Why not buy points at the cheapest DVC...?

[Minniesgal]

I am wondering why wouldn't it make sense to just purchase points (resale) at Vero Beach or HH which are like 40-55 dollars per point instead of say 70-100 a point for other resorts. I mean if once you get the points you can stay anywhere you want then why not buy the cheapest price per point? What am i missing.
Even old key west is cheaper than AKL.
help....

In my opinion if that strategy worked DVC would not have been able to sell BLT.

if you want to go mostly to WDW, your home resort needs to be there!

 

[disneynutz]

I am wondering why wouldn't it make sense to just purchase points (resale) at Vero Beach or HH which are like 40-55 dollars per point instead of say 70-100 a point for other resorts. I mean if once you get the points you can stay anywhere you want then why not buy the cheapest price per point? What am i missing.
Even old key west is cheaper than AKL.
help....

If it made sense, VB would be sold out and have a huge waiting list because everyone would be buying there.

Thousands have purchased at their favorite resorts even with a shorter contract termination date to obtain the 11 month booking advantage there.

Bill

 

[bighoo93]

I totally agree. I am finding it very difficult to try to book a solid week everywhere except SSR (and sometimes even there...) after 7 months out. At least without waitlisting.

I find this extremely surprising. For several months, I was tracking availability for a full week rental at every resort and room type on a weekly basis at the 7 month mark. My work schedule changed and I stopped doing it, but in tracking weeks from mid-June through September, you could always get multiple room types for an entire week at ANY resort at the 7 month mark. Admittedly, this was within a day or so of the 7 month mark, so maybe you have to act relatively fast, but I was purposely NOT checking at the stroke of 8 am, giving a little time for a mad dash to subside.

I recognize that these are perhaps among the least difficult times to get reservations, but that is really my larger point: whether you need the 11-month window is ENTIRELY dependent on where you want to stay, what time of year, and what room type (as well as how long, but I'm assuming a full week). For example, in the 15 week period I checked, if you needed a 2 BR villa for a week, you could have reserved that at ANY WDW resort for ANY of those weeks, with one exception: 3 out of the 15 weeks at Beach Club (for 2 of those weeks, 6 nights were available).

On the other hand, there were certain specific room types/views that were never or very rarely available for a full week at 7 months out (e.g., 2BR club or value at Jambo, BLT standard for any room type).

So the bottom line is that it really depends on when you go, where you go, and what type of room. It is certainly not generally the case that you can't get a room anywhere but SSR 7 months out, but in a shorter timeframe, or at a particularly busy week, or a very popular room type, that could be the case. For my situation, we are relatively flexible in our travel schedule and don't have a preference for one resort (in fact we want to try many if not all WDW resorts). Buying the best value was what made sense for us, and at the time, we deemed that to be SSR resale.

 

[Minniesgal]

I find this extremely surprising. For several months, I was tracking availability for a full week rental at every resort and room type on a weekly basis at the 7 month mark. My work schedule changed and I stopped doing it, but in tracking weeks from mid-June through September, you could always get multiple room types for an entire week at ANY resort at the 7 month mark. Admittedly, this was within a day or so of the 7 month mark, so maybe you have to act relatively fast, but I was purposely NOT checking at the stroke of 8 am, giving a little time for a mad dash to subside.

I recognize that these are perhaps among the least difficult times to get reservations, but that is really my larger point: whether you need the 11-month window is ENTIRELY dependent on where you want to stay, what time of year, and what room type (as well as how long, but I'm assuming a full week). For example, in the 15 week period I checked, if you needed a 2 BR villa for a week, you could have reserved that at ANY WDW resort for ANY of those weeks, with one exception: 3 out of the 15 weeks at Beach Club (for 2 of those weeks, 6 nights were available).

On the other hand, there were certain specific room types/views that were never or very rarely available for a full week at 7 months out (e.g., 2BR club or value at Jambo, BLT standard for any room type).

So the bottom line is that it really depends on when you go, where you go, and what type of room. It is certainly not generally the case that you can't get a room anywhere but SSR 7 months out, but in a shorter timeframe, or at a particularly busy week, or a very popular room type, that could be the case. For my situation, we are relatively flexible in our travel schedule and don't have a preference for one resort (in fact we want to try many if not all WDW resorts). Buying the best value was what made sense for us, and at the time, we deemed that to be SSR resale.

