Value of resale over direct

Discussion in 'Purchasing DVC' started by Tunseeker1, Apr 20, 2012.

  1. Tunseeker1

    Tunseeker1 Mouseketeer

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    I have been looking at getting a small contract in the resale market and I was wondering where the value in buying resale is.

    I want to have some points so that I can spend every other year at the beach.
    When I looked at the prices of 25-50 point contracts I don't see that much of a difference buying direct.

    I saw a listing for 30 points at Hilton head, priced at $60 a point with no 2012 points and 400 something in closing.

    I made a fair offer and the response was $60 firm.

    For 30 points you pay $7 a point in closing and you have no points until next year.

    Disney sells hhi direct for $80 a point for min 50 points and you get last years points.

    Total. contract is under $4100 and you can finance if you need to.

    Resale would cost $2300 for 30, and if you wanted to go this year you have no points.
    Direct is 4100 and this year you have 100 points to use.

    You could rent the 100 points And make 1200 bringing the total cost down to 2900.

    I understand it's mike math but it doesn't seem like the resale on 25-50 points makes sense when you look at dues and closing fees on top of the price per Point.
     
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  3. permavac

    permavac Have you seen this chicken?

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    I think the reason small contract owners get a better price for their small contracts is because you can't buy anything less than 100 points from Disney (if you're not already a DVC member). A short while ago someone made it seem like you could but I haven't heard of any non-DVC member actually having bought a less than 100 point contract directly from Disney. Someone correct me if I'm wrong...?

    So, for people who are not already DVC members - you either have to buy 100 points from Disney directly and pay the high prices or you can buy a less than 100 point contract via resale and the lower the # of points, typically the higher the asking price, since owners of lower point contracts aren't usually desperate to sell (their yearly MFs are not the financial burden of much larger point contracts). In the end, if you decide you want a better savings by buying resale then you typically need to buy a contract with higher points = a more motivated seller to drop the price.

    Terri
     
  4. JimMIA

    JimMIA A little Miami humor...

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    If I wanted to buy a timeshare to go to the beach, I would do a LOT of research into different systems and almost certainly would NOT buy DVC.

    Other systems offer better resorts at better locations for a fraction of the cost.
     
  5. Dean

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

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    For current members there likely isn't any value to buying resale at around 50 points or less. Non members will pay premium prices because it's still cheaper to pay higher for a small contract to get into the system which they can't normally do retail. I agree with Jim that if going to the beach is your goal, EOY I'd consider non DVC quite seriously. For HH, I'd recommend the top 3 Marriott's, for East Coast of FL I'd also consider Marriott among others. For MB Bluegreen, Marriott and Wyndham are good choices.
     
  6. Tunseeker1

    Tunseeker1 Mouseketeer

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    Disney is now selling new contracts with a 50 point minimum for all Properties.
     
  7. Tunseeker1

    Tunseeker1 Mouseketeer

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    I understand that dvc is not the best option, but going down to Disney then Vero is a good option and it doesn't lock me into the beach every year when I still have toddlers that love Mickey. I just want the 11 month booking window.

    I'm very familiar with Marriott as my brother worked there for 15 yrs and my sister for the last few.
     
  8. Dean

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

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    Your post was about staying EOY at the beach. I would suggest that Marriott or the others don't lock you in either and give you a lot of options that DVC doesn't. IMO, DVC plus a non DVC option can be the best for most people.

    I wasn't aware DVC was selling 50 points to non members for all properties but even if they do, they still charge closing though it may be less than buying outside of DVD retail.
     
  9. permavac

    permavac Have you seen this chicken?

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    Wow - I thought this was just a rumor. Did they ever announce this?

    Terri
     
  10. Tunseeker1

    Tunseeker1 Mouseketeer

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    It's not a rumur. I asked them they said ok. They have every property according to what I was told
     
  11. ELMC

    ELMC DIS Veteran

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    I wonder if there is a connection between this new found availability and the run of ROFR'd contracts that has been happening lately.
     
  12. permavac

    permavac Have you seen this chicken?

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    Well, then you make a valid point - for Hilton Head and Vero Beach - maybe. I say maybe because the HHI 30-point contract you referenced is "stripped" (no current use year points) so $60 seems pretty high for an already stripped contract. The bottom line though - that 30-point contract is still cheaper than the 50-point contract. There are some people who are looking to only pay a certain price and will not/cannot do the math to determine which is the better deal. If you only have $2300 to spend, then you can't even consider the 50-point contract direct through DVC. I agree with you that the available points and (maybe more importantly) the lack of ROFR hassle is worth the extra money you have to shell out. But, every contract is different. Not every HHI contract with low points will be stripped, so the gap with going the direct route via Disney will be even bigger. As for the other Disney properties, there are significant savings to be had, for example: Disney charges $115 per point for BWV and I was able to get (in ROFR as we speak) a "loaded" 50-point resale for $65 per point - that's a savings of $2500 - "real" money.

