What would you do?

[Wislodgers]

We own only at VWL. Went on our first trip the end of January for 10 nights. 4 nights in a studio and 6 in a two bedroom. We had an absolute magical time. Anyway, what I am wondering is.........We hopefull will have our DVC paid off in 1 1/2 to 2 years. We want more points. We could afford to add on now(if available) through Disney a smaller add on (100 or less points), or pay off our DVC and add on a larger resale contract after we get our initial paid off. DH is thinking it is better to wait, and I am leaning that way. Our guide has called a couple times inquiring as VWL is selling out. I told him we may wait a couple years and purchase a resale. I have to say his tone changed(I know he is a salesman) and really wanted to caution us on resales. Any quality insight from fellow DVCers?

 

[CRobin]

Basis the number of listings on the popular sites, today is a good market for resales if you're a buyer, so that's one plus. Resale prices don't appear to follow any particular trend, that I've been able to discern.

Do you want to do your add-on at VWL? If so, then remember that the resale market will be pretty skinny for that property for awhile, due to it's size and newness.

The only real risk you run with a resale is finding what you want, when you want it, and at a deal you're comfortable with.

Otherwise, I don't know why your guide would "caution" you on resales. We have purchased two and had no problem whatsoever. I have never met my DVC "guide", nor communicated with him other than one voice mail.

 

[BobBrazeal]

Just one of the factors that you need to consider on a resale is the closing costs. This is pretty much a fixed $450 - $500 and is usually paid by the buyer, although everything is negotiable on a resale. On a smaller contract this can add signifcantly to the per point costs. So say for 100 point add-on, if you had to pay the closing, add $4.50 to $5.00 per point to what you are paying before comparing to the cost from Disney.

Of course, on larger contracts, this is a smaller percentage of the total costs and it is always possible that you might be able to find a resale where the seller will foot the closing costs. I did.

One other is the number of points banked or borrowed on the resale.

 

[BobBrazeal]

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[MulanMom]

It's too bad DVD won't allow you to refinance when you want to add points to your original contract. We were in the same situation when we first purchased. We put down a lot of cash and financed for 3 years. Then we wanted to add on points, but didn't want an add'l payment. Perhaps an alternative is to get a home equity loan which would pay off your existing contract and new add-on points? Disney's finance rates seem pretty high. Maybe there are other types of loans, (personal, unsecured) that you can use which the interest rate is the same as or lower than Disney's.

We ended up passing on the point add-on long ago. What was available via resale was usually more than what we were looking for. Fortunately, when Commodore House was torn down and new buildings constructed at OKW, we were able to purchase the add-on, in the amount we wanted and the same use year as our original contract. I don't think that would happen with VWL, though!

You might want to contact your DVC sales rep and see if your use year is still available. If you have to purchase resale anyway, then waiting may be your best option.

Sharon

 

[BobBrazeal]

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[chris1gill]

Believe me adding a resale isn't that easy... unless you will be adding on 150 points... We've been waiting for a small BWV package for a LONG time, since the resort sold out actually...

Having gone through this, I'd say DEFINITELY add on now... Also, don't forget small resale packages have a closing cost of $400.00 & their point costs are very close to Disneys price... It would be much better to add on now IMHO....

 

[Wislodgers]

Thanks for all the input. I should have clarified better, if we added on now it would have to be a smaller package, but if we wait until DVC paid off, then we would add on 200+ points(whatever we could find). It was so easy buy though Disney, but I would love to add on at VWL after we are all paid off. I guess we will see what is available when we are more in the market!

 

[Ed T]

Well if you're talking 200+ pts I would definately wait on a resale. The sale guide of course is going to try to sell you and would hate to lose the sale and would steer you away from a resale. The right resale with the right seller can save you some seriously money. IN no time you will start seeing resale coming up on the resale boards. Keep a check in with both of the resale brokers.

Ed
DVC 1994