Small points contracts question

[ilvdisny888]

I am just now beginning research into DVC as it's something I'd like to consider in the future, so forgive me for my lack of knowledge. Can anyone enlighten me as to why people buy small points contracts? I understand that it is an easier pill to swallow than paying five figures for more points, but what can you truly do with 25, 50, or 75 points? Looking at point charts, a 25 point contract would literally only get you two nights in a studio a year, and studios are hard to get. Do most people own small points contracts in addition to larger contracts? Do they bank and borrow a lot and only go every few years? Seems like it wouldn't be worth it. I am a single person with a very moderate income, so I wouldn't be able to afford the amount of points many people purchase, but to me the small points contracts seem silly.

 

[jmw33]

I have a 25 point direct contract that I purchased in addition to my re sale contract just to get the direct benefits. 25 points no longer gets you the direct benefits, so I totally see what you are saying, but for us..that was the reason.

 

[Sandisw]

People will buy them for specific trips to add to what they own. Some do it to get started and then add on more as time goes on.

With banking and borrowing it can get you a trip every few years for that special trip!

 

[ilvdisny888]

People will buy them for specific trips to add to what they own. Some do it to get started and then add on more as time goes on.

With banking and borrowing it can get you a trip every few years for that special trip!

Buying an entire contract just to add more points for a trip seems like a wonky decision to me. And with paying dues and everything for the lifetime of the contract, it can’t really be worth it to buy into DVC for a trip every few years. I don’t know, that’s just my line of thinking

 

[Sunnyore]

Some people do just go once every 2-3 years so what you described makes sense for them and they aren’t wasting points this way. I do have one slightly larger contract, otherwise 4 of my contracts are 50-75 points to give me some resort 11 month advantages and also give me some flexibility if I realized I’m over my head and want to sell. It’s important to look at point charts too for different resorts. 25 points may barely get you 1 night in a studio during high seasons.

 

[igrsod]

I have a 42 point contract that I use for a nice trip at OKW every two years. It works out perfectly. I often wonder about the 25 point contracts, they are probably add ons to a bigger contract.

 

[chalee94]

I am just now beginning research into DVC as it's something I'd like to consider in the future, so forgive me for my lack of knowledge. Can anyone enlighten me as to why people buy small points contracts? I am a single person with a very moderate income, so I wouldn't be able to afford the amount of points many people purchase, but to me the small points contracts seem silly.

Depends on what you are trying to do, yes.

A 50 pt OKW contract can get you 5 weeknights a year in a studio in early Dec, May, Sept or Jan. But 50 pts is probably an every-other-year plan for the newer resorts.

 

[Sunnyore]

Buying an entire contract just to add more points for a trip seems like a wonky decision to me. And with paying dues and everything for the lifetime of the contract, it can’t really be worth it to buy into DVC for a trip every few years. I don’t know, that’s just my line of thinking

This is where you have to plug in numbers to see it’s value. Say you bought 50 SSR resale (since you can’t buy small contracts direct if not a member already), at $125/pp itll roughly cost you $7000 up front cost. Your annual dues is about $356 so about $1100 for 3 years. 150 points can get you a nice week at a deluxe resort which usually would cost you about $4500 assuming rack rate. With 11 trips (every 3 years) you can see you will save money overall. This is assuming you do want to go every 3 years. DVC is convenient for those that want to keep going back. Otherwise it would definitely make more sense to rent if you’re only going once in a while.

 

[chalee94]

And with paying dues and everything for the lifetime of the contract, it can’t really be worth it to buy into DVC for a trip every few years. I don’t know, that’s just my line of thinking

I agree with this. If you buy for an every-third-year trip, you will almost always be wasting points and getting frustrated by point reallocations. If you can't buy enough to go at least every other year (and going every year is preferable), then renting is a much smarter option.

Buying into DVC is not a great fit for everyone.

 

[ilvdisny888]

Thanks for everyone's insight! I understand you have to sit down and calculate it out to determine if it's worth it for you, and that it will be different for everyone. I won't be buying for at least a few years anyway - I'm in grad school and have to see where life takes me first. Who knows what, if anything, I'll be able to afford. Lol. I absolutely want to be going at least once a year though!

 

[Sandisw]

Buying an entire contract just to add more points for a trip seems like a wonky decision to me. And with paying dues and everything for the lifetime of the contract, it can’t really be worth it to buy into DVC for a trip every few years. I don’t know, that’s just my line of thinking

Sorry. That was not clear. I meant for a specific trip they take every year or two. . For example, someone might buy a small contract at BWV for a long weekend in October just to do F & W.

Over time, it can definitely be worth it.

