Dilemma: RR Direct vs Resale - RESOLVED! Added On Direct

[Castillo Mom]

I need advice from you seasoned folks here on the boards. I saw a 160 point resale contract listed at 145 per point. I put in an offer of 135 and the seller counter-offered at 140. Being fully aware of the resale restrictions, I have initially accepted the counter-offer and am awaiting an agent to forward the contract. I just now realized that with the current incentive to add-on, the discount comes to $4,000 for a direct purchase. The resale contract is stripped, zero points for 2020 and 2021 and only 80 available in 2022. This brings the gap between direct and resale much closer, plus I would have the flexibility of using direct RR points anywhere. I'm now leaning toward direct. Thoughts?

 

[sethschroeder]

Riviera I would be waiting. There was already a RIV contract that sold for $100/point (not sure the size or anything though).

In the next 2-3 years people will start selling more and more and pricing will get set likely lower.

If you need to buy now I would buy Direct or buy resale someplace else.

 

[3 DD love princesses]

I need advice from you seasoned folks here on the boards. I saw a 160 point resale contract listed at 145 per point. I put in an offer of 135 and the seller counter-offered at 140. Being fully aware of the resale restrictions, I have initially accepted the counter-offer and am awaiting an agent to forward the contract. I just now realized that with the current incentive to add-on, the discount comes to $4,000 for a direct purchase. The resale contract is stripped, zero points for 2020 and 2021 and only 80 available in 2022. This brings the gap between direct and resale much closer, plus I would have the flexibility of using direct RR points anywhere. I'm now leaning toward direct. Thoughts?

Are you only wanting to stay at riviera?

 

[lsutigers03]

I need advice from you seasoned folks here on the boards. I saw a 160 point resale contract listed at 145 per point. I put in an offer of 135 and the seller counter-offered at 140. Being fully aware of the resale restrictions, I have initially accepted the counter-offer and am awaiting an agent to forward the contract. I just now realized that with the current incentive to add-on, the discount comes to $4,000 for a direct purchase. The resale contract is stripped, zero points for 2020 and 2021 and only 80 available in 2022. This brings the gap between direct and resale much closer, plus I would have the flexibility of using direct RR points anywhere. I'm now leaning toward direct. Thoughts?

If the $4K savings was on another resort that could be use at the 14 resorts before Riviera I would say go for it. I wouldn’t want to be restricted to only Riviera for only a $4K savings.

 

[Castillo Mom]

Are you only wanting to stay at riviera?

For the most part,yes. That’s why I didn’t have an issue buying resale. However, since the margin between this particular contract vs direct is narrower than I first realized, the flexibility to use my points elsewhere if I needed to is an added bonus.

 

[poofyo101]

Its a no brainer at that price to buy direct instead. Direct you can get double points and for a later use year.

 

[Castillo Mom]

Riviera I would be waiting. There was already a RIV contract that sold for $100/point (not sure the size or anything though).

In the next 2-3 years people will start selling more and more and pricing will get set likely lower.

If you need to buy now I would buy Direct or buy resale someplace else.

Thanks for your input. I have an opportunity to add on now, and with three trips planned starting fall of next year through fall of ‘22, the additional points would be nice in order to have more flexibility in terms of how I utilize them. In other words, I’m having to be frugal with my point use. Sometimes I’d rather be in a two bedroom dedicated villa as opposed to two studios when I have extended family along.

 

[Castillo Mom]

Its a no brainer at that price to buy direct instead. Direct you can get double points and for a later use year.

That’s what I’m leaning towards.

 

[sethschroeder]

Thanks for your input. I have an opportunity to add on now, and with three trips planned starting fall of next year through fall of ‘22, the additional points would be nice in order to have more flexibility in terms of how I utilize them. In other words, I’m having to be frugal with my point use. Sometimes I’d rather be in a two bedroom dedicated villa as opposed to two studios when I have extended family along.

I would add when family does come along and you need that dedicated 2BR it might be more frugal to actually stay at a lower point requirement resort for part of the stay or possibly get lucky with a std BWV or std BLT.

 

[BruinEd03]

I need advice from you seasoned folks here on the boards. I saw a 160 point resale contract listed at 145 per point. I put in an offer of 135 and the seller counter-offered at 140. Being fully aware of the resale restrictions, I have initially accepted the counter-offer and am awaiting an agent to forward the contract. I just now realized that with the current incentive to add-on, the discount comes to $4,000 for a direct purchase. The resale contract is stripped, zero points for 2020 and 2021 and only 80 available in 2022. This brings the gap between direct and resale much closer, plus I would have the flexibility of using direct RR points anywhere. I'm now leaning toward direct. Thoughts?

