Pros and Cons for purchasing DVC from Disney and resale

[Caluebbehusen]

My family has started our process of researching the potential of buy DVC. What are the perks to purchasing DVC direct from Disney compared to resale?

 

[graychef]

Try the resource center:
http://www.disboards.com/threads/dvc-resource-center.2823943/

Many people focus on the savings of buying resale vs. direct. The process takes a while but resale can be worth thousands in savings. Also, "sold out" resorts can be found on the resale market. There are restrictions on resales after March 2011, but many feel these restrictions have little to no impact.

 

[jscottnc]

Having done it both ways (for the same resort no less because I did not know any better the first time), you buy direct from DVC when 1) you are in a hurry, 2) you need finacing (if you need finacing perhaps you should re-think this) or 3) you want in a new resort not yet on the re-sale market (i.e. Polynesian). You could add a fourth reason: Frequent Flyer miles from your credit card (something DVC will do but private sales will not -- that is what I did when I purchased direct). Yes, DVC direct points are more flexible in that they can be used for the various Disney Collections, but you would get better value by renting out the points and paying cash.

 

[sleepydog25]

My family has started our process of researching the potential of buy DVC. What are the perks to purchasing DVC direct from Disney compared to resale?

PROS of direct
- Shorter time between purchase and having points in the system
- Sometimes may be easier to find a small contract at a sold-out resort
- All benefits apply (e.g., use points for DCL--though that is not a good way to use points)

PROS of resale
- Cheaper
- Same privileges (except not being able to use points outside DVC such as DCL)
- More contracts from which to choose
- Cheaper

CONS of direct
- Costs more
- Fewer contracts for "sold out" resorts

CONS of resale
- Loss of some benefits such as using points for DCL (again, that's not the best way to use points, anyway)
- Longer to close and get points in system
- Must pass Right of First Refusal (ROFR) which means DVC looks over your contract-in-waiting and can buy it out from under you first. You'd then have to start over the whole looking for a contract process.

In short: resale saves money but takes longer and lacks some minor benefits. Direct is quicker but costs way more.

 

[illinidp]

You also have to take the expiration date of the contract into consideration when looking at which is the best deal for you.

 

[summabreeze85]

Having done it both ways...2) you need finacing (if you need finacing perhaps you should re-think this)...You could add a fourth reason: Frequent Flyer miles from your credit card (something DVC will do but private sales will not -- that is what I did when I purchased direct)...

Not sure what the direct financing rates are with disney right now but financing a resale is a piece of cake with monera or timesharelending.net. automatic approval, no asset or income verification, no prepayment penalty and the fees are minimal. I am a big fan of these 2 companies.
and as for using a credit card to purchase...some title companies actually allow it. I just purchased a resale using a credit card but I just had to pay the 3% processing fee. Worth it imo.

 

[mort1331]

Not sure what the direct financing rates are with disney right now but financing a resale is a piece of cake with monera or timesharelending.net. automatic approval, no asset or income verification, no prepayment penalty and the fees are minimal. I am a big fan of these 2 companies.
and as for using a credit card to purchase...some title companies actually allow it. I just purchased a resale using a credit card but I just had to pay the 3% processing fee. Worth it imo.

Worth it???? the most any card gives you is 2% of purchase and that Is usually groceries and gas, most 1% or less. Not a fan. And if you don't need to verify income or assest, I love these people because that is who I probably got my resales from. People who got SOLD and could not afford, sucks for them and good for me. I don't like to be cruel to those but they should get a handle on their finances.
As many say here this is not really a move to finance.

 

[Dean]

IMO one should only consider buying direct when the spread between resale and retail prices are low, when the resort is not available resale, when one can't get what they want resale and for very small packages. In practice that means fixed weeks, VGF & Poly and for small packages, say 50 at most. Obviously look at specifics. Even then one should only buy the high end options if they plan to stay there most trips. It is not reasonable to finance a timeshare or luxury purchase (DVC is both).

 

[wallygirl]

If you are a DVC member are there small Poly contracts available (50) if only purchased direct? Purchased SSR resale but we love Poly and would prefer to only stay there. Not sure if we should just try to buy a small contract direct (50 or 100) or wait until some go resale. VGF are running $135-$170 resale but haven't seen a small contract available. Thoughts?

 

[Dean]

If you are a DVC member are there small Poly contracts available (50) if only purchased direct? Purchased SSR resale but we love Poly and would prefer to only stay there. Not sure if we should just try to buy a small contract direct (50 or 100) or wait until some go resale. VGF are running $135-$170 resale but haven't seen a small contract available. Thoughts?

I think it's unlikely one will save enough on resale at VGF or the Poly to justify a planned delay in purchasing based on price alone. There may be other reasons to delay that are more justified.

 

[supersnoop]

If you are a DVC member are there small Poly contracts available (50) if only purchased direct? Purchased SSR resale but we love Poly and would prefer to only stay there. Not sure if we should just try to buy a small contract direct (50 or 100) or wait until some go resale. VGF are running $135-$170 resale but haven't seen a small contract available. Thoughts?

For 50 points, I'd go direct, but for 100, I'd wait. Honestly, I don't think he home resort advantage is necessary yet. There's plenty of availability at 7 months, and will be as the declare more units. It will dry up as they sell more points, but I think that's a long way away.

 

[dwight16]

I agree on the less then 50 rule most contracts out for sale that are 50 and less are stripped people do the last vacation then sell them. Right now ssr is 135 direct and less then 50s I habe seen close to 100 so you add in less closing about 300 to 400 and the fact you could get current use year points you close to even with zero stress. I have done both and for every 20 150 plus point contract I see on the sites there are 1 50 or less. I am going to add soon for about 50 i am watching but have not seen any in months also trying to match your use year is a pain on resale.

 

[SarahInMN]

We've done it both ways.

We bought BCV on the resale market and VGF direct.

Resale is clearly cheaper. For the smaller resorts, i.e. BCV, you'll be able to find what you want faster on the resale market than waiting to purchase from Disney. We bought resale prior to the rules change - so our BCV points can be used outside of DVC. IMHO though trading out is not a great way to use points.

We bought VGF right after they came on the market and there were no resales.

If/when we want to add on, we'll buy resale unless a brand new resort comes up that we want. Resale is cheaper and easier to find the exact contract you want.