Question about Magical Beginings

[ashube]

A few days ago a person posted the question: Should you buy from Disney or from a reseller. A person posted back saying:

"If you are looking for OKW or BWV than resale is the only way to go, if you want VWL, HH or VB, Disney has attractive Magical Beginings program."

Well, I am looking to buy at VWL and was wondering what was the Magical Beginings offer?

Thanks,

 

[Cap]

MB should be $10 credit / point if you sell your first years allocation of points back to DVC for WVL. Remember, you are still responsible for the dues. The credit can help reduce the total cost, or the down payment if you're buying with a loan.

I believe you could still borrow from next year's points, so you could visit in the next year.

Hpothetical Example

Buy 200 points today, in October. They are probably selling an August use year. Cost = 200 x $78 = $15,600. No closing costs, deed costs, etc. as Disney pays all of that when you buy from them.

Use MB and sell them back the 200 points for the August 2001 use year. Credit = 200 x $10 = $2000. Your cost reduced to $13,600.

Your dues for 2001 are prorated at 200 x ~$3.50 X 75/360 or about $145. In January you get a bill for the 2001 dues of ~$200.

I think you could borrow against your 2002 point allocation which you would get in August, 2002 if you want to make a reservation for a time between now and August 1, 2002.

The numbers are hypothetical examples, not exact. If you call your Guide, or DVC and ask about purchases, they will give you the exact numbers.

 

[loribell]

Just wanted to add that from what I have recently seen over the course of a few months while deciding on my purchase the use year has been running five to six months out or should I say back. That is of course unless the month sells out before the current month is over. I bought in August with a use year of March. If I have figured correctly October should have a use year of April or May. Hope that helps some.

 

[Regina]

We bought a VWL add-on with Magical Beginnings earlier this month, and we have a use year of February to match our OKW membership.

 

[Dean]

Doing MB is essentially renting your points to DVC, no more and no less. The only difference is it's guaranteed. Since you pay at least a portion of the maint fees, you must deduct that from your thinking. Don't forget you can do essentially the same thing by renting the points when you buy a resale. You just won't get $13 pp but since you should be starting at a lower price, it should still be an advantage. Even on a small contract of 150 points, a resale at $55 per point would be cheaper than through DVC and you'd have the current points. That's true even considering that HH has higher closing costs.

DVC generally requires a full 6 months remaining in the use year to use the MB. I'm sure with the resort selling out and for owners locked in to certain months based on use year, they will make exceptions.