Buy through Disney or Resale?

[Pixie Dust for Me!]

Hi All,

I was wondering what your thoughts are on the advantages/disadvantages of buying DVC through Disney vs. a Resale.

Thanks,

Karen

 

[Grandbuddy]

Through Disney:

Quick transaction from deposit through closing, and sometimes decent incentives are available (only for AKV at this point). If you want AKV, buying through Disney is probably your best bet with current incentives.

If you want to buy anywhere else, Disney will be glad to waitlist you (if they don't have your requested resort/use year in stock) and give you the opportunity to pay full price without any incentive.

So, if you would prefer a resort other than AKV, your best bet is resale, if you have the patience for it. Check the listings at the Timeshare Store (click on the link at the top of the page); or at
www.dvcbyresale.com
www.**********.com
www.internationalgmac.com/hotdeals.jsp

Then, check the ROFR thread that Donald is #1 keeps current, to see what you should offer on any contract that appeals to you, to get the best deal you can, without having Disney take it for the next person they have waitlisted for that property.

If you don't need your points in your account immediately, to make a reservation, you can usually save several thousand dollars by going resale. Just find the contract you want and be patient. If the first one doesn't work out, try again.

 

[DVC Mike]

Initial Purchase from DVC
o You can get the exact number of points that you want (although you must buy a minimum of 160)
o Faster than resale (you will be in the system and have your points and be able to make reservations much faster than resale)
o No worries about the purchase if Disney executes ROFR, since that only applies to resale purchases
o More expensive cost per point than the resale market
o You can easily finance through DVC, and Disney doesn’t report the loan to credit reporting agencies; also, the interest on the loan will be tax-deductable (in most cases) since it’s a mortgage
o You can pay with a Rewards credit card and get points/cash back
o The full set of points you buy will be available immediately, versus a resale contract which may be “stripped” of points.
o If you don’t want the resort they are currently selling (AKV), you may have to do some firm talking to a guide to convince them you really want an older resort.

Initial Purchase via Resale
o You may not get the exact number of points you want
o You can purchase less than 160 points for your initial buy-in to DVC (Disney won’t let you buy less than 160 points).
o It will take much longer to get into the DVC system and have your points (resales typically take 6-8 weeks)
o Disney may exercise ROFR and you may loose the resale and have to start all over (When buying resale, one of the potential pitfalls to try to avoid is making an offer that will cause Disney to exercise it’s Right of First Refusal)
o Resale is typically less expensive then buying from DVC
o You can’t finance through DVC, although most resale brokers will recommend a finance company; also, the interest on the loan will not be tax deductible
o A resale contract may be “stripped” of points where the user has used many of the current year’s points, and may have borrowed some or all of next year’s points. Just be aware of “stripped” contracts on the resale market.
o Easier to pickup large point packages at any of the older DVC resorts.

 

[drakethib]

We have done both.

Depending on the amount of points you want to buy and where comes into play.

We had to do a line by line comparison for both.

 

[Pixie Dust for Me!]

Initial Purchase from DVC
o You can get the exact number of points that you want (although you must buy a minimum of 160)
o Faster than resale (you will be in the system and have your points and be able to make reservations much faster than resale)
o No worries about the purchase if Disney executes ROFR, since that only applies to resale purchases
o More expensive cost per point than the resale market
o You can easily finance through DVC, and Disney doesn’t report the loan to credit reporting agencies; also, the interest on the loan will be tax-deductable (in most cases) since it’s a mortgage
o You can pay with a Rewards credit card and get points/cash back
o The full set of points you buy will be available immediately, versus a resale contract which may be “stripped” of points.
o If you don’t want the resort they are currently selling (AKV), you may have to do some firm talking to a guide to convince them you really want an older resort.

Initial Purchase via Resale
o You may not get the exact number of points you want
o You can purchase less than 160 points for your initial buy-in to DVC (Disney won’t let you buy less than 160 points).
o It will take much longer to get into the DVC system and have your points (resales typically take 6-8 weeks)
o Disney may exercise ROFR and you may loose the resale and have to start all over (When buying resale, one of the potential pitfalls to try to avoid is making an offer that will cause Disney to exercise it’s Right of First Refusal)
o Resale is typically less expensive then buying from DVC
o You can’t finance through DVC, although most resale brokers will recommend a finance company; also, the interest on the loan will not be tax deductible
o A resale contract may be “stripped” of points where the user has used many of the current year’s points, and may have borrowed some or all of next year’s points. Just be aware of “stripped” contracts on the resale market.
o Easier to pickup large point packages at any of the older DVC resorts.

