Adding another contract question (Direct) with "subidized dues"

[MJB62676]

This past December when we were first looking, the original "offer" we were made was to sell us our points with an August UY, and "give" us the 2017 points, with dues paid up.

Let's just say, hypothetically, that I wanted to add on another 200 points at CC and match my December UY...would it be possible to get them to do this deal late in the 2017 UY (like November 2018) and "subsidize" the points by giving me 2017 UY points without paying dues on those?

Just thinking out loud more than anything. I honestly believe if we add on, it will be at OKW 2057, but I am interested in seeing what Riviera brings.

 

[supersnoop]

They don’t give you extra points. You get what you pay for.

With a December use year, your current year is a year behind for 11 months out of the year. If you buy a December contract before December 1st, you’ll get 2017 points.

Disney prorates the dues over the calendar year. If you purchase in April, you’ll pay 8/12 of the dues. If you buy in November, you’ll pay 2/12 of the dues.

On terminology, “subsidized dues” are something offered at Aulani where Disney miscalculated the annual maintenance fees and has to pick up the slack on contracts from early on.

 

[KAT4DISNEY]

Direct sales always come with current points and all points going forward. When buying at an already open resort the dues are always pro rated for the year from the date you sign the purchase.

As mentioned, if you have a December UY you would receive 2017 points as December is currently in the midst of it's 2017 UY. Your dues would be prorated for this year from the date you sign the contract.

 

[MJB62676]

Direct sales always come with current points and all points going forward. When buying at an already open resort the dues are always pro rated for the year from the date you sign the purchase.

As mentioned, if you have a December UY you would receive 2017 points as December is currently in the midst of it's 2017 UY. Your dues would be prorated for this year from the date you sign the contract.

So if I understand correctly, you would pay virtually no dues on the 2017 points if buying late in the UY. I realize they "get ya" one way or the other, but wanted clarification.

For instance, we finally just closed on contract, we have our Dec. 2017 points, and just paid "dues" on 2018. It's weird.

 

[miTnosnhoJ]

So if I understand correctly, you would pay virtually no dues on the 2017 points if buying late in the UY. I realize they "get ya" one way or the other, but wanted clarification.

For instance, we finally just closed on contract, we have our Dec. 2017 points, and just paid "dues" on 2018. It's weird.

Use Year determines when the points are available for use in your account.
But Annual Dues are, well, annual. They go by the calendar year.

So if you close on a December UY contract - direct - late in November 2018, you would receive December 2017 points, which can be immediately banked for you. A week later, you get December 2018 points, and also you can borrow points from Dec 2019. In practice, it looks like you just get double points in your account.

You would get charged prorated dues for 2018, which would probably be for 1-2 months. Then in January, you would be charged for all of 2019.

 

[CraigInPA]

There's an advantage to waiting if you want December use year, and it related to yearly maintenance fees. Since maintenance fees are based upon the calendar year, you could buy a direct contract in November, pay 2/12ths of the annual maintenance fees, and immediately bank those points for use in the next use year (which starts December 1). I did this last year with a small direct purchase, no issues whatsoever.

 

[KAT4DISNEY]

So if I understand correctly, you would pay virtually no dues on the 2017 points if buying late in the UY. I realize they "get ya" one way or the other, but wanted clarification.

For instance, we finally just closed on contract, we have our Dec. 2017 points, and just paid "dues" on 2018. It's weird.

As mentioned, the annual dues are on a calendar year while points are distributed on use years. So when a December UY owner pays 2018 dues they are paying for the 2017 point allocation of Jan-Nov because that's mostly what they are using in the year 2018 - and 1 month of 2018 (Dec). In the case of a purchase they prorate so for example if you signed April 1 it would be 8 months of the 2017 UY and 1 month of the 2018.

February UY's on the other hand are paying almost exactly on the calendar year - ie in 2018 they are covering Jan of their 2017 UY and then 11 months of their 2018 UY.

Some guides used to acknowledge that the points weren't really "free" but then they decided it just sounded great to say they were free. The nice thing is that they do now make it official to bank points after the banking deadline when you purchase direct so you can purchase just a few days before the end of the UY (Nov) and still bank the current points you receive.

 

[MJB62676]

Cool. What I'm actually trying to figure out is an Aulani xmas in 2020...and our UY is Dec. so I'd likely be trying to buy Aulani for 11 month window. Thanks for the help in understanding better.

 

[MJB62676]

Just thinking out loud here...

Buy 200 Aulani (want the ability to use up to 600 at once with banking and borrowing) in Nov. 2019, bank the 2018 points to 2019 UY. Rent those out and cover MF for 2020 since I wouldn't be able to use them for a CY 2020 stay.

Fast forward to Jan 2020...Bank the now available 2019 UY points, use the Dec. 2020 UY points, and borrow the 2021 points for a stay over Xmas 2020.

Make sense?

