Your perspective on best time to buy?

[my3kidsmom]

Dh and I have made the decision to buy DVC points at SSR. But, I would appreciate any thoughts/advice you may be able to give me on my "plan". We just returned from our 2nd Disney World vacation 2 wks ago. We did not go on a DVC tour and haven't spoken with a guide. We only seriously became interested upon returning home and having 2 people tell us the wonderful joys of ownership in DVC. Since that time I have spent many hours reading up on DVC membership at this board and I'm so grateful to have such a wonderful resource at my fingertips!

So, armed with the knowledge I have received, here is my plan. Please tell me if it makes sense.

Our next trip to WDW will not be until Feb 08, so we are not in a huge rush to buy right this minute. We will always need at least a 2 bdrm villa (currently have 3 kids with one due in Sept). So, I'm looking at needing approx 220 points for each of our stays (we only plan to stay about 6 nights once a year). However, we are not ready to jump right in with that many points. So, my plan was to only purchase a 150 pt contract and bank our first year so that when we go on our 08 trip we'll have 300 pts available. We would then be able to bank the leftover points into the next year.

Assuming my logic is right, when is the latest we should purchase our contract? We were thinking about doing it January 07 when we'd have a lot more cash to pay out and would only have to finance about half of it. If we purchased in 07, we'd have 150 pts immediately available to bank into the next year right? Then we'd get another 150 pts at the beginning of January 08, right? Giving us a total of 300 pts to use when booking our Feb 08 trip. We'd have 80 pts left to bank, giving us 230 points for our Feb 09 trip. With banking and borrowing, we would not have a *need* to add points until our Feb 2011 trip. Of course, from what I have read we'll probably have the *desire* to add almost immediately. I doubt we'll take more than one trip a year until the kids are a little older, though. Actually 2011 would be a perfect time to start considering more frequent trips because the oldest would be 11 and the youngest would be 5.

One last qeustion, does Disney offer incentives almost continuously? I know they change frequently, but is there almost always SOME kind of incentive?

Thank you so much!!!! I hope I didn't sound too confusing!!

Bridget

 

[JimMIA]

I think your logic is pretty sound, except I'm not sure you understand use year. You're referring to buying in January 2007 and seem to be assuming your points would "start" in January 2007, but that's not the way it works.

Use Year
Each contract has a use year, and the use year can't be changed. If you are buying direct from Disney, they usually will be able to offer you a choice of several use years, and you can pick the one which works best for your particular situation. If you buy resale, the use year on the contract is what it is.

Use year is simply the 12 month period during which your points are available. For example, my use year is October, which means my points are available from Oct 1 to the following Sept 30. So, even though we are well into 2006 on the calendar, I'm still in 2005 as far as DVC is concerned.

Depending on when you buy, you might get some "free" points. For example, if you bought in late 2006, you might be able to get 2006 points for little or nothing with the proviso that you could immediately bank them. Then, at the beginning of your 2007 use year, you would really have 450 points available for ressies during your 2007 use year: the 150 banked '06 points, your normal '07 allocation, and your '08 points which you could borrow into 2007 if you chose.

Also, you don't have to actually reach the beginning of your use year to be able to use the points. The points just have to be available for the dates of your trip; it has nothing to do with the date you are making your ressie.

In your example above, you would be able to use 2008 points for a Feb '08 trip up to eleven months in advance...or March 2007. Use year has to do with when points are available for use, so if you're making a 2/08 ressie, they know that you are going to have an additional 150 points available from your 2008 allocation. By that time, you would also have your '09 allocation available for borrowing, if need be.

However, if you'd banked those hypothetical 2006 points into 2007, they would NOT be available for a 2008 UY ressie because they would expire at the end of your 2007 use year.

Incentives
Yes, there is almost always some incentive, and some are much better than others. However, I think it's important to evaluate these decisions on the long-term implications, rather than a short term "deal." For example, a $3 reduction in the point cost is only $450 -- which is a tiny amount in the context of your overall cost of ownership over 30-40 years.

I'd buy when you are ready, not when someone is offering some nominal incentive. However, if you get to the point where you are almost ready to buy and they offer a very good deal, that might be the time to take advantage. For example, they were recently offering a 15% reduction in price on the "Friends & Family" promotion. That kind of incentive -- or buying just before a significant price increase (which you will always hear about ahead of time here) -- might be well worth jumping on.

 

[pickles]

I think, I understand the OP question, as I have a similar one. I know folks here seem to downplay any "perks" because it is never a sure thing or a reason to buy. However, when you are ready to buy who doesn't want to get the best deal? If you are buying direct from Disney, and you have time to make the choice of when to buy, why not buy when you can get the most for your money? Free passes I will take them, or extra points or cheaper price..why not?

