Direct or Resale.....big decision

[plymouthmom]

Okay so I admit it, I am stumped! Does it make more sense to go directly through Disney to get AKL or SS and those Developer points or go through resale and get a couple of smaller contracts.

I realize direct would be the less complex version and would allow us to "shop" another resort with those points. ( we would like 300 total).

On the other hand with resale we could buy two contracts at two very different resorts but have to deal with ROFR and potentially long closing process.

HELP|!!!!!!!!!!!!

 

[kikiq]

We bought direct BUT we also had great incentives at the time and didn't finance all of it. We were all set to do a smaller contract OKW resale. Looking back at it now, if we didn't have those incentives, we would have waited out the resale process and maybe gotten several small contracts.

Somewhere in these threads, there was a great pros and cons list of buying
each way.

 

[Y-ASK]

It really all depends on how you plan to use your points. The best advice given is to purchase where you would like to stay at the most. If AKV is your favorite resort buy there. If you plan to take two trips and split the stays up at seperate resorts buy at the two resorts you want stay at the most. Reservations are getting very hard to get at the 5 & 6 month mark (more owners than ever before and more developer points as well) and for some of the smaller resorts like BCV and VWL it's even harder to get a prime season reservation at the 7 month mark.

Y-ASK

 

[bblanch]

I didn't find the resale process complex or stressful at all. I think the current extra long wait that's happening to resale purchasers now (myself included) is a combination of holidays, new dues calculations, new planners, etc. Just research on this board and others what kind of numbers have been passing ROFR and you shouldn't have a problem there.

In other threads you mentioned you really liked BCV and the kids liked WLV. You'd have a sig. savings purchasing there via resale rather than direct and the time you spend on a wait list could end up being just as long as it would take for a resale closing.

However, you also mentioned that you'd like to hand it down to the kiddies. So th extra years & developer points of SSR or AKV would be nice.

Maybe get 160 at AKV or SSR direct to get the developer points you want. Then do a couple of small add ons at either BCV or WLV or both.

 

[Buckeye Fan]

If you have the time and patience, go resale. You can end up getting sellers to pick up closing costs and usually any fees (sometimes MFs), plus, if you shop long and hard, you can find some GREAT loaded contracts.

For example, we went to Dis in 2006 and signed to purchase via Dis. When I got home and really started looking at resale opportunities, even with the 15 year anniversary special, we ended up getting our 2 contracts for $2 less per points ($86 through Dis versus $84 through resale). The biggest benefit was that both of the contracts were loaded. Our 120 point contract had banked 05, all 06 and all 07 points coming (Aug UY). Our 270 point contract had 217 06 points and all 07 points coming. In the end, we gained 67 additional points than we would have gotten through Dis (we would have had a Dec UY and would have gotten all 06 points & all 07 points the following Dec) and saved $780.

Was it worth the headache? For us, we were in no hurry for the points. Aside from saving $780, the 05 and 06 UY points have allowed us to vacation in the rear, so to speak. We are always dealing with points that are going to expire 7/31, which puts us in a nice position if we ever want to rent a grand villa sometime or take a cruise. We'll be able to do that without borrowing. We did purchase 2 contracts from the same resort, same UY. I know for some people, having multiple resorts, mulitple UYs is not a problem and for others, it is. Make sure you understand the pros/cons of this. I did a lot of research and decided the benefit of being able to lump the points together and reserve 11 months out with all of the points made more sense for us. We won't make multiple trips (two at most, usually one), so having the ability to reserve at different resorts 11 months out wasn't a huge selling point.

Biggest regrets, not buying sooner and being in the rear with the UY we have. If you're not in the rear, UY doesn't matter. But it does for us. DH teaches and our points expire 7/31. Wished they expired 8/31 or 9/30 so we could vacation in early August on the prior UY's points. I know...boo-hoo!

Best of luck and wishing you an early WELCOME HOME!!!

 

[Anal Annie]

Okay so I admit it, I am stumped! Does it make more sense to go directly through Disney to get AKL or SS and those Developer points or go through resale and get a couple of smaller contracts.

