Current Magical Beginnings promotion with Direct

[thelionqueen]

I’m buying 150 direct with a February UY and just put my 10% deposit this morning and confirmed I’m selling my 2023 points and will get my new points this upcoming February. So pumped.

Which resort?

 

[radiodome21]

Which resort?

VGF. We did a trip last year to WDW and stayed at the Poly and Yacht Club. We’ve previously stayed at Boardwalk and Port Orleans. Last year when we got back I started looking into DVC but abandoned it. Then of course in June we booked a stay at Disneyland hotel and check in this Saturday. When looking at prices my wife said maybe we should just do DVC because we want to go back to WDW next year or so. Then I started looking at resale thinking I would never buy direct but these incentives are too good to pass up. I’ve never stayed at The Grand Floridian before but I know I’ll love it. My family’s super pumped too.

 

[Cfabar1]

Can someone remind me again what the final price per point would be at both RIV and VGF with these incentives? Was it $166 and $161? I’m not sure if this would be a terrible idea, but I was waiting to add on 50 points at the new poly, but now I’m tossing around the idea of getting some VGF points with the promotions, splitting it into 3 50 point contracts and selling one or two. It seems like a less costly way to get some more direct points that I could use at the new poly, without having to wait and pay ($230?/point) in another year. I’m assuming I could basically make my money back selling 50 point contracts at VGF on the resale market, I know I need to consider the commission which may foil my plan.

VGF is $161.... it seems to me buying to just sell back would be a lot of work, and kind of risky, but good luck.

 

[thelionqueen]

VGF. We did a trip last year to WDW and stayed at the Poly and Yacht Club. We’ve previously stayed at Boardwalk and Port Orleans. Last year when we got back I started looking into DVC but abandoned it. Then of course in June we booked a stay at Disneyland hotel and check in this Saturday. When looking at prices my wife said maybe we should just do DVC because we want to go back to WDW next year or so. Then I started looking at resale thinking I would never buy direct but these incentives are too good to pass up. I’ve never stayed at The Grand Floridian before but I know I’ll love it. My family’s super pumped too.

Smart move and perfect timing imho. I cannot believe I’m considering buying direct band at GFV, but I’m with you, way too good to pass up. I’m waiting until early Sept just in case the new incentives are better. I mean $161 per point at GFV direct is shocking

Welcome home!!

 

[emchen]

I’m buying 150 direct with a February UY and just put my 10% deposit this morning and confirmed I’m selling my 2023 points and will get my new points this upcoming February. So pumped.

Fyi if a later UY such as Sep, Oct, Dec works for buyers, then the buyer should choose it as they would get 2022 points on top of 2023 points. MB would buy the 2022 points and buyer would have immediate use of 2023 points.

 

[emchen]

VGF is $161.... it seems to me buying to just sell back would be a lot of work, and kind of risky, but good luck.

Smart move and perfect timing imho. I cannot believe I’m considering buying direct band at GFV, but I’m with you, way too good to pass up. I’m waiting until early Sept just in case the new incentives are better. I mean $161 per point at GFV direct is shocking

Welcome home!!

If you have an Oct or Dec UY, you should match your new contract to it. You would then be able to rent out 2023 points for at least $18pp on top of the $22pp from MB (2022 points), cutting price down into $140s on a 150p contract. Even more shocking!!

@radiodome21
For VGF (and AUL, RIV), if you make the purchase while staying at DH this weekend (or other Disney property), then you would qualify for a $1500 Welcome Home credit bringing you down to $130s pp. Most shocking, indeed!!!

 

[PolyRob]

If you have an Oct or Dec UY, you should match your new contract to it. You would then be able to rent out 2023 points for at least $18pp on top of the $22pp from MB (2022 points), cutting price down into $140s on a 150p contract. Even more shocking!!