That is true right at the 7 month window but I can tell you within a week of our 7 month window for late August the 2 bedrooms were fully booked even at Kidani

 

[Deb & Bill]

I find this extremely surprising. For several months, I was tracking availability for a full week rental at every resort and room type on a weekly basis at the 7 month mark. My work schedule changed and I stopped doing it, but in tracking weeks from mid-June through September, you could always get multiple room types for an entire week at ANY resort at the 7 month mark. Admittedly, this was within a day or so of the 7 month mark, so maybe you have to act relatively fast, but I was purposely NOT checking at the stroke of 8 am, giving a little time for a mad dash to subside.....

Of course you could get something mid-June to September. Those are easier times to get something at seven months out. Summer is a spread out time.

But check out F&W, or the first week of December or anytime from early October to after the marathon. When, for some reason, people think it is going to be wide open and no one going. Disney discovered people were going in October to miss the crowds in the late 90's. We went for the first time in 1997 and went to one of the two MNSSHPs. Just two of them. There was no F&W Festival then. They did have the Festival of the Masters at DTD and they did have the golf tournament. But that was all.

Now October is hopping with halloween parties, F&W, races.

I've already seen other posts in the non-DVC boards about people wanting to go when it's not so hot, like in October or November.

 

[bighoo93]

Of course you could get something mid-June to September. Those are easier times to get something at seven months out.

Exactly. Consider when you want to go, where you want to go, and what type of room you'll want. That pretty much will determine whether it is worth it to buy points at a more expensive resort.

 

[bighoo93]

That is true right at the 7 month window but I can tell you within a week of our 7 month window for late August the 2 bedrooms were fully booked even at Kidani

Not surprising. But anyway, if someone would otherwise be booking in the 11-month window, I would assume they are prepared at the 7 month window. So that's really the point here. Buying points at the cheapest resort, you could get any size room at any WDW resort for a complete week during the timeframe I looked at. If you are going to book after the 7 month window, then it really doesn't matter what resort your points are at anyway. Different timeframe, maybe different results (now I'm re-motivated to start up my data collection again tonight...). I forget the poster, maybe dsruba, who has more extensive data on this than I do, but everything he/she has said is consistent with my findings as well.

 

[sleepydog25]

I cannot see ANY rationale for financing a timeshare ever.

It's all relative. I have several friends who cannot think of any rationale for financing an auto. I've known couples who cannot believe people actually buy houses rather than renting them. Life is a wonderful amalgam of people, each of whom views love, work, religion, and, yes, finances in a totally different way.

 

[bighoo93]

It's all relative. I have several friends who cannot think of any rationale for financing an auto. I've known couples who cannot believe people actually buy houses rather than renting them. Life is a wonderful amalgam of people, each of whom views love, work, religion, and, yes, finances in a totally different way.

True, but... Transportation is a necessity. Ideally one would have the money up front without needing to borrow, but if not, you don't have much choice. It's not like leasing is usually a great alternative (though it can be). And while one can rent a house, home values appreciate and can be financed with high leverage at lower rates than any other money you can borrow, and rent increases with inflation while mortgage payments are static.

A timeshare purchase is a luxury, there are nearly countless alternatives to do essentially the same thing without buying, and the value of the asset is depreciating all the way to zero. I realize that there are people who think all differently about every issue or decision, but not all are equally supported. It makes no difference to me what people do with their money, but the case against borrowing to buy a timeshare is quite strong.

 

[sleepydog25]

True, but... Transportation is a necessity. Ideally one would have the money up front without needing to borrow, but if not, you don't have much choice. It's not like leasing is usually a great alternative (though it can be). And while one can rent a house, home values appreciate and can be financed with high leverage at lower rates than any other money you can borrow, and rent increases with inflation while mortgage payments are static.

A timeshare purchase is a luxury, there are nearly countless alternatives to do essentially the same thing without buying, and the value of the asset is depreciating all the way to zero. I realize that there are people who think all differently about every issue or decision, but not all are equally supported. It makes no difference to me what people do with their money, but the case against borrowing to buy a timeshare is quite strong.

I don't necessarily disagree with anything you said. My point merely was that some people are completely okay with financing. I suppose it's semantics. Certainly, it's tough to argue with paying cash for any purchase, especially a timeshare, but that is a far cry from saying there is no rationale that makes sense. Going back to the auto example, for most people outside of a major metropolitan area, they are a necessity. Yet, how many merely buy the cheapest, dependable auto there is that will serve as transportation? Conversely, how many purchase a model that has a variety of bells and whistles? Some might consider the latter an irrational buy, but it works for them even though it's likely not cost-effective. As you say, however, it makes no difference to me.

 

[tjkraz]

I cannot see ANY rationale for financing a timeshare ever.

