Buying Direct or Resale?

[mjtatman]

So, I feel like this is a no-brainer, but if it were really that easy, wouldn't everyone do it? We are really considering buying into DVC, but it seems that buying resale is SO MUCH CHEAPER that I'm wondering why everyone doesn't do it? Why wouldn't you buy resale if it really saves money? What are the drawbacks?

 

[z28wiz]

So, I feel like this is a no-brainer, but if it were really that easy, wouldn't everyone do it? We are really considering buying into DVC, but it seems that buying resale is SO MUCH CHEAPER that I'm wondering why everyone doesn't do it? Why wouldn't you buy resale if it really saves money? What are the drawbacks?

1) Most people dont know about the resale market

2) Disney will pretty much finance anyone.

 

[chukdotcom]

So, I feel like this is a no-brainer, but if it were really that easy, wouldn't everyone do it? We are really considering buying into DVC, but it seems that buying resale is SO MUCH CHEAPER that I'm wondering why everyone doesn't do it? Why wouldn't you buy resale if it really saves money? What are the drawbacks?

1) Many of the people that buy direct aren't aware that resale exists
2) Some people just want to close quickly and can't deal with stress of offers, ROFR, etc.
3) New properties are only available direct at first
4) Couple of direct only perks that most don't care about

 

[momto3pirates]

We bought direct in 2008 before we knew any better. We bought our second contract resale. The direct purchase is much faster-beginning to end very quickly and points loaded immediately. The resale purchase takes 6-8 weeks to close then have to wait for points to be loaded. If you are not in a hurry, resale is the way to go.

 

[GrnMtnMan]

1) Most people dont know about the resale market

1) Many of the people that buy direct aren't aware that resale exists

We bought direct in 2008 before we knew any better.

See the theme?

I bought my first timeshare direct from the developer (Harborside at Atlantis) before I knew better. I bought DVC on the resale/aftermarket. People's first timeshare purchase is often aspirational and emotional. Further purchases are more informed and rational.

Some people value the flexibility of the extra DVC options by buying direct. But those options (cruises, hotel stays, ABD) rarely make economic sense....they are best described as buying something for $250 on credit when you could buy the same thing for $150 in cash. Resale buyers can do exactly the same thing by renting out their points and buying that cruise/hotel stay/ABD trip with the cash they make from renting out their points.

 

[bakerworld]

We've purchased direct and re-purchased direct. DH isn't very trustful and I'm 'slightly' impatient

 

[Dean]

So, I feel like this is a no-brainer, but if it were really that easy, wouldn't everyone do it? We are really considering buying into DVC, but it seems that buying resale is SO MUCH CHEAPER that I'm wondering why everyone doesn't do it? Why wouldn't you buy resale if it really saves money? What are the drawbacks?

Your way ahead of most members and many on DIS as well. The reality is that other than for very small contracts or when buying something you can't get or get for that large a savings, it really doesn't make sense to buy retail. You give up nothing of real value buying resale, all else being the same, and if one is not willing or able to investigate enough to feel comfortable with the option of resale, they likely shouldn't buy anyway. While the other factors that have been listed are valid, I think the main reason for those buying retail that do know the specifics of resale are emotional ones. I think many work back from the emotional decision trying to convince themselves that retail is a good choice by speed of the process, the perks not included resale, financing, etc. Of course to hold an opinion on a specific circumstance requires more info but there really are very few exceptions IMO.

 

[GrnMtnMan]

We've purchased direct and re-purchased direct. DH isn't very trustful and I'm 'slightly' impatient

Impatience is very expensive reason, since it only matters *once* and you have 40+ years of usage.

Using 'trust' as reason doesn't make sense to me. Re-sale buyers get the exact same timeshare ownership rights as direct buyers. It doesn't matter who owned your particular set of points previously, as those owners, like you, never owned a particular unit. It's not a car where you might find hidden damage down the road.

 

[Nabas]

So, I feel like this is a no-brainer, but if it were really that easy, wouldn't everyone do it? We are really considering buying into DVC, but it seems that buying resale is SO MUCH CHEAPER that I'm wondering why everyone doesn't do it? Why wouldn't you buy resale if it really saves money? What are the drawbacks?

The savings by buying through resale are huge. I strongly suspect most who buy direct never knew there was a resale market.

However, buying through resale has its own pitfalls:

1) Time - The resale process is much slower than buying direct.

2) Financing - Disney offers easy financing.

3) Limitations - DVC points purchased through resale cannot be used to book (for example) Disney Cruise Line, Disney non-DVC hotels, or some other Disney-sponsored vacations. Nearly everyone who bought resale will tell you all of these options are extremely poor uses of DVC points. Financially, it's always better to rent your points and then use the proceeds to pay cash for these items.