 

[KAT4DISNEY]

Just going to mention that the price of Aulani resale is quite a large savings over direct and it sounds like you have plenty of time until you need the points.

 

[MJB62676]

Just going to mention that the price of Aulani resale is quite a large savings over direct and it sounds like you have plenty of time until you need the points.

Yep, looking at that option as well.

 

[SuzGM84]

We've had a slightly different experience. We did a 25 point direct add on (Dec UY) before the 2/25 deadline. I purchased in Feb 2018. Got full 2017 UY points. When I was talking to the guide about purchasing the points, she said there were no dues (she was talking kind of fast and we were so excited to get in before the deadline, I'm sure I didn't fully hear everything she had to say). Anyways, contract closes, Disney calls to tell me this and at that time, I ask if there are any dues owed. Rep tells me no - there are no dues currently owing. I've checked the website, it says $0.00 on this contract and it says I'm up to date. I'm thinking I got 2018 fees waived somehow - or they're just going to randomly show up in there one day...

 

[MJB62676]

We've had a slightly different experience. We did a 25 point direct add on (Dec UY) before the 2/25 deadline. I purchased in Feb 2018. Got full 2017 UY points. When I was talking to the guide about purchasing the points, she said there were no dues (she was talking kind of fast and we were so excited to get in before the deadline, I'm sure I didn't fully hear everything she had to say). Anyways, contract closes, Disney calls to tell me this and at that time, I ask if there are any dues owed. Rep tells me no - there are no dues currently owing. I've checked the website, it says $0.00 on this contract and it says I'm up to date. I'm thinking I got 2018 fees waived somehow - or they're just going to randomly show up in there one day...

I'm guessing you haven't officially officially closed. It took over 2 months for ours to close.

 

[KAT4DISNEY]

We've had a slightly different experience. We did a 25 point direct add on (Dec UY) before the 2/25 deadline. I purchased in Feb 2018. Got full 2017 UY points. When I was talking to the guide about purchasing the points, she said there were no dues (she was talking kind of fast and we were so excited to get in before the deadline, I'm sure I didn't fully hear everything she had to say). Anyways, contract closes, Disney calls to tell me this and at that time, I ask if there are any dues owed. Rep tells me no - there are no dues currently owing. I've checked the website, it says $0.00 on this contract and it says I'm up to date. I'm thinking I got 2018 fees waived somehow - or they're just going to randomly show up in there one day...

They will bill you in a few weeks.

 

[SuzGM84]

@KAT4DISNEY and @MJB62676 - i'm still being optimistic it's not happening Of course if it does, dues on 25 points is peanuts in the grand scheme of how much we've paid for a resale and direct contract in the past 3 months!

Our deed was recorded and we received it back from Disney. Not sure what else would need to be done to close the contract at this point.

 

[supersnoop]

We've had a slightly different experience. We did a 25 point direct add on (Dec UY) before the 2/25 deadline. I purchased in Feb 2018. Got full 2017 UY points. When I was talking to the guide about purchasing the points, she said there were no dues (she was talking kind of fast and we were so excited to get in before the deadline, I'm sure I didn't fully hear everything she had to say). Anyways, contract closes, Disney calls to tell me this and at that time, I ask if there are any dues owed. Rep tells me no - there are no dues currently owing. I've checked the website, it says $0.00 on this contract and it says I'm up to date. I'm thinking I got 2018 fees waived somehow - or they're just going to randomly show up in there one day...

Since you purchased in February, you should have paid 11/12 of the 2018 dues. Did that not happen? They won’t bill you for 2017 because you didn’t purchase in 2017.

 

[KAT4DISNEY]

@KAT4DISNEY and @MJB62676 - i'm still being optimistic it's not happening Of course if it does, dues on 25 points is peanuts in the grand scheme of how much we've paid for a resale and direct contract in the past 3 months!

Our deed was recorded and we received it back from Disney. Not sure what else would need to be done to close the contract at this point.

haha - ok. Be hopeful! And let us know when you get that bill.

In general I think I've gotten bills for direct add on's approx 6 weeks or so after purchase. Might have even gone out to 8 weeks.

Oh - and the contract you signed outlines how the dues will be calculated for your add on. Pro-rated from the date you signed is probably the applicable option for any add on now as there aren't any resorts that are currently in sales but not open.

 

[SuzGM84]

haha - ok. Be hopeful! And let us know when you get that bill.

In general I think I've gotten bills for direct add on's approx 6 weeks or so after purchase. Might have even gone out to 8 weeks.

Oh - and the contract you signed outlines how the dues will be calculated for your add on. Pro-rated from the date you signed is probably the applicable option for any add on now as there aren't any resorts that are currently in sales but not open.

Hope for the best - prepare for the worst - right?! We're at the 4 week mark (Got the contract/paid for it on 2/14 - nice little Valentines gift to each other...) So based upon everyone's experience we should be getting that bill within the next month.