Use Year and buying resale?

[my3kids]

Please explain "use year." I can't imagine how this impacts the DVC or what even it is exactly. Is your use year the date you buy into the plan?

Also, is there any reason to NOT buy on the resale market? Are you treated the same? Same benefits? I understand all the contracts except SSR expire in 2042 instead of 2054. SSR would probably not be the first choice if we had a pick, or does home resort really matter? If we want to jump around to WDW every few years, a lot of HH visits and other visits around the country, is there a reason we should pay more to buy "new" points?

 

[CarolMN]

Originally posted by my3kids
Please explain "use year." I can't imagine how this impacts the DVC or what even it is exactly. Is your use year the date you buy into the plan?...(snip)......

Use year is just the month that you receive your annual allotment of points. It also determines your banking deadlines. This last is why some say the right use year is important.

For example, let's say you have an August use year and buy 200 points. Every August 1, DVC deposits 200 points into your account.

Your 2004 points are good for vacations between 8/1/2004 and 7/31/2005.

Your 2005 points are good for vacations between 8/1/2005 and 7/31/2006.

Your 2006 points are good for vacations between 8/1/2006 and 7/31/2007.

Etc.

You can bank points into the next use year. You can borrow points from the following use year. Banking and borrowing are final transactions - they cannot be "undone". With banking and borrowing, you can use up to 3 times your annual allotment of points for a vacation. (Of course if you do that, it means you may not be able to take a vacation every year, LOL).

You are allowed to bank up to 100% of your current use year points if you do it before the end of the 6th month following the beginning of your use year. If you have an August use year, that would be by the following January 31.

You can bank up to 50% if you do it by the end of the 9th month and up to 25% by the end of the 10th month. No banking is allowed in months 11 and 12.

Banking amounts are cumulative. For example, if you have an August use year and bank 125 of your 200 points on January 31, you could not bank any more points beginning February 1. That's because you already have more than 50% of your total banked.

If you hadn't banked at all up to February 1st, you could bank up to 100 points (50% of your allotment). If you had banked 50 points on January 31, you could bank up to 50 more if you did it before the end of April (9th month) because the 50 in the bank plus the 50 additonal = 100 which is 50% of your total.

So why is all that important?

Again, assuming an August use year, let's say you book a 200 point vacation for June of 2005. That falls within your 2004 use year, so you use 2004 points.

Let's say you have to cancel it and do so in April. 2004 points expire on July 31, 2005 so you either have to reschedule your trip before then, bank the points, or lose them. (Some people would try to sell a vacation to someone else in that situation, but the vacation would stlll have to take palae prior to July 31. Availability can be limited the closer you get to the dates).

In April, you could bank up to 50% of your total which in the example, is 100 points. Those 100 points now do not expire until July 31, 2006. However, if you don't find a way to use the other 100 points by July 31, 2005 you will lose them.

Had that same vacation been scheduled for December, 2004, you would not have a problem if you could not reschedule your trip before July 31, 2005. You are still within your 100% banking window so you could "extend the life" ( bank) of all 200 points until July 31, 2006).

That's why if you regularly travel at the same time of the year, it is best to have a use year that starts no more than 5 or 6 months ahead of that time.

If you seldom anticipate cancelling a vacation that starts late in your use year, use year is not an important consideration. Also, most people's vacation habits change over the course of the years. What may be "perfect" for you now, may not be so perfect later.

IMHO, home resort is a more important consideration tha use year.



Best wishes -

 

[tjkraz]

Originally posted by my3kids
If we want to jump around to WDW every few years, a lot of HH visits and other visits around the country, is there a reason we should pay more to buy "new" points?

Buy your points at HHI. The 11-month booking priority for "a lot of HH visits" is more important than any other factor. You'll always be able to get a room SOMEWHERE at WDW when you decide to make a trip to Florida.

 

[Johnnie Fedora]

If you plan on staying at HH in the summer, I'd buy points there. You will need the 11 window. If you have a favorite WDW resort, you may consider buying 2 smaller contracts to give yourself an offsite and onsite 11 month window. Resale purchases do not have to be a 150 pt. min. Be sure you understand the points and use years real well before your final decision is made.

If you have never stayed a HH you may want to take advantage of some great cash rate being offered there now to try it out. Disney Visa has a $99 2-BR special.

You will not be treated any differently buying resale as you would be buying from Disney.

Good Luck...Johnnie

 

[my3kids]

So if I bought up 2 contracts and they had differnt months for the use year, I really couldn't necessarily lump them all into a single vacation via banked and borrowed points?

The month of the contract is set out upon initial purchase and can not be altered?

If one wants to do some huge vacation, the only option would be to do it in the middle year? The points from the first year could not be saved until the third year?

