Current promotion - How does it compare historically from what you've seen?

[SouthJersey]

I've been on the fence about going direct vs resale, but the current promotion for 300 points saving me $19/point seems to be one of the better ones I've seen this year.
On a 300 point VGF DVC direct, I'm looking at $56,400
On 2 150 point VGF resale deeds, I'm looking at $50,100 (or $48,000 if they accept a $7 below asking offer).

At a savings of 'only' $6,300 - the discount perks (10% food & 20% merchandise) of buying direct start eating into that resale savings a lot easier than the smaller promotions. I figure $2,000 in savings across 10 trips and I'm looking at $4,300 saved by going resale. $4,300 starts to become an easier pill to swallow for the luxury of getting to stay at future resorts.

1.) Have you seen promotions much larger than this in recent years? How does the current direct promo compare in your opinion?
2.) Is a 300-point contract significantly harder to sell in the event of needing to sell my deed? I know the smaller the easier and the 500+ are becomes a challenge, but is 300 an issue for resale?

Thank you for any input!

 

[Sandisw]

These are pretty great incentives. But, you can split your 300 direct into two 150# and I would do that.

 

[SouthJersey]

These are pretty great incentives. But, you can split your 300 direct into two 150# and I would do that.

Do you know if this would this make closing more expensive by having two separate contracts? or basically just two at half the combined cost each

 

[Jimmy Geppetto]

Do you know if this would this make closing more expensive by having two separate contracts? or basically just two at half the combined cost each

I believe they will charge you an additional $250 doc fee. That's it. It's well worth it to get two smaller contracts. Smaller contracts are easier to sell in the future.

 

[havoc315]

I've been on the fence about going direct vs resale, but the current promotion for 300 points saving me $19/point seems to be one of the better ones I've seen this year.
On a 300 point VGF DVC direct, I'm looking at $56,400
On 2 150 point VGF resale deeds, I'm looking at $50,100 (or $48,000 if they accept a $7 below asking offer).

At a savings of 'only' $6,300 - the discount perks (10% food & 20% merchandise) of buying direct start eating into that resale savings a lot easier than the smaller promotions. I figure $2,000 in savings across 10 trips and I'm looking at $4,300 saved by going resale. $4,300 starts to become an easier pill to swallow for the luxury of getting to stay at future resorts.

1.) Have you seen promotions much larger than this in recent years? How does the current direct promo compare in your opinion?
2.) Is a 300-point contract significantly harder to sell in the event of needing to sell my deed? I know the smaller the easier and the 500+ are becomes a challenge, but is 300 an issue for resale?

Thank you for any input!

1. When you buy direct, you can still buy 2 150 point contracts, the same 300 point promotion should apply, even if you break it up. If you later re-sell your contract, yes --- It will be easier to sell a 150 point contract.
2. The value of direct isn't just the small discount perks. Will you ever want to stay at Riviera or the new Disneyland resort? Want to stay at Beach Club, Boardwalk (or their replacements) after 2042? Then you need direct. Plus, want to get your points in 30 minutes without any headaches, instead of waiting 2-4 months or dealing with brokers, ROFR, etc? That $4300 is only about a 7% difference. 7% difference to be able to stay in future resorts, to avoid ROFR headaches, to get additional perks like Moonlight magic or whatever future new perks come up.
3. Incentives rarely get better over time --- Sure, the savings may increase from $19 to $21... but the regular price will increase... so saving $19 off $205 is better than saving $21 off $215. You should generally assume that the current price is always the lowest, and it will just increase over time.

Basically, if you want VGF, it's a great time to buy direct.

 

[Sandisw]

Do you know if this would this make closing more expensive by having two separate contracts? or basically just two at half the combined cost each

It will be a bit more, yes, but it can be worth it because it will be easier to sell.

It also means that you could downsize and still be eligible for the membership extras since you will still have the one qualifying contract at 150.

If it’s all one 300, and you want to sell, you’d lose those if you didn’t have other contracts that were purchased direct and those meet the minimum that was in effect at the time.

