buy thru DVC or TTC??? pros and cons

[zorbasfam]

Hi everyone,
I was just wondering if anyone could help me with pros and cons of buying DVC or resale. We already own at SSR but are considering buying more. Any and all advice will be extremely helpful, because it "looks" like resale is less expensive. I know I'm missing something and my guide is not available. Thank you in advance!!!!!!

 

[Mtnman44]

This question comes up quite a bit, but boiled down to the basics:

Pros of resale:
-availabilty to shop for your exact resort and preferred use year (if you have one).
-lower per point cost vs. direct from DVC
-ability to buy a contract less than 160 points

Cons of resale:
-Long process, many weeks before access to points, risk of ROFR, etc

Pros of Direct from DVC:
-any included incentives such as the recent "double developer points" promo
-Ease of purchase, easy financing, immediate access to account to make reservations, etc, can pay in full via credit card (rewards).
-Lower closing costs

Cons of DVC:
-Higher per point cost, cannot buy smaller than 160 pts (if new member)

 

[Granny]

Here's a Direct Sale vs Resale Thread. As mentioned, the question comes up a lot!

 

[Tamar]

We have found that there isn't much difference in actual out-of-pocket per-point costs for add ons direct from Disney vs resale, once you figure in closing costs and the fact that many resale contracts have you back-pay MF or may not be fully loaded. We bought 100 pts resale and 50 pts direct in the past month.

This is for BWV, for other resorts the difference might be bigger.

For a first contract, if you don't want the 160pt minimum, you'll have to go resale.

Oh, and a "pro" to buying through Disney...the resale has taken almost 2 months and hasn't yet closed (although it might've if we hadn't been vacationing at Disney last week), the direct from Disney took just a few days.

 

[JimMIA]

Hi everyone,
I was just wondering if anyone could help me with pros and cons of buying DVC or resale. We already own at SSR but are considering buying more. Any and all advice will be extremely helpful, because it "looks" like resale is less expensive. I know I'm missing something and my guide is not available. Thank you in advance!!!!!!

Too bad about your guide not being available...so I'll step in and tell you what they would tell you. "Resale is a TERRIBLE idea!"

Seriously tho...I think the differences are lower cost of resale vs. time and uncertainty of ROFR. If you're not in a rush, and price your offer sensibly, resale should save you money. OTOH, if you are only thinking about buying a few points, the cost differential would probably not be enough to tip the scales to resale. You really just have to fully examine both options and see which fits your needs better.

TTS is very highly regarded by folks here. We've use both TTS and bought directly from DVC, and I consider TTS at least as professional as DVC.

There are two other brokers who folks on this board have had good results with.

And then there is a realtor who sounds like a car-finance company. The results with that broker have been decidedly mixed, at best. Personally, I'd avoid them, but some have had good luck.

 

[DVC Mater]

Does anyone ever sell the timeshare without a broker and then just use a timeshare closing company? How come you are not allowed to post for sale listings on this board?

 

[billmac50]

We purchased resale 11 years ago when we didn't know a lot of anything and it appeared that it was the less expensive way to go. We added on 60 pts a few years later direct from DVC, and there was no closing costs. Just added 170 more direct from DVC, sure it was at full price, but when I figured in the full 2007 points that I received plus no closing costs, plus the 15 years already extended, I was within probably a dollar of resale.

Pro - I got exactly the number of points I wanted, and not what someone was selling.
I also got the same UY, or if it's a new contract you get the UY that works. And I got a quick hassle free closing. (and a nice toat bag made in China)

I'm not knocking resale, it's a little more hassle, you have to figure out the value of points left, banked or borrowed, but you may save a few bucks. I did it initially.

 

[dwelty]

Are you financing? If so Disney does not report the financing to any credit agency. So your score will not be lowered because of the loan. I do not know if the TSS can offer the same.

 

[CarolAnnC]

Does anyone ever sell the timeshare without a broker and then just use a timeshare closing company? How come you are not allowed to post for sale listings on this board?

When you sign up as a poster on the DIS you sign and agree to the Posting Guidelines. In those Guidelines is "No For Sale Posts Are Allowed On The DIS". Hence, you are not allowed to post DVC for sale posts. Thems the rules, lol.

 

[mdoc]

I've been thinking about this, and I'm a bit confused as to which method is really less expensive. The stated cost per point is less for the resale contract, but most of the resale contracts I've seen are stripped, or at least they're missing a good chunk of the current year points. When you buy from DVC, you get all of the current year points. Since people are renting points for $10 apiece, I've got to think that those "extra" points you get from DVC are worth something. When you factor in DVC incentives on SSR and AKV, the cost gets pretty close and in some cases it's cheaper to buy direct, especially on contracts where the 2008 points aren't all there. Then there's the closing cost differential, and the intangible value of being able to make your reservations much more quickly since you're in the system more quickly. I'm sure there are good resale contracts out there, but it seems to me there are many that aren't the bargain they might initially appear to be.

 

[zorbasfam]

Thank you to everyone. You are all very helpful and quick to respond. I wish this could happen everywhere. Now I can get my DH to look at it too and left a message for my guide to call me on Monday!!??

 

[JimMIA]

I've been thinking about this, and I'm a bit confused as to which method is really less expensive. The stated cost per point is less for the resale contract, but most of the resale contracts I've seen are stripped, or at least they're missing a good chunk of the current year points. When you buy from DVC, you get all of the current year points. Since people are renting points for $10 apiece, I've got to think that those "extra" points you get from DVC are worth something. When you factor in DVC incentives on SSR and AKV, the cost gets pretty close and in some cases it's cheaper to buy direct, especially on contracts where the 2008 points aren't all there. Then there's the closing cost differential, and the intangible value of being able to make your reservations much more quickly since you're in the system more quickly. I'm sure there are good resale contracts out there, but it seems to me there are many that aren't the bargain they might initially appear to be.

There is no answer to this question because there are simply too many variables. Incentives from DVC direct vary greatly over time, and every single resale contract is different.

Both times we have purchased, we have bought the less-expensive way. The first time was a resale contract (great price with lots of banked points); the second time was a 120 point add-on at a greatly-reduced price, no closing costs, with 100 free points. In one situation, resale saved us $4,000. In another situation, buying direct saved us money.

There's no answer -- you have to do the math on each option for yourself.