Resale or straight from Disney...pros and cons

[ShellyL]

We are a family of 7 that have always stayed at value resorts and are ready to step it up. We travel every other year to DW and are thinking that DVC is the way to go. What are some of the advantages of buying resale vs buying straight out from Disney. We are hoping we are going to save money anyway we do it.
Thanks
Michele

 

[chalee94]

What are some of the advantages of buying resale vs buying straight out from Disney. We are hoping we are going to save money anyway we do it.

saving money is generally the advantage to buying resale. buying direct is definitely faster.

if you buy resale and submit the contract to ROFR after 3/20/2011, be aware that you will not have the option to trade out of the DVC resort system for cruises or wdw resort hotels (like the GF). these trades are generally pretty expensive and not worth it, but it's an issue for some.

but if you buy prior to 3/20/11, you will have the same membership rights as a direct purchaser.

 

[ShellyL]

What is ROFR and I am not understanding the whole 3/20 date

 

[juncker]

I'm new here and just closed on a 160 point SSR resale. I'll share with you my thought process about how I approached the question.

Originally, I approached Disney directly and was interested in Bay Lake ($120/point at that time). We got their official DVD and promotional material that helped explain their view. Even if you decide on resale, I would request their official information.

I should also note that our decision and research was completed before the recent changes in resale not being able to use DCL, ABD, etc... Regardless, this wouldn't change my decision.

The bottom line to all of this is that at the 7 month mark, points are points. I didn't see the value for being almost twice expensive going directly through Disney, so we went re-sale. We're usually not big at travelling during busy periods (Thanksgiving, Xmas, Easter, ...), so we didn't really need the 11 month window to book in. If we ever want to travel during those times, I'll make an 11 month reservation for Saratoga. I may try to change it at 7 months, but would be happy at SSR if it doesn't work out. Other than that, my points at 7 months are going to be the same as if it had been through Disney direct.

When looking at the price of points at the different resorts, along with annual maint costs and length of contract term, we figured that SSR seemed to be the best value. The one real downside of going resale is that it takes time and waiting (about 2 months) to get through this process. It really was painful, but when I'm talking about saving 5 digits, it's worth it to me.

The one message that keeps being repeated on these boards is that you should not buy where you would not be happy at staying. If the unofficial benefits are ever removed further, you could be stuck with staying at only your home property. I don't expect too much of this to change, but with this kind of money you better ask yourself if you're OK with that.

The one red flag that you raised with your comment is that you like to stay at the value resorts. You may not be saving very much money (if at all) by going with DVC. These are premium resorts with lots of room/ammenities. They certainly are nice, but don't come at Value resort pricing.

I would recommend that you poke around on these boards and look at other opinions as well. You'll get a better feel for reality here than talking to Disney salespeople. Good Luck!

 

[ShellyL]

We have been staying at the Values because that is what was the best bang for our buck then. We just came back from AKL and don't want to stay at the Values any longer. Our children are not only getting older they are getting bigger and we are thinking we are wanting the room also. We liked being at a resort that was relaxing and not running off to the parks eveyday that is another reason we were looking at DVC for the value of the stay.

 

[sleepydog25]

What is ROFR and I am not understanding the whole 3/20 date

The primary advantage to buying resale vs. buying direct is that you'll pay much less for a contract buying resale. However, it will take a few to several weeks before the points you buy resale get into the system to be used. Buying direct from Disney speeds up the process because once you agree to a contract, the points are almost immediately available in the system. Beyond those issues, there is very little difference. . .with one big exception--20 Mar 11.

Disney announced a few weeks ago that any resale contract that isn't submitted for ROFR by 20 Mar 11 will not have the entire set of privileges that a direct purchase contract will. (ROFR means "right of first refusal" which allows Disney to purchase the resale contract themselves if they feel the resale contract offer is too low. Disney hasn't been ROFRing hardly any contracts of late, however.) Any contract that is submitted to Disney by 20 Mar 11 does retain all privileges. Now, these privileges are as a pp mentioned--you can't trade out point for a cruise or Disney resort hotels beyond those in the DVC collection. However, using your points for these options has never been a good use of points from a financial aspect since the number of points needed for either one is quite high. Still, if you buy resale after 20 Mar, this option would not be available to you. If you plan to just use the points at DVC resorts, then the changes won't affect you.

Keep in mind a few other issues. DVC is a good value in the long run, but not so much short-term. If you're reasonably sure you'll continue to go to WDW every other year for the next couple of decades or so, then DVC can save you accomodation money, no doubt. But, you will have to pay maintenance fees every year based on the number of points you own. As another suggested, purchase where you want to stay since that's the only "guaranteed" resort you can get at 11 months out. All other resorts that aren't your "home" can't be booked until 7 months out.

This isn't a decision to be rushed into without looking at all the various aspects first, and there is plenty of material on these boards to help. However, if you determine resale is the way to go, then the clock is ticking. Good luck!

 

[ShellyL]

would you be able to use your points if you buy resale at the other Disney Destinations across the country if you purchase after 3/220?

 

[sleepydog25]

would you be able to use your points if you buy resale at the other Disney Destinations across the country if you purchase after 3/220?

I'm not sure what you mean by "Disney Destinations," but I've reprinted the Disney announcement regarding resale contracts from the Timeshare Store website:

Disney Vacation Club® has announced a new policy that limits access to certain Member Getaways exchanges for Ownership Interests purchased on the secondary market (also known as the re-sale market).