For example, say you ended up adding on another 100 direct in a few years. Then want to sell the 300..you’d lose those benefits because 100 is below the 150.

And, if fall below, you’d then have a new minimum to meet.

 

[CaptainAmerica]

Oh dear.

Aulani is very very on sale.

 

[havoc315]

Oh dear.

Aulani is very very on sale.

Yes, you can get 200 points for $178 per point -- about to increase to $188 per point
On year ago: You could get 200 points for $181 per point
2 years ago, you could get Aulani for $178 per point --

So what we see is with Aulani -- The price barely changing over the last 2 years. Yes, if you act fast, it is 1% cheaper than last year.

So as we can see -- a resort that they have found impossible to sell -- The prices still don't really go down over time.

 

[RoseGold]

There's A LOT on the market in the 160a, so let's say 165 is reasonable. 49,500. So about 7K or 15% surcharge.

You have to decide if that amount is worth RIV + future resorts. It wouldn't be to me because I don't plan to hold very long.

If I were buying direct for the long haul, I would be waiting for Poly2. VGF2 is a cheap flip, disappointing IMO. Poly2 could really be amazing, and I'd much rather have that long term.

Another option is to split the difference and buy 150 direct and 150 resale. Lots of people only hold enough direct to keep a Blue Card. You could also do this by buying 150 resale now, and then 150 Poly2 when the incentives for existing members come out (or 100 then 200).

 

[RoseGold]

Thinking this through, you get the 2022 points if you buy Dec UY, I think? And they prorate the dues.

So, that's an even better direct value than compared to a stripped resale contract.

 

[CarolMN]

Thinking this through, you get the 2022 points if you buy Dec UY, I think? And they prorate the dues.

So, that's an even better direct value than compared to a stripped resale contract.

Since it's now 12/1/2022, all use years are in their 2022 use year and anyone buying direct now would receive 2022 points. 2022 dues would be prorated from the date of purchase.

 

[NVDISFamily]

Oh dear.

Aulani is very very on sale.

155 a point for 300 points seems like a great deal. I tried to find out what the great fire sale price was a while back (before I knew about DVC) but I wasn’t able to find any info. Was it lower than that?

 

[Curiousporpoise]

155 a point for 300 points seems like a great deal. I tried to find out what the great fire sale price was a while back (before I knew about DVC) but I wasn’t able to find any info. Was it lower than that?

I think the fire sale was in November 2021 - $133 a point for 300+ points, and it was loaded with 2021 and 2022 DEC UY points.

 

[sethschroeder]

Purchase Riviera at $155/point back in Aug 2020.

 

[jimmymc]

Oh dear.

Aulani is very very on sale.

Angel and Devil Mickeys both on your shoulders saying "You need them, do it.".

 

[jimmymc]

It's a really good price for 300+ points. For smaller contracts it's not a great sale.

 

[CaptainAmerica]

It's a really good price for 300+ points. For smaller contracts it's not a great sale.

Yeah if I pull the trigger it would be 2x 150.

 

[CaliAdventurer]

Yes, you can get 200 points for $178 per point -- about to increase to $188 per point
On year ago: You could get 200 points for $181 per point
2 years ago, you could get Aulani for $178 per point --

So what we see is with Aulani -- The price barely changing over the last 2 years. Yes, if you act fast, it is 1% cheaper than last year.

So as we can see -- a resort that they have found impossible to sell -- The prices still don't really go down over time.

Do they even care to sell it though? Does any one have any data on how much money Disney makes or loses renting those rooms nightly at rack?

 

[CaptainAmerica]

Do they even care to sell it though? Does any one have any data on how much money Disney makes or loses renting those rooms nightly at rack?

Minor point, but those rooms almost never rent at rack. 25%-30% discounts are readily available most times of year.

 

[havoc315]

Do they even care to sell it though? Does any one have any data on how much money Disney makes or loses renting those rooms nightly at rack?

Disney sets the direct price of DVC at a point where it is more profitable than renting the rooms nightly. (accounting for getting a big chunk up front, which is more valuable than spread over time).
The mouse always wins.