Cost Comparison

[smootenloopers]

I've been reading a lot on this board and have noticed a repeating mantra of "buy resale" from many posters. There are definately pros and cons to both resale and direct. Many have been very helpful in providing their methods and/or formulas for evalulating the cost/benefit of various contracts and comparing that to the cost of direct.

I've also noticed that those trying to convince others that resale is the far better option often using phrases like "it takes patience," "you'll have to spend some time," etc.

So, what I'm wondering is if anyone calculates the cost of their time into the cost of buying resale along with the standard point cost, closing costs, etc.? Say you spend a total of 100 hours before you find, close and see the points in your account for that perfect contract. At $20 per hour (someone making an annual salary of $45k makes more than that per hour...so for many, I'm guessing that is far less than your hourly rate), that's an additional $2k for the contract.

I'm guessing that for some it is a form of recreation in itself (the thrill of the hunt!). But am I the only one who questions the time investment required vs the cost savings?

 

[disneynutz]

I suppose if you really need to buy today and vacation tomorrow, then direct is the way to go. For our family, saving thousands of dollars buying resale is worth the wait and to be honest, we are talking about leasing a hotel room, not buying a house.

Bill

 

[princesscinderella]

I probably spent a total effort of 3 1/2 hours so far in the process of buying my resale contract. 1 hour to look through all the resale sites and plug them into a DVC spreadsheet I downloaded. 5 minutes to call and make the offer. 5 minutes on the counter offer which we accepted with the stipulation they pay closing costs. 30 minutes to read, sign and fax back the contract. 10 minutes for the two calls I made to inquire where we were in the ROFR process. 1 1/2 to get all the closing paperwork signed (trip to my husbands office for his signature, to the bank for the check and then fed ex). Now all the time spent on these board I don't count as they were not instrumental in the purchase process, but they have been a great support group through the process. I figure I have about another 1/2 hour left which is to call ms for my member number and get set up for my reservations.

If I did a DVC tour and bought direct after the tour I figure that would probably total to 3 to 4 hours of my time too.

 

[Missyrose]

Honestly, I didn't spend more than a couple of hours total in buying my resale contract. And that includes negotiations, signing contracts, going to the bank for a cashier's check and sending paperwork back.

Sorry to sound cynical, but you'll need to find another rationalization for buying direct. Like Bill said, if you need the points immediately and are willing to pay a heft premium for it, feel free to buy direct. If you're willing to wait for the right deal because you'd like to pay 50 percent less for your points, then resale is for you.

 

[ELMC]

I've been reading a lot on this board and have noticed a repeating mantra of "buy resale" from many posters. There are definately pros and cons to both resale and direct. Many have been very helpful in providing their methods and/or formulas for evalulating the cost/benefit of various contracts and comparing that to the cost of direct.

I've also noticed that those trying to convince others that resale is the far better option often using phrases like "it takes patience," "you'll have to spend some time," etc.

So, what I'm wondering is if anyone calculates the cost of their time into the cost of buying resale along with the standard point cost, closing costs, etc.? Say you spend a total of 100 hours before you find, close and see the points in your account for that perfect contract. At $20 per hour (someone making an annual salary of $45k makes more than that per hour...so for many, I'm guessing that is far less than your hourly rate), that's an additional $2k for the contract.

I'm guessing that for some it is a form of recreation in itself (the thrill of the hunt!). But am I the only one who questions the time investment required vs the cost savings?

In my opinion, there is very little that you can do to add to the cost of buying resale (such as factoring in the value of time) that will make it compare to buying direct. If cost is your main consideration, resale is the way to go, hands down. If you are motivated by convenience or immediate gratification or if you have an upcoming vacation planned, then perhaps you should consider direct.

 

[RayJay]

In my opinion, there is very little that you can do to add to the cost of buying resale (such as factoring in the value of time) that will make it compare to buying direct. If cost is your main consideration, resale is the way to go, hands down. If you are motivated by convenience or immediate gratification or if you have an upcoming vacation planned, then perhaps you should consider direct.

As mentioned earlier the only benefit is to be in the system early to make vacation plans. I can't see spending $4000 -$5000 more to do that in 2 days vs 60 days?

RayJay

 

[ELMC]

As mentioned earlier the only benefit is to be in the system early to make vacation plans. I can't see spending $4000 -$5000 more to do that in 2 days vs 60 days?

RayJay

Perhaps if you have an upcoming vacation planned that requires the renting of points, that amount spent could offset the difference and make it close enough to warrant a direct purchase. Just a thought.

 

[RayJay]

Perhaps if you have an upcoming vacation planned that requires the renting of points, that amount spent could offset the difference and make it close enough to warrant a direct purchase. Just a thought.

Yeah, but if you rent the points I doubt you make it to 4 -5 grand return, plus you would have to wait a year anyway before you go on vacay again. Right?

