, so I make sure we have to borrow a little. It will be easy to take advantage of the points.

 

[Fred M]

I guess I’m not understanding your husband’s concern with the cost. I’d think the bigger issue is whether you’re saving money with DVC at all since you do a small trip (assuming no more than 5-6 nights) every two years. But if he’s signed off on 125 points being a good buy for the family, going up to 150-160 points isn’t that much of a financial leap.

Increase in maintenance fees is between $120-$200 a year, depending on resort. I looked at some old Animal Kingdom offers at 120-125 points, and they hovered between $109-$116 per point. You can find current Animal Kingdom offers in that range for 150-160 point contracts. That’s an upfront difference between $2,700-$3,500. That’s the hotel costs for one of your biennial trips, which if DVC is saving you money, you’ll get back over time. Plus, since you go every other year, you could pick up a stripped contract for a lower per point rate.

If your husband to objecting to DVC at all, but is agreeing to 125 points for marital bliss, then I think no argument will sway him. If he agrees 125 is a good deal for the family, I don’t understand balking at 150-160 points because it’s not that much more money.

 

[crisi]

The problem with going every other year is making sure you use all those two years worth of points somehow. Otherwise, you will just lose them. So you bank a year and use a year for Trip #1 and have 30 points left over that you bank. But you don't go the next year, so those points are lost. You may have to get creative with your stays so you don't lose any points. Or just go every year. Take husband to Food & Wine, just the two of you, and he might like it.

It isn't hard - I've been doing it for almost 20 years and haven't lost points. The trick is, each vacation uses whatever banked points are left, all the points from this year, and however many borrowed points you need. You then just bank the remaining points from the borrow year, those become the first points for the next year. If you end up with so many points you don't need to borrow, its time to either extend your stay by a few nights, visit a more expensive resort, bring friends in a bigger unit, or contact a broker and shed a years worth of points.

 

[crisi]

I guess I’m not understanding your husband’s concern with the cost. I’d think the bigger issue is whether you’re saving money with DVC at all since you do a small trip (assuming no more than 5-6 nights) every two years. But if he’s signed off on 125 points being a good buy for the family, going up to 150-160 points isn’t that much of a financial leap.

Increase in maintenance fees is between $120-$200 a year, depending on resort. I looked at some old Animal Kingdom offers at 120-125 points, and they hovered between $109-$116 per point. You can find current Animal Kingdom offers in that range for 150-160 point contracts. That’s an upfront difference between $2,700-$3,500. That’s the hotel costs for one of your biennial trips, which if DVC is saving you money, you’ll get back over time. Plus, since you go every other year, you could pick up a stripped contract for a lower per point rate.

If your husband to objecting to DVC at all, but is agreeing to 125 points for marital bliss, then I think no argument will sway him. If he agrees 125 is a good deal for the family, I don’t understand balking at 150-160 points because it’s not that much more money.

The cost for a night on points is the same (basically, you could quibble because some points would have different maintenance fees) if you use 12 2019 points or 2 2018 points and 10 2019 points. You just spread dues payments over two years, but if it works financially for every year, it works for every other.

(Every three is trickier since you need to hit points on the dot - but by renting some out you could do ok.)