Top 5 Questions to Ask Before Buying a DVC Contract

Purchasing a Disney Vacation Club (DVC) contract is a significant investment that can provide years of magical vacations. However, before diving in, it's crucial to ask the right questions to ensure that the contract aligns with your vacation needs and financial situation. Here are the top five questions to consider before buying a DVC contract.

1. What is the home resort and why does it matter for booking?

The home resort is the DVC property where you own your points. This is a critical factor because it determines your booking priority. Owners can book accommodations at their home resort 11 months in advance, while reservations at other DVC resorts can only be made 7 months in advance. This four-month advantage can be crucial during peak travel times or for popular resorts.

When choosing a home resort, consider the following:

• Location: Proximity to your favorite parks or attractions can enhance your vacation experience.
• Resort Amenities: Each resort offers unique amenities and themes. Choose one that aligns with your preferences.
• Popularity: Some resorts are more challenging to book at the 7-month mark. If you have a favorite, owning there might be beneficial.

2. How many points are included and what is the use year?

The number of points included in a contract determines how many nights you can stay at a resort each year. It's essential to assess your vacation habits to determine the appropriate number of points. Consider how often you plan to visit and the type of accommodations you prefer.

The use year is the month when your annual allotment of points is renewed. It affects your banking and borrowing deadlines, so choose a use year that aligns with your typical travel schedule. For instance, if you frequently travel in the spring, a use year just before this period can provide flexibility in managing points.

3. Are there banked points from the previous year or borrowed points from next year?

Understanding the status of points in a contract is crucial. Banked points are unused points from the previous year that have been moved to the current year, while borrowed points are taken from the following year’s allocation.

When evaluating a contract, consider:

• Banked Points: These can provide an immediate boost to your point total, allowing for a more extended stay or a larger accommodation.
• Borrowed Points: While these can offer flexibility, they reduce the number of points available in future years, which could impact long-term planning.

4. What is the contract expiration date?

Each DVC contract has a specific expiration date, which varies by resort. This date marks the end of your ownership and the use of your points. Contracts typically last between 40 to 50 years from the resort's opening date.

When considering a contract, think about:

• Long-Term Plans: Ensure the expiration aligns with your long-term vacation goals.
• Resale Value: Contracts with more years remaining tend to have higher resale values.

5. What are the current annual dues and has there been any special assessments?

Annual dues are a recurring cost that covers the maintenance and operation of the resort. These fees can vary significantly between resorts and are subject to annual increases. It's essential to factor these into your budget.

Additionally, inquire about any special assessments, which are additional fees levied for significant repairs or upgrades. While rare, they can impact your financial planning.

When evaluating annual dues, consider:

• Historical Increases: Research past increases to estimate future costs.
• Budgeting: Ensure the dues fit comfortably within your financial plan.

In conclusion, purchasing a DVC contract requires careful consideration of various factors. By asking these essential questions, you can make an informed decision that aligns with your vacation dreams and financial situation. Happy planning, and may your future be filled with magical Disney memories!