Am I crazy to overpay for DVC?

[Rpsemont]

First a little history:

We have stayed at DVC the last four trips by renting points and really loved it (it helped that we rented for $8/point) We have a small rental property for sale and decided to target some of the proceeds to buy some points (150) And we knew we wanted BWV. The rental property was originally supposed to close in June, then August and now September. Needless to say I have been watching the resales since May (actually I've been watching them since Feb, but that's another story) I even made an offer on a resale last month, but had to withdraw it when the closing on our rental got postponed. So to say I'm really, really anxious to own is a serious understatment!LOL!

So with the most recent round of promotions (buy now, no money down, pay later, free vacation, etc ) I inquired into SSR. But we really wanted to own at BWV so...
Well, lo and behold, my DVD sales rep calls and offers me BWV at $89 point! $500 down and close by late Sept, or 10% down and finance the balance. I discussed it with DH and decided that the quicker closing might save us the difference in the cost over resale by getting us points quicker and then we wouldn't have to rent for the next two trips. And we'd get a contract with full 2004 points and we'd not have to worry about ROFR and we'd close quicker, and we'd close quicker (Just a little anxious, huh?)

So to where we are now, - I've paid my $500 Deposit, I got my contracts with a temporary membership card, I've mailed away the contracts, I've found out there's NO availability for our November trip (but have waitlisted us) and have already reserved our Feb trip (vacation week) and I'm watching all those that are passing ROFR and thinking I'm overpaying by $1000-$1500 and wondering if I should exercise my right to cancel within 15 days (which would mean by Feb reservation would cancel) and just learn to be more patient because in the end I'll save a ton of money (to me $1000 - $1500 is a ton of money) Of course, if the November waitlist comes through, we'll save the $500 we're currently paying for lesser accomodations (all star and POR) and if we didn't close a resale until October or November, we might not be able to get our Feb dates, so we'd have to pay then, too.

So what would you do??

 

[ErinC]

Money means a lot to me. $1000-$1500 is a chunk, but I'd do the sure thing. In the scheme of things, I would want to know that I had my points. With the way DVC is exercising ROFR lately, you might not get anything for a few months, and then you might miss out on both of your ressies. The waitlist works for a lot of people, stay on it, and check with MS on a regular basis. Sometimes, things magically apprear when you call. Good luck with your decision, and I hope it all works out with your other resale.

 

[patsal]

Considering your circumstances I'd go with Disney. You want the points, you can finance until your other property closes, the points are available immediately for your use saving you over renting--you would have spent near that for the two trips. Once you add in postage to the resale (everything is supposed to be overnighted--it costs a ton) and closing costs as well as the chance you may have to continue looking as a result of ROFR, points may not be available on the contract you choose, you may have to pay dues on points that you can't use becasue they have already been used etc. it really starts to narrow the savings down. When we were going to buy resale we found that the savings was really closer to $500 on a 100 point resale. Not worth the hassle. If you have time and are able to wait it out, than resale is a great option. Just be prepared for ROFR and be ready to start all over again.

 

[ClarabelleCow]

I'd do the Disney route, its a guarantee, resale is not a guarantee, who knows if you could find what you want, and it may be stripped, so you would have to wait to use your points or borrow. You can finance it wasily with Disney, and when you sell your vacation home, just pay it off. Plus your getting exactly what you want. too me that would be worth the extra money. I came close to doing a small add on at OKW during my use year. But decided to go the Disney route and wait, yes, I'm paying a little more, but I'm getting exactly what I want!!!

 

[Yensid_MD]

The most important thing is that you are getting where you want to own. If you factor in the 2004 points I think it actually lowers your overall point cost, but I am sure a more experinced DISer will explain this.

 

[Cruelladeville]

Your cost isn't actually that much more by going Disney, if using the points this fall is important to you, and you don't want to wait. You could get a resale for about $76 per point, but maybe no current points, plus $500 or so for closing, waiting for around 3 months to be able to use it, and you have to have the cash available up-front. Disney's cost is complete, and you can use the points for a ressie now. I think you did the right thing, too.

 

[jel0511]

I was in a similiar situation as you. I was in the process of buying a BWV resale though (happily I must add) when my add-on came through Disney. It was the same use year as my other contracts (the resale wasn't) and the points were available immediately. My resale didn't come with 2004 points, remember that, you might find a resale but it might not have any points available for the ressies you want. We ended going trough DVC mainly for the ease of it. We didn't finance, and yes we paid more. We rented the 2004 points (we didn't need them) and our final price is $79 per point. Our resale was about $75.50 per point after all costs. We were able to get 2% cash back for our DD's college account by charging it to our CC, so the real difference ended up being a couple hundred dollars. Worth it in our opinion. Even if we hadn't rented the points, and the difference had been more, I still would have gone with DVC. Since buying a resale isn't a done deal until you get through ROFR, and there is always that possibility of you losing. We took the sure thing, and are VERY happy!!

