When do you borrow vs pay cash?

[alisonslp]

We finally arrived at our first welcome home trip this past sunday and are having a blast! We are in a 1bd at SSR (DP) and we love it. Here's our problem.

We already have a trip planned for november which will be paid for through regular points (twins b-day). We also have a trip planned the week of July 4th (I know it's crazy but ds has a bb tournament at Disney) using DP and reg pts. We had booked a studio because we will be there for 2wks and didn't have the points for a 1bdrm. But after being here, we now realize we really need a 1bdrm so that ds can have a separate place to rest during the day before a game.

So, I know the 25% discount won't be available because it is prime season. We have AP and AAA, but those probably won't be available either. So basically it's paying cash or borrowing points.

We should have plenty of points for next year because we bought pts basing our plans on going 1 high season week or 2 5-day low seasons. And since we are staying 3 times this year, we likely will not want to go more than once next year - and may even wait until our new UY in Dec for the Christmas magic. So it won't be a huge deal to borrow points.

But in general, is there a "rule of thumb" for borrowing vs. cash for you? I know everyone is different, that's why I'd like to hear some personal experiences. I guess I'm just thinking in the future. Is there anything wrong with always borrowing into the next UY. In the end, it just means that last year in 2057 will not have as many points, right? And that's so far away, who knows what will happen at that point. Am I missing an important item here?

 

[dianeschlicht]

My rule is that I don't pay cash when I already did that back when I purchased. We borrow when we need to and bank when we can.

 

[BEASLYBOO]

You can only borrow from the next use year. Example: For our last family reunion I borrowed almost all of my 2009 points and combined them with my 2008 points and booked an OKW grand villa for the 11 of us. So now I have very little 2009 points, but I wanted to go again in June. I went on the rent/trade boards and purchased from another DVC member through Paypal 66 points for transfer not rent at $10 a point (I've always paid this rate). I paid her through Paypal, gave her my member number and she transferred in the 66 points to my account so that I could make reservations for June.

My use year is Aug, so I cannot borrow my 2010 points til Aug 1st of 09. If you log onto DVCmember.com, if you are registered, you can look at your point allotment. It will also show you banked, borrowed etc for several use years and all of your reservations and completed vacations. It's a great tool.

For cruises I believe that you can borrow up to 2 years ahead, there is a 24 month booking window, but I'm not sure.

So to answer your question, in 2057 you could have no points if you borrowed them all in 2056. I hope I've helped, It's a lot to take in at the beginning.

 

[*KeepMovingForward*]

Your not missing anything. It really just comes down to personal preference. I don't like to borrow the next years points, so we will take a point transfer from someone else or pay cash if we come up short for the current year. If we borrowed, that might give my DH an excuse to say that we needed a year off and I just can't allow that to happen.

 

[dallastxcpa]

I didn't know there was any other status besides being in point deficit I think there has only been one year were we were actually point positive and only one time I had 5 points to bank.

We have two kids getting married this year and we love taking big family vacations so I know that we will have to eventually add on, but now is just not the right time for us.

We are older and there is no telling if we will even be able to enjoy our points at the end of our contract I am more than happy to borrow every year and use those points all up.

 

[robinb]

My rule is that I don't pay cash when I already did that back when I purchased. We borrow when we need to and bank when we can.

That's my rule too. I have only paid cash twice: once when there were no villas available over NYE but there was one available through CRO and another time when my mom paid for the weekend in a 2Br at VB instead of me paying with points.

IF you were to still pay with cash then I would consider paying for the weekends and saving your points for the weekdays. You have two full weeks in a studio booked and that's the same as 10 weekdays in a 1BR. I would pay for the middle weekend.

 

[bookwormde]

do not forget the option of transfering in some points.

bookwormde

 

[DisDaydreamer]

Only twice for us... both last minute add-ons to existing ressies.

 

[robinb]

do not forget the option of transfering in some points.

bookwormde

The OP should make sure to compare the price of a point transfer to that of paying cash for her room, though. For instance, a 1BR Kidani Savanna View 1BR takes 59 points per weekend night for the summer. It would cost $708 (@ $12 per point) to transfer those 59 points. The same 1 BR costs $667 rack rate (with tax) or $500 (with tax) with a member cash discount. If the OP is going to pay, it makes more sense to pay for the room directly through member services and not buy the points.

 

[BEASLYBOO]

The OP should make sure to compare the price of a point transfer to that of paying cash for her room, though. For instance, a 1BR Kidani Savanna View 1BR takes 59 points per weekend night for the summer. It would cost $708 (@ $12 per point) to transfer those 59 points. The same 1 BR costs $667 rack rate (with tax) or $500 (with tax) with a member cash discount. If the OP is going to pay, it makes more sense to pay for the room directly through member services and not buy the points.