At $140/pt, you are spending $22,400. If you are only saving $4,000 that's a discount of less than 18%. Since it is stripped, you also lose 400 pts (160 pts for 2020, 160 pts for 2021, and 80 pts for 2022). Think of it as being worth $10 per point (your rental revenue - MF). That's another $4000. So, you are not saving any money at all. Furthermore, you lose the right to stay at all other resorts, too. Even if you value those 400 pts at something less than $10, you are saving less than 5%. You also lose the ability to get a blue card and get discounts.

Look at all of the other resale contracts and most of the time you will save 35-40%.

If I was a seller, I'd be thrilled at being able to sell it for $140 per point right now, especially if I got to use 400 points of it.

 

[poofyo101]

At $140/pt, you are spending $22,400. If you are only saving $4,000 that's a discount of less than 18%. Since it is stripped, you also lose 400 pts (160 pts for 2020, 160 pts for 2021, and 80 pts for 2022). Think of it as being worth $10 per point (your rental revenue - MF). That's another $4000. So, you are not saving any money at all. Furthermore, you lose the right to stay at all other resorts, too. Even if you value those 400 pts at something less than $10, you are saving less than 5%. You also lose the ability to get a blue card and get discounts.

Look at all of the other resale contracts and most of the time you will save 35-40%.

If I was a seller, I'd be thrilled at being able to sell it for $140 per point right now, especially if I got to use 400 points of it.

agreed

 

[Castillo Mom]

At $140/pt, you are spending $22,400. If you are only saving $4,000 that's a discount of less than 18%. Since it is stripped, you also lose 400 pts (160 pts for 2020, 160 pts for 2021, and 80 pts for 2022). Think of it as being worth $10 per point (your rental revenue - MF). That's another $4000. So, you are not saving any money at all. Furthermore, you lose the right to stay at all other resorts, too. Even if you value those 400 pts at something less than $10, you are saving less than 5%. You also lose the ability to get a blue card and get discounts.

Look at all of the other resale contracts and most of the time you will save 35-40%.

If I was a seller, I'd be thrilled at being able to sell it for $140 per point right now, especially if I got to use 400 points of it.

Yup, before I saw your post I ran the numbers as you did if I rented the lost points at $10 per. I think I’ve made my decision, I’m going direct.

 

[KAT4DISNEY]

I'm a big advocate for resale in the right circumstance. I'd recommend direct in this case.

 

[Castillo Mom]

I'm a big advocate for resale in the right circumstance. I'd recommend direct in this case.

Thank you for the confirmation!

 

[Prince John Robin Hood]

Yup, before I saw your post I ran the numbers as you did if I rented the lost points at $10 per. I think I’ve made my decision, I’m going direct.

Glad to hear and glad you realized.

 

[Ruttangel]

⚠⚠⚠ALERT!!! ALERT!!!
RRV resale is a terrible terrible idea, you’ll be banging your head against a wall one day wondering why you did it
⚠⚠⚠

 

[zavandor]

For the most part,yes.

I know you've changed your mind, this is a more general reply for others considering Riviera resale.
Riviera resale is not part of Disney Vacation Club. You're only buying one standalone resort and you'll be able to book only Riviera. So buy it only if you want to stay there every time for the next 50 years. The only alternative is RCI: Riviera is expensive for Maintenance fees and to buy in, so it's not a good value to use it for RCI, there are much cheaper timeshares for that.

 

[HappyDisneyWife]

Congratulations, @Castillo Mom! I’m sure you’re going to be very happy with buying direct for your Riviera purchase!! I do think there can always be a *right* situation for buying any DVC (and even RIV) resale, but not in this case. You made a good/wise decision

 

[The Jackal]

The DVCStore.com posted the avg. selling prices for contracts. They have sold 3 RIV contracts. They sold for $100, $109 and $140.. I personally would be offering near the lower amounts.

 

[Castillo Mom]

Good morning everyone! Well, morning if you're on the west coast like me. As you can see by the update, I'm now a proud owner at RR. Got up early and spoke to a guide and also discovered that I was eligible for an additional discount due to my daughter-in-law being a cast member. I also ended up with a 175 point contract instead of the 160 I had planned on.

Now to re-plan my point usage for next year!