Small resale contracts????

[Mellie2162]

Ok, you guys have been great answering my questions so here is another one. Excuse me if this has already been asked and answered. I see several small contracts of 60 points or less listed at the Timeshare store. How do these contracts work? Are they basically for members who just want to add on to their contracts at the same home resort? If you bought a small contract what are the rules about adding on more points, can you just buy more points from Disney or do you have to wait for another contract to come up through resale that you want? Does that make sense? Thanks for all your answers.

 

[tjkraz]

Anyone can own those contracts. Those are former add-on contracts purchased by existing members.

DVC has made the decision that it's not worth their time / expense to sell a contract of less than 150 to a new owner. But those small contracts, once created, stand on their own. People who no longer have a use for the points can resell the contract and any individual can purchase.

If you were to purchase one of those contracts, you would be treated just like any other member, and would have the option to add on any number of additional points later, through DVC, in blocks of 25 or more.

Note that closing costs do not vary much depending on the number of points in the transaction. Count on $400-500. On smaller contracts, closing costs can represent a fairly large increase in the final per point cost. For example, on 60 pts, $400 in closing costs would increase the price by nearly $7 per point. On a 200 pt contract, it would end up being only $2 per point.

 

[Mellie2162]

Originally posted by tjkraz
Anyone can own those contracts. Those are former add-on contracts purchased by existing members.

If you were to purchase one of those contracts, you would be treated just like any other member, and would have the option to add on any number of additional points later, through DVC, in blocks of 25 or more.

Note that closing costs do not vary much depending on the number of points in the transaction. Count on $400-500. On smaller contracts, closing costs can represent a fairly large increase in the final per point cost. For example, on 60 pts, $400 in closing costs would increase the price by nearly $7 per point. On a 200 pt contract, it would end up being only $2 per point.

Gotcha. Didn't realize thats what they were.

So, then if someone were to purchase one of these contracts, they could then add on a block of 25 or more points through DVC at the same resort or can they add on at any resort?

Good point about the closing costs. That makes a difference.

 

[tjkraz]

Originally posted by Mellie2162
So, then if someone were to purchase one of these contracts, they could then add on a block of 25 or more points through DVC at the same resort or can they add on at any resort?

Any resort, although it can be difficult to get points anywhere but SSR now. DVC will only sell you add-ons that are the same Use Year as your existing contract. So, you have to wait for the points to become available that match your desired quantity and Use Year. Most posts I've seen recently have had people waiting 1-3 months for points anywhere but SSR.

25 is the bare minimum for any add-on. If you want to finance the purchase through DVC, it must be at least 50 points. And, it used to be that they would allow you to use Magical Beginnings (reducing the purchase prices by $10 per point in exchange for forfeiting your first year's points) if you bought 100 or more. Not sure if they are still doing MB at the sold-out resorts.

But also bear in mind that getting points at a different resort only gives you that 11-month booking window for the number of points you own. If you own OKW and want to add-on 25 pts at BWV, you can only book 11 months ahead of time with those 25 points. You could bank and borrow to get up to 75 pts every 3 years, but that's still not much.

Generally speaking, unless you add-on a substantial number of points--let's say 100 or more--you are probably better off sticking with one home resort.

 

[mydogdrew]

We started with 50 VWL contract for $70 + $375 closing. This had full 2002-2004 points. We then added on 30 points through Disney at BWV (must be same UY unless you are adding on at least 150). We waited about a month for the add-on but I understand some have waited much longer. We now are waiting on a 200 pt BWV resale ROFR that may result in us selling the smaller contracts but I don't regret the decisions to date. Also, if you added on a Dec UY through Disney today at $84, you would still get 2003 points (with no dues) as well as 2004 (dues prorated for half year). This works well with small contracts with no closing costs).

 

[Mellie2162]

Originally posted by tjkraz
But also bear in mind that getting points at a different resort only gives you that 11-month booking window for the number of points you own. If you own OKW and want to add-on 25 pts at BWV, you can only book 11 months ahead of time with those 25 points. You could bank and borrow to get up to 75 pts every 3 years, but that's still not much.

Generally speaking, unless you add-on a substantial number of points--let's say 100 or more--you are probably better off sticking with one home resort.

I think I understand. In other words, if I owned 50 points at VWL and 50 at say BWV, I could only book VWL at 11 months for however many days the 50 points would cover at that time?

 

[Mellie2162]

Originally posted by mydogdrew
We started with 50 VWL contract for $70 + $375 closing. This had full 2002-2004 points.

Also, if you added on a Dec UY through Disney today at $84, you would still get 2003 points (with no dues) as well as 2004 (dues prorated for half year). This works well with small contracts with no closing costs).

How long did you have to wait for the VWL contract to come along?

How does this work with DVC, do you have to buy now and ask for a Dec UY?

 

[tjkraz]

Originally posted by Mellie2162
I think I understand. In other words, if I owned 50 points at VWL and 50 at say BWV, I could only book VWL at 11 months for however many days the 50 points would cover at that time?

That's correct. However, DVC does allow you to bank one year's points forward into the next year, and you can also borrow points one year in advance.

So, in the scenario you describe, in 2004 you could use your BWV points for 2004 and borrow your 50 from 2005 giving you 100 to book at stay at BWV at the 11-month window.

At the same time, you could bank your 2004 VWL points into 2005. That would give you 100 points in 2005 to use at 11 months to book a stay at that resort.

To answer your other question about Use Year, at the time of original purchase, points are assigned to a specific Use Year. If you bought direct from DVC (min 150 pts), you could probably pick any UY you want. However, resale contracts already have the UY assigned. You would either have to look for a contract with a specific year, or settle for whatever you can find. Contracts of less than 150 points tend to he harder to come by.

If you then decided to add-on points later in a purchase from DVC, the points would have to carry the same use year as your base contract. As mydogdrew said, DVC will only sell you a different Use Year if you buy an add-on of 150 points or more (which really becomes a separate contract rather than an add-on.)