@radiodome21
For VGF (and AUL, RIV), if you make the purchase while staying at DH this weekend (or other Disney property), then you would qualify for a $1500 Welcome Home credit bringing you down to $130s pp. Most shocking, indeed!!!

The $1,500 Welcome Home incentive is factored into the $161.10 price

 

[radiodome21]

I did receive the incentive because it was already booked. I knew about the incentive but thought it was for current members but was told I would qualify. The guide did ask me for my check in and check out date too and said it would be verified. I also used the dream it forward incentive as well.

 

[aceshigh73]

If you have an Oct or Dec UY, you should match your new contract to it. You would then be able to rent out 2023 points for at least $18pp on top of the $22pp from MB (2022 points), cutting price down into $140s on a 150p contract. Even more shocking!!

@radiodome21
For VGF (and AUL, RIV), if you make the purchase while staying at DH this weekend (or other Disney property), then you would qualify for a $1500 Welcome Home credit bringing you down to $130s pp. Most shocking, indeed!!!

Ok so this is where it’s getting a little too much financial trickery IMHO. And I was gonna start a thread about this but figured I didn’t want to upset the DVC mob.

Realistically, NOBODY is buying into VGF for $161/pt. You are renting back pts you can use/bank/rent on your own to get to that price. In theory you can rent your pts for 15 years and just about break even and say you paid $0.00 for VGF but you are just lowering your cost basis by renting things you could have used.
It’s like leasing a new car and the dealership says “let us keep the car in the showroom and for test drives for the first month” we’ll give you $300 to rent it back and it will lower your amount owed”. Now your 36 month lease is really 35 months of driving it.

Edit to add. I’m NOT saying it’s a bad deal and we might take advantage of it ourselves. I’m just trying to make the point that it’s not $161/pt and you have to evaluate if the pts are worth more to use bank or do MB.

 

[Matty B13]

I mean $161 per point at GFV direct is shocking

Yeah, as a current owner who bought several VGF 1.0 at prices higher than this, I'm not to happy with DVC. I'm glad that VGF 2.0 worked out for several new owners, but I'll always remember what DVC did to the value of the resort. It will keep me over paying for any resort moving forward, resale or direct.

 

[Sandisw]

Ok so this is where it’s getting a little too much financial trickery IMHO. And I was gonna start a thread about this but figured I didn’t want to upset the DVC mob.

Realistically, NOBODY is buying into VGF for $161/pt. You are renting back pts you can use/bank/rent on your own to get to that price. In theory you can rent your pts for 15 years and just about break even and say you paid $0.00 for VGF but you are just lowering your cost basis by renting things you could have used.
It’s like leasing a new car and the dealership says “let us keep the car in the showroom and for test drives for the first month” we’ll give you $300 to rent it back and it will lower your amount owed”. Now your 36 month lease is really 35 months of driving it.

Edit to add. I’m NOT saying it’s a bad deal and we might take advantage of it ourselves. I’m just trying to make the point that it’s not $161/pt and you have to evaluate if the pts are worth more to use bank or do MB.

Well, in a way it is because it’s like buying a resort when it first opens and your first year of points matches the calendar year it opens, not the UY.

When I bought last year, my first set of points for my Dec UY were my 2022 points…so, someone buying today and selling back 2022, and starting with 2023 is in the same exact position I, and all others who bought VGF…and those buying VDH this year…are when buying.

It will happen next year when FW opens and Poly tower opens,…people won’t get 2023 points and will start with 2024 points.

I think that is why this program is more advantageous to those buying RIV and VGF than VDH….

 

[Stargazer65]

Realistically, NOBODY is buying into VGF for $161/pt.

I think everybody here understands it's not like you're getting another free discount when you sell back the points. But for the most part it's how I would quantify the buy in price:

It's effectively like I can buy a 150 pt VGF contract with full points for 183/pt or an identical contract stripped of 2023 pts for 161/pt.

Note: New banner in my signature. With the military discount...156/pt...Woot Woot!!!