I realize direct would be the less complex version and would allow us to "shop" another resort with those points. ( we would like 300 total).

On the other hand with resale we could buy two contracts at two very different resorts but have to deal with ROFR and potentially long closing process.

HELP|!!!!!!!!!!!!

Even buying direct from Disney you can still break your purchase into more than one contract to add up to 300 total. You could even split them between AKV and SSR in some fashion.

 

[3DisneyKids]

If you have the time and patience, go resale. You can end up getting sellers to pick up closing costs and usually any fees (sometimes MFs), plus, if you shop long and hard, you can find some GREAT loaded contracts.

For example, we went to Dis in 2006 and signed to purchase via Dis. When I got home and really started looking at resale opportunities, even with the 15 year anniversary special, we ended up getting our 2 contracts for $2 less per points ($86 through Dis versus $84 through resale). The biggest benefit was that both of the contracts were loaded. Our 120 point contract had banked 05, all 06 and all 07 points coming (Aug UY). Our 270 point contract had 217 06 points and all 07 points coming. In the end, we gained 67 additional points than we would have gotten through Dis (we would have had a Dec UY and would have gotten all 06 points & all 07 points the following Dec) and saved $780.

Was it worth the headache? For us, we were in no hurry for the points. Aside from saving $780, the 05 and 06 UY points have allowed us to vacation in the rear, so to speak. We are always dealing with points that are going to expire 7/31, which puts us in a nice position if we ever want to rent a grand villa sometime or take a cruise. We'll be able to do that without borrowing. We did purchase 2 contracts from the same resort, same UY. I know for some people, having multiple resorts, mulitple UYs is not a problem and for others, it is. Make sure you understand the pros/cons of this. I did a lot of research and decided the benefit of being able to lump the points together and reserve 11 months out with all of the points made more sense for us. We won't make multiple trips (two at most, usually one), so having the ability to reserve at different resorts 11 months out wasn't a huge selling point.

Biggest regrets, not buying sooner and being in the rear with the UY we have. If you're not in the rear, UY doesn't matter. But it does for us. DH teaches and our points expire 7/31. Wished they expired 8/31 or 9/30 so we could vacation in early August on the prior UY's points. I know...boo-hoo!

Best of luck and wishing you an early WELCOME HOME!!!

While I am glad that this owner was able to save via resale, this reasoning is one reason to go direct through Disney, in my opinion. They had to find the right contracts...search and/or wait for loaded contracts, etc. In the end, it saved $700+ dollars. When you are talking about tens of thousands, this is a really small amount to save. If you are financing the purchase, you are likely talking about a couple of dollars a month. Not worth the time and energy when you can just make one call to Disney and be done with it (and get the UY you want, etc.).

Again, you also want to think about incentives...they come and go...if a really solid one comes up, then this saving of $700 is out the window pretty quickly, I think.

In any case....good luck!

 

[JimMIA]

I've bought both ways, and I have to say the staff at The Timeshare Store were more knowledgeable than my guide! I know there are some great guides, but mine is apparently not among them.

In both situations, I purchased the way I did because of the financial aspects of the deals. In my original purchase, resale saved us $4,000; for our addon, DVC had great incentives and that proved to be the deciding factor.

If you have the time, and are sensible about your offer strategy, you should save money buying resale...and without much risk of losing the contract you love to ROFR. If you try to squeeze every penny out of the transaction, you will magnify your risk of ROFR.

If you want speed, certainty and the extra years, and you don't mind the price, buy direct.

You've been researching very diligently, and you know more about your own situation and needs than we do. Trust your instincts and you'll be fine.

 

[Buckeye Fan]

While I am glad that this owner was able to save via resale, this reasoning is one reason to go direct through Disney, in my opinion. They had to find the right contracts...search and/or wait for loaded contracts, etc. In the end, it saved $700+ dollars. When you are talking about tens of thousands, this is a really small amount to save. If you are financing the purchase, you are likely talking about a couple of dollars a month. Not worth the time and energy when you can just make one call to Disney and be done with it (and get the UY you want, etc.).