 

[RuthnPaul]

My take is that if $89 is the going rate through Disney these days, then are you really "overpaying"? Compared to the resale market, you might be! However, the immediate availablility of the points, no ROFR, Disney financing, etc could easily be worth the difference in price. Although we have been fortunate enough to pass ROFR several times, most recently in August, I don't blame anyone right now for being skittish about going through that process these days! Sounds like you have the financial means -- good luck with your decision!!

 

[CarolMN]

I also think you should keep what you have. FWIW, I don't think you are overpaying - IMHO, you're absolutely not "losing $1000 - $1500" by going through Disney.

Others have mentioned closing costs and postage costs. (Subtract from Disney's price to get a better apples to apples comparison). But more importantly, it's dangerous to assume you will get a full allotment of 2004 points by going resale. Many (if not most) of the available contracts are "stripped" - i.e., current year and some/all of the 2005 points gone. You may wait a long time to find a resale contract for BWV that means your needs.

I'd value the 2004 points from Disney at $10 each (average price to rent them). If you are buying the minimum new contract amount of 150 points, that's $1500 right there you can "subtract" from the Disney price.

You also get to prorate 2004 maintenance dues. That's negotiable if you go resale.

And there are intangible benefits (some of which already mentioned) - You get to be added to the waitlist for your Novembr trip right now and you already have your February trip booked. Can't guarantee either of those will happen with a resale. You can take advantage of Disney financing unitl your other property sale closes.

To sum it up - You didn't do the worng thing! So quite second guessing yourself!

Best wishes -

 

[mydogdrew]

I understand your situation - it's a tough call. Earlier in the summer I would have suggested the resale route as $70 passed regularly. The only thing I would have pursued more would have been getting a December UY where, if successful, you would have received 2003 points as well (with no dues). Renting these 2003 points could bring your cost down to under $80 - about the same as typical resale with closing costs. A point that I have had very little success conveying in the past is that that extra year of points now (with no dues) is worth a whole lot more than 12 extra years way down the road (where you will still pay dues each year). You might ask your rep if later UY is available - it might be worth the effort.

 

[SoCalKDG]

Just giving you an option.

Timeshare Store

There is a 150 point contract at BWV for $78, the nice thing being 288 points are avail. in March(138 were banked). I'd offer 76, it will pass, and you save some money and start with a good chunk of points.

 

[LisaSt]

Stick with Disney you have no closing costs and no waiting much easier IMHO.

 

[puffkin]

With the situation of waiting for your rental to close, I would stick with Disney as well. You may overpay by a couple of dollars, but the hassle and worrying and waiting are gone.

 

[tjkraz]

With regard to your November waitlist, don't lose hope yet. I've heard that a fair number of folks will cancel right at 31 days, which is basically the deadling to keep points out of Holding.

Just make sure you are waitlisted at ALL of the resorts (beggars can't be choosers) and also know that the waitlist resets itself at 30 days. You'll need to call and put yourself back on the waitlist.

Also consider using your points at the other WDW properties, if available. Even though it's not a particularly economical way of using your points, it's better than paying cash for the same stay.

 

[LIFERBABE]

If time is not on your side.

It looks as if the resale market has responded to the price increase, as there are alot more contracts priced at $76 and up.

Just giving you an option.

Timeshare Store

There is a 150 point contract at BWV for $78, the nice thing being 288 points are avail. in March(138 were banked). I'd offer 76, it will pass, and you save some money and start with a good chunk of points.

Just to expand on this option. The banked points on this contract are actually 2004 points, so you are not receiving a full allotment for 2004 with this contract. You would have 300 points available with DVC.
If you offered $76, paid closing, paid MF on 138 points, your total per point would be $83 ppt. plus associated fees. So your savings is down to $850. With your 2 current trips planned that is easily covered.

 

[Rpsemont]

Thank you! Thank you! Thank you!. I knew that those who love and own would be the best to give me support at this time of second guessing! (It's such a big expenditure for us, either way)

Just make sure you are waitlisted at ALL of the resorts (beggars can't be choosers) and also know that the waitlist resets itself at 30 days. You'll need to call and put yourself back on the waitlist.

Actually I waitlisted day by day (2 day minimum) at BWV, BVC and OKw. Thanks for the heads up about the thirty days - I'll put that on my calendar. I decided to skip SSR and WLV because their point values are higher (I don't mind using the higher to be near Epcot during F&W.) I figure my per point cost (incl MF's) is about $6.60 each, so if I chose a non DVC at 24 or so points per night, that's costing me $158.00 night. I have reservations at AS Sp for $61.60 and POR for $94/night). We'll just have to rough it. If none of November comes through we'll use more points in Feb, so I don't need to worry about using all the points up. Plus it's a June UY so I can always bank some.

Should I continue to check in with Member services between now and thirty day mark? I hate to be a pest, but don't want to loose the opportunity. As it is I'm calling CRO every couple days to see if we can get the reduced rate rooms at a moderate for more days of the stay. We defaulted to AS Sp because there were none of the $85 rooms for the first few days of our stay at a moderate.

 

[Disney Doll]

Also consider that you are amortizing that $100-$1500 over about 30 years.