 

[Stargazer65]

Note: New banner in my signature. With the military discount...156/pt...Woot Woot!!!

I was previously leaning towards adding on at BLT with resale. But this just seemed to good to pass up, and it also has my favorite WDW transportation...the monorail. I get tired from all that honorary bus driving work I do, I need a break from it.

 

[DanCali]

Yeah, as a current owner who bought several VGF 1.0 at prices higher than this, I'm not to happy with DVC. I'm glad that VGF 2.0 worked out for several new owners, but I'll always remember what DVC did to the value of the resort. It will keep me over paying for any resort moving forward, resale or direct.

DVC has little incentive to keep resale prices up. In fact, if resale prices are lower, they can pick up stuff at ROFR and sell to new buyers at higher margins.

It may get worse for the newer resorts with the more severe resale restrictions. VGF can at least trade into 14 resorts and that will have incremental value to a resale buyer even after 2042 when the number of resorts it can trade into will likely shrink.

 

[TinkB278]

If you have an Oct or Dec UY, you should match your new contract to it. You would then be able to rent out 2023 points for at least $18pp on top of the $22pp from MB (2022 points), cutting price down into $140s on a 150p contract. Even more shocking!!

@radiodome21
For VGF (and AUL, RIV), if you make the purchase while staying at DH this weekend (or other Disney property), then you would qualify for a $1500 Welcome Home credit bringing you down to $130s pp. Most shocking, indeed!!!

Are these numbers you quoted based on 150 points?

 

[TinkB278]

VGF is $161.... it seems to me buying to just sell back would be a lot of work, and kind of risky, but good luck.

Looks like there aren’t many small GF contracts on the market and they seem to be going for quite a bit more than $161/point?

 

[Sandisw]

Looks like there aren’t many small GF contracts on the market and they seem to be going for quite a bit more than $161/point?

I think there are a lot of contracts listed for sale higher, but not sure that many are selling at that rate.. While smaller contracts do sell for more, I just don't think I would buy a contract direct, assuming you will be able to offload it for anything more than what a broker gives you as an instant sale price.

Now, that isn't to say you may not get a buyer, but IMO, it is risky to assume you can flip it for at least what you paid.

 

[TinkB278]

I think there are a lot of contracts listed for sale higher, but not sure that many are selling at that rate.. While smaller contracts do sell for more, I just don't think I would buy a contract direct, assuming you will be able to offload it for anything more than what a broker gives you as an instant sale price.

Now, that isn't to say you may not get a buyer, but IMO, it is risky to assume you can flip it for at least what you paid.

Thanks for the insight. It looks like the instant sale price is pretty low for VGF at the moment.

 

[Sandisw]

Thanks for the insight. It looks like the instant sale price is pretty low for VGF at the moment.

And, to give some perspective, when we were selling SSR last year, the instant price was $118 and the recommended price to start was $130.....so the reduction at the time was not huge based on what was selling, and the ROFR threshold.

Now, instant price included having to cover closing costs...about $600...so that would have been like receiving $115 vs. $130 we might have been able to get if we got the recommended price. We wanted a quick sale, listed for $125 and got $120, which we took.

 

[TinkB278]

And, to give some perspective, when we were selling SSR last year, the instant price was $118 and the recommended price to start was $130.....so the reduction at the time was not huge based on what was selling, and the ROFR threshold.

Now, instant price included having to cover closing costs...about $600...so that would have been like receiving $115 vs. $130 we might have been able to get if we got the recommended price. We wanted a quick sale, listed for $125 and got $120, which we took.

Great, thanks sandi! Looks like the recommended price for 50 points in my UY is $181, the instant sale is $145. I have a hard time believing I couldn’t get $180/point which would allow me to break even on what I paid with the 9.25% commission but maybe not…. I’m hardly seeing any small point VGF contracts at the moment. Maybe I will talk to one of the brokers to see how they are selling.