ELMC
DIS Veteran
- Joined
- Jul 4, 2011
DVC isn't necessarily governed by inflation. If WDW and Disneyland are better and if the Disney brand has gotten stronger over the ten years, shouldn't the desirability of DVC also gone up proportionately. Markets over ten years should be somewhat efficient so DVC is probably priced right at this time.
I strongly disagree with this statement. If you look at booking with a discount or renting points for DVC stays, then buying direct at today's prices is a losing proposition for the first 15 years or more. That doesn't seem like a good price to me.
I called Disney yesterday about points, the advisor told me when you look at closing costs from external contracts the cost is about the same as buying from Disney, I just can't figure out his thinking. 100 points through Disney are $160 a point, or $16,000, with a $1,500 credit and 4 5 day park hoppers, or I could go through a timeshare website, and get 100 points at $70 a point with closing costs and a total of $7435. The other factor is Disney doesn't do credit checks or financing, or at least thy didnt last time, Disney financing never showed up on my credit report
I know I sound like I'm nitpicking when I object to the term "guide" (or in your case "advisor") but I really do object to the use of that term. It signifies a mentality of the consumer that believes that these people are actually here to help you and have your best interests at heart. DVC salespeople are not advocates looking out for you. They are salespeople who represent a product and get paid when they sell that product. On average they are better than timeshare salespeople from other companies, and there is a range even within DVC. But you would be wise to stop calling them advisors and start calling them what they really are...salespeople.
As for the math, there's a reason why you can't make sense of it. It doesn't make sense. DVC salespeople are using closing costs to try to equalize resale and direct purchases, but recent reports are that closing costs for direct purchases have gone up so that they are now about 50% of the closing costs of resales (about $200). There is no way that a purchase of any size resale contract at any reasonable cost would not be a savings given these numbers. As far as financing your purchase, you should really do the math on that and see what kind of costs it adds to DVC.
if your just adding 50 points good luck finding a resale contract when they come up for sale they are bid on and often get more then asking. you add in closing costs you are not saving that much compared to your time your waiting. i just added 30 points direct cost 3,000 for the add on i got an email blast for 40 OKW points yesterday stripped for like 70 something a point with 400 in closing. when you add it up your not really saving.
You're conflating issues here. Yes it is more convenient to buy a small contract direct (although with the recent growth of the waiting list this is now debatable). It is definitely easier to call DVD and sign up to buy a small contract as opposed to stalking the resale sites and dealing with all the competition. So those points you made are completely valid.
But your other claims about not really saving and the price being equal are simply not true. Even using your example of a stripped contract, the price per point works out to be $85 per point (including closing and adding $11 in lost value for the missing points. An equal direct purchase would be about $102 per point. So you are saving, in this case $17 per point. And this is at the old rates. OKW is now $130 per point, so the difference is actually $47 per point.
So go ahead and make all the convenience arguments you want, because they're totally valid. Talk about how you want the real deal or you don't want to deal with the hassle of resale, because I can respect that opinion even though I don't share it. But when you try to justify the purchase using dishonest figures or comparisons, you lose credibility across all your arguments.