Again, you also want to think about incentives...they come and go...if a really solid one comes up, then this saving of $700 is out the window pretty quickly, I think.

In any case....good luck!

In all honesty, I totally agree with with this post, though our process was pretty quick and easy. Not every resale works that way, but ours did. We worked with Jackie at GMAC and she actually had the two contracts we purchased in inventory, so there wasn't much researching or waiting to do. I told her what I was looking for and she told me the best contracts available for our point range. Disney was offering such a great deal at the time (15th anniversary + Friends & Family), there wasn't much difference is buying resale and purchasing through Dis. I also agree with the post that if Dis is close, you can generally choose your UY versus being at the mercy of the best contract(s) available via resale. I bought through Jackie because the contracts were available for a little less with more points. Truly that simple.

Not sure of the current incentives or what resorts you're considering, but I agree with the OP...know what's available through resale before you call/tour Dis and follow your gut. Had we purchased about 2 months after we did at SSR, we would have saved almost $8 a point going through resale vs. Dis ($3,120). That's why I said I would go resale. I don't think the current incentives could touch what they were offering this time a year ago.

Hope we're helping more than confusing!!! Again, best of luck to you!

 

[Tamar]

In the past 4 months, we bought 100 points at BW through resale, and 50 points at BW direct from Disney. The difference, once you figure in closing costs, etc, was less than $2 a point (we were already owners, so paid no closing costs on the direct-thru-Disney contract). Both contracts were "loaded". The resale took over 2 months and required us to find a local notary to sign papers, the direct-from-Dis took less than a week and the paperwork was a snap...plus we could put it on a "cash-back" credit card for 1% cash back.

I suspect a 50 pt contract would actually have cost MORE on the resale market than direct thru Disney, because the closing costs would be spread out over less points.

So, I guess my only advice is, run all the numbers and figure out which works best for your situation. Good luck!

 

[michamato]

I just signed a contract to purchase 50 points for SSR today and I just started looking this morning. I have bought from the TimeShare store before, but they did not have a small contract with my use year.
I looked up at GMAC and found one that was my use year. We negotiated the fees, and I bought through them.
I will save some money than buying directly through Disney, but I will have to wait about 2 months for my points. For me, that is fine since we just returned 2 weeks ago from Disney and I still have points to use for my 2008 use year.
I was going to buy directly through Disney today, but this contract just popped up so I took it!

Good luck in whatever you decide to do.

 

[BWV Dreamin]

I just signed a contract to purchase 50 points for SSR today and I just started looking this morning. I have bought from the TimeShare store before, but they did not have a small contract with my use year.
I looked up at GMAC and found one that was my use year. We negotiated the fees, and I bought through them.
I will save some money than buying directly through Disney, but I will have to wait about 2 months for my points. For me, that is fine since we just returned 2 weeks ago from Disney and I still have points to use for my 2008 use year.
I was going to buy directly through Disney today, but this contract just popped up so I took it!

Good luck in whatever you decide to do.

Since you have plenty of time to wait for these points, you will probably be fine. But do expect more like 3-4 mos. going thru GMAC.

 

[michamato]

Thanks, I figured it would take a while, I am ok with that. But, if it doesn't go through I would probably buy directly through disney, just for pure convience of it.

 

[JimMIA]

Since you have plenty of time to wait for these points, you will probably be fine. But do expect more like 3-4 mos. going thru GMAC.

Four months seems like a long time for a resale. Generally we advise prospective resale buyers to plan on 8-12 weeks from offer to closed and "in the system" and able to make reservations.

ROFR is the biggest single source of delays -- sometimes it goes quickly, other times it takes several weeks. Other than that, if both parties do their paperwork promptly and the broker doesn't drop the ball, the process shouldn't take more than 3 months...IMHO.

 

[michamato]

Well I put my signed contract in tonight, the same day I made the offer. I will list it on the Did anyone pass through ROFR thread when it does, or doesn't so everyone who is interested can keep track of it.
The last time I did this was last year, and I got through ROFR in 8 business days.

