Buying Direct Update and Lessons Learned

[DVC Fanatic]

Wanted to pass on a few of things we learned buying direct, and assumptions I believe are correct.

We finally got our direct add on for VGF with the same use year we currently own resale at PVB (DEC). Our We were originally offered AUG, in August, because we were on the same Use Year Wait List and the any Use Year Wait list. We decided to pass on the AUG Use Year, but kept our names on the DEC Wait List. We kept intending to call our guide to have our names taken off of the VGF wait list, but figured we had until December to get off the list as we thought there was 0 chance we would be called prior. Well around October 1st our guide called my wife and told us he had the 75 points we wanted and it would include the 2017 points as well. We were surprised and they were able to bank them for us so we have 150 to use by next December now. We did the math and when you factor in the 2017 points, lower closing costs, the higher price that 75 points would cost on resale, we really did not overpay by that much. Plus, we pay $0 dues on the 2017 points we got, and they are even pro-rate the 2018 dues to only the 3 months left in 2018. This factored in also lowers the price difference between resale and direct. We even got the new DVC Backpack as a joining gift. The points were banked just in time so we could schedule a trip in May 2019, just prior to our next move.

One of my assumptions is that Disney is able to sell direct points prior to the use year, with the previous years points, if they acquire the contract and it has those points. With our initial offer, we were called after August 1st offering us AUG points without 2017 points. Our guide told us Disney held those points until the contract had active points on them. We received our current contract for DEC in October, which came with 2017 points Disney could bank forward for us. I believe that contract had 2017 points left on them, which is why Disney offered them to us before December.

We are super excited and very happy with our decision.

 

[DVC Fanatic]

Also our guide is really amazing and seems to put in the extra effort. We joined the waitlist in July and were offered points 2x.

 

[miTnosnhoJ]

Congratulations! We love it at VGF.

 

[hcortesis]

Congratulations. We too just added on to VGF (yesterday). Disney must be buying back a few contracts.

 

[Sandisw]

Any time you add on points, Disney will give you current UY points. So for a Dec UY, we are still in 2017, that is why they were able to give them to you. When they called you in Aug, with an AUG UY, it was already the 2018 UY, which is why they offered you 2018 points only...it was the current UY.

Having said that, adding on anytime late in your UY will help with the extra cost because you are getting what seems like "double points". When you take that into consideration, and that you didn't pay MF"S, it does bring it down in comparison to resale! Congrats!!!!

 

[DVC Fanatic]

I think a major way that Disney gets back contracts is through foreclosures where Disney is the Lender. I would think recent properties like VGF and PVB fall into this category. This is a very understated way Disney reaquires propeties instead of ROFR on newer properties.

From what I have read online and comments my guide made, Disney cannot sell a contract unless it has points on it. What I mean is that the AUG property offered to me, was likely owned by Disney for a while and could not be sold by them until the current year and Use Year occurred.

Also I was really suprised I only had to pay the pro-rated dues on the 2018 points. I assumed I would pay the full dues for this year.

 

[E2ME2]

Wanted to pass on a few of things we learned buying direct, and assumptions I believe are correct.

We finally got our direct add on for VGF with the same use year we currently own resale at PVB (DEC). Our We were originally offered AUG, in August, because we were on the same Use Year Wait List and the any Use Year Wait list. We decided to pass on the AUG Use Year, but kept our names on the DEC Wait List. We kept intending to call our guide to have our names taken off of the VGF wait list, but figured we had until December to get off the list as we thought there was 0 chance we would be called prior. Well around October 1st our guide called my wife and told us he had the 75 points we wanted and it would include the 2017 points as well. We were surprised and they were able to bank them for us so we have 150 to use by next December now. We did the math and when you factor in the 2017 points, lower closing costs, the higher price that 75 points would cost on resale, we really did not overpay by that much. Plus, we pay $0 dues on the 2017 points we got, and they are even pro-rate the 2018 dues to only the 3 months left in 2018. This factored in also lowers the price difference between resale and direct. We even got the new DVC Backpack as a joining gift. The points were banked just in time so we could schedule a trip in May 2019, just prior to our next move.

One of my assumptions is that Disney is able to sell direct points prior to the use year, with the previous years points, if they acquire the contract and it has those points. With our initial offer, we were called after August 1st offering us AUG points without 2017 points. Our guide told us Disney held those points until the contract had active points on them. We received our current contract for DEC in October, which came with 2017 points Disney could bank forward for us. I believe that contract had 2017 points left on them, which is why Disney offered them to us before December.

We are super excited and very happy with our decision.

DVC Fanatic;
Thanks for sharing this regarding buying direct. I did a similar analysis to help justify our most recent add-on. We just bought 40 points at SSR with a June UY, and paid $151/Point. However, factoring in that we :

1-received a “bonus” of 2018 points without MFs

2-get to use those points right away (OTU points are going for $15-$20/point)

3-paid less in closing, compared to resale

I estimated that we benefitted from between $25-$30/Point in savings.
Subtracted from the $151 yields $121-$126/Point Net$

Then, to make myself feel even better, I cost-averaged those 40 points with the 210 we bought at SSR in 2011 for $99/Point, and it’s somewhere around $103-$108/Point.

Resale is running $99-$110 for similar point values, some of which are stripped of current year points.

Then there’s the intangible benefit of getting the points available same-day, which is hard to dollarize, but worth way-more-than-zero.

So I have no regrets in adding-on “Direct”.

 

[disneyfam07]

DVC Fanatic;
Thanks for sharing this regarding buying direct. I did a similar analysis to help justify our most recent add-on. We just bought 40 points at SSR with a June UY, and paid $151/Point. However, factoring in that we :

1-received a “bonus” of 2018 points without MFs

2-get to use those points right away (OTU points are going for $15-$20/point)

3-paid less in closing, compared to resale

I estimated that we benefitted from between $25-$30/Point in savings.
Subtracted from the $151 yields $121-$126/Point Net$

Then, to make myself feel even better, I cost-averaged those 40 points with the 210 we bought at SSR in 2011 for $99/Point, and it’s somewhere around $103-$108/Point.

Resale is running $99-$110 for similar point values, some of which are stripped of current year points.

Then there’s the intangible benefit of getting the points available same-day, which is hard to dollarize, but worth way-more-than-zero.

So I have no regrets in adding-on “Direct”.

Can you still buy Direct this year if the UY we want has already passed?

 

[E2ME2]

Can you still buy Direct this year if the UY we want has already passed?

Yes - I just bought June Use Year in Late September.
You can also further reduce the cost as compared to Resale if you buy your direct points on a Disney Rewards Visa. In addition to the Reward Points, you can finance at 0% for 6 months.
So it’s a Win-Win-Win

 

[ScubaCat]

I think a major way that Disney gets back contracts is through foreclosures where Disney is the Lender. I would think recent properties like VGF and PVB fall into this category. This is a very understated way Disney reaquires propeties instead of ROFR on newer properties.

From what I have read online and comments my guide made, Disney cannot sell a contract unless it has points on it. What I mean is that the AUG property offered to me, was likely owned by Disney for a while and could not be sold by them until the current year and Use Year occurred.

Also I was really suprised I only had to pay the pro-rated dues on the 2018 points. I assumed I would pay the full dues for this year.

My guess would be the vast majority of points they get back are from foreclosure.

They don't sell contracts without current UY points, but they all go into a pot (per residential unit), from which DVD can create contracts any size they want.