Another direct vs. resale question-with hard numbers!

[mikeandkarla]

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).

Hey Mike I don't think that is a real fair comparison. There has been at least one and probably two price increase since you bought SSR. There is NO way $81 per point goes through ROFR right now. It seems more like $84 or $85 now. So doing quick math, that would make the resale cost about $3 more per point or $92 opposed to Disney's $94. Then you must take into consideration banked points or stripped contract to make your final calculations.
Depending on the resale contract, it could be much less (banked points), about the same, or MORE than Disney's prices. I actually saw a resale for BCV for $102 ppt with very little banked points. Disney sells BCV direct for $101 with all current UY points.
I did find out if you buy an add on through Disney (assuming they have the resort and UY you need) no matter when in the year you buy, You get all current UY points and can bank 100%. Example... Lets say you have a Dec. UY and buy add on through Disney in November. You get all current years points and banked plus you get new points on Dec. 1. Almost like getting a loaded resale contract, and of course you get your points IMMEDIATELY with no closing costs.
If you look hard you will definitely find a great loaded contract through resale, but not all are.

Mike

 

[Delaware Mike]

Hey Mike I don't think that is a real fair comparison. There has been at least one and probably two price increase since you bought SSR. There is NO way $81 per point goes through ROFR right now. It seems more like $84 or $85 now....

Mike,

First off, the discussion was being limited to SSR, so I'll continue on that path.

I agree $81.00 by itself is ROFR bait, and I've even stated that in several other threads. However, if the contract is structured in the right way, $81.00 will pass. My contract passed only six months ago at $81.00, and several others have passed since then at about the same point cost. I've provided advice how to make it work off-line, so I'm not about to put someone else's business out in public. But I know of one that pass just last week...and that per point value was around the $81.00 I stated.

But don't take my word for it.... Those going it alone have passed at such a low rate too. Check the ROFR thread, and look for those contracts passing at $81.00 and $82.00 since February. For instance, Bockegg passed on 2/23 at $82.00, with a 160 SSR contract with 116 banked points. 4DisneyGolfnuts passed on 3/20 at $81.00. Another passed sometime in February/March (look for a 2/5 submission date but a pass date was never listed, but it had to take a few weeks to pass), at $82.00.

The resale prices for SSR have been pretty stable since last Fall. I know I'm getting old, but those calendar pages aren't flippin' that fast....

Okay, let the flames begin.....

 

[coloradodad]

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?

We paid closing costs, but we also had to do it from Colorado and our paper work went through a local real estate group. I was surprised at this cost but we paid it. (about 1/2 the resale amount). Again, our biggest point for buying direct was the need for points in December, and lots of them.

mg

 

[LisaS]

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?

They started charging closing costs fairly recently (a year or so ago?) for new members. The cost is about half what resale charges. Closing costs are lower if you are paying cash rather than financing. There are still no closing costs for members adding on.

 

[hellerjw]

We just bought new through Disney so I'm familiar with the closing costs going that route. They are $235 for a cash contract, $320 & change for a financed contract.

 

[Mickey Moose]

Here are the details of our transaction. We went resale to save about $1200.00. The extra 6 weeks waiting was not consequential to us. The banked point amount on the resale was equal to the current use year points Disney was giving us to use or bank for 06. Every dollar in my pocket and not disney's or another seller is a win

.........................Resale.............Disney direct

Per Pt.............84.375................94
Cost of Pts......$13,500.00.........$15,040.00
Closing............$475.00.............$325.00
Admin Fee .......$195.00.............$0.00
07 MF's............$659.20.............$659.20
TTL cst/pt .......$92.68..............$100.15


Savings: $7.47 per/pt X 160 = $1,195.00


Extra Pts:.......160 banked '06.......Cur Yr '06 160
..............................Sep UY.................Oct UY

 

[mikeandkarla]

Mickey Moose,
You seemed to have gotten a good resale. However I don't think you would have had to pay all 2006 points MF if buying through Disney. I believe they prorate from the day you buy - 365 x MF per point. Even so, you found a good contract. Congrats

 

[Mickey Moose]

Mickey Moose,
You seemed to have gotten a good resale. However I don't think you would have had to pay all 2006 points MF if buying through Disney. I believe they prorate from the day you buy - 365 x MF per point. Even so, you found a good contract. Congrats

mikeandkarla,

You are right! I beleive my guide said that I would have been prorated to pay from March thru December (10 months) which would have come to $549.33 p/pt for the 07 points if I had gone thru Disney. I don't think the 06 points cost MF's. That would have lowered my cost thru Disney to $99.46 and made my savings by going resale $1085.

A little off topic, but does anyone know if I keep the same guide if I want purchase add ons through Disney?

 

[Caskbill]

Maintenance fees are based on a calendar year. They have nothing to do with any particular use year's points. This is misunderstood quite a bit.

But, when a resale is being performed and one one wants to equate maintenance fees to a particular use year, for purposes of determining reimbursements, the way to do it is to calculate how many months of each use year are applicable to a calendar year.