Thanks for the answers. But why is the interest deductible with the "Mickey Mortgage" and not when you buy through resale. You are still purchasing a "real estate" interest so this makes no sense to me.

Karen

 

[Steakgoddess]

Thanks for the answers. But why is the interest deductible with the "Mickey Mortgage" and not when you buy through resale. You are still purchasing a "real estate" interest so this makes no sense to me.

Karen

I am also interested in why Disney wouldn't report the debt to the credit agencies.

 

[CarolAnnC]

Thanks for the answers. But why is the interest deductible with the "Mickey Mortgage" and not when you buy through resale. You are still purchasing a "real estate" interest so this makes no sense to me.

Karen

Disney is setting this up as a mortgage secured by the property. When you buy resale, you are basically setting up your own financing, private loan, etc. If you take out a home equity loan on your primary residence, you may or may not be able to claim it on your taxes.. Your accountant or the IRS would need to advise you.

I am also interested in why Disney wouldn't report the debt to the credit agencies.

No need to. If you don't pay your bill, well The Mouse is holding the Title and will just cancel your member account or foreclose. If it does go that far, well I bet you would find it on your credit report then...

 

[figaromeetsmarie]

Thanks for the info! I was actually looking into this!!
Thanks

 

[trasor]

Buying resale you need to have an endless supply of patience, an endless supply of due diligence in following up on each stage of the process and know from day one that Day 1 to closing feels endless. They tell you the process takes 6-8 weeks. Mine took over 3 months. Go in expecting the worst and hopefully you will be pleasantly surprised. The end result is worth it.

 

[lingber]

Buying resale you need to have an endless supply of patience, an endless supply of due diligence in following up on each stage of the process and know from day one that Day 1 to closing feels endless.

I know what you mean. We are just in the ROFR stage and already it feels like forever! If we didn't have our hearts set on BCV we would be buying AKV from Disney just to speed up the process! Good luck with whatever you decide.

 

[Rileygirl]

I just wanted to say I found this thread extremely helpful in deciding between resell and through Disney. Thanks for the links and the disection of the pros and cons!!!!

 

[jerseygal]

If I were looking at a re-sale for a March 1st use year and listing says that March 08 points are unused, that tells me that I would have till Oct.31st
08 to "bank the 08 points"...

There is negotiation in the process of re-sale through DVC resale timeshare store? Look at recent closings and see what "made it through, when and for how much?

Must I be closed by October 31 to "bank the points"

What would reality be entering into re-sale now and being closed by October 31st?

How far in process can I tell if points are "stripped"??????

Thanks so much..Comparing AKV Kidani offer through DVC to non-AKV resale offers..Now I am very confused!

 

[trasor]

I wouldn't enter the process now expecting to be closed by October 31. If you choose this contract and you know you won't be closed, you can have the sellers bank the points for you.

If the contract is March UY with all 08 points, it isn't stripped.

 

[jerseygal]

Recent re-sale closings link??

Thanks as always!

 

[Donald is #1]

Recent re-sale closings link??

Thanks as always!

Are you looking for the ROFR Thread? Anyone made it through ROFR?

 

[Goofster]

subscribe

 

[baj0505]

Regarding the points, we just past ROFR on a similar listing with points needing to be banked in october. **** & Jaki (**********.com) immediately took care of that concern and advised us if we wanted the points banked to put it in the contract that the owner HAD TO bank the points. They knew exactly how to take care of everything we wanted. Be sure that you understand if or how much the owner will want you to pay for the maintenance fees for the 2008 pts. It seems most owners want you to reimburse them for all the maintenance on any pts you receive in the current use yr--but we found out (again) thru **** & Jaki that everything is negotiable. Regarding 'stripped' points, most listing will tell you the # of pts for the current UY and for the next. If not, ask. The contract should include all the details of the # of points for this UY, next UY, # banked, in reservation status, etc. Be sure you have all the answers before signing anything. We were able to get a copy of the contract, had an estimate of all costs, a deadline for closing, every little detail before we signed anything. Hope this helps.

If I were looking at a re-sale for a March 1st use year and listing says that March 08 points are unused, that tells me that I would have till Oct.31st
08 to "bank the 08 points"...

There is negotiation in the process of re-sale through DVC resale timeshare store? Look at recent closings and see what "made it through, when and for how much?

Must I be closed by October 31 to "bank the points"

What would reality be entering into re-sale now and being closed by October 31st?

How far in process can I tell if points are "stripped"??????

Thanks so much..Comparing AKV Kidani offer through DVC to non-AKV resale offers..Now I am very confused!