4) Right Of First Refusal (ROFR) - All signed contracts get submitted to Disney for ROFR, where Disney can decide if they want to replace you as the buyer. Low offers risk being taken by Disney. It doesn't cost you anything but you risk wasting your effort if Disney exercises ROFR on a contract you signed.

5) Piece-of-mind - The majority of DVC listing agents are just as reliable as Disney, although some offer better service than others. However, buying through resale means an unknown seller is involved. It can be nerve-racking until the contract closes.

 

[crisi]

In addition to new properties only being available direct - sometimes there is a dearth of older properties on the resale market. If you are looking for BCV, and there are no resales that meet your needs, but Disney has points to sell you (and they usually do on older resorts), you might decide to buy resale rather than wait for a good BCV contract to show up.

Newer properties hit the resale market pretty quickly - the first ones usually show up before the property has even opened as new members hit the bumps of life- but are usually not much cheaper than buying direct.

 

[gray52]

So, I feel like this is a no-brainer, but if it were really that easy, wouldn't everyone do it? We are really considering buying into DVC, but it seems that buying resale is SO MUCH CHEAPER that I'm wondering why everyone doesn't do it? Why wouldn't you buy resale if it really saves money? What are the drawbacks?

You think it's a no-brainer... Because it really is. According to your signature, you stay on site... So the restrictions are irrelevant in your case, in my opinion. It's really really simple... You could save thousands of dollars by buying resale and can use your points in the exact same way almost all direct buyers do... To stay at a Disney property on site.

I own three timeshares... Two DVC and one in the Outer Banks... All purchased resale. So far, the only difference between me and direct buyers is the extra money in my pocket (well... We didn't get any handshakes, ice cream or glasses of champaign either... But I'll get over it).

Sent from my iPad using DISBoards

 

[DisK]

We bought direct because we wanted VGF.

 

[glenndon]

This is like the new car debate... You can save a lot of money buying a used car, yet some people will still buy new regardless. The debate will go on as long as DVC will be sold both by direct and resale...

 

[Dean]

This is like the new car debate... You can save a lot of money buying a used car, yet some people will still buy new regardless. The debate will go on as long as DVC will be sold both by direct and resale...

Not really, more like buying the same car in town at twice as much as buying it from 200 miles away. You get the same thing other than frou-frou options that aren't worth anything anyway.

 

[michelleiada]

Resale is the only way to go for us. It saves a ton of money! Especially with the increase in prices by DVD. I refuse to pay $140 per point when I can pay $70 per point on the resale market.

 

[rpk1951]

We bought our first contact (and largest) resale. We have bought several small 25 point contracts direct (largely because we could not find them resale). They are always loaded and not stripped.

 

[glenndon]

Not really, more like buying the same car in town at twice as much as buying it from 200 miles away. You get the same thing other than frou-frou options that aren't worth anything anyway.

By definition they aren't the same thing when you say 'other than.' Used cars are the same as new cars in that they will get you from point A to point B the same way, but without the frou-frou options that the new car dealer may give you (that may be totally unrequired), plus the fact that the used car already has mileage on it (or in our case less years until the contract expires). I see the pros and cons of both sides, and this debate will go on to the end of time...

Glenndon

 

[GrnMtnMan]

I see the pros and cons of both sides, and this debate will go on to the end of time...

I find it interesting that DVC is the only timeshare that has people that consider buying direct form the developer sensible. It's not a debate anywhere else...

I attribute the 'belief' in buying direct to a misunderstanding of what people are truly buying: the right to use a condominium at a specific Disney developed timeshare resort. Everything else can change throughout the life of the contract.

There's also some who believe that they will be more 'protected' should DVC decide to change its inter-resort trading system. The notion out there seems to be that people who bought directly from the developer will have more choices. This again is a misunderstanding of owning/leasing a timeshare. The bad-old days of timeshares, and the laws and regulations that the original bad-seed deceptive developers inspired, assure timeshare buyers that they are real property that can't be stripped of usage/value.

So I agree that there will always be a debate, but only because Disney is excellent at spin and people don't always understand what they are buying in to.

 

[LisaS]

plus the fact that the used car already has mileage on it (or in our case less years until the contract expires).

I don't follow what you're trying to say here. If I buy a resort directly from Disney or I buy the same resort on the resale market, the number of years left on the contract is exactly the same.

That's why I don't find the "new car vs used car" analogy helpful. It implies that if you buy from Disney you will get a contract with a full 50 years left on it and your first stay will be in a brand new room but if you buy on the resale market you will have fewer years left on the contract and will stay in "used" rooms. Both buyers get exactly the same expiration date on their contracts and stay in the same rooms.

 

[Sur]

I don't follow what you're trying to say here. If I buy a resort directly from Disney or I buy the same resort on the resale market, the number of years left on the contract is exactly the same.

except OKW, where they are resold as extended when ROFRd or reacquired by other means.