Best route to purchase?

[radiojon]

I'm so glad I found this website! My wife and I just rented points for our first DVC visit coming up in mid-August at OKW. We've been thinking about buying into DVC for several months now, and figured we'd better "try it out" first. So, we're looking VERY forward to it!

We made our first call to DVC to request info about a month ago, and talked to an agent. By the time he called back to follow-up last weekend, we'd already done a lot of research on this site, and rented the points. He seemed happy that we were giving it a "test run" and wants to meet with us during our stay in August.

Obviously, we brought up the "buying direct vs. resale" argument, to which he seemed to indicate that Disney buys back anything better than what they offer. He mentioned the Magical Beginnings promotion (at $74 per point with no closing costs), but to get that, you've gotta forfeit your first year's points, right?

I'm curious about strategy when we meet with the agent in August. We're almost certain we'd like to join (assuming that our visit will be as good as everyone here says), but the resale/ROFR decision process seems to take a long time, with an uncertain outcome. We'd like to have points upon buying in, but not pay the $84 going rate. I think I remember that someone here used the MB promo $74 rate, but also got a 7-night vacation thrown in (to be used in the year where the points weren't available).

Does being ready to sign on-the-spot give us an advantage? Anyone been successful in getting added value if you agree to sign the day you meet with the agent? Any tips at all?

Thanks in advance for the insight!

 

[Loubon]

We were in the same situation. We bought in Feb with the intention of traveling in August. Our guide gave us an August use year and the magical beginnings applied from Aug-02 thru July 03. So for this years trip all points were available and we got the price of $74. I'm not sure what variables such as use year etc. made that possible but it did.

Also regarding ROFR, we also were concerned about the timeframe which looks like it can be iffy. But it seems that people on this board have done better in price at times so his comment that they buy back anything better may not be accurate. Even at the same price you may get some banked points making year 1 a better deal.

Don't forget closing costs if you go on the outside and ask how much of the maintenance has already been paid for this year.

 

[ArnyVee]

Originally posted by radiojon
Obviously, we brought up the "buying direct vs. resale" argument, to which he seemed to indicate that Disney buys back anything better than what they offer. He mentioned the Magical Beginnings promotion (at $74 per point with no closing costs), but to get that, you've gotta forfeit your first year's points, right?

Magical Beginnings is the program where Disney 'buys back' your first year's points for $10/point (BWV/BCV/WL) or $15/point (VB). A big deterant to going with the Magical Beginnings for us was the fact that we didn't want to start out in a 'borrowed' status. And since we wanted to go to a trip this year, we would have to borrow from next year if we used Magical Beginnings. My family and I only needed a small contract when starting out so we decided to go resale since we don't have to begin with the 150 point contract minimum.

But, as someone else posted, you have to factor in the closing costs and so forth to see if it's worth it. For us, we wanted a chance to have the 11-month priority reservation window at OKW. Since OKW is sold out and you can only get on a waitlist with Disney, we went with a resale. But, it took a long while before finding a small contract (75 points on ours) with banked points (all 75 points banked from 2002).

Hope that helped in some way.

 

[JimC]

We bought BCV direct from Disney over the phone after arranging to take the tour on a promotional trip. We did not use the MB because at that time it was only $5 per point. We also bought OKW resale because we found a contract we liked and we wanted that resort. Did both around the same time and both closed quickly.

Advantages to buying direct:
1) No closing costs
2) Disney financing if you need it
3) Ability to get in the system fast -- we had our first reservation made by our guide when we confirmed our purchase and gave deposit (used AMEX for those rewards points!)
4) Selection of use year (somewhat flexible) and how many points (completely flexible after minimum of 150)
4) Neat closing process and gifts (minor but nice)

Advantages to buying resale:
1) everything is negotiable (we asked seller to pay closing costs)
2) you pay less ($15 - 20 less per point when we bought)
3) generally there are contracts available for all of the resorts

We had a special promotional offer for looking at DVC that they were running at that time -- 60% dicount if I remember correctly at AKL for four nights which we found quite satisfying. I don't know what is available if you buy during the tour.

This may help. We kept focused on the basic program and ignored everything else. If you paid $84 per point for 39 years that equals $2.16 per point. Add maintenance fees, currently $3.97 per point, for a total cost of $6.13. A one bedroom unit at BCV for a week during Adventure season is 200 points, the equivalent of paying $157 per night, before the 11.5% resort tax -- you do not pay that on DVC points! During Magic season it is 270 points, which is a $212 nightly rate equivalent. Those are far less than what you would pay for a regular room in a deluxe and are comparable to what you would pay at a moderate resort. Those resort rates will increase about 4 - 5% per year if history is any indication and the number of points you need will not. That seemed good enough for us.

Good luck!

