Why buy small contracts?

[rljslo]

Question: What is the strategy around buying small contracts?

I see that a number of people buy a variety of small (i.e. 50 point - 75 point) contracts.

I get it if you were to buy a bunch of small contracts at the same resort with the same use year - but - I'm not sure why people buy a (let's say) 275 point contract at BLT with a June use year - and then purchase a 50 point contract at AKV with a March use year.... and another 50 point contract at BCV with a August use year...etc, etc...

It seems like managing the points could get VERY confusing and - since we always travel with 5 or more and need a 2 bedroom most of the time - our "point per night" is generally high.

Is the small contract strategy mostly for folks that just need a studio - or am I missing something?

(can u tell I'm looking for an excuse to buy more points)?

 

[disneynutz]

2 reasons, they plan to bank and borrow to stay at the small contract resort every 3 years and/or they bought small contracts to fetch a higher price when they sell.

We just sold 6 - 50 point contracts at a high full price, stripped, longest list time was 3 days.

Bill

 

[ToddyLu]

Gets you a weekend at BCV for F&W so you can just walk to Epcot. Or maybe it gets you a weekend at WL to see the Christmas decorations the first of December. Also many people get them to just get their feet in the door to try DVC out before buying a large contract--some folks want what they can afford with cash. Perks for a small contract, you still get a discount with APs, ability to now get the TIW without an AP--stuff like that helps.

 

[chalee94]

It seems like managing the points could get VERY confusing and - since we always travel with 5 or more and need a 2 bedroom most of the time - our "point per night" is generally high.

right - in your case, it likely wouldn't work very well. as you seem to understand, you cannot combine pts from different resorts prior to 7 months out.

but if you are very organized and just want a studio at a specific resort every 2nd or 3rd year, then it can be useful for some owners to own small contracts at specific different resorts.

 

[zavandor]

they plan to bank and borrow to stay at the small contract resort every 3 years

This is the reason for me.
Since airfare is high and travel time is long for me, I plan to visit WDW or DL every 2 or 3 years, so a small contract made sense for me.
Moreover I found a deal right for me on a 65 points contract (50$pp at SSR, with almost all current year points) so I bought it.

 

[vicki_c]

How about - because they want to get into DVC but that's all they can afford? I see quite a few people mentioning buying small resale contracts to get their foot in the door.

 

[missycj96]

I did a 75 pt vwl add on. I wanted more points and this gave me some flexibility to use my ssr pts for longer summer trips but be able to do a dec trip to see christmas decorations. Also, small contracts make great add ons because they are not too much money (esp resale) and are easy to sell if you dont need so many pts later on.

 

[mouseaider]

We own a BWV 100 point contract and a SSR 55 point contract. Here are our reasons for doing this.

We only need studios for my DW and I.

We didn't want to finance.

We were planning a trip for a special anniversary to Hawaii and found out about DVC building Aulani.

We wanted to be sure we can visit every year.

When I found the BWV contract and it had 100 points banked we jumped on it. We used money that was saved for our Hawaii trip and added money we would have spent for our next WDW trip and had enough for the purchase.

After our first trip on points we loved it so much we decided to purchase the SSR contract (also had banked points) so we'd have enough for Aulani.

It all worked to perfection and we enjoyed our Aulani trip.

We don't cringe when the maintenance fees need to be paid and we will enjoy WDW for several years to come.

If and when we decide to sell the two small contracts should sell easily.

 

[luckyman_apd]

One thing I find with DVC is there is no one size fits all strategy. Each person has a different use and preference. The only real question you should have is would YOU need a small contract.

When I started looking, we were looking to travel every other year. Was looking at 100 point contracts. Ended up buying 125 pts. I know this is not the small contract you are referring to, but it gives us the guarantee of the type of trip we want every other year, with a little flexibility to go twice every 3 years if we want to. We always liked disney, but have really LOVED it once we had kids. And now that we've been to (after Nov this year that is) WDW 3 times in 2 years, and once to Disneyland in the same timespan, we are finding we are more into disney than we thought. We have a great time as a family we just don't get other places. So anyway, depending on the travel style,frequency and personal likes of the owner, I can see a small add on years down the road. Of course, I can also see us staying put with what we have.

