Small Contract vs. Large Contract

[bksomody]

To avoid financing a dvc purchase I have been considering purchasing a smaller contract (about 50 points) and then combining them to plan a trip every two years. We are currently renting points directly from owners and going every year. My favorite resorts are BWV, AKV & OKW (still undecided)

My question is would it make sense to purchase a larger contract (100 points) and then renting some of the points (50 points) every year? *Would the rental of 50 points every year pay for them?

If I bought a larger contract now I would probably have to finance part of it. My other options are to wait to purchase until I can pay cash for all 100 points or just purchase the 50 points now that I can pay for oop and add on in the future. The reason I was thinking about purchasing a lager contract is because they are easier to find and cost less per point and also this month I got my first grandchild and was thinking that in the future we would need multiple rooms and would use more points per trip. I would also love to visit every year.
I've noticed that there are people who regularly rent their points. Do people purchase points with the intention of renting them and would the rental eventually pay for them since larger contracts are less expensive?

 

[Dean]

To avoid financing a dvc purchase I have been considering purchasing a smaller contract (about 50 points) and then combining them to plan a trip every two years. We are currently renting points directly from owners and going every year. My favorite resorts are BWV, AKV & OKW (still undecided)

My question is would it make sense to purchase a larger contract (100 points) and then renting some of the points (50 points) every year? *Would the rental of 50 points every year pay for them?

If I bought a larger contract now I would probably have to finance part of it. My other options are to wait to purchase until I can pay cash for all 100 points or just purchase the 50 points now that I can pay for oop and add on in the future. The reason I was thinking about purchasing a lager contract is because they are easier to find and cost less per point and also this month I got my first grandchild and was thinking that in the future we would need multiple rooms and would use more points per trip. I would also love to visit every year.
I've noticed that there are people who regularly rent their points. Do people purchase points with the intention of renting them and would the rental eventually pay for them since larger contracts are less expensive?

I generally answer these type of questions with an eye to others who may also be reading. I know a lot have done it this way or just 50 or so and nothing else but usually I don't think it's a good idea. I'd start from the other end. Decide if DVC is right for you and if you can afford it long term (no consumer debt, no worries about the fees). To be a good candidate for DVC one needs to go to Disney routinely, be able to plan at least around 7 months out, be OK with the compromises/risks of a timeshare and value staying on property enough to pay significantly more doing so. If all of that fits, then I'd suggest educating oneself about DVC, this usually takes a good 6 months of investigations. At the end of all of that (maybe you're there already) and assuming the answer is DVC is a good choice for you, you should have a good feel for what home resort and how many points one needs. If it's a low number as in your case, I generally recommend buying at least around 150 if going resale. One can always rent the extra points as you mention. I think you'll find the 150 better than the 100 for all the reasons you mentioned about going up to 100. You'll have a lot more contracts to chose from, likely find a much better price and a much better contract. But you could let the quality of a given contract decide which one which might be 90, 120 or 150. And yes, I'd wait until you can buy what you need. If it's important to you and you can afford it, it really shouldn't delay the purchase significantly.

For those that think they need a lot more points, say 200-250 or above, I normally would recommend they go smaller, get a great contract and get their feet we with the system so they'll have more and better choices once they have the knowledge that can only come with usage. But again, let the specific quality of a contract make the final decision within the range of points that seem reasonable.

IMO Use Year is very important to many and where it's not, those people are taking more risks than those where a specific UY(s) makes more sense.

 

[SuperRob]

We started small. Our contract is only 60 points. But we've stretched those points into some very nice vacations over the past five years. Now we're looking to add on, so that we can stay a little longer, or more often. We added a baby this year, so we're also thinking about this as something that can be passed down to her.

 

[GrumpyInPhilly]

Congrats on the addition to your family. I'm sure she'll love Disney as she grows up.

 

[bksomody]

I generally answer these type of questions with an eye to others who may also be reading. I know a lot have done it this way or just 50 or so and nothing else but usually I don't think it's a good idea. I'd start from the other end. Decide if DVC is right for you and if you can afford it long term (no consumer debt, no worries about the fees). To be a good candidate for DVC one needs to go to Disney routinely, be able to plan at least around 7 months out, be OK with the compromises/risks of a timeshare and value staying on property enough to pay significantly more doing so. If all of that fits, then I'd suggest educating oneself about DVC, this usually takes a good 6 months of investigations. At the end of all of that (maybe you're there already) and assuming the answer is DVC is a good choice for you, you should have a good feel for what home resort and how many points one needs. If it's a low number as in your case, I generally recommend buying at least around 150 if going resale. One can always rent the extra points as you mention. I think you'll find the 150 better than the 100 for all the reasons you mentioned about going up to 100. You'll have a lot more contracts to chose from, likely find a much better price and a much better contract. But you could let the quality of a given contract decide which one which might be 90, 120 or 150. And yes, I'd wait until you can buy what you need. If it's important to you and you can afford it, it really shouldn't delay the purchase significantly.

For those that think they need a lot more points, say 200-250 or above, I normally would recommend they go smaller, get a great contract and get their feet we with the system so they'll have more and better choices once they have the knowledge that can only come with usage. But again, let the specific quality of a contract make the final decision within the range of points that seem reasonable.

IMO Use Year is very important to many and where it's not, those people are taking more risks than those where a specific UY(s) makes more sense.

Thanks Dean, that was very helpful. We know we want DVC and have rented to try out different resorts but really can't decide because we like all of them. We are leaning towards BWV but that may change after our trip in March to BCV.

 

[bksomody]

We started small. Our contract is only 60 points. But we've stretched those points into some very nice vacations over the past five years. Now we're looking to add on, so that we can stay a little longer, or more often. We added a baby this year, so we're also thinking about this as something that can be passed down to her.

Yes a smaller contract seems like a good way to start. Plus we like different resorts so several smaller contracts at different resorts might be nice.

 

[bksomody]

Congrats on the addition to your family. I'm sure she'll love Disney as she grows up.

Thanks. She'll have her first visit over Easter.