RayJay

 

[permavac]

I believe the disconnect for you is that there are two prevailing mantras that you seemed to have lumped into one. The two mantras are:

1. Buy resale if you want to save money.
2. If you want the cheapest deal then:

..."it takes patience," "you'll have to spend some time," etc...

You could currently call up any of the DVC resales agencies and make a full price offer on one of their listings and still save a boatload of money versus buying direct. The time it would take is probably the same amount of time it would take to call a DVC guide for the same amount of points - probably even less since the DVC guide may waste a lot of your time trying to steer you towards one of the non-sold out properties first.

Saving money via buying resale is a fact. Still, there are many things one needs to consider when buying DVC and if waiting through ROFR and closing (6-8+ weeks) is something you're unwilling to do, then direct is the better choice. There is no shame in paying for convenience - especially when you have it

Terri

 

[RayJay]

There is no shame in paying for convenience - especially when you have it

Terri

OK, I totally agree with this, fact is everyone is different, sometimes it's not just all about saving money. Some folks are willing to pay more, others look to scrape the bottom for the best deal.

Good one Terri

 

[ELMC]

OK, I totally agree with this, fact is everyone is different, sometimes it's not just all about saving money. Some folks are willing to pay more, others look to scrape the bottom for the best deal.

Good one Terri

With all due respect, I do not think that I am "scraping the bottom". I have more than a year until my next Disney vacation, and I am willing to wait to save some money by buying resale. I view this as being patient and savvy, not "scraping the bottom".

 

[RayJay]

With all due respect, I do not think that I am "scraping the bottom". I have more than a year until my next Disney vacation, and I am willing to wait to save some money by buying resale. I view this as being patient and savvy, not "scraping the bottom".

EL,

I wasn't talking about you, lol, that was a general comment about what I've seen/heard from other posts, you and I were talking about something else. I was just agreeing with Terri's comment.

I'm afraid you took that the wrong way, in fact after rereading my posts I don't know how you took that as directed at you.

RayJay

 

[ELMC]

EL,

I wasn't talking about you, lol, that was a general comment about what I've seen/heard from other posts, you and I were talking about something else. I was just agreeing with Terri's comment.

I'm afraid you took that the wrong way, in fact after rereading my posts I don't know how you took that as directed at you.

RayJay

Haha...thanks for clarifying. I've gotten some pretty good deals recently, so maybe I read something that wasn't there. My apologies.

 

[RayJay]

Haha...thanks for clarifying. I've gotten some pretty good deals recently, so maybe I read something that wasn't there. My apologies.

Yeah, wasn't trying to confuse by agreeing with Terri but then saying I can't see buying direct is better.

My point on "scraping the bottom" was, some folks from what I'm reading have the patience to put in lower offers and can deal with the waiting. There is nothing wrong with this. For me, waiting the 60 days is brutal enough so I'm willing to offer a little more, but definitely no full disney price.

Later
RayJay

 

[RayJay]

Haha...thanks for clarifying. I've gotten some pretty good deals recently, so maybe I read something that wasn't there. My apologies.

And besides, aren't your taxes high enough in CT

Lived in NL county my whole life.

RayJay

 

[permavac]

Haha...thanks for clarifying. I've gotten some pretty good deals recently, so maybe I read something that wasn't there. My apologies.

Ha Ha - even if it was directed at you, how is "bottom scraping" NOT a compliment?! Wouldn't that mean you got the absolute best price ever? Dare to dream - I long to be a bottom scraper... Oh - wait... that doesn't... sound right...

Terri

 

[princesscinderella]

The way I see it is the $12,000 I saved vs buying direct will allow us to eat at victoria and alberts every year for the next 30 years. Or fl resident seasonal annual passes for the 5 of us for about 7 years.

 

[RayJay]

The way I see it is the $12,000 I saved vs buying direct will allow us to eat at victoria and alberts every year for the next 30 years. Or fl resident seasonal annual passes for the 5 of us for about 7 years.

See this is priceless....everyone's priorities are different.

Is there some analysis for this? Did you include tips

RayJay

 

[princesscinderella]

See this is priceless....everyone's priorities are different.

Is there some analysis for this? Did you include tips

RayJay

I'm planning on using the tables in wonderland card which will cover the tip, give me free valet because at the GF I do not want to trek across the street to self parking and 2% off the bill.

 

[Missyrose]

The way I see it is the $12,000 I saved vs buying direct will allow us to eat at victoria and alberts every year for the next 30 years. Or fl resident seasonal annual passes for the 5 of us for about 7 years.

I'm right there with you, the $9750 we saved by buying resale will pay for our flights, annual passes and Owner's Locker for 6.5 years.

I hadn't calculated all that until just now, man I feel good about my purchase!