So, the question is what are typically the 'deals" DVC offers when buy at SSR? What time periods are typical?
Like when i called last week they had the $93 a point(from $101) and they offered last years points so, you got an extra 150 points to use this year.

Does anyone see trends of offers? may help those of us considering buying .


I put in for a resale and hope I get it, and am already considering some add on points direct. I like their AP offer..it isn't much but it is something.

 

[SuzanneSLO]

I second what JimMIA said about scheduling your purchase to get a free years points if that is possible. When you buy from Disney, you pay pro-rated maintenance fees based on when you buy, but your points are never pro-rated. So if you buy in the month your UY ends, you get a full years worth of points, but only paid one month of maintenance fees for them. This may be more valuable than trying to time a purchase for the best incentive (which may be impossible in any event since they are not announced in advance).

Also, the OP didn't say where she wanted to stay on her next trip. If she is buying at SSR, but wants to stay at another resort, she should make sure she has put a deposit down and can book as soon as the 7 month window opens.

Finally, if you are borrowing any part of the payment, it is always better to delay the purchase as long as possible and start putting the payment you are not making to Disney into a savings account. More savings means less interest expense in the long run.

Best of luck -- Suzanne

 

[my3kidsmom]

WOW! I really appreciate the responses I have received. Very, very helpful!

So, let me make sure I understand. Assuming I'm completely flexible as to which resort we stay at for our Feb 08 trip, then this would be an example of my game plan: Buy March 07, try to get a UY of April so that I will get 150 pts from 06 PLUS my 150 '07 points and only pay 1 month of yearly dues for 06. That would give us the 220 points we need for the 08 trip leaving approx. 80 points to bank into the next year. We would be able to book our Feb 08 trip soon after we sign the papers, right?

Also, I think I read somewhere on here that the price per point was just recently raised to $101. So, would it be correct to assume there will probably not be another price increase this year?

Thanks for your help! Since we have so much time, I just want to buy at the most optimal time in order to get the most "bang for our buck". Besides, having a good "plan" allows me to be patient and not just jump in right now. The never-ending struggle between my emotional side and my intellectual side.

As far as incentives....I wouldn't necessarily buy just because of an incentive, but it would be nice to know I might be able to get in on one if the timing was right with my approx window for buying. Right now I'm just so excited that it's in our short-term plans!! When we planned our recent April trip we were sure we wouldn't go back to Disney again for many years. By the time we got home, I think dh and I both had been hit hard with the "magic". It took me almost a week to get over some sort of little depression after we returned. It wasn't until we decided to buy into DVC and go every year that I bounced back. Without DVC it would be impossible for us to go every year. With a family of 6, a villa is just about our only option. I guess a suite at a value, but I've heard too many bad stories about the values. I guess we just really value comfort and luxury on our vacations.

Bridget

 

[NYMomof4]

I think you already have the best plan-that you have not made a quick decision, but are taking the time to research a little There may be other incentives down the line, since they tend to change, but you still have the next 9 months or so to decide so I'd say that you're in a good position.

I also wanted to say that I have 4 kids and DVC is really a great option for larger families. Without it I'd be getting 2 rooms and DVC offers my idea of a real vacation with the amenities and all. My kids were as excited as I was last year when we purchased and Disney is the one place where everyone is happy in our crew. One of the cures for post-DIsney depression is to spend hours on the boards reading about others' trips and plotting your next one! Enjoy!

 

[pickles]

When we planned our recent April trip we were sure we wouldn't go back to Disney again for many years. By the time we got home, I think dh and I both had been hit hard with the "magic". It took me almost a week to get over some sort of little depression after we returned. It wasn't until we decided to buy into DVC and go every year that I bounced back. Without DVC it would be impossible for us to go every year. With a family of 6, a villa is just about our only option. I guess a suite at a value, but I've heard too many bad stories about the values. I guess we just really value comfort and luxury on our vacations.

Bridget

This so describes me! We went in Aug for our 10th anniversary. It was suppose to be the "once in a lifetime trip" we had saved 10 years for it and did everything we wanted. I got home and I was DEPRESSED. i didn't even pull out our pictures and put them in albums or anything until about a month ago when we finally decided to try a trip there again at a moderate rather than a deluxe. Had it all booked, when our travel agent mentioned his DVC..that got me reading about the DVC and stuff --why pay that money when you can pay it towards"owning" So, we now have plans to go yearly and with the DVC and some careful planning this is possible for us.

I just so want to be there NOW..hate wishing my summer away!
Meanwhile we wait to see if our OKW resale makes it thru ROFR

 

[SuzanneSLO]

Assuming I'm completely flexible as to which resort we stay at for our Feb 08 trip, then this would be an example of my game plan: Buy March 07, try to get a UY of April . . .

One more thing to add to caclulation is the best UY for you. When you borrow points, you need to use them by the end of the UY into which they were borrowed. You can't return the to the original year.

