Another direct vs. resale question-with hard numbers!

[familyfirsttimer]

ok, I will try to make this simple

If I buy SSR direct is will be 160 pts * $91= 14650 + closing costs $320 for a total of $14,970 (93.56 per point total)

There is an SSR listing for $85/ptwith June UY for 150 pts(I realize there is a pt difference)
150 * $85 = 12750 + closing cost $450 for a total of $13,200 ($88 per point total)

Why WOUDN'T I go for the resale? I just need your help because my head is swimming with all this information and figures.

I have no trip planned for this year and we travel different times of year so UY does not really play into it.
TIA for your input.

 

[castleri]

Some people find the amount of time to buy resale to be a problem - doesn't seem to be for you and others have had several contracts picked up by Disney so they had to start all over again. If the price is in the area where contracts are passing ROFR and you don't need the points right away you can absolutely save some money on your initial purchase.

 

[jekjones1558]

It also may make a difference regarding banked/current points. If you are looking at the contract from TTS, it looks like there are no 2006 points. I am not sure whether the Disney price might include current use year (2006) points which they might allow you to bank into 2007. Just a thought worth checking.

 

[familyfirsttimer]

It also may make a difference regarding banked/current points. If you are looking at the contract from TTS, it looks like there are no 2006 points. I am not sure whether the Disney price might include current use year (2006) points which they might allow you to bank into 2007. Just a thought worth checking.

Wow, I didn't realize Disney might give you last year's points? I never even thought of that. That would obviously make a big difference. Does anyone know if they are offering something like that now. I have a guide's name and he sent me the big book and all the details but I have not talked to him, I may have to call him and find out.

 

[jekjones1558]

Call your guide. I don't know the details of the $91 price. It may include giving up the 2006 points. Someone else here on the DIS who is following SSR pricing may post. It may also be that there are no June use year points to sell now, if June is what you want, but other use years with 2006 points may be available. All of this can be answered by your guide. Good luck!

 

[LisaS]

Wow, I didn't realize Disney might give you last year's points? I never even thought of that. That would obviously make a big difference. Does anyone know if they are offering something like that now. I have a guide's name and he sent me the big book and all the details but I have not talked to him, I may have to call him and find out.

Disney does not give you "last year's points", they give you the current Use Year's points. If you purchased a contract with a Jun, Aug, Sep, Oct or Dec UY, you would still be in your 2006 Use Year so Disney would start you off with 2006 UY points. If you purchased a Feb, Mar or Apr Use Year contract, you would be in your 2007 Use Year and Disney would start you off with 2007 UY points. Disney has been allowing people to bank those 2006 UY points, even if they are past their banking deadlines.

Another thing to consider when comparing a particular resale contract vs. buying from Disney is the 2007 dues. Disney pro-rates the 2007 dues, starting from the day you get your points in your account. With resale, the seller often asks the buyer to reimburse all of the 2007 dues, though this can be negotiated.

So be sure you know all of the costs associated with a particular resale contract (cost per point, closing costs and dues reimbursement) and be sure you know how many banked, current and next UY points you would be getting. Then you can make a fair comparison between buying from Disney and purchasing resale.

 

[familyfirsttimer]

Thank you LisaS for clearing up the points question, I read so much that I thought I had it straight but I think the year threw me off. Thank you for your patience and explanation.
Also thanks for point out the other things, since it may only come down to a few hundred dollar difference, the annual dues responsibility could make or break that being a good deal.
Thanks again, that's why I love these boards!

 

[TenThousandVolts]

EVerytime I revisit the question for myself regarding the cost of SSR points resale vs dvc I continually come to the same conclusion. It is EXTREMELY close $$wise- a negligible difference.
However I think you save good money buying BWV, OKW, VWL resale.

 

[MrBill64]

One comment I would like to make concerns the minimum number of points a new member has to buy. Direct purchases through Disney require 160pts, where you can buy a resale contract for as little as 25pts. All members receive the same benefits regardless of the number of points they own. Plus if your vacation habits don't warrant you using 160pts a year, it makes more sense to buy resale. The number of points was the main reason for my initial contract purchase being through the resale market and not direct through Disney. If I were to add on smaller contracts, dealing direct through Disney seems to make more sense.

