Advantages to purchasing directly from DVC?

[DisneyKidds]

We are going thru the decision making process for a soon to be likely DVC purchase. Besides Magical Beginnings and DVC financing, are there any advantages to buying directly from DVC as opposed to a resale.

DVC is currently selling for $75 a point, which includes closing costs. A resale can be had for $65 a point, with closing costs paid for out of pocket (at much less than $10 a point).

If we were not interested in selling our first years points back to DVC at $10 a point (or were willing to rent them out on our own for the same amount) and will not be financing, why buy from Disney?

When you buy a resale do you get all the membership materials from DVC or do you have to rely on the person selling the timeshare to provide them?

Thanks for any input .

 

[RobDoc]

Either way, you will be treated the same by DVC. A direct purchase will allow reservations to be made a little sooner and there are a few "welcoming" gifts from the sales staff. Resales can often be found at a great savings and is the only way to own at OKW, BWV and soon, VWL.

When looking at a resale, make sure to do the math and include all costs of the purchase- including financing (Disney's is competitive), closing costs, maintenance fees (DVC will prorate the fee from time of purchase) and available points (DVC use years are typically a few months behind the current date and some resales may come with no current points or borrowed points- which will also require maint fees in Jan).

Membership materials will be sent by DVC once the contract is closed (this may take weeks- or months in some cases).

Resale purchases can be a means to save a few dollars with no loss of service- just figure in all costs before making the decision.

Enjoy!

 

[Granny]

DK....couldn't let this pass without my 2 cents!

To me, whether to buy resale or from Disney should primarily be driven by (all together now).....buying where you want to stay the most.

If you've been reading these boards, you'll see that piece of advice posted the most often. It has to do with the 11 month vs 7 month reservation advantage for your DVC home.

Most people seem to either have a preference for a particular theming or at least for the type of place they would like to stay the most (quiet, laid back, high activity area, proximity to certain parks, etc). For my family, we love the VWL theming and the relatively quiet atmosphere. Others like the location and activity at the BWV. OKW owners have a long list of why they love their home the best.

Unless you can honestly say that you don't care where you stay at WDW, you should at least go through the discussion of what type of location will appeal to you the most for the next 40 years. If you end up with a "it doesn't really matter", then by all means, I'd let the financial side make your determination....probably an OKW re-sale with its lower purchase price and lower annual dues.

Again, good luck with the decision.

 

[TnRobin]

I agree with Granny and Doc

Buy where you want to stay (If that is VWL you will most likely need to buy from Disney)

Second - Not all resales are a good deal - look to see if the current has used all of this years and maybe even next years points. You will need to negotiate the current year maintenance fees with the current owner.

The only other thing to point out is that when you buy from Disney, you can make your reservations as soon as you put down the downpayment. With a resale, you must close on the contract first. (minor point but may be of interest to you)


Since you are not looking at financing with Disney (I assume you have a home equity loan or will pay cash- else you loose the IRS deduction for interest)and you do not wish to use MB, there is really no advantage to buying directly from DVC.

Let us know what you decide. Can't wait to welcome you home.

 

[Caskbill]

To stress one of Robin's points, definitely evaluate the 'value' or 'devaluation' of a resale based on the status of any banked or borrowed points. If you buy direct from Disney you probably get current year's points, and then, depending on use year, get new points in as soon as 6-months.

As you stated, on a resale you will pay closing costs. Figure $400 to $500 depending on how many points you buy.

Also on a resale, if there are banked points, the seller may require that you pay the maintenance fee on those points. I.E. reimburse the seller what he has already paid. This is negotiable between seller and buyer, but be prepared. A contract with banked points may not look quite as good if you have to pay another $3.12-$3.80 a point for those banked points.

Disney will pro-rate maintenance fees, so compare the two carefully.

 

[Jimbo]

I'd also like to add that resales can often be "had" for much less than the listed price. This may not have been true when it was a seller's market a year ago. But the uncertain economy has caused the number of available resales to go up, and that means that the buyer has an advantage right now.

We bought a resale in 1997, and it's one of the best purchases I've ever made of anything, anywhere, at any time.

 

[jazzbran]

I presently own at Hilton Head and I would like to add on points at Hilton.

If I purchase a resale, would that come with the maintenance fee?

In other words, would that be 2 maintenance fees for me even though I'm already paying for one?

 

[Dean]

If your asking would you get 2 bills, the answer is yes. An add on through DVC will be essentially part of one contract while a resale would be a seperate contract, additional member number, etc. It's still simpler if it's the same use year but not that big a deal as long as you're organized. Good luck.

 

[jazzbran]

Thanks for answering so promptly Dean.

The resales are so tempting. I see Hilton going @$60.00 via a resale while DVC @ $75.00. An add on would had been great at $60.00 but not at the expense of a 2nd maintenance fee at the same resort.

Thanks again.

 

[RobDoc]

...but not at the expense of a 2nd maintenance fee at the same resort.

The maintenance fees are all computed on a per point basis. Just as a week based timeshare will charge a maintenance fee for each week owned, DVC (and all other point based timeshares)charges it's fee per point. A member who owns 300 points will pay double what a 150 point owner pays.

 

[jazzbran]

Hello WebmasterDoc

Thanks for the info. Therefore, the more points you have the higher the maintenance fee is what I'm gathering from you. I didn't know that.


I will inquire into that resale after all at Hilton Head.