I agree but sometimes you need the transfer of points to combine with your existing points to complete a reservation, which is what I do. By the same token I've purchased transfer points several times over the last 9 years and I've paid $9-$10 p/ point, never more.

 

[Sandisw]

My vote would be to borrow the points that you need, especially given the fact that it sounds like you don't believe you will be "short" next year.

If, next year, you realize that you are short, you can always pay the cash then.

Good luck!!!

 

[lovewdwdvc]

We always borrow to the max. We think that we are actually borrowing the points for the last year of the contract as we can continue to borrow til then. By then we will be dead and the kids will have to worry about it. They are getting enough vacations now to make up for that one year's points.

 

[LIFERBABE]

We always borrow to the max. We think that we are actually borrowing the points for the last year of the contract as we can continue to borrow til then. By then we will be dead and the kids will have to worry about it. They are getting enough vacations now to make up for that one year's points.

Agreed!! I'll bank points when Im dead.

The way I look at it is I am paying to get there, I am taking vacation time from work, I am leaving all that needs to be done at home, etc. so I am going for the gold every trip like it was my last.

Imagine how you would feel if you spent all that extra money or stayed in smaller accomodations to conserve points and it was not the best way to handle it in the end?

It's a vacation not a retirement plan. We are frugal in many aspects of our lives, DVC points are my indulgence. If points allow me to kick it up a notch, i do! One day the kids will be grown and Dh and I will fit fine in a studio.

 

[starbox]

I don't want to borrow a good chunk of any year's points - unless it was for a BIG event like a huge anniversary, family reunion. In fact, one of the reasons I don't want to borrow is because I do have a big anniversary coming up in about 3 years, and I think once I start to go into a point deficit, it will be hard to get out. I want the flexibility of knowing I can bank and borrow to get triple points if/when I want to take a huge trip.

We have borrowed points, but never more than 25.

Be careful with the deveoper's points - we found that after one year of using the DP to vacation to our heart's delight, we could not bear the idea of going just once the following year and added on. (We learned our lesson and rented out the Deveoper's Points on our add-on to help offset the cost and keep us from playing with all those extra points!)

You may *think* you'll only want one trip during the next UY - but chances are you'll have a great time and end up pricing out APs vs. MYW tickets - then you'll have APs and MNSSHP or MVMCP, or F&W, or Spring Break, or a great airfare, or some other thing will lure you back..........

 

[alisonslp]

Thanks everyone - you have given me good things to think about. I will check out the comparison of cash vs. transfer of points too.

The poster that talked about the DP - I never thought of that. I figured after 3x this year in Disney, we won't want to see it again for awhile! LOL But I may be proven wrong! And we live in NC, so Hilton Head is very close to us too. I know DH is looking forward to trying that out.

Alison

 

[Deb & Bill]

My rule is that I don't pay cash when I already did that back when I purchased. We borrow when we need to and bank when we can.

Ditto.

 

[Bribrittmom]

Is there anything else besides borrowing? Let my kids worry about the point deficit at the end of our contract!

 

[DebbieB]

I have paid cash for a weekend night 2 or 3 times so that I could stretch points. I wasn't in a position to add-on. In those cases, I had a 1 bedroom at OKW, it would have been 48 points for a weekend night. That's almost 20% of my 250 annual points. Back then I could get it with the member discount for around $325 incl tax. That came to under $7 a point, which I thought was close to breaking even with the cost of adding on points (divided by the term) plus annual dues.

 

[mikeandkarla]

I don't want to borrow a good chunk of any year's points - unless it was for a BIG event like a huge anniversary, family reunion. In fact, one of the reasons I don't want to borrow is because I do have a big anniversary coming up in about 3 years, and I think once I start to go into a point deficit, it will be hard to get out. I want the flexibility of knowing I can bank and borrow to get triple points if/when I want to take a huge trip.

We have borrowed points, but never more than 25.

Be careful with the deveoper's points - we found that after one year of using the DP to vacation to our heart's delight, we could not bear the idea of going just once the following year and added on. (We learned our lesson and rented out the Deveoper's Points on our add-on to help offset the cost and keep us from playing with all those extra points!)

You may *think* you'll only want one trip during the next UY - but chances are you'll have a great time and end up pricing out APs vs. MYW tickets - then you'll have APs and MNSSHP or MVMCP, or F&W, or Spring Break, or a great airfare, or some other thing will lure you back..........

Amen!

 

[Nikisha421]

My rule is that I don't pay cash when I already did that back when I purchased. We borrow when we need to and bank when we can.

i have an all around issue with paying cash...since i have already done it...and after the e1st time asking for the cash price...i borrowed and never looked back...good luck