Bill

 

[coloradodad]

If you are not a DVC member currently I believe the price from Disney would be $94 per point.

 

[hellerjw]

It's currently $94/pt at SSR and $96/pt at AKV if you take the dollar incentives.

 

[ChickieToo]

With both my add-ons through Disney I was given the current UY points which you can bank into the next UY. This just happened with my recent add-on this March. My UY is June, so with less than three months left in my UY I got the full UY points. When I looked at resale, all the contracts were stripped and in some cases I wouldn't have points until 2008 or even 2009. In my estimation that is worth the extra $$. However, having points available now may not be important to you.

 

[SFLTIGGER]

Here is a thread you may want to read thru before you go resale:
http://www.disboards.com/showthread.php?t=1431705
I don't have any experience with resale personally, but our purchase thru Disney could not have been smoother or easier!
No waiting, not ROFR, not title problems, etc.
IMHO direct is the way to go!

 

[Delaware Mike]

EVerytime I revisit the question for myself regarding the cost of SSR points resale vs dvc I continually come to the same conclusion. It is EXTREMELY close $$wise- a negligible difference....

Sorry, no offense, TenThousandVolts, but I have to disagree....

As an example, purchasing 160 SSR points resale (I used 160 to make an apples-to-apples comparison with a 160 point direct purchase), I calculate the overall, per-point, price to be $88.53. The basis for that price is a $81.00 per point price, plus closing, MF reimbursement, and a $195.00 admin fee (if you use the reseller we used). I'm using $81.00 per point since that's what we paid this past October.

Now, compared to the direct price of $94.00 per point, I find the resales' difference to be $5.47. (That's a little more than $2,000.00 savings on 160 points).

If time spent waiting for ROFR and closing isn't a factor, I'd go resale for SSR (if SSR is where you wish to purchase).

 

[TenThousandVolts]

Sorry, no offense, TenThousandVolts, but I have to disagree....

... I'm using $81.00 per point since that's what we paid this past October.

The difference is in our calculations- I was $84per point as I thought that was the safe ROFR number on SSR - and approx a $400 fee for closing(much higher than what you paid).

Also, my latest calculations have been smaller add-ons- as a member I would pay no Closing costs (I know that is not relavent to the OP)- on top of that the smaller contracts seem to have a higher ROFR threshhold.

 

[Kismetdreams]

There are several reasons that we chose to go with a resale vs. direct purchase from Disney:

1. We wanted a home resort within the Epcot resort locations...we purchased BWV

2. The large minimium buy-in from Disney is not only cost prohibitive - we don't have $16K, nor do we want to finance - but, we don't think we would be able to utilize all the points, even with banking, due to being military stationed overseas

3. I wanted to pay cash, so a 45 point purchase makes that possible

 

[Delaware Mike]

The difference is in our calculations- I was $84per point as I thought that was the safe ROFR number on SSR - and approx a $400 fee for closing(much higher than what you paid).

Also, my latest calculations have been smaller add-ons- as a member I would pay no Closing costs (I know that is not relavent to the OP)- on top of that the smaller contracts seem to have a higher ROFR threshhold.

I agree, that has to be the difference.

 

[TenThousandVolts]

Oh I forgot- the other thing I factor in to my calculations- Direct from Disneyyou can pay with a CC- get 1% cash (or rewards) back, basically just giving you a 1% discount. Saving about another $150 depending on # of points.

 

[Delaware Mike]

Oh I forgot- the other thing I factor in to my calculations- Direct from Disneyyou can pay with a CC- get 1% cash (or rewards) back, basically just giving you a 1% discount. Saving about another $150 depending on # of points.

True, we were only able to use the credit card for the "good faith" deposit of $100.00. (That only gave us one point to convert to a Rewards Dollar.

 

[DeeCee735]

I thought there was no closing costs direct through Disney. I don't remember paying them on my first buy in? Am I getting fuzzy in the head or is this correct?