Under the new policy, Members who purchase from anyone other than Disney Vacation Development, Inc., on or after March 21, 2011, will not be eligible to use those Vacation Points to make reservations within the Concierge Collection, the Disney Collection or the Adventurer Collection. Those Vacation Points will instead be valid only for reservations at Disney Vacation Club resorts, as well as for RCI® exchanges, Club Cordial and Club Intrawest.

The affected collections are special Member benefits programs offered by Disney Vacation Development, Inc., and are not part of Members' Ownership Interests. That said, Members who purchased on the secondary market prior to March 21, 2011, may use those Vacation Points for all Member Getaways.

Note that the policy doesn't impact banking, borrowing or transferring Vacation Points. All Members will continue to have the ability make such transactions, regardless of where they purchased their Ownership Interests.

 

[ShellyL]

Thank you...that hleps!

 

[Sandisw]

To be honest, unless you are in a hurry to buy or want to start out with a small contract, which are difficult to find on the resale market, buying through resale is probably a great idea.

Most resorts are now available on the resale market (except Aulani) so you should be able to find whatever home resort you are looking for.

When you buy resale, you don't have quite as much flexibility as with Disney to pick the exact number of points and UY that you want, but with so many resale contracts out there, with time, you should eventually be able to find something that fit your needs.

With Disney, you will be a DVC member immediately. You will probably be able to book a reservation in 24 hours and your guide may be able to even help you get something that is not available for current members. In addition, you can put your purchase on a Disney credit card and get 6 months, 0% interest, up to $10000.

If you have to finance, getting it through Disney is easier and it won't show up on your credit report.

However, for all the pros I have listed above, you are going to pay anywhere from $30 - $50/ppt more to buy the same thing. If it is a small number of points (and Disney has been allowing new members in with less than 100 points), then the difference may be small enough to outweigh things.

But, if you are talking 100 + points, you are talking a good amount of money that may make the extra time frame via resale worth it.

When you buy resale, it will take about 6 - 8 weeks to be a member. Any offer you make with a seller does have to be approved by Disney via ROFR. If they decide your deal is too good, they can buy the contract and you are back to square one...of course, other than BCV, they have taken very few contracts back this way in the last year.

Good luck~

 

[KGD]

We just passed ROFR on a VWL contract. When we were looking into buying direct vs resale, we realized that there was no difference in the benefits if purchased prior to March 20. We weren't sure whether we would want or need the other benefits like the cruise in the future, so we decided to speed it up a bit and look into resale for a contract that fit our budget and amount of points that we needed to stay in at least a 1br annually.

When comparing the amount of points we could afford buying direct, it became a difference in staying in a 1br every 18 months or so for a week vs. buying resale and being able to stay in a 2br for 10+ days annually. It just didn't make sense for us going direct. We didn't need the points in the system quickly as we are not going back to WDW until this Christmas. So the savings was WELL WORTH the wait for ROFR and to close.

We did the math, spreadsheets, etc and figured it would take about 5-7 trips to break even vs paying rack rate in the same room. And personally we need a 1 or 2 br now and cannot see us paying $500-700 per night for a room. Makes a week long vacation in the neighborhood of $7000. So DVC allows us to have an affordable vacation at fantastic resorts. In addition, if we ever needed to sell, then hopefully we could regain some of our initial investment.

Good luck in your decision! We are looking forward to our first vacation as owners!!

 

[bwvmary]

I have never seen any advantage to going direct, assuming you are not financing. I would say to be careful to get the same use year if you can, if you are adding on. That is easy when you add on direct, but it all depends on inventory when you add on through resale.

 

[khmiller]

Newbie here. Is there any other reason to get the same UY when you add on other than it is easier to manage the points?

 

[billmac50]

I've purchased both direct and resale. Initially when there wasn't much of a spread in price, it made sense to go direct becuase I got the uy and exact number of points I wanted and DVC paid the closing costs. But I just purchased two additional resale contracts that had the use year I wanted. They weren't the exact number of points I wanted, but for the $24/point difference I can live with it.

I feel if you don't stick with the same uy, it will become difficult to make the reservations you want when you want. That is unless you get into banking and borrowing from different contracts. It can be a personal administrative mess. Just my opinion.

 

[chalee94]

Is there any other reason to get the same UY when you add on other than it is easier to manage the points?

as the other poster said, it's a hassle. different banking windows to keep track of might add to the risk that you would forget to bank.

but if you are organized and want travel to wdw at different times of the year, it could be a benefit as you would never have to travel in the last few months of your use year (which is the issue with use year - for example, if you have a dec UY and travel at the end of it in nov and have to cancel, you may run into trouble.)

but remember that UY month has nothing to do with when you can call to book - that is always 11 months out at your home resort.

 

[PrincessPaczki]

Hi ShellyL, Thank you for posting this question. All of the answers you received has really helped me to understand the DVC buying process better.

 

[monami7]

We saved $4800 by buying 160 points through reale at VGC.
They were $29 pp cheaper this way and we got an extra year of use out of it.

We are through ROFR!!!!!

But we are still waiting on the closing and the '09 points expire May 31st. We are going down May 9th so we want to get a room booked ASAP! OKW or SSR will be fine for us but we want to at least get it booked! LOL

The waiting is annoying but it is such a huge difference in price for us that in the long run this was the best thing for us.