Buy from DVC or a Resale? Please help!?!

[noname70]

HELP. After 2 years of family debate I've decided to join y'all and take the DVC plunge. MY only problem is whether to buy used from a timeshare dealer or new directly from Disney. Would veterans out there please help me with this decision? Any and all pros and cons would be appreciated.

 

[SSDonut]

I'm sure others will have more complete info for you, but to start you out:

1.SSR direct from Disney. You can get the sold-out resorts, but might (emphasize might) have to wait.
2. All resorts available from resale.
3. Minimum 150 point purchase from Disney--lots of point options from resale.
4. no closing costs from Disney; closing costs vary depending on the number of points resale.

That's really just for starters, but hope it helps!

 

[JimMIA]

HELP. After 2 years of family debate I've decided to join y'all and take the DVC plunge. MY only problem is whether to buy used from a timeshare dealer or new directly from Disney. Would veterans out there please help me with this decision? Any and all pros and cons would be appreciated.

I think the best answer to your question is "It depends."

Resale
The big pro with resale is that you may save a lot of money. That will vary from contract to contract, so you have to evaluate each deal on its own merits.

Another big pro with resale is you can sometimes get contracts which have more than the "face value" of points. You might get available points from the current use year you can use; if you can't use them, they may be bankable; or you may get points already banked. Sometimes, you may get an entire year's worth of points for nothing.

One con with resale are that you are limited to what is available. If you can't find precisely what you're looking for, you may have to settle...although there is usually a pretty good inventory available.

Probably the biggest con with resale is the uncertainty (and time) involved with the ROFR process. Disney reviews all resale contracts and has the Right Of First Refusal, which means they can step in and snatch that "perfect" contract away from you. You would not lose a penny if that happened, but you would lose time and may have missed other opportunities in the process. For that reason, if you decide on resale, remember that the most important number is NOT the lowest price you can get, but the price which will clear ROFR.

For a variety of reasons, resale takes considerably longer than buying direct. You may get through sooner, but I would plan on 8-10 weeks from original offer to fully "in the system" and able to make ressies.

This is not a major factor, but in resale you usually have to pay closing costs. Everything is negotiable, but the default is the buyer pays closing...which can run from a minimum of about $350 on contracts of 150 points up to about 2 1/2-3% of the total cost.

And finally, there have been rare instances in which sellers have backed out of resale contracts. Most contracts go through fine, but every once in a while a seller renegs.

Direct
The pros of buying direct are 1) the certainty of the process -- Disney WILL sell you DVC points; 2) the process is quicker than resale, which means you are "in the system" quickly; 3) you can use Disney financing; and 4) it's Disney you are dealing with, rather than some seller you don't know (the established resale brokers are fine, and not a problem you should worry about).

The cons of buying direct are 1) price -- SSR is currently $90 per point with incentives applied, other resorts are $92 per point, subject to availability (you can often beat those prices - sometimes by a LOT - buying resale) 2) Disney may or may not have points available at the resort you prefer. They have most, but sometimes not all.

 

[bobbiwoz]

Disney will finance your purchase. If you buy from Disney, you get all points from the current calendar year, there are no "stripped" contracts from DVC. You pay dues for the calendar year based on the number of days left in the year. A seller may want you to pay the whole year's fees if you are getting all of the current use years points. It is negotiable.

Buying from a resale broker will most likely save you money, but it does take a bit longer, and the sale is not "guaranteed" because of the ROFR process. Disney looks at the contract and decides if the terms are right for them to buy the contact from the seller. If they do that the would be buyer is out of the loop. Disney does this to help shore up the price of the sold out resorts. They are selling points of the sold out resorts for either $89 or $92 maybe I forget the current price.

There is a current thread regarding recent prices and what has or has not passed the ROFR process.

Pixie dust as you make your decision. I hope we're welcoming you home, soon!

Bobbi

 

[JimMIA]

Disney will finance your purchase. If you buy from Disney, you get all points from the current calendar year, there are no "stripped" contracts from DVC. You pay dues for the calendar year based on the number of days left in the year. A seller may want you to pay the whole year's fees if you are getting all of the current use years points. It is negotiable.

Bobbi makes a great point. I was talking above about contracts which contain more than a full year's points; Bobbi is talking about resale contracts which contain less, which happens when sellers have borrowed points from the following use year. That's another reason why you need to carefully evaluate each resale contract.

Also keep in mind that you may see a "stripped" contract selling at a very attractive price. That's great, but it may not help you. If the price is too low, Disney will ROFR it stripped or not.

 

[N&B'smom]

If you do go the resale route, the Timeshare Store is wonderful. We had a wonderful experience, everyone we spoke with their was polite and knowledgable. We dealt with Jerry Sydow and he was GREAT!!!! I hope it works out for you, no matter what way you decide to go!

Shelby

 

[T.E. Yeary]

One of the reasons to buy Resale is so often overlooked. The chance to help a fellow DVC'er, who needs to sell for a variety of reasons. One never knows when any of us will be put in the position where selling is a very necessary thing. Please keep this in mind when making that all important decision!

Sincerely,
Tom

 

[paults]

noname70

depending on your age options: SSR (extra 12 yrs in contract) year 2054.

all others end in 2042. If your young and have children and want to leave them DVC, I'd go with SSR for the extra yrs.

We are in our upper 50's so we just HAD to SETTLE for BWV and our to children are 26/27 yrs old and will get whay's left.

 

[TammyAlphabet]

I had to chime in. It helps if you are happy with your home resort. For example, I think SSR is a beautiful resort and will definitely stay there some day. But, I bought Boardwalk through Disney earlier this year because i love the Boardwalk area and would be happy if I stayed there on every trip. When you are spending alot of money, buying where you want to stay is important.

 

[JimMIA]

Since Tammy brought it up, I'll chime in with this link. It's a thread I started months ago, and it starts with the choice-of-home-resort issue. Numerous DVC vets have joined in over the months, so there are some good insights scattered throughout the rather long thread.

Here's the link: http://www.disboards.com/showthread.php?t=778634