You also have to remember many of these resorts opened at different times, and to get into the 11 month window you have to own there, so having 3 small 50 point contracts at 3 separate resorts instead of one 150pt contract allows you bank and borrow and have 150 pts at each resort by alternating each one. Very good idea if you have more than one resort you love and wnat to guarantee availability.

 

[lucky_bunni]

I think it's funny Disney swore a few years ago not to sell contracts smaller than 150-160 points... their argument being that it wouldn't satisfy most buyers needs. And now they are back to offering 100 point contracts at AKV.

I'm in the process to buy 100 AKV points via resale, and it's plenty for my needs. I can book a studio ever other year for two weeks if I manage it right!

 

[MrSanderz27]

You also have to remember many of these resorts opened at different times, and to get into the 11 month window you have to own there, so having 3 small 50 point contracts at 3 separate resorts instead of one 150pt contract allows you bank and borrow and have 150 pts at each resort by alternating each one. Very good idea if you have more than one resort you love and wnat to guarantee availability.

I'm still a little confused on how this works.

So if you own 3 contracts with 50 points each but want to book a 150 point room at the 11 month mark... Can you do that by combining/transferring all your points for that year to the contract you want to book at 11 months?

Basically each year just combine all your points into whichever contract has the resort you want to book at 11 months?

I feel like I'm misunderstanding or missing a restriction somewhere?

Thanks!

 

[luckyman_apd]

I'm still a little confused on how this works.

So if you own 3 contracts with 50 points each but want to book a 150 point room at the 11 month mark... Can you do that by combining/transferring all your points for that year to the contract you want to book at 11 months?

Basically each year just combine all your points into whichever contract has the resort you want to book at 11 months?

I feel like I'm misunderstanding or missing a restriction somewhere?

Thanks!

no,no, no. You are confused. Lets say I have 50 at BLT, SSR, and OKW. You can bank and borrow using up to 150 pts total at one time. So if I buy BLT in 2008, I can use 2008, 2009, and 2010 pts in the 2009 year. I won't be able to book at 11 months at BLT with 150 pts until 2012 using 2011, 2012, and 2013 pts. So then in the 2010 year at say SSR, I would use 2009,2010, 2011 SSR points, and I wouldn't be able do SSR again until 2013. Then in 2011 you book at OKW with 2010,2011,and 2012 pts. Do you see? Then in 2012, you repeat at BLT.

You are never able to combine different resort points and book at 11 months. but you can bank, and borrow pts at one resort to use up 3 years pts at one time.

 

[Missyrose]

I think it's funny Disney swore a few years ago not to sell contracts smaller than 150-160 points... their argument being that it wouldn't satisfy most buyers needs. And now they are back to offering 100 point contracts at AKV.

I'm in the process to buy 100 AKV points via resale, and it's plenty for my needs. I can book a studio ever other year for two weeks if I manage it right!

Actually Disney has relaxed their purchase minimums even more, there have been multiple reports that Disney said they would sell a new member a 50-point contract.

 

[taaren]

Lots of people, lots of reasons.

We bought 200 points thinking we could alternate between a studio and 2 bedroom every year. Then we had a little more cash and after using DVC a bit, thought if we had 60 more points we could do the 2 bedroom every year for one less night. So when we found a 75 point contract, we jumped, as it was for the purpose of upgrading in size.

If we find we have enough extra cash again for another contract it'll probably be for 75-100 points, so we can add another weekend in a studio or 1 bedroom once a year at a different season.

 

[MrSanderz27]

no,no, no. You are confused. Lets say I have 50 at BLT, SSR, and OKW. You can bank and borrow using up to 150 pts total at one time. So if I buy BLT in 2008, I can use 2008, 2009, and 2010 pts in the 2009 year. I won't be able to book at 11 months at BLT with 150 pts until 2012 using 2011, 2012, and 2013 pts. So then in the 2010 year at say SSR, I would use 2009,2010, 2011 SSR points, and I wouldn't be able do SSR again until 2013. Then in 2011 you book at OKW with 2010,2011,and 2012 pts. Do you see? Then in 2012, you repeat at BLT.

