Understanding Stripped vs Loaded Contracts
When shopping DVC resale contracts, you'll encounter "stripped" and "loaded" listings describing the current point status. Understanding these terms helps you evaluate true contract value and determine which option best fits your immediate vacation needs versus long-term ownership goals.
What Are Stripped Contracts?
Stripped contracts have had their current and/or previous use year points already used by the seller. You're purchasing the contract but won't receive points until the next use year begins. For example, buying a September use year contract in November 2024 that's stripped means you wait until September 2025 for your first point allocation - nearly a year after purchasing.
Stripped contracts sell at discounts (typically $2-5 per point below loaded contracts) since buyers must wait longer for usable points. This delay eliminates immediate vacation planning but doesn't affect long-term value once you receive your first allocation and begin normal use cycles.
What Are Loaded Contracts?
Loaded contracts include banked points from the previous use year plus the current year's allocation, giving buyers double or even triple point allotments at closing. A loaded contract might provide 300 points immediately (150 banked from last year, 150 current year) even though the contract is only 150 points annually.
These extra points must be used within their banking window (typically 8-12 months from closing), creating a use-it-or-lose-it scenario. Loaded contracts command premiums ($5-10 per point above market rates) reflecting the immediate point availability, but only represent good value if you can actually use those points before expiration.
Pricing Considerations
A fair loaded contract adds approximately the value of the extra points to the purchase price. If regular contracts sell for $110 per point and a loaded contract includes an extra 150 banked points, expect to pay roughly $110 x 150 = $16,500 additional. However, since banked points expire soon, many loaded contracts price at partial value for the extra points rather than full value.
Stripped contracts should discount proportionally to the waiting period for points. The longer you wait for your first allocation, the larger the discount should be. A contract stripped until next year should cost several dollars per point less than a loaded or standard contract.
Which to Choose?
Buy loaded contracts if you're planning immediate Disney vacations and can use the extra points before expiration. The premium is worthwhile when you leverage all available points for trips already in planning. However, if you can't travel soon or don't want to plan rushed vacations to use expiring points, loaded contracts offer no value despite higher costs.
Choose stripped contracts when you're investing in DVC for future vacations or can't travel immediately after purchase. The discount saves money upfront, and once you receive your first regular point allocation, the stripped status becomes irrelevant - you're simply a normal DVC owner from that point forward.
Verifying Point Status
Always request a current Disney points summary showing exact allocations, banked points, and use year status before making offers. Sellers sometimes misrepresent point status, whether accidentally or deliberately. The official Disney summary eliminates confusion and ensures you're paying appropriately for the actual points you'll receive. Reputable brokers automatically provide this documentation, while FSBO transactions require you to request it explicitly.