SSR - Selling Back Points

[NjRon]

I have a family member who is also joining the DVC. He bought
SSR with a September use year. He is selling back his first
year points and is hoping to make his first trip "home" in
February '05. His rep is telling him in order to do so he must
borrow Sept '05 points ?? I was under the impression he would be earning points in Sept '04 that he could use for the Feb '05
trip ?? At least this is how it all worked when I bought BCV
in May '04 and sold back my first year points.

Did something change with SSR ?

 

[tjkraz]

The only SSR members who received any 2003 points were the first group that purchased with a December Use Year.

Your family member would receive his first points on 9/1/04. According to your post those are being sold back to DVC (Magical Beginnings.)

Therefore, the first set of points he will actually receive are 9/1/05. In order to travel in Feb '05 he will have to borrow against his Sept '05 points.

Your situation may have been a bit different when you bought into BCV. If the resort was already open, they probably bought-back points for a Use Year that was already in progress. Thus it was effectively less than a year before you received your first allotment of points. In this case, your relative's points don't even exist until this coming September.

On the brighter side, he will only have to pay dues from September '04 forward on those points.

 

[lclrml]

No, what I think has happened is 9/04 he would get points that are good from 9/04-9/05 - he sold those back to DVC. Since he wants to go in 2/05 he already gave back those points so he would have to borrow from the 150 that he will get in Sept of 2005. I dont know because I really dont have much experience as I just joined after a ton of research but it makes sense to me.

Our points are 2/04 and they go till 2/05. If I sold back my points for 2004 (which I didnt) then I would have to borrow points that I will be getting in 2/05 to go this year. I think the Sept use year is what is confusing this because it splits up the year differently.
Lisa

 

[NjRon]

Got it, the differance is BCV was open at the time of the
sale where as SSR was not.

Thank you TJ.

 

[jtfranklin]

I just bought at SSR last summer and have a December use year so we got our first 200 points in December 2003. We are spending our 25th anniv. in a one bedroom is September and I have banked my remaining points into 2004. My question is, why would I sell points back to DVC? Is this so I can exchange them to buy a week at a non disney condo??

 

[MELSMICE]

Originally posted by jtfranklin
My question is, why would I sell points back to DVC? Is this so I can exchange them to buy a week at a non disney condo??

I think it's a selling tool DVC uses. It's almost like a coupon,

ie: say the cost of your 150 point contract is $10,000, but you sell back your first year's points at a rate of $10/point. Then you are only financing $8,500.

Like I said - I THINK that's how it works. Someone please correct me if I am wrong about this. We bought a resale but when we originally looked at DVC & took the tour this is how our guide explained it.

 

[funhouse8]

Can anyone do this? We took the tour in Jan and noone ever mentioned this. It sounds like it might work for us because we aren't going again till 2006. We thought we would go every two years so selling back my first years points will save me money. Can you call and get this price even if you didn't buy at time of tour? I was looking into resall but if I can get SSR for allmost the same price I think the extra years are a plus and I love the location.

 

[tjkraz]

The program described is called Magical Beginnings. DVC will offer a credit of $10 per point toward your initial purchase price in exchange for your first year's worth of points.

In other words, if you purchased an August Use Year at SSR, DVC would get the Aug '04 points and the first set available to the owner would be Aug '05.

Note that the owner is still responsible for Annual Fees which apply to the points that DVC has purchased back.

Also, if financing through DVC, it is my understanding that the Magical Beginnings purchase amount is deducted from the FINANCED amount of your purchase. If your total purchase price were $15000, you would still need to put at least 10% down (or $1500.) The Magical Beginnings premium amount would then be deducted from the remaining $13500 which was to be financed.

The other promotion currently being offered for SSR is a flat $5 off per point with the owner keeping all of his points. The base price is currently $89 per point. With this second promotion you pay an effective rate of $84 per point. Under Magical Beginnings it goes down to $79 per point. The two promotions cannot be combined.

 

[HookdonWDW]

Just one other thing to consider:

If you DON'T take advantage of MB, you can buy your points at $84/point. You can then rent your first year's points on the Rent/Trade Board. Since most points go for $10/point, it would take your cost down to $74/point. This is something to consider if you really want to buy SSR, and were looking at buying a stripped resale contract.

Having said that, we just added on through Disney, didn't take advantage of MBs, and have no intention of renting out our new points. Our DVC points are worth way more that $10/point to us!

 

[kathyseb]

You were talking about a Rent/Trade Board. Can anyone tell me where I can find that?

I have another question. We just bought into SSR in September 03, with a User Year of February. We have reservations in September and again in December 04. That will leave us a balance of 70 some points. When we reach the 11 month window to book our vacation for May 05, will we have to borrow points as we only have 70 some left or do they allow you to book using the points we will get in Feb05? Might sound dumb, but we are still trying to learn the system.
Thanks

 

[Alic]

Another question about MB...Does that promotion apply if you don't finance any of the price and pay cash up front?

 

[tjkraz]

Originally posted by Alic
Another question about MB...Does that promotion apply if you don't finance any of the price and pay cash up front?

Yup. It's not tied to DVC financing in any way.

 

[Alic]

So my entire purchase price would be based on $84 per point?

 

[tjkraz]

The base price is currently $89 per point at SSR. If you opt for the flat $5 per point discount, you would pay a net of $84 pp.

Under Magical Beginnings, you would basically forfeit your first year's points, but the credit increases to $10 per point--net $79 each. Under Magical Beginnings you are still responsible for the Annual Dues for your points even though you cannot use them in the first year.

 

[HookdonWDW]

Originally posted by kathyseb
You were talking about a Rent/Trade Board. Can anyone tell me where I can find that?

Sure, that's just another board here on the DIS. Here is the link DVC Rent/Trade Board

I have another question. We just bought into SSR in September 03, with a User Year of February. We have reservations in September and again in December 04. That will leave us a balance of 70 some points. When we reach the 11 month window to book our vacation for May 05, will we have to borrow points as we only have 70 some left or do they allow you to book using the points we will get in Feb05? Might sound dumb, but we are still trying to learn the system.
Thanks

You received x amount of points in Feb04. These points are good from 2/1/04 - 1/31/05. On 2/01/05, you will receive a new allotment of points for your 2005 UY. If I understand your post, after your 12/04 trip, you will still have 70 points left from your 04 UY, which you will want to use on your vacation in 05/05. If this is correct, you will need to bank the 70 points from your 04 UY. You can then use them for stays between 2/01/05-1/31/06. When you make your reservations for May 05, just make sure that they use your banked points before using the points for your 05 UY. This is supposed to happen automatically, but sometimes human errors happen.

HTH, Congratulations, and Welcome Home!