I can...but it's a pretty narrow profile.

I'm sure there are individuals who have a track record of visiting a Disney destination annually, and sufficient means to pay cash for such a trip. But they may not be willing to dip into their savings to the tune of $10-15K to pay for DVC up front. Alternatively they could skip 4-5 years of trips to save up for the purchase, but then that's lost value in the DVC contract...and 4-5 years of no vacations.

Financing at DVC's rates is unwise.

Financing over a full 10 years is unwise.

But I think it would be defensible to finance for +/- 5 years on a low-interest home equity line. In the long run, that approach will still yield much greater savings than paying cash for trips over the next 30-40 years.

 

[bighoo93]

I can...but it's a pretty narrow profile.

That's a great way to put it.

 

[Sandisw]

I cannot see ANY rationale for financing a timeshare ever.

We almost did...we were going to Disney yearly and did not plan to stop. We had a $5000 to $7000 vacation budget yearly that was spent strictly for vacation. When we decided to buy, we made the decision that we would if our monthly payments, including interest, was no more than the room portion of our typical cash trips. We assumed a 30% discount off the cash rate. We knew that once the loan was paid, we'd be spending less for the room than we need, but even with the charges for those 10 years, DVC wasn't costing us more but we would be getting a bigger room--1 bedroom vs. a room at the CR.

Now, we ended up not having to finance and have since added on so in no way are we saving money, but we were comfortable handling our vacation dollars this way. Of course, DH and I also knew our jobs were stable and that if we had to sell anytime prior to 5 years, even for 50% of what we bought, we'd lose money on the deal but it was a risk we were willing to take.

I guess my point is that everyone is different in terms of how they choose to spend and/or save their money. That's the great thing about it though. We all have our own and if some choose to spend it on finance charges, Disney's cash rates, or whatever, as long as they feel confident that they have planned and know what they are getting into, then it really is a good choice for them.

And, yes, I know people don't agree with me....

 

[ToddyLu]

Lots of people buy lots of things they do not need and finance them..it doesn't mean they are stupid or have no insight...you just decided to spend your money a certain way...It is the tone of these comments that aggrevates me. No one has to give a rationale for their decisions. However, it is important for folks to know WHAT they are purchasing and how to make the best use of it. That to me is a larger error. Regardless of how you get your DVC contract, it is very improtant that you read the fine print and learn how to make the most of those vacation dollars and your investment.

 

[rusafee1183]

This is totally off point from the OP's orginal question, but I also feel the need to jump in here.

While it may be less responsibe of a choice to finance a timeshare, people are entitled to do whatever they choose. I mean, is spending money on a timeshare whether you are financing or not the most responsible thing EITHER WAY? Wouldn't the most responsible choice be to invest it/save it/ wait for something terrible to happen or retirement?

My biggest complaint on the Disboards IN GENERAL is that people always feel the need to put people in their place. It's a small comment here and there, but then the phrase "WELL, I DON'T CARE. IT'S THEIR MONEY" always comes next.

Well, if you don't care - why does everyone feel the need to point it out in the first place??

"Buying direct is stupid, you should only buy re-sale, you should never finance, you should always ... blah, blah, blah....BUT I DON'T CARE. IT'S YOUR MONEY"



Then keep your opinions to yourself. Unless someone specifically asks "Need opinions - is buying direct stupid, is buying re-sale the best way, is financing a bad idea" Then feel free to give your opinion on that matter.

I believe that the title of this thread was not "Is financing a good idea"

So, back to my original suggestion to the OP - people don't buy at the cheapest resort mainly because you may or may not be able to get into the resorts you would really like to stay at the 7 month mark. If you like the cheapest resort, wouldn't mind staying there if all else fails and if that is a risk you are willing to take - GO FOR IT!

 

[CarolMN]

.......(snip)........My biggest complaint on the Disboards IN GENERAL is that people always feel the need to put people in their place. It's a small comment here and there, but then the phrase "WELL, I DON'T CARE. IT'S THEIR MONEY" always comes next........

Respectfully, I think you are assuming motives where none may exist. It is difficult to read intent from the written word. I agree that some of us are not very good good at expressing our thoughts in a positive way. The "I DON"T CARE" comment is probably just an attempt to deflect flames from people who don't agree with them. (As a mod, I can tell you that there are posters who believe that any opposing view to theirs is a flame and those posts should be deleted).

In my experience, many who post about the negatives to financing a luxury purchase only want people to make an informed decision and to consider the potential consequences. Many timeshare purchases (including DVC) are impulse purchases and it is easy to rationalize such a purchase. (For example, no one NEEDS to go to Disney to spend quality time with family or to make special memories).

