How many people buy resale?

Discussion in 'Purchasing DVC' started by karebear06, Oct 25, 2012.

  1. bighoo93

    bighoo93 Mouseketeer

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    Why not? They sold the points in the first place. Why should Disney feel entitled to get to sell them again, rather than allow the owner to sell them? This is very strange. And maybe it's true. But that kind of thinking is a big part of what gives timeshares such a bad name.
     
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  3. Missyrose

    Missyrose DIS Veteran

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    Because Disney is in the business of selling points, that's the only way DVD makes its money. They want you to buy MORE points from them. But like Dean points out, once you sell your contract on the resale market:

    A) Disney loses out on a potential sale from the person who bought that resale contract, plus very likely a few other referrals because that person will tell their friends and family what a great deal they got via resale.

    B) The original owner will no longer be a potential add-on customer for Disney.
     
  4. LisaS

    LisaS DIS Veteran

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    The fact that DVC started offering one-time-use points for sale suggests they have a lot of inventory. I've never read any reports of people wanting to purchase these OTU points and being told they were "sold out" so I'm assuming they have a lot available. Then again, it's not clear how many people purchase them.

    They also have a couple of resorts that have been slow to sell. AKV first went on sale in February 2007. It is about 80% declared now after nearly six years. There was a period of time when sales were so slow that many months would pass between declarations of additional inventory. When it takes that long to sell out a resort prices on the resale market for that same resort will be well below the direct sale price, especially since Disney keeps increasing their price in the meantime.

    I don't think Aulani is selling very quickly either.
     
  5. DougEMG

    DougEMG DIS Veteran

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    Every single resale is not a lost retail sale. I originally looked at direct (didn't know about resale) and didn't buy because of the price. It was only years later that I found out about resale and purchased. So Disney was never ever going to get my money with a direct purchase. The music industry thinks the same way and counts every pirated song as a lost sale, but it isn't.

    Even if there were no resale market at all, as direct prices increase, Disney is eliminating potential buyers who can't or don't want to pay the direct price. They are effectively shrinking their potential client base.

    I'm betting more and more people are going online within the 10 days of signing their contract and finding out more about what they have just purchased. How often is the advice we give here "if you aren't sure cancel your purchase and do some more research into DVC and make sure you look at resale". I wonder how their cancellation rates are trending.

    What they could do though is sell small exclusive resorts (GF & POLY) for high prices while driving down the resale price of everything else ($1/point) and then ROFR whenever they needed points for a cheap direct sale ($80-100 point).

    If I was a greedy evil coporate type, this would be my plan to squeeze every dime I could out of my customers. pirate:
     
  6. CaptDadSparrow

    CaptDadSparrow Mouseketeer

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    We are moving forward with a direct cash purchase even with knowledge of the resale market. Why? Because its a smaller contract and we can always add on with resale but at least we have a base of points with all the perks of direct vs resale. This means that disney can change/devalue the resale market and we will always have enough points for any type of trip we want, be it the concierge or adventure or whatever and cheaper point to extends the trips as resale allows.
     
  7. chalee94

    chalee94 <font color=green>I thought all sand was ground up

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    as others have said, make sure you have looked at the point charts for cruises/concierge collection/adventures by disney first - a small contract won't get you squat.

    but if it makes you happy to buy direct, suit yourself.
     
  8. Dean

    Dean DIS Veteran<br><a href="http://www.wdwinfo.com/dis

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    Sure there will be those that wouldn't buy in a given circumstance but you wanted to buy, it was the price that held you up I'm assuming. DVD can structure the retail in such a way as to add value to retail and remove value from resale far more than they have done so far. Even for those that end up not purchasing retail and buy resale, it's still a potential sale lost.

    What Missyrose said. Don't ever use fair and timeshare in the same paragraph.
     
  9. BWV Dreamin

    BWV Dreamin DIS Veteran

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    Kind of OT, but those small contracts are really getting squeezed. Between points charts adjustments, inflated prices for cruises, new higher point requirements at the newer resorts, I am finding it hard to justify a small points contract anymore. Then when you plan on selling them, you have to pay an estoppel fee for each contract, regardless of the number of points. These are some of the main reasons I sold all of my small contracts.
     
  10. DougEMG

    DougEMG DIS Veteran

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    must have missed the original, but that made me laugh :rotfl2:
     
  11. dsanner106

    dsanner106 DIS Veteran

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    I bought direct initially and had a great experience, and added on via resale. No problems either way. I needed the financing the first time around, with small kids and lots of bills. I was willing to add a monthly payment so I could share the disney experience with the kids while they were younger. Later, had cash to add on via resale.

    Drew
     
  12. ELMC

    ELMC DIS Veteran

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    I always get confused when people talk about buying DVC even though it was a stretch in order to have the "Disney experience.". It is wholly possible to enjoy Disney without ever owning or staying at a DVC resort. I guess people are eager to justify a purchase that might not be the best financial move. That being said, I think it is important for potential buyers to rub the pixie dust out of their eyes and do a hard analysis of whether or not buying DVC is a sound financial decision.
     
  13. mikron

    mikron Donald Pin Collector

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    We bought from Disney in 2004 at SSR for $70.00/point. was a good price even at resale prices at that time. When the sale was over and Disney raised the price we went resale at OKW.
     
  14. rmcildw2m

    rmcildw2m DIS Veteran

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    i have bought 3 contracts all thru resale it just works better for me.
     
  15. Ilyo

    Ilyo Happy DVC Member

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    Did lots of research between direct and resale...did the dvc tour etc.

    In the end, went with resale and haven't looked back.
     

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