There is a wide range of DVC contract sizes on the market, including some that are under 100 points. On the resale market, you may come across the occasional 25-point or 50-point contract. When buying directly through Disney, you can purchase a contract as small as 25 points, depending on the resort and if you pay cash. Whether you are looking to become a DVC member, or you are looking for an add-on contract, here are a few pros and cons to small DVC contracts.
Pros
Lower Cost and Dues
Small contracts are more affordable. Since the cost of DVC contracts and dues are tied based on the number of points, the smaller the contract, the less you will pay for the contract itself as well as annual dues. The lower cost also means that you may not need to finance the contract, which can save you money.
Perfect Starter Contract or Add-on Contract
Due to their lower cost, small contracts are more approachable. This makes them a great entry point into DVC. You can then add on other contracts as you save up for more points.
Small contracts work well for add-ons when you find yourself consistently borrowing points from year to year or simply short on points altogether. Having those extra points will save you money in the long run compared to purchasing one-time-use points, renting points, or paying for cash stays each year.
11-Month Booking Advantage
Even a small contract can be beneficial when you want the 11-month booking window at a resort that is harder to book like the Beach Club Villas. Sure, 50 points may only get you a night or two per year. However, once you bank and/or borrow points, you can have enough points for a week in a Deluxe Studio, depending on the travel period.
Easier to Sell off
Since smaller contracts are more approachable, they also tend to sell more quickly on the resale market compared to larger contracts. Should your needs ever change, it’s easier to sell off a small contract.
Cons
Higher Price Per Point
Although the overall cost of a small contract is less than that of a larger contract, the price per point is typically greater on the resale market. For example, a 50-point contract at Copper Creek is currently on the market for $174/point, but a 175-point contract at Copper Creek is priced at $159/point.
For direct contracts, the price per point is the same no matter what contract size you purchase. However, the incentives start at contracts of 100 points or more, and the savings is always greater for larger contracts.
Ramifications of Banking and Borrowing
Banking and borrowing is inevitable with a small contract, but it’s important to plan carefully. If you ever need to cancel a trip after both banking and borrowing, your points will remain in the same use year as your trip. (Banking and borrowing are final transactions, and you can’t move your points back once you bank or borrow.) This means that you would need to use those points before they expire at the end of the use year.
Inevitable Add-on-itis
Since a small contract is typically only enough for a few nights at a resort, a small contract by itself is rarely enough points for a DVC member’s vacation needs. If you are purchasing a small contract as your first DVC contract, be prepared for add-on-itis to hit. Once you start enjoying your DVC points, it’s very tempting to purchase more.
All in all, small DVC contracts may not be right for everyone, but they can be a great starting point for new members or a more approachable means of adding more points if you are already a member.