FWIW, many of those who sold their contracts in the last few years suffered an unexpected job loss or encountered other unplanned financial problems. They lost a lot of money. Those who financed lost the most. I'm quite sure that none of them ever though they'd be in that position when they bought. Worth considering, IMO. It could happen to any of us.

 

[lchute1158]

Back to the original message.... I still do not see a problem with buying a cheaper resort for the points if you plan and book after 7 months and you not looking for high travel time dates and your flexible with amount of days. It's all what you personally are looking for... And perhaps someone wants to have points but don't have the budget for a big one time expenditure.

 

[geraghty]

Respectfully, I think you are assuming motives where none may exist. It is difficult to read intent from the written word. I agree that some of us are not very good good at expressing our thoughts in a positive way. The "I DON"T CARE" comment is probably just an attempt to deflect flames from people who don't agree with them. (As a mod, I can tell you that there are posters who believe that any opposing view to theirs is a flame and those posts should be deleted).

In my experience, many who post about the negatives to financing a luxury purchase only want people to make an informed decision and to consider the potential consequences. Many timeshare purchases (including DVC) are impulse purchases and it is easy to rationalize such a purchase. (For example, no one NEEDS to go to Disney to spend quality time with family or to make special memories).

FWIW, many of those who sold their contracts in the last few years suffered an unexpected job loss or encountered other unplanned financial problems. They lost a lot of money. Those who financed lost the most. I'm quite sure that none of them ever though they'd be in that position when they bought. Worth considering, IMO. It could happen to any of us.

I agree, people want to be helpful. We all feel for those who came on hard times, especially those that there effected the most. Big companies prey on the uninformed and we all just want what's best for our neighbors or soon to be neighbors.

 

[tjkraz]

Back to the original message.... I still do not see a problem with buying a cheaper resort for the points if you plan and book after 7 months and you not looking for high travel time dates and your flexible with amount of days. It's all what you personally are looking for... And perhaps someone wants to have points but don't have the budget for a big one time expenditure.

It is important to consider all aspects of the purchase. The up-front cost is just one component. The annual dues and contract duration are also worth factoring into the decision.

As others have pointed out, Vero dues are currently $2 per point, PER YEAR, more than other resorts. A buyer who pays $20 per point less for Vero than SSR will make up that $20 difference in just 8-9 years. Then they'll have another 20 years of paying higher dues than they would have for SSR.

Assuming 3% annual increases in dues rates for the two resorts, the owner of 200 Vero points will pay $23,500 MORE in dues over the next 29 years than the owner of 200 SSR points. That's a pretty steep penalty for saving $4000 on the initial purchase.

Additionally the SSR contract runs 12 years longer than Vero. Depending upon the buyer's age, that may not be of paramount importance. But given the healthy resale market for DVC points, we can safely assume that come 2040-ish, a SSR contract with 14 years remaining will be worth a lot more than Vero points with only 2 years left.

Vero can still be a sensible buy, but only for fans of the resort. If you want the security of booking a beach cottage during spring break, owning Vero points is the way to go.

But it's a poor choice for exclusively booking other destinations at 7 months.

 

[rusafee1183]

Respectfully, I think you are assuming motives where none may exist. It is difficult to read intent from the written word. I agree that some of us are not very good good at expressing our thoughts in a positive way. The "I DON"T CARE" comment is probably just an attempt to deflect flames from people who don't agree with them. (As a mod, I can tell you that there are posters who believe that any opposing view to theirs is a flame and those posts should be deleted).

In my experience, many who post about the negatives to financing a luxury purchase only want people to make an informed decision and to consider the potential consequences. Many timeshare purchases (including DVC) are impulse purchases and it is easy to rationalize such a purchase. (For example, no one NEEDS to go to Disney to spend quality time with family or to make special memories).

FWIW, many of those who sold their contracts in the last few years suffered an unexpected job loss or encountered other unplanned financial problems. They lost a lot of money. Those who financed lost the most. I'm quite sure that none of them ever though they'd be in that position when they bought. Worth considering, IMO. It could happen to any of us.

I think I am one of the people who is just tired of the snide comments about the under educated "fools" who do things a different way than most people agree with. It doesn't come across as caring most times, it just comes off as snarky and condescending.

You're probably right though, and honestly - I felt bad being so defensive as soon as I hit "submit"

Either way, I hope that the OP found the answers they were searching for and can buy and love their DVC as much as most people here do