Points upgrading question

[brkgnews]

Hey, gang -- a quick question about upgrading points (haven't yet joined the DVC, but I intend to in the next few months -- took the tour this trip, etc).

Looking at the financing layout they gave me for the up-front "buy-in," obviously the cost is higher with more points. I also understand that I can upgrade to higher points later. My question is this...

Let's say I start out with 160 points -- that's the level of membership I "buy in" with and finance through the Mouse. Then lets say next year I crank it up to 250 points. Does my financed amount get recalculated in addition to the extra yearly dues, or does the financed amount stay at the 160-point level while the annual fees go up.

In other words, since I only have one more trip planned this year anyway, would it be possible to buy in and lock in at the lower rate, then just pay extra annual dues to upgrade? Or when I upgrade, will my buy-in amount be recalculated too?

Example using completely random numbers:

160-pt buy in $200/month | 160-pt annual dues $50/month
250-pt buy in $500/month | 250-pt annual dues $100/month

using these random numbers, I would start out with 160 points at $250/month ($200+$50). If I upgraded later to 250 points, would I be paying $300 ($200+$100) or $600 ($500+$100)? Or something even more confusing because of recalculating the whole shebang?

:hammer: I HOPE that makes sense! :hammer:

 

[Monty]

If I'm reading your question correctly, when you increase your holdings [upgrade] you would re-amortize to reflect the larger value.

As an example: If I buy a house for $150,000 this year and have to pay annual property taxes of $1,000. I amortize my mortgage over 20 years. I will have a mortgage payment based on whatever interest rate I negotiate.

If, a year from now I decide to upgrade to a $200,000 house, my mortgage payment would not remain the same unless I invested the full $50,000 difference. And my taxes would increase commensurate with the increased value of my house.

 

[brkgnews]

That's what I figured (I presumed they would already have thought of ways cheapskates like me would try to cheat the system ) So I'd be better off starting at the level I wanted to begin with.

 

[Monty]

That's what I figured (I presumed they would already have thought of ways cheapskates like me would try to cheat the system ) So I'd be better off starting at the level I wanted to begin with.

I'm pretty sure Disney isn't going to leave many loopholes... unless they just make the customer "think" they're cheating the system but have no real cost to TDC... :lol:

 

[brkgnews]

OK - one more stupid question, then I'll go back to the shadows. :lookaroun

Do you pay the annual dues your first year, or does that start your second year, since you just bought in this year?

 

[DisneyPhD]

You pay the dues from the point you buy in. We "sold back" our first year's points but still had to pay the dues on them. The dues were prorated since we puchased mid way through the use year.

 

[slappy magoo]

OK - one more stupid question, then I'll go back to the shadows. :lookaroun

Do you pay the annual dues your first year, or does that start your second year, since you just bought in this year?

If memory serves, you're paying annual dues based on your "use year," not your calendar year. If your membership begind July of 2007, you can either pay your dues up front for 7/1/07-6/30/08, or break it down into monthly payments, which is what I suspect most folks do.

 

[GrowingUpDisney]

Hi brkgnews (fellow Georgian)!!!

We purchased 150 points in 1998 and then added 175 points in 2004 (both financed through Disney). This is how it worked (I will use rounded numbers)

1998 : purchased 150 points BWV(contract #1) = 100.00/mo Dues 50.00/mo

2004: purchased 100 points WLV (contract #2) = 105.00/mo Dues 50.00/mo
purchased 75 points WLV (contract #3) = 75.00/mo Dues 35.00/mo.

With this the 1st purchase is a separate contract and does not get "refinanced". Our 1st contract will be paid off in 2008 and our other 2 will be paid off in 2014 as each was financed for 10 years.

Hope that helps.

Niki

 

[brkgnews]

Thanks for the info, Niki. Just curious why you chose to spread your points out over several different resorts? My understanading was that the only real advantages of having your points at one resort versus another were 1) the 11-month booking window versus 7-months; and 2) potential savings on monthly maintenanc; 3) any promotional offers aiding in down payments for specific resorts. Did one of those apply to your reasoning, or did you just want to spread your name around the Magic?

I currently intend to keep all my points in one place for simplicity sake, unless one of the above situations applies.

 

[George]

Thanks for the info, Niki. Just curious why you chose to spread your points out over several different resorts? My understanading was that the only real advantages of having your points at one resort versus another were 1) the 11-month booking window versus 7-months; and 2) potential savings on monthly maintenanc; 3) any promotional offers aiding in down payments for specific resorts. Did one of those apply to your reasoning, or did you just want to spread your name around the Magic?

I currently intend to keep all my points in one place for simplicity sake, unless one of the above situations applies.

I think the main advantage of spreading points around is that you get the 11-month advantage at a different resort. We just bought VWL points resale, but our next purchase is going to be AKLV points because that resort looks like it is going to rock and I'm assuming that it will be insanely popular.

 

[GrowingUpDisney]

I actually wanted to add on points at BWV but none were available for the same use year that I already had (August). I chose my next favorite resort VWL. We did not by for any promotions as WVL was actually sold out when we purchased. We purchased two contracts that had been sold back to disney. We only added on because we wanted to go in Oct 2004 and had run our out points.

It is much more important to get the same use year when adding on than to get the same resort. Keeping up with different use years would be an organizational nightmare.

I could have bought into SSR, but I don't like that resort. I am in favor of resorts that have doors that open to interior hallways. (Just a personal preferance).

We will buy our next addition at the Contemporary if that actually happens!!!

By the way - we have been DVC members now for almost 10 years and have stayed at every resort. I have never had a problem getting into a resort that wasn't my home resort. I have had to waitlist twice, but I got what I requested.

Niki

 

[brkgnews]

Ahhh! Use years. didn't even think of that complicating the issue. And yep, I'm really interested to see the deal with Contemporary DVC.

 

[MickeyTigg]

Hey, gang -- a quick question about upgrading points (haven't yet joined the DVC, but I intend to in the next few months -- took the tour this trip, etc).

Looking at the financing layout they gave me for the up-front "buy-in," obviously the cost is higher with more points. I also understand that I can upgrade to higher points later. My question is this...

Let's say I start out with 160 points -- that's the level of membership I "buy in" with and finance through the Mouse. Then lets say next year I crank it up to 250 points. Does my financed amount get recalculated in addition to the extra yearly dues, or does the financed amount stay at the 160-point level while the annual fees go up.

In other words, since I only have one more trip planned this year anyway, would it be possible to buy in and lock in at the lower rate, then just pay extra annual dues to upgrade? Or when I upgrade, will my buy-in amount be recalculated too?

Example using completely random numbers:

160-pt buy in $200/month | 160-pt annual dues $50/month
250-pt buy in $500/month | 250-pt annual dues $100/month

using these random numbers, I would start out with 160 points at $250/month ($200+$50). If I upgraded later to 250 points, would I be paying $300 ($200+$100) or $600 ($500+$100)? Or something even more confusing because of recalculating the whole shebang?

:hammer: I HOPE that makes sense! :hammer:

You dues will increase proportionally but if you finance the upgrade you'll have a new loan for the financed amount. They will had the payments together for your monthly payments though.