Add-on thru DVC vs. Outside Broker - Pros/Cons?

[DVCinderella]

What are the pros/cons of doing an add-on through DVC vs. an outside broker resale? It seems that brokered resales are less expensive (price per point), but are there any other “hidden” costs?

For those of you who have done an add-on through an outside broker, do you find that your DVC sales rep now treats you differently (because you didn’t purchase the add-on through them)? This was mentioned in the following thread, and I’m just wondering if others feel the same:

http://www.disboards.com/showthread.php?s=&threadid=162051

Can anyone recommend a reputable timeshare broker for DVC?

 

[drusba]

The following are considerations:

1. If you are talking about an add-on for low points, you will rarely find those in resale. Most contracts are for 150 points or more. Sellers have a disincentive to sell low point contracts (which are previous add-ons they bought) because brokers tend to have minimum fees, like $1,000, to sell any contract regardless of number of points. The resale market is best for those buying 150 points or more.

2. Disney pays closing costs, resale buyer in market does unless negotiated otherwise. Those costs tend to be fairly fixed (in the $400 to $500 range) regardless of whether you buy 25 points or 1000. Thus a 50 point resale contract at $65 a point will actually cost you close to $75 when you add closing costs.

3. If you need financing and have to get a market timeshare loan for the resale, you will find that the rate is usually 2 to 3 points higher than what Disney is offering. That difference in finance charge must be considered to determine a true comparison--that $65 a point resale could actually end up costing you more than a $75 per point purchase from Disney when you consider differences in finance rates.

We have both sales from Disney and resales and Guide has always treated us with same attention and courtesy.

The two most mentioned brokers on this site are at www.dvc-resales.com and www.atimeshare.com

 

[DVCinderella]

drusba,

Thank you for your informative response!

 

[Ed T]

We bought originally from Disney in 1994. We also bought a resale in 1999 from Jaki Apetz at A Timeshare Broker 888-345-2622. She was great to deal with and very low key. As for our sale guide treating us any differently each visit I make to WDW I go by and see him and he makes time to talk and of course wants to sell me more points. We talk on the phone as well. If you run across your sales guide treating you different because of you buying a resale then they have a problem and you should request another guide.

Good luck

Ed
DVC 1994

 

[ripleysmom]

DVCinderella, one other point that wasn't made is that if you buy directly from Disney you can make reservations right away. If you buy a Resale you will have to wait until closing to be able to make a reservation.

 

[Caskbill]

Not mentioned yet is to be sure to compare any banked or borrowed points in a resale contract.

If points have been banked from a prior year, that's a plus for the buyer, but the seller will probably want reimbursement for the maintenance fees already paid for those points.

If the contract has borrowed points on it, that's a negative for the buyer. The buyer could also wind up paying those maintenance fees later when they come due, even though he never got use of the points himself.

Banking and borrowing must be played heavily in determining the true cost of the points, just as adding in closing costs affects the true cost of the points.

When purchasing from Disney, use year can be important as in one case you may wind up getting more points one way then another. Example, suppose you purchase in July but wind up with a Feb use year. If they gave you Feb 2002 points that's a plus. If you had to wait till Feb 2003, that's a minus. Not to really worry for now though as the actual use year sale month will probably stay well ahead of the calendar month for some time to come, based on the sales figures I have heard.

One final plus, Disney will pro-rate dues the first year so the year you purchase you will receive a break on your dues. You will receive a full years points, but only pay a partial year's dues for them. (The 'break' depends on the month you purchase)