Thinking of Buying DVC - Few Questions

[amscherm]

Hi everyone... We just returned from our Christmas trip and while there we met with a DVC rep... Right now they have BLT and AKL for sale... We are still considering buying BLT, but I have some more questions that I was hopinig you all could help me with....

1. I notice that some people "preferr" one UY to another. What am I missing? What really is the difference. If we buy BLT right now our UY would be February.

2. Since BLT and AKL are the only ones available through Disney would it be better to buy resale if we really enjoy VWL? Or because VWL expire sooner will we really be loosing out on that much more?

3. If we purchase through Disney and pay off the financed portion early is there a penalty for that?

4. If we wanted to use our points for a Room in NYC (for example) could we just do that or does it have to be put into RCI first? This confuses me a bit....

I have to say we have rented points and stayed at the VWL twice now and Love it there.... but we toured BLT and OMG they are beautiful... I just fell in love with it... even though I don't really care for the themeing of the Contemporary....

Thanks for the help everyone!!!

 

[Mickey'sApprentice]

I'll try to answer your UY Question.

UY has some importance. It really makes sense to get a UY just prior to your usual travel times IF you have a time that you usually travel.

DH and I decided to travel to HH in November (last month) and we have a February UY. We had to cancel the trip at the last minute, and had to struggle to find a time to use the points. We are now taking a trip to HH over MLK Jr. weekend in January. IF we had a later UY, we would have had more wiggle room to use the points.

I personally like having a February UY because my UY and the calendar year closely coincides. For instance, the December 08 UY just started. Folks with a December UY will be "living" in 2008 for almost all of 2009. That would drive me nuts!!

 

[chalee94]

1. I notice that some people "preferr" one UY to another. What am I missing? What really is the difference. If we buy BLT right now our UY would be February.

depends on when you travel. if you like to travel in nov-dec-jan especially, a feb UY would add some risk if you decided to cancel. if you travel mostly in the summer, february is fine. if you never cancel a reservation, UY month will never really be an issue.

here's a thread with more detailed information on use year if you need it...

2. Since BLT and AKL are the only ones available through Disney would it be better to buy resale if we really enjoy VWL? Or because VWL expire sooner will we really be losing out on that much more?

all resorts are available directly through disney. older resorts may require waitlisting if they don't currently have any inventory (mostly an issue at BCV). resales for VWL will almost certainly be cheaper than buying direct.

if you want to stay mainly at VWL (and you can plan and book 9-11 months in advance), then you should buy there. if you're just happy to be on disney property and wouldn't be very disappointed to wind up at other DVC resorts (and you're young enough to use the extra years), then buy a newer resort.

3. If we purchase through Disney and pay off the financed portion early is there a penalty for that?

i'm almost certain that the answer is "no, there is no penalty" but hopefully someone else will confirm it.

4. If we wanted to use our points for a Room in NYC (for example) could we just do that or does it have to be put into RCI first? This confuses me a bit....

i haven't traded out under II and the RCI thing is brand new. i am confused also. sorry.

 

[kapeman]

I'll take a stab at this one.

1. I notice that some people "preferr" one UY to another. What am I missing? What really is the difference. If we buy BLT right now our UY would be February.

It really depends on when you think you will most likely be traveling. If you need to cancel, you want to have enough time left in your use year to be able to use the points. Points from canceled reservations go into a holding status and have to be used that year. (I'm pretty sure I've got this one)

2. Since BLT and AKL are the only ones available through Disney would it be better to buy resale if we really enjoy VWL? Or because VWL expire sooner will we really be loosing out on that much more?

You CAN get sold out resorts directly through DVC. Depending on the resort you may have to wait list. Resale is an excellent alternative for initial buy-in, provided you are getting more than 75 points or so.

3. If we purchase through Disney and pay off the financed portion early is there a penalty for that?

There is no pre-payment penalty when financing.


4. If we wanted to use our points for a Room in NYC (for example) could we just do that or does it have to be put into RCI first? This confuses me a bit....

I will have to defer to someone else about the RCI trades. I have only traded using the Buena Vista Trading Company option.


Whoa! You guys are fast!!!

 

[december14disney]

2. Since BLT and AKL are the only ones available through Disney would it be better to buy resale if we really enjoy VWL? Or because VWL expire sooner will we really be loosing out on that much more? I am 22 and my fiance is 28. We bought at AKL because we are so young we want those extra years. We also are obsessed with the resort and really would always prefer to stay there. Buy where you want to stay. Resale provides great deals but remember you pay closing costs, you dont get any incentives that Disney is providing and it may take a couple months to complete the process. I will state that the 160 "developer" points that Disney matched for us is really a great deal for my small family because we banked our regular points and will keep doing so year to year until we take a big vacation.

3. If we purchase through Disney and pay off the financed portion early is there a penalty for that? No. And it is simple interest so every extra payment goes to principal.

4. If we wanted to use our points for a Room in NYC (for example) could we just do that or does it have to be put into RCI first? This confuses me a bit.... No. You would use the Concierge Collection. Its as simple as calling member services and making a reservation. If you didnt want to use the Concierge Collection hotel..THEN you would have to try to trade through RCI for an NYC hotel.

 

[Mickey'sApprentice]

For question #2:
That is really a judgement call that you have to make for yourself. VWL expires in 2042 while BLT expires in 2060. However, BLT is $105/pt. while you can pick up a resale at VWL for approx. $80/pt.

Finance classes will tell you to value an asset way out in the future much less than an asset that you can use right now. However, you are the best judge of how much you personally will value having DVC in 2060.

Many would say that it is best to have a resort that you want until 2042 than one that you do not until 2060. I would agree until you find yourself without a resort in 2043.

Finally, most speculate that the 2042 resorts will eventually be extended.

#3 -- you are not penalized for paying off your contract early.

#4 -- I'm not sure.

 

[chalee94]

Points from canceled reservations go into a holding status and have to be used that year. (I'm pretty sure I've got this one)

just to clarify for the OP: the points have to be used within that "use year." so when Mickey'sApprentice canceled a nov reservation, their pts (which were moved to "holding status") still expired at jan 31 of the next year...which requires some scrambling to quickly rebook those pts and either use them or rent them on extremely short notice.

 

[LisaS]

Clarification on the Holding Account: Points only go into the holding account if you cancel 30 days to 1 day prior to check in. Points in holding must be used by the end of your Use Year and can only be used to book something 60 days prior to check in.

If you cancel 31 days or more prior to check in, the points do not go into holding. If you are still within your banking window (first 8 months of your Use Year) you can bank those points if you wanted to do so. If you are in the last 4 months of your UY, the points cannot be banked and will expire at the end of the UY.

If you cancel on or after your check-in day, all points are forfeited.