Stripped Contract Question

DisneyStarWisher

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Jun 13, 2008
Can anyone explain the advantages and disadvantages of buying a stripped contract? I see the advantage being lower price and no annual dues for a while. The disadvantage is having a large amount of money tied up and not being able to use it for a few years. Am I missing anything?
 
Yes you hit the nail on the head . Some people are fine with stripped contracts,, because they don't have plans to go to WDW for some time. We can't seem to have enough points and probably need a few more .
 
I would assume they're less desirable so also maybe a little less competition? If you want to add on I think as stripped contract with the same UY is better than a loaded contract with a different UY.
 
Imo you should value a stripped contract as profit you would make renting those points out minus the extra annual dues you would have to pay. Should be something in the range of 14 dollars rent - 6.50 or so depending on the particular resort.

That being said, I would value points less if there wasnt much time left in their use year. I would value the points more if I could actually use them myself.

For example a 100 point contract with
0/0/100 should cost about 15 dollars per point less than a 100/100/100.
 
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A better chance of clearing ROFR?

We bought 3 stripped contracts and they all passed.
 


Imo you should value a stripped contract as profit you would make renting those points out minus the extra annual dues you would have to pay. Should be something in the range of 14 dollars rent - 6.50 or so depending on the particular resort.

That being said, I would value points less if there wasnt much time left in their use year. I would value the points more if I could actually use them myself.

For example a 100 point contract with
0/0/100 should cost about 15 dollars per point less than a 100/100/100.

That's an interesting way to look at it. I always thought before, hey, as long as the seller is paying the MF's for those years without points, than it's a wash, especially since I don't plan to use any points until 2020. But, if I have points I don't need on the contract, I can rent to save on buy-in cost even if I had to pay the MF dues on the points I don't need. Given this point, I guess I need to take that into consideration the next time I am considering a stripped contract. Thanks for sharing your thoughts.

Great3
 
That was the case, but lately they've been taking them so who knows what they are thinking.
They’ve been consistently scooping them up since at least last year. I lost a BLT last winter/spring that was fully stripped.
 
Can anyone explain the advantages and disadvantages of buying a stripped contract? I see the advantage being lower price and no annual dues for a while. The disadvantage is having a large amount of money tied up and not being able to use it for a few years. Am I missing anything?
Stripped contracts will have a lower cash outlay but a greater cost per point. Loaded contracts will have a greater cash outlay with a lower cost per point (when you factor in the immediate use/rental value of the banked or current points). If you have the money, time, and desire to do the work, you will almost always spend less in the long run with a loaded contract. The value of the points you rent out will likely be greater than the difference in price per point you pay to purchase the contract. But not everyone is willing to do that, in which case a stripped contract is probably the right way to go. Good luck with your purchase! :)
 

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