Small Contracts

[rigsby25]

There is more and more talk about buying small contracts to be "in" and get the perks. Also, if you buy small contracts, they are easier to sell. I have a feeling that grows everyday that Disney will come out with something that will prevent someone being "in" after buying a small contract. Would it be possible? Could it be possible? We ourselves split the 100 pt. add on into two 50 pt. contracts. Disney recently raised the minimum number of points to buy in. So I can see people wanting to buy a "small contract" only to be "in" and then just buy small add ons. Although this is okay now, I'm wondering if it is becoming a pain in Disney's neck.

 

[spiceycat]

if it becomes a pain - then Disney will change the amount of points for add on.

right now it is 25 points.

Disney is buying back more small contracts. So the price can be higher on a smaller contract than a large one.

I think someone reported even at $87 for OKW 50 points - DVC brought it back.

if DVC really wants to stop this - then they can say starting right now an add on must be at least 50 or 75 or 100 points. They can do it.

 

[lizanne]

if it becomes a pain - then Disney will change the amount of points for add on.

right now it is 25 points.

Disney is buying back more small contracts. So the price can be higher on a smaller contract than a large one.

I think someone reported even at $87 for OKW 50 points - DVC brought it back.

if DVC really wants to stop this - then they can say starting right now an add on must be at least 50 or 75 or 100 points. They can do it.

I got an e-mail today from DVC -- add on 25 points at OKW for $2300 ($92 per point)

 

[utahkennedys]

They could only change this moving forward as all contracts are deeded. Or, they can buy ALL small contract back, regardless of price, but even then there are a lot of contracts out there...

 

[kdzgon]

I think the premium for smaller contracts will gradually lessen as more and more people purchase multiple small contracts - it's the simple consequence of supply and demand. I'm not sure Disney will do much of anything to limit them, though - many of us have purchased smaller contracts to pass on to family members, others will sell them along the way. Each contract transfer brings a new member, followed by add-onitis - what's not to like by Disney?

 

[spiceycat]

I think the premium for smaller contracts will gradually lessen as more and more people purchase multiple small contracts - it's the simple consequence of supply and demand. I'm not sure Disney will do much of anything to limit them, though - many of us have purchased smaller contracts to pass on to family members, others will sell them along the way. Each contract transfer brings a new member, followed by add-onitis - what's not to like by Disney?

you get the DVC discounts for under $3,000 vs the $15,000 and up that DVC wants you to pay.

 

[kend58]

DVC and Disney can negotiate the discounts as tiered i.e. <160 pts only 1 AP per contract or only $50 discount 160> up to X # APs with $100 discount etc

The day the bean counters figure out that the discount is giving away more than it is bringing in they will start making changes ... right now in disneys view it is bringing in money or they would have already killed it. In a thread (I read here on the boards) it was stated that the early OKW owners got multiple years (I think through 1999) of Free APs that perk no longer exists and for a while no AP perk existed as I understand it and then they implemented the current $100 off perk Disney can change the perks if they aren't specified in the contracts they are gifts from Disney not rights of ownership

 

[kdzgon]

you get the DVC discounts for under $3,000 vs the $15,000 and up that DVC wants you to pay.

But IMO Disney doesn't "lose" much of anything. I'd say the purchasers of small contracts are a different market than the "direct" purchasers of 160+, so the avg purchaser would not buy in at 160 if the small contract were not available. I'd also guess that more purchasers of small contracts add on eventually than don't. Plus, those discounts are just that - discounts, ie, a reduction in price paid. Just think of how much $$ is spent at WDW once that person has "saved" $100 on an AP.

I agree with the OP - Disney's bean counters are good at what they do overall. If Disney were losing $$ allowing the small contract memberships, they'd add limitations.

 

[william4192]

I bought 215 pts when I joined. I will buy add ons in 25 pt contracts.

 

[jdg345]

The smallest add-on is only 25 if you do your own financing, right? If Disney Finances, it's 50 pts I thought?

 

[kend58]

The smallest add-on is only 25 if you do your own financing, right? If Disney Finances, it's 50 pts I thought?

That is correct 25 is the min and 50 is the min with Disney for current DVC members. For non-members 160 is the current minimum for direct Disney.

 

[jdg345]

That is correct 25 is the min and 50 is the min with Disney for current DVC members. For non-members 160 is the current minimum for direct Disney.

Oh wow ... didn't know it went from 150 pts to 160 pts. Thank you!