 

[Dean]

Frankly, the main issue is to buy where you want to stay most. If that doesn't matter, your best and cheapest option is OKW resale. Even at the same price, OKW is about $100 cheaper on 200 points PER YEAR. You should be able to get as many or more points and save $1000-2000 depending on specifics.

 

[JimC]

Dean is absolutely right, which is why most of our points are at OKW on our resale. OKW contracts tend to be the best value and that resort requires fewer points than any of the others for larger units.

 

[DebbieB]

I think I remember that someone here used the MB promo $74 rate, but also got a 7-night vacation thrown in (to be used in the year where the points weren't available).

That was during the Beach Club Villas pre-sale last year. They started selling in February 2002 I think but it did not open until June or July.

Does being ready to sign on-the-spot give us an advantage? Anyone been successful in getting added value if you agree to sign the day you meet with the agent? Any tips at all?

I don't think they have any special deals available by negotiation, not like buying a car.

 

[Cruelladeville]

A possibility might be Vero, which is currently offering points at $74 instead of $84, which you can keep for the current year. If you took Magical Beginnings, the cost would be $69, and you forfeit the points. There is a disadvantage to this idea--no 11 month window for Disney on-site hotels, and the dues are higher. It is something to think about though. Also, it is nearly impossible to find OKW at less than $74 per point, so buying resale isn't the cheapest way to go here, especially after you factor in closing of around $500. Resales become a good idea only if you are getting banked points. In that case, the higher cost is well worth it due to the additional points you would receive.

 

[mickeyc]

Based upon your orginal question I would give serious consideration to a resale, if the price and point allocation are appropriate. Some resales come with a significant amount of points & others have little or no points in the current use year. The latter reduces the value of the contract.

The sales representatives will tell you Disney buys back contracts AS you know the price via Disney is $84 per point. A 15% to 20 % reduction is a good deal based upon the factors mentioned above. Closing cost for a 150pt. contract would be about $400. Factor in the maintaina fees, which the seller would want reimbursement. All issues in a resale is on the table to be negociated. A 150pt. contract with Disney will cost you $12,600 at $84 per point. Disney pro rates the maintenance cost the first year. I think it is maint. fees are $ 4.14 per pt. this year. ( not sure)Add $51 x7 =$362. The Disney contract will cost you $12,962.

A 150 resale at $70pt will be $ 10,500 +400( closing cost)+621(maintenance fees)= $11,521. Saving you $1441. It's value could be even greater depending upon the number of points you receive.

I have purchsed resale and directly from Disney. However, when I purchased from Disney my son worked for them and we received a 15% discount. You can check the www.tug2.net classified section and the timeshare store. I purchased my first contract from them and they were great. I hope this help. Good luck!

 

[radiojon]

WOW! Thanks so much for all the suggestions! So, based on what I've read here, does this add up?

Assuming a 150-point purchase direct from DVC at $84/point, that's $12,600, with points available for use right away. Using the MB, the 150-point purchase becomes $11,100 -- a savings of $1500 the first year (but no points to use).

* If we rent 150 points the first year (to vacation right away), it'll probably cost us $10.00 per point on the rental market. That's $1500 ... so, it's all evens out, WITHOUT having to pay closing costs for a resale. Advantage = direct sale.

* HOWEVER, if we were to find ANY resale at $74, WITH points available for use right away (and not borrowed from the following year), then we come out ahead. Advantage = resale.

Is this fair? I haven't included maintenance fees in either example, because they'll cost the same either way, right?

THANKS again for all the help! Now, we REALLY certain we're gonna join up, one way or the other ... because we're confident we're going in totally informed, thanks to all of you!

 

[Richyams]

This line always perplexes me:

Also, it is nearly impossible to find OKW at less than $74 per point, so buying resale isn't the cheapest way to go here, especially after you factor in closing of around $500.

Umm, are your first year'sallotment of points worth nothing?????

Even paying $76 per point on an OKW resale with current points intact, even if its a tiny 150 point contract, add in the $450 ($3 per point) closing costs and you are still $750 less than direct from disney.

If you buy more than 150, the closing costs are less per point. If you get banked points, its gravy.

I just can't understand how people can say that a properly researched resale isn't cheaper than direct from Disney.

 

[buzz5985]

I am happy with my resale, but it took 120 days to close. (I bought from a poor couple in Canada, declaring Bankruptcy). With closing, etc, ended up paying $68/point for HH Dec use year.
All 150 points available for 2002, plus 57 banked. And I didn't pay Maintenance fees for 2002. So the time it takes for a resale to close could be a factor for you.

Just added on at BW for 100 points. December use year. Used MB, so 2002 points were sold back. I will still get my points for December 2003. I was more relaxed buying from Disney. I should be closing on June 23, so it took less than a month from the first phone call.

Do I regret buying my resale?? No. HH wasn't available to buy directly from Disney. If it was still available from Disney, I probably would have bought from them. Just easier, worry free.