For example, someone selling a June UY who paid 2007 calendar year fees on Jan 15th, 2007: Use Year 2006 goes June 1, 2006 through May 31, 2007. Thus 5 months of the 2007 maintenance fees are applicable to 2006 UY points. And 7-months of the maintenance fees are applicable to 2007 UY points. If there are no 2006 UY points remaining, and all 2007 UY points are still available, then the buyer should reimburse for 7/12ths of the maintenance fees the seller paid for calendar year 2007.

Often someone selling resale would request reimbursement for the entire year's dues saying something like "You're getting all of the 2007 UY Points". They often forget that when they purchased direct from Disney originally, that fees were pro-rated, and they need to do the same when they sell the contract.

Of course, this is all negotiable, but when comparing resale vs buying direct, if one wants to 'calculate' their savings, they need to consider this.

.02

 

[RobDoc]

Mike,

First off, the discussion was being limited to SSR, so I'll continue on that path.

I agree $81.00 by itself is ROFR bait, and I've even stated that in several other threads. However, if the contract is structured in the right way, $81.00 will pass. My contract passed only six months ago at $81.00, and several others have passed since then at about the same point cost. I've provided advice how to make it work off-line, so I'm not about to put someone else's business out in public. But I know of one that pass just last week...and that per point value was around the $81.00 I stated.

But don't take my word for it.... Those going it alone have passed at such a low rate too. Check the ROFR thread, and look for those contracts passing at $81.00 and $82.00 since February. For instance, Bockegg passed on 2/23 at $82.00, with a 160 SSR contract with 116 banked points. 4DisneyGolfnuts passed on 3/20 at $81.00. Another passed sometime in February/March (look for a 2/5 submission date but a pass date was never listed, but it had to take a few weeks to pass), at $82.00.

The resale prices for SSR have been pretty stable since last Fall. I know I'm getting old, but those calendar pages aren't flippin' that fast....

Okay, let the flames begin.....

Hmmmm, you also posted in the ROFR thread this morning that 4 SSR contracts have failed ROFR in the past 6 weeks - all at $82 per point. That would suggest, at least to me, that offers might now need to be $83 or higher to make it past ROFR.

I find it difficult to ignore that information and still insist that $81 is a price likely to pass ROFR - providing the actual information was conveyed to Disney in the purchase offer. If the advice you are offering "off-line" includes intentionally misstating the actual offer, then that could certainly lead to other legal issues.

If the advice you are willing to provide "off-line" is sound, why not share it here so everyone can benefit from the information?

 

[Delaware Mike]

Hmmmm, you also posted in the ROFR thread this morning that 4 SSR contracts have failed ROFR in the past 6 weeks - all at $82 per point. That would suggest, at least to me, that offers might now need to be $83 or higher to make it past ROFR.

I find it difficult to ignore that information and still insist that $81 is a price likely to pass ROFR - providing the actual information was conveyed to Disney in the purchase offer. If the advice you are offering "off-line" includes intentionally misstating the actual offer, then that could certainly lead to other legal issues.

If the advice you are willing to provide "off-line" is sound, why not share it here so everyone can benefit from the information?

Hmmmm.....I believe you'd agree that what I posted was information relayed by others...this information isn't authored by me.

What this suggests is the ROFR process is an unknown to many, if not everyone. So passing at $81 and $82 is a reality for some, while others it is not. Please re-read what I've said in the post to which you refer, and other posts. I am not insisting, I am only stating it is possible.

As far as contracts are concerned, I have also coached others "off-line" to share the method and reasoning used to construct the offer with their resale agent, who would in-turn construct the contract based upon that information. I am not the one constructing the contract.

As far as offering the information on line to others for their own use, well, I have done so on another thread. And that thread is one in which you also posted.

Quite candidly, do you have issue with my posts? This is not the first time you've taken umbrage with something I've said. (Please note, this is NOT a personal attack, simply a straight-forward question.)

 

[TenThousandVolts]

Mickey Moose- great contract and an excellent example of how you can save $$$ through resale. You prove, finding a contract with all the points in tact and getting in for $83.XX per point can be done!

 

[SFLTIGGER]

Hey Delaware Mike!

I think WebmasterDoc may be just trying to make a point here. It seemed to me that your posts had an attitude to them as well . Maybe it would be best if we tried to redirect this thread back to answering the OP question. Instead of bantering back and forth.

 

[Johnny Hiramoto]

Here are the details of our transaction. We went resale to save about $1200.00. The extra 6 weeks waiting was not consequential to us. The banked point amount on the resale was equal to the current use year points Disney was giving us to use or bank for 06. Every dollar in my pocket and not disney's or another seller is a win

May I ask who you used?

 

[Mickey Moose]

I was working with TTS, GMAC and others. GMAC was the first to have a contract in the point range I wanted as well as full banked points so I went with them.

 

[Johnny Hiramoto]

Thanks, I am planning a trip for the first time and found out about DVC and now I am extremely confused on what to do...lol. The more information I get, the more confused I am about pulling the trigger on this. I want to do it for the kids and to go with AKV, but I want to save money too.....so FRUSTRATING!!! lol