 

[Maistre Gracey]

Small contracts can get more expensive on a per point basis because the closing costs are spread over fewer points.
The seller will also usually ask a higher per point amount.
Those two factors together can mean the buyer can get semi-hosed on the deal.

Now, I think it was Dean who suggested a graduated discount on passes depending on how many points you own. I don't agree with Dean all that often, but I think this is a great idea.
A family can purchase 25 points on the resale market, then get $100 off passes for their family of six. A few years of this will pay for the whole 25 point contract!!
On the other hand, my wife and I have a large number of points, and only purchase two passes per year.

MG

 

[Chester's Mum]

I hope that doesn't happen. I am not a DVC member yet, but I'm looking to buy resale. We don't do debt, have a small mortgage, pay off c.c.s monthly, the only real debt we have is for dds university costs , that's new to us. Disney's 10% interest or so and the demand to buy 160 pts is just too much for us to take. I'm hoping to buy 100 points next year when I have the money saved, and then buy more points as I can afford it. Not everyone buys small contracts just for member benefits. I want to buy small so that I can afford it, and have a guaranteed disney vacation every year until I'm old and drooling, and they won't let me on the plane anymore. We don't all have the ability to buy big, buy early. I want to join the club. Wish me luck.

 

[DisDaydreamer]

if it becomes a pain - then Disney will change the amount of points for add on.

right now it is 25 points.

Disney is buying back more small contracts. So the price can be higher on a smaller contract than a large one.

I think someone reported even at $87 for OKW 50 points - DVC brought it back.

if DVC really wants to stop this - then they can say starting right now an add on must be at least 50 or 75 or 100 points. They can do it.

Indeed... I hope Disney is diligent in keeping our investment true.

 

[Dean]

Now, I think it was Dean who suggested a graduated discount on passes depending on how many points you own. I don't agree with Dean all that often, but I think this is a great idea.
A family can purchase 25 points on the resale market, then get $100 off passes for their family of six. A few years of this will pay for the whole 25 point contract!!

I think what I posted was that many systems reward larger point owners in some ways, often to the detriment of smaller owners. Other than I think DVC should figure out a way to book a full week on one phone call day 1, I don't think I've suggested that perks should be directly tied to how many points you own.

 

[Maistre Gracey]

I think what I posted was that many systems reward larger point owners in some ways, often to the detriment of smaller owners. Other than I think DVC should figure out a way to book a full week on one phone call day 1, I don't think I've suggested that perks should be directly tied to how many points you own.

If it wasn't you than I guess we're still batting 1000, since I don't want that day 1 booking thing.

MG

 

[DisDaydreamer]

I think what I posted was that many systems reward larger point owners in some ways, often to the detriment of smaller owners. Other than I think DVC should figure out a way to book a full week on one phone call day 1, I don't think I've suggested that perks should be directly tied to how many points you own.

Agreed.... I really don't like the systems that reward the large point holders. Just not a happy system IMHO. DVC is on the right track with this.

 

[johde]

While there may be a lot of talk on the DIS about people buying into a small DVC resale just for the annual pass perk I don't know if it's that big of a problem in real life. For 1 thing, it would probably need to be someone from outside of Florida. Being a FL resident and DVC member only saves a small amount over the FL resident pass. The break even point between an annual pass an a MYW with park hopping and no-experation is about 7 days. If you add the water parks and more the break even is above the price of a 10 day ticket. As I see it, the only people this benefits is people who are from outside of Florida who want to spent over 7 days at a Disney theme park in at least 2 vacations during a 12 month period and plan not continuing this trend for several cycles and only care about staying at a DVC resort for the occational stay.

That being said, I think Disney is becoming more agressive in ROFR of smaller contracts for non members. As others have said, the price for small resales is higher than the price for larger resales. So they do want to keep the number of small owners to a minimum.

 

[t-beri]

I fit into several of the categories mentioned above. I am planning on buying in this year w/ 25 points. My goal is to buy in completely by 09 my vacay (off property) is paid for for this year, I could bank this years points, borrow 09 points an do my complete buy in in o9. This would make me a dvc member and would make any member/add on incentives available to me in the future, plus open up the door for me to purchase into new resorts before they go public. It seems liket the best idea for my family right now- AND we live in FL. To be honest. The annual pass isn't any cheaper for us, there is a fl. res. seasonal pass which has black out dates (which are dates when IMO no reasonable Floridian would be crazy enough to go to WDW) We like the idea of 1 annual pass in the family to cover parking and discounts (and exclusive passholder pins ) other than that-Seasonal passes suit us just fine, so the ann pass discount just isn't a perk consideration.