Discussion in 'Purchasing DVC' started by K1226M, Mar 1, 2013.
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I agree..when buying such a small amount, the price difference is small enough that it is worth it to just be able to get what you want. When I wanted a few more BLT in 2010, that is what I did and I used my Disney Visa to buy so I got the reward points and 6 months of no interest which made it nice. We have a June UY as well and I agree they are hard to find.
I agree, I have a August use year and had trouble finding a 25 point contract. Gave up and buying direct. Price difference isn't that much.
For any non-trivial purchase, I don't think there is any reason at all I would buy through Disney. The commonly given reasons are:
* Can use your points right away, no waiting. But, even if it took an extra year to get the contract you want, you could just rent the points for that extra year's vacation at $11ish and still come out far ahead.
* Can use for DCL, ABD, and the Disney Collection. But, you'd do even better by renting out the points and using the proceeds to book on cash nearly every single time.
* Can finance more easily. Personally, I would never finance a DVC purchase unless I had some sort of leverage opportunity---and Disney's rates do not leave much room for leverage.
For a minimal add-on, I agree with many prior posters---it might not be worth the hassle to go resale.
NOPE, HE IS WRONG. The only thing they have to let you use is your home resort. Will they do that, probably not but they can
A question about them extending the contracts, if they did so for BCV/BWV do you have to pay an additional fee for that and if you didn't pay would your contract still finish in 2042
Yes...absolutely. There wouldn't be any reason for Disney to offer the extension if they weren't going to charge more.
The initial offer was $15 per point to add 15 years to ownership at Old Key West. After that initial offering period the fee rose to $25 per point.
At the time the extension was offered, those with a background in economics valued the extension at about $6 per point. People were paying dollars in 2008/2009 for an asset they could not use until 2042.
Disney charged quite a bit more than the extension was really worth.
You would have been better off investing the $15 per point and letting it accrue interest over the next 30+ years. Then the proceeds could be used to pay for cash trips or to buy a short-term resale contract at some other DVC location.
Right now if you look at resale listings, you will see extended and non-extended contracts available for sale. The extended contracts are NOT going for $15 more per point than the non-extended ones....much less the $25pp.
Correct, that's what they did at OKW, you paid to extend, all others have the original contract termination date.
Thank you. Seems a bit of a no win to extend then. Think I'll stick to looking at SS which has slightly longer contract, will probably be too old to travel but at least can pass it on.
One other reason to buy direct (although not really valid at the moment) is lack of availability at a new DVC resort. We own at BLT and when we purchased the only option was direct, there just was not a sufficient number of contracts on the market resale, and those that were there were priced at near the same level as what we purchased for direct.
With the pending price increases the difference won't be so small. I've been thinking of adding on 50 points at SSR. and was going to go direct. Now I will add 100 resale for the same price as 50 direct. Now that i'm looking for a 100 point resale contract it should be easier to find and cheaper per point than a 50.
Have you seen the resale market lately? I just checked the 2 big sites inventory is slipping. Nothing under 150. Tons at vero and Hilton head. Forget about any of the good ones.
As a matter of fact yes, TTS has an October use year (mine) for 100 SSR points with the full 100 coming this October for 69 per point.
Oh, if I had the cash...
I seem to have borrowitis & am now experiencing a dearth of points.
Well it's stripped of the current use year of points. What is the value of 100 2012 points. Figure 11 on a rental so your at 80 on a full contract. Add in closing say 400 that's 84 for a non stripped contract. So your risking 16 points about own the wait list price is it worth the risk?
What's SSR selling for as a direct add on?
I'm more simply lamenting about my lack of points rather than actually shopping for an add on. We own 100 @ BLT & 100 @ AKV. October use year. I think I'd like another 100 points somewhere with maybe a September use year.
How do you figure 16.00PP more for direct??? If she pays 69.00 and closing that is 72.00 PP and she will get 100 -2013 points. Buying direct it is 110.00PP now thats what is listed on the DVC site unless I am missing something PLUS closing cost so now you are up to 114.00 and she would have 200 points immediately say she rents 100 of those it still only brings her cost down to 103.00PP which is actually 31.00PP difference or 3100.00 - lots of park tickets and meals a savings I would take all day long!
Simple if you have a use year of September like in the example and like I have I am still in the "2012" year. So she only gets 100 points in September 2013 the current use year points are used. So if you buy right now from Disney they give you 2012 points. So in theory in September 2013 she would have 200 points. So I tried to put a value on 2012s 100 points. Since they are the most valuable. So 69 plus closing at 4 and can be higher then 10-11 for the used points I got a real value of 84 per point. I bought my first via resale I know it's a better deal but in small contracts the numbers get iffy.
While I agree that the numbers get a lot closer with smaller contracts, I do not think that this particular contract is a good example to illustrate this. In my opinion, the edges have been blurred on both sides (high asking price for the resale contract combined with inaccurate assumptions about direct costs). I think it's important to remember that resale offers the greatest opportunity for savings, but you still need to find a good contract in order to capitalize on that opportunity.
I listed that contract just to show that there are 100 point contracts available that would meet my needs. Also the ASKING price is 69. Of course there are always multiple factors to consider when looking at a resale contract. I just got back from Vero Beach and will not be heading south until next Feb again so I have no need for 2012 Points. I have NO interest in ever renting out points. I would never pay more to get points I'd have to rent out to even out the price difference.
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