    Bottom line, sounds like if you have the extra money for the 50 points direct through Disney, then that is a better deal for you. Will that 30-point HHI contract languish in the meantime? Who knows? Someone may buy it - not because it's a bargain, but because it's what they can afford right now.

    Terri
     
  13. mjc2003

    mjc2003 DIS Veteran

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    I am confused, where do you want the 11 month booking window, Vero? You started by talking about buying at HHI, then it sounds here like you are talking about combining WDW and Vero which a lot of people do, but I'm just confused as to what resort you are looking at buying.

    Also, you reference Disney "giving" you "last years points". This isn't the case, they are giving you what you are paying for, namely this years points. Tell them you want a February or March UY with 2011 points and see what they say. I would bet you are talking about a future UY, like as in fall, so you are technically in that UY. They aren't giving you anything, but this is a common sales tactic. It's quite often the case that resale contracts are inclusive of current UY points as well, perhaps the one you looked at wasn't this way but many of them do have current UY points. Some even have banked points (which you WON'T get buying direct).
     
  14. Tunseeker1

    Tunseeker1 Mouseketeer

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    Hilton Head is on the way to/from florida from for us when we drive.
     
  15. Dean

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

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    I'm sure you know it's around 2 hours total out of the way, worse on weekends during checkin/check out times for timeshares and worse during rush hour work days. We love HH but I do believe there are better timeshare options there than the DVC resort.
     
  16. Tigger1

    Tigger1 DIS Veteran

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    I love Disneys Vero Beach. It is a small resort and not on a stripe of timeshares as others seem. It is 100 extra mile trip from our already 1400 mile trip one way. But worth the drive.
    I would be also interested in a timeshare on the gulf between Destin and Panama City. This could be a nice stop on the way to Orlando. What do other timeshares have that is similar to Disneys Vero Beach. What do they offer that Vero does not have?
     
  17. JimMIA

    JimMIA A little Miami humor...

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    I'd sure look at other options for what you're describing.

    I'd also take a long, hard look at the DVC points charts linked at the top of this page. 30-50 DVC points really is not enough points to allow you to do anything consistently enough to warrant buying a timeshare.

    I'd take a close look at whether ANYbody's timeshare really would be a wise purchase. You're talking about an annual committment to paying maintenance fees for at least 30 years. To evaluate that, you really have to look at ALL the other options -- regular cash hotel reservations (often available with big discounts at WDW), renting a timeshare (DVC or non-DVC) from an owner, and buying a different timeshare. RENTING a timeshare from an owner is an inexpensive, low-risk way to check out how you like the concept of timesharing.

    If you decide to buy a timeshare, you should be aware that you can buy a very good timeshare for less than $1,000 total (and often much less), including all costs on eBay. And many of those timeshares will offer you much greater versatility than DVC's 11 resorts.
     
  18. pmaurer74

    pmaurer74 DIS Veteran

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    A sales guy told me yesterday that 160 points was the minimum :confused3
     
  19. JimMIA

    JimMIA A little Miami humor...

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    I agree VB is a beautiful resort, but there are many, many better beach venues on Florida's Atlantic coast than Vero.
    For one option, look at https://www.wyndhamvacationresorts.com/ffr/index.do Click on "Explore our Resorts" on the right side of the home page, and then click on the state you're interested in. Ignore affiliates and associates, and look only at the red-bulleted Wyndham timeshare resorts.

    Specific to this question, Wyndham has two resorts in New Orleans, 5 in Destin, and 1 in Panama City Beach.
    All timeshare systems I'm aware of have at least several beach resorts. Wyndham, for example, has about 80 resorts including 6 at Myrtle Beach, 5-6 at Newport RI, 11 on Hawaii, 2 on St. Thomas, etc, etc. And the other systems are probably similar.

    The biggest difference I see in other systems is that they are much larger than DVC, which offers many more resort choices. But in evaluating that advantage, you have to take a close look at WHERE the system has resorts. If they don't have resorts you'd want to visit, they're not good purchases no matter how low the price is.
     
  20. andreadoiron

    andreadoiron Mouseketeer

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    FYI just want to point out that renting your points on this board isn't as easy as it used to be. i rented my points in 2010 with no issues but when i tried to post a rental a couple of weeks ago, my post was declined because you need to have 50 posts spread evenly over 6 months. i had only 8 according to their search engine. now i have points that i wanted to transfer rather than bank but i can't unless i pay a $25 membership fee or have the required posts.
     
  21. andreadoiron

    andreadoiron Mouseketeer

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    be careful with other timeshares. we have a friend that has a wyndham timeshare and bought it originally to go to myrtle beach during april break week. he has booked in the past with no problem however this year something changed and that week was blacked out for him. his choices were add on or don't go that week. disney doesn't have blackouts so if you can get a room, you go.
     

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