Do you have to borrow the whole year's allotment, or can a member borrow just a small amount and do a sort of nice vacation one year and a small trip the next?

For people that like Disney, but like everywhere else in America and beyond also, did you ultimatley buy DVC over others? Did you look at others? Should others be avoided at all costs?

 

[tjkraz]

Originally posted by my3kids
So if I bought up 2 contracts and they had differnt months for the use year, I really couldn't necessarily lump them all into a single vacation via banked and borrowed points?

Having multiple Use Years definitely complicates things. With some planning, yes you could use banked, current and borrowed points from two separate contracts. Variations in the exact process will depend on all of the relevant dates involved. I'm not even going to try to concoct an example.

The month of the contract is set out upon initial purchase and can not be altered?

Yes. The Use Year is assigned at the point that the contract is created and cannot be altered.

If one wants to do some huge vacation, the only option would be to do it in the middle year?

If you're talking about using three years' worth of points for one trip from two separate contracts, it depends on the specifics. If you have a February UY and a March UY, it would be very simple to use three years' worth of points from both contracts for a June stay.

The points from the first year could not be saved until the third year?

Points can be banked ONE year into the future. If not used, they are forfeit.

Do you have to borrow the whole year's allotment, or can a member borrow just a small amount and do a sort of nice vacation one year and a small trip the next?

You can bank or borrow any number of points that you wish.

For people that like Disney, but like everywhere else in America and beyond also, did you ultimatley buy DVC over others? Did you look at others? Should others be avoided at all costs?

Some timeshares are good. Some are bad. If you're considering a purchase...any purchase...you would do well to invest a lot of time in research. Start at the Timeshare Users Group: www.tug2.com

We bought DVC primarily because we want a location on WDW property. The Disney name also carries a certain level of quality assurance, so I don't think there's anything wrong with buying points at Hilton Head or Vero Beach even though there are many non-Disney alternatives available.

That said, DVC has some of the highest maintenance fees in the industry. You can certainly find a cheaper, high quality point-based timeshare which may be of equal appeal to your family.

But also realize that trading into a DVC resort from another timeshare can be very difficult. Trades do come available, but you won't be able to choose your travel dates, resort and room size as freely as DVC members do. It requires a lot more flexibility, which may or may not apply to your situation. The best odds would be at off-peak months like January or September, and you're most likely to find rooms at Old Key West available via II trade.

 

[my3kids]

I think if we do anything, it would be Disney. The idea of THIS attracted us, not the idea of a timeshare/vacation club. But honestly, we won't want to go to WDW every year. I know we'd go more, maybe enjoy the resort without the parks, etc. but still, we wouldn't want to not see the rest of the world. I know DL Paris is an option. Does anyone have good or bad experiences to relate with using the points elsewhere in the world?

 

[CarolMN]

Originally posted by my3kids
I think if we do anything, it would be Disney. The idea of THIS attracted us, not the idea of a timeshare/vacation club. But honestly, we won't want to go to WDW every year. I know we'd go more, maybe enjoy the resort without the parks, etc. but still, we wouldn't want to not see the rest of the world. I know DL Paris is an option. Does anyone have good or bad experiences to relate with using the points elsewhere in the world?

The best economic use/value of DVC is using your points to stay at a DVC resort. There are less expensive options if you primarily plan to "trade out".

If you only want to go to Disney (or HH or VB) every other year or every third year, buy only enough points to do that. You can bank and/or borrow to accomplish your goal - many here do. For example, if you want to vacation every other year and anticipate the point cost to be 300 points per vacation, buy 150 points. Bank year 1 and in year 2 you have 300 points to use for your vacation. Or you could borrow year 2 and vacation in year 1. Either way, you'll be going every other year.


Good luck with your decision.

Best wishes -

 

[FayeW]

I'm intrigued! I saw a resale I can afford, but I am wondering about maintenance fees. Does it depend on your home resort, or is it the same amount for any DVC property? Where can I find the information on exactly how much owning DVC will cost yearly?

 

[tjkraz]

Check this thread for dues information:

<a href=http://www.disboards.com/showthread.php?s=&threadid=413768>DVC Dues History</a>

Dues are expressed in an annual dollar figure payable per point of ownership. Payments are due each year by 1/31, or you can schedule a monthly debit equal to 1/12th of the total dues owed.

By contract, dues increases are capped at 15% per year, but have never approached that level. DVC does have the right to charge members a special assessment if necessary to replenish certain reserve funds. It has been speculated that this could happen to Vero Beach owners this year due to the hurricane damage, but that's complete speculation at this point.

Also note that a portion of the dues paid (less than $1 per point) represents property taxes which, in most cases, can be deducted on your 1040 form.