 

[Jwaire]

I've considered adding on a small contract for my Poly resale contract. It only has 100 points. 125 points would get me an entire week in September.

 

[kilik64]

Some more reasons would be they bought more points direct total but had split up into smaller contracts (think 150 split into 50s). I think you just pay additional closing costs doing that.

would do this if plan to sell later as you can sell for more per point or planning to leave each contract to1 kid or something.

another one is bought say 100-150 planning to do mainly studios every year and then realized they prefer1 bedroom so added on 25-50 more to make that more doable.

 

[kanerf]

I am in the process of buying a 25 point at BLT. I have points at other resorts, but not there and the price was right. Probably won't stay there every year, but perhaps every other year.

 

[ilvdisny888]

So, to help me understand, let's say you buy 100 points direct for BLT. You later decide you want more 50 more points each year. If you buy a BLT small points contract resale with the same UY as your direct contract, do they all get loaded onto your same account? Or I think I saw there is a way to transfer points between accounts? Would you transfer your 50 points from your small points contract to your main one and then have 200 to use? What if the small points contract you buy was for a different home resort or had a different UY? Would you only be able to use those 50 points separately from the 200? I.e. you couldn't make a booking for 110 points because you only have 100 on one contract and 50 on the other. You'd have to make two separate bookings, one for 100 points or less and one for 50 points or less? I hope I'm making sense

 

[chalee94]

So, to help me understand, let's say you buy 100 points direct for BLT. You later decide you want more 50 more points each year. If you buy a BLT small points contract resale with the same UY as your direct contract, do they all get loaded onto your same account? Or I think I saw there is a way to transfer points between accounts?

You still have 2 contracts. You can sell or will them separately. But you can see them all online and they will operate as one contract for ease of use since they are all under one UY month (and with the same home resort.)

Would you transfer your 50 points from your small points contract to your main one and then have 200 to use? What if the small points contract you buy was for a different home resort or had a different UY? Would you only be able to use those 50 points separately from the 200? I.e. you couldn't make a booking for 110 points because you only have 100 on one contract and 50 on the other. You'd have to make two separate bookings, one for 100 points or less and one for 50 points or less? I hope I'm making sense

No transfers are needed when the contracts are under one membership. To be under the same membership number, they have to be titled the same (same owner/s) and the same UY month.

Different home resort but same UY is still very easy...you just have to wait till 7 months out if you want to pool points from both contracts to book whatever is available at the 7 month window. Everything is still under one membership but there is no way to use BLT pts at AKV at 11 months out or vice versa. But you can use banked BLT pts + current BLT pts + borrowed BLT pts + BLT pts transferred in from another BLT owner if you want to book BLT at 11 months out - the AKV contract pts can only be used to book AKV at 11 months out.

Different UYs is more complicated. Different banking windows apply and it is like you are two separate members, so it is more complicated to use the points together (transfers are one option but that can be limiting since you can't borrow transferred pts).

 

[ilvdisny888]

You still have 2 contracts. You can sell or will them separately. But you can see them all online and they will operate as one contract for ease of use since they are all under one UY month (and with the same home resort.)



No transfers are needed when the contracts are under one membership. To be under the same membership number, they have to be titled the same (same owner/s) and the same UY month.

Different home resort but same UY is still very easy...you just have to wait till 7 months out if you want to pool points from both contracts to book whatever is available at the 7 month window. Everything is still under one membership but there is no way to use BLT pts at AKV at 11 months out or vice versa. But you can use banked BLT pts + current BLT pts + borrowed BLT pts + BLT pts transferred in from another BLT owner if you want to book BLT at 11 months out - the AKV contract pts can only be used to book AKV at 11 months out.

Different UYs is more complicated. Different banking windows apply and it is like you are two separate members, so it is more complicated to use the points together (transfers are one option but that can be limiting since you can't borrow transferred pts).

Thank you!! This is so helpful.

 

[Best Aunt]

would do this if plan to sell later as you can sell for more per point or planning to leave each contract to1 kid or something.

^ This.

 

[M:SpilotISTC12]

I only have had small contracts. We like to go for 4 or 5 days in September or January. So 50 points was perfect for us. It's enough for us to get our yearly fix to do a park or two. It's keeps us within our budget and paired with credit card miles for flights we only pay for park tickets and food. Look at DVC more of a budgeting tool for your yearly vacations. That's the best way to decide how many points on a small contract.

 

[EYL]

I was thinking about this the other day and wonder whether or not the "in the know" people would break Riviera contracts down to 50-point contracts as a good exit strategy with the resale restrictions. This way, after it is "sold out," they can target the existing RIV owners as a small add on when they start travelling during a more point-heavy season to stay at their home resort...