 

[JimMIA]

In the past 4 months, we bought 100 points at BW through resale, and 50 points at BW direct from Disney. The difference, once you figure in closing costs, etc, was less than $2 a point (we were already owners, so paid no closing costs on the direct-thru-Disney contract).

Your savings on resale will vary greatly from resort to resort. When we bought OKW, we saved a bunch. If you buy HH or VB, you'll also save a lot with resale. However, if you buy a small contract resale at BCV, you might pay the same, or even more, than buying direct.

There is no cookie-cutter answer for whether resale is less expensive than direct. It usually is, but you have to do the math for both alternatives. You also have to look closely at each contract, because even in the same resort, not all deals are created equal.

And then...if resale is less expensive, you have to decide whether the savings is worth the time and potential uncertainly (although you can virtually eliminate that by paying the right price to begin with).

 

[DVC Mater]

Since you have plenty of time to wait for these points, you will probably be fine. But do expect more like 3-4 mos. going thru GMAC.

Not neccesarily true. Any resale broker you go thru can have delays (seller not turning in docs in timely manner, disney delaying becaues of holidays, etc.) I think GMAC gets a bad rap on this board. Here's my recent GMAC timeline that occured during the holidays. Would have closed a week earlier if seller turned in docs on time. I would recommend looking at them as well as TTS.

10/23/07, made offer in the morning. Seller accepted midmorning. Contract emailed in the afternoon

10/24/07, faxed signed contract, sent to ROFR

11/2/07, passed ROFR

11/26/07, closing docs received

11/27/07, faxed docs and wired money

12/10/07, seller sent docs in

12/17/07, seller sent in deed

12/18/07, closed

12/26/07, in system, made first ressie

 

[BWV Dreamin]

Other than that, if both parties do their paperwork promptly and the broker doesn't drop the ball, the process shouldn't take more than 3 months...IMHO.

The key phrase here..........yes I agree in general, but I know some here already know my feelings concerning GMAC. I will leave it at that.

 

[JimMIA]

Any resale broker you go thru can have delays (seller not turning in docs in timely manner, disney delaying becaues of holidays, etc.)

I can't evaluate GMAC, other than to say that I've noticed generally good results when people use Jackie, and decidely mixed results otherwise.

I can speak to TTS, because I've used them for two transactions -- one failed, and the other successful. The successful one was cookie-cutter, everything went smoothly.

But it was the failed transaction where they really showed their character...at least to me. First of all, the seller (in Argentina) was jerking us around -- they were not dealing ethically. TTS was extremely understanding when I withdrew from the deal. But they went further than that -- they refused to relist the contract because the seller was not behaving honorably.

Also, Tom (the owner of TTS, which is the sponsor of this board, BTW) is the guy who stepped up in the one and only fraud rental situation we've had here on the DIS, and offered his own personal points to the fraud vicitims at a half-price rental.

I don't think it's possible to draw any conclusions about a resale broker from the individual experiences any of us may have had with various brokers. What I would encourage prospective customers to do is to research the reputations of anyone they are dealing with and look at the bulk of the information -- not being swayed by one good or bad experience by an individual DIS member.

 

[sjdisneywedding]

Not neccesarily true. Any resale broker you go thru can have delays (seller not turning in docs in timely manner, disney delaying becaues of holidays, etc.) I think GMAC gets a bad rap on this board. Here's my recent GMAC timeline that occured during the holidays. Would have closed a week earlier if seller turned in docs on time. I would recommend looking at them as well as TTS.

10/23/07, made offer in the morning. Seller accepted midmorning. Contract emailed in the afternoon

10/24/07, faxed signed contract, sent to ROFR

11/2/07, passed ROFR

11/26/07, closing docs received

11/27/07, faxed docs and wired money

12/10/07, seller sent docs in

12/17/07, seller sent in deed

12/18/07, closed

12/26/07, in system, made first ressie

thats still a few days over 2 months with everything going pretty close to perfect. Cant imagine it could be much less than that situation you had

8 days to pass ROFR seems exceptionally quick to me

I dunno 3-4 sounds like a safer bet, its always better to figure a bit longer to be on the safe side.