You are never able to combine different resort points and book at 11 months. but you can bank, and borrow pts at one resort to use up 3 years pts at one time.

Ah!! This makes perfect sense now. It's more of a rotational thing then with your home resorts.

Thank you for the detailed clarification!!

 

[Hunnypaw]

We own a BWV 100 point contract and a SSR 55 point contract. Here are our reasons for doing this.

We only need studios for my DW and I.

We didn't want to finance.

We were planning a trip for a special anniversary to Hawaii and found out about DVC building Aulani.

We wanted to be sure we can visit every year.

When I found the BWV contract and it had 100 points banked we jumped on it. We used money that was saved for our Hawaii trip and added money we would have spent for our next WDW trip and had enough for the purchase.

After our first trip on points we loved it so much we decided to purchase the SSR contract (also had banked points) so we'd have enough for Aulani.

It all worked to perfection and we enjoyed our Aulani trip.

We don't cringe when the maintenance fees need to be paid and we will enjoy WDW for several years to come.

If and when we decide to sell the two small contracts should sell easily.

Also, once a UY, we transfer in points from other Disney resorts, as needed ... works well!

 

[MrSanderz27]

no,no, no. You are confused. Lets say I have 50 at BLT, SSR, and OKW. You can bank and borrow using up to 150 pts total at one time. So if I buy BLT in 2008, I can use 2008, 2009, and 2010 pts in the 2009 year. I won't be able to book at 11 months at BLT with 150 pts until 2012 using 2011, 2012, and 2013 pts. So then in the 2010 year at say SSR, I would use 2009,2010, 2011 SSR points, and I wouldn't be able do SSR again until 2013. Then in 2011 you book at OKW with 2010,2011,and 2012 pts. Do you see? Then in 2012, you repeat at BLT.

You are never able to combine different resort points and book at 11 months. but you can bank, and borrow pts at one resort to use up 3 years pts at one time.

I have another question about this though... So if you own the 3 50 point contracts... The most points you'll ever have at any one time is 150? You could never book a room that was 160 or 200 points because points can't cross over contracts?

 

[dvcterry]

I have another question about this though... So if you own the 3 50 point contracts... The most points you'll ever have at any one time is 150? You could never book a room that was 160 or 200 points because points can't cross over contracts?

if you have the 50 point contract you can bank & borrow for that contract so 150 points there. same with the other contract 50 points you can bank & borrow= another 150 points. now you may have a year where you only bank 8 points or 20 points from a contract. but under your membership, these contracts will be combined. so you will see a total of x number of points for the entire year & then you also see per contract. with a little planning, small contracts can work.

 

[Missyrose]

I have another question about this though... So if you own the 3 50 point contracts... The most points you'll ever have at any one time is 150? You could never book a room that was 160 or 200 points because points can't cross over contracts?

You can combine points at 7 months out, so unless you're booking a really hard to get view/time of year, you should be able to add nights using your other points.

Edited to add: Having multiple small contracts at different resorts works much better for people who plan to travel to Disney every year. Otherwise, by banking/borrowing on multiple contracts, you stand a much greater chance of losing points.

 

[MrSanderz27]

You can combine points at 7 months out, so unless you're booking a really hard to get view/time of year, you should be able to add nights using your other points.

Edited to add: Having multiple small contracts at different resorts works much better for people who plan to travel to Disney every year. Otherwise, by banking/borrowing on multiple contracts, you stand a much greater chance of losing points.

I see... So points can be combined across contracts for booking 7 months out but not at the 11 month date.

This may be another silly question, but do you have to have the points available to make a reservation or do you just need to have enough points when the reservation comes around.

Example: if I have 50 points available now and want to book a room in 7 months that requires 100 points and I know I'll be getting 100 more points next month... Would I have to wait to book next month once I have the required points or would I be able to book now since I'll have the required points when the trip actually comes around? I guess another way to look at it would be, when do you need to "pay" (with points)... When you book or when you visit? I'm thinking it's when you book but want to clarify.

Thanks again for everyone's help and for taking time to help educate me on DVC!