So if you borrow points from an April UY, into the prior year, you would need to use them by March 31. If you cancel you Feb vacation, you will need to reschedule and take your trip by March 31.

If you usually vacation in Febraury, you may be better off with a Dec UY, which would give you until Nov 30 to reschedule and take a cancelled Feb vacation.

Of course, if you don't have a specific time you like to vacation each year, then any UY is probably as good as any other.

Best of luck -- Suzanne

 

[Mickey Fliers]

So, let me make sure I understand. Assuming I'm completely flexible as to which resort we stay at for our Feb 08 trip, then this would be an example of my game plan: Buy March 07, try to get a UY of April so that I will get 150 pts from 06 PLUS my 150 '07 points and only pay 1 month of yearly dues for 06. That would give us the 220 points we need for the 08 trip leaving approx. 80 points to bank into the next year. We would be able to book our Feb 08 trip soon after we sign the papers, right?

I don't think this will work. If you purchase in March 07 with an April UY, the 2006 pts. would need to be used by March 31st 2007 or banked by October 31st 2006. You would be completely wasting the 2006 UY pts.

Better option: Buy in March 07 with a Dec UY. If you still get the "backdated" pts, you would have until May 31st to bank your pts. So, on May 31st, 2007 bank 150 pts. Then on Dec. 1st, 2007 recieve your next 150 pts. Roll into 2008 with 300 pts. total. Have the ressie for Feb. use your banked pts first and then what ever you have leftover, you still have until May 31st 2008 to decide to use or bank them.

Hope that makes sense.

 

[bobbiwoz]

Sometimes when you are buying from Disney and your UY is almost over, they will let you bank 100% into the next UY. You have to know to ask to be able to do that, and they don't have to let you, but there have been cases told when Disney has allowed people to do that.

I didn't know enough to ask when I did an add on 2 months before the end of our UY, and sure enough, posts came around with people telling that they were able to bank. These came too late to help me.

Bobbi

 

[DrTomorrow]

my3kidsmom - sounds like you have good plan; obviously you put some thought into it.

pickles - not to quibble, but just to make sure there's no confusion: many DVCers downplay "perks" (such as AP discounts, DDP, % off purchases, etc) as reasons to buy into DVC, as they may go away at any time. What my3kidsmom was talking about seemed more like "purchase incentives" - X$ or Y% off the price of each point. And while these are not a reason to buy, they do give someone with flexible timing an option to save some signficant cash.

IMHO - YMMV - Be well!

 

[WebmasterDoc]

...

So, let me make sure I understand. Assuming I'm completely flexible as to which resort we stay at for our Feb 08 trip, then this would be an example of my game plan: Buy March 07, try to get a UY of April so that I will get 150 pts from 06 PLUS my 150 '07 points and only pay 1 month of yearly dues for 06. That would give us the 220 points we need for the 08 trip leaving approx. 80 points to bank into the next year. We would be able to book our Feb 08 trip soon after we sign the papers, right?
...

While it sounds like you have a basic understanding and a solid purchase plan, it is also apparent that you also have a few misunderstood concepts regarding DVC.

Annual fees have nothing to do with your Use Year. If you purchase in March, 2007 and had an April Use Year- you would get points from April, 2006 - but would not owe ANY fees for 2006. HOWEVER, you would still owe
prorated fees for 2007. In this case, if you purchased on March 1, 2007 - you would owe 10/12 of the annual fees for 2007. If you purchased on December 31, 2006 - you'd owe no fees for 2006, but would owe all of the 2007 fees in January, 2007.

Usually, DVC will allow you to bank the points available at the time you purchase. These are not really "bonus" points- merely the current points available in the contract Use Year you purchase. As already noted, purchasing April points in March, you'd need to either use those points by March 31 or bank them (if they will allow that - and I would verify that before purchasing that contract). You will get current points with any purchase made thru DVC and usually you would be within the banking deadline- so I wouldn't make a big deal out of getting that April UY in March- an October UY would work the same way and the annual fees would also be the same.

As for incentives and price increrases - they do change them, they have had more than one price increase in a year in the past, they usually do not announce when a new incentive will be available but usually do announce price increases ahead of time.

Enjoy!

 

[bongo59]

Your perspective on best time to buy? When you can pay it off in total. And no, I am not kidding. I know you meant something else. As for Timing the best time to buy points is Nov to Jan. Since 1991, my accountant did a spread sheet on resales and it seems that is when folks go through the most financial stress and distressed contracts seem to be more abundant.............If you're buying from Disney the best time is ASAP because the price always goes up. Remember my friendly advice. Dont finance pay it off up front.

 

[ACDSNY]

Our guide asked when we purchased on add-on last Dec (Feb UY) if we'd like to bank 100% of our 2005 points. We had no problem with being past our banking deadline.