Why are small point contracts in demand?

[Ruttangel]

What fraud? If I disclose the value of park tickets as a discount to the buyer, DVD would have equal opportunity to take the same deal. The potential benefit to the buyer would be a better price without worrying about ROFR (unless DVD takes the deal with park tickets). Just because people get creative doesn't automatically mean it has to be illegal.

LAX

I never thought of getting this creative, so I could buy swap my meal voucher at 21 Royal for a 75 pt VGC contract?

 

[Yinn]

I remember hearing a story about someone including a boat in the sale. They had to provide an appraisal of the value and it got taken in ROFR based on the cash equivalent. You said you could "get creative with discounts" which sure smells like you're trying to hide the value of consideration in the contract.

I wonder what Disney did with the boat?

 

[4luv2cdisney]

I wonder what Disney did with the boat?

Disney didn't get the boat.
The DVC seller got appraisal value of the boat (cash).
The potential buyer kept his boat and got no DVC points.

 

[bakerworld]

I agree most 25 point contracts are to add to what is already owned. We have two small contracts 55 and 30. The 55 was to acquire the Home advantage 11 month reservation window and the 30 contract was to be able to stay every year.

 

[CarolMN]

I remember hearing a story about someone including a boat in the sale. They had to provide an appraisal of the value and it got taken in ROFR based on the cash equivalent. You said you could "get creative with discounts" which sure smells like you're trying to hide the value of consideration in the contract.

This is exactly what happens if something other than cash is included as consideration in a contract subject to ROFR..

 

[Amyeliza]

I'm in ROFR for a 60 point contract at PVB. I want a studio 3 - 4 days a year and not to have to pay more than $500 a year for dues. An $11,000 contract was something I could afford and worked well for me. Not everyone who goes to Disney stays for a week, so smaller contracts fit the needs of those who are on a budget and want to pay in cash.

 

[808blessing]

I think of it as diversifying my vacation portfolio. I have options. A small portion of my budget goes toward dues and still freedom to consider other destinations and flow for deals. My small point contracts are the consistent vegetables (I love veggies) that I can count on to put on my plate for decades to come. If I buy the all you can eat portion, I won’t be able to try anything else outside this restaurant.

 

[emchen]

Also if you aren’t a dvc member at all a small contract gets you in. You can now buy transfer points from other members - giving you more flexibility than renting but still low dvc pricing.

One Example:
Person bought first contract at SSR or AKV 100pts. They end up always borrowing 35-50pts for a few years in a row, so now there’s no points in their upcoming Use Year. They also love BW or BC but can never get dates or room they want. The solution is to pick up a 50pt.
Now they can take a 150pt trip 2 years out of 3, and on the off year they use the 50pt tripled up to 150 from banking and borrowing.
Id probably go this route myself at first. Start with just enough to get by, then add a small contract for more points and home resort advantages.

@bk1273 same idea!

 

[bk1273]

@bk1273 same idea!

Thanks

 

[Cfabar1]

We started with two small contracts, then bulked up... We may bulk up some more, but to others points, we feel like there is a maximum number of dollars we want to tie up into WDW/DVC...

 

[Judique]

We started with two small contracts, then bulked up... We may bulk up some more, but to others points, we feel like there is a maximum number of dollars we want to tie up into WDW/DVC...

Finished bulking up here. Had that epiphany a long time ago.

Sometimes I get tempted by a few small contracts but the feeling goes away quickly when I look in the mirror. Probably why I jumped on MMB and the opportunity to buy a few cheap OTU points.