Direct vs Resale?

[WsPrincess]

I am not sure if this is a the right place. DH and I are talking about buying DVC. I took him to Disney last year and he is in love with it. So, we have been talking about we are just trying to see what is the advantage buying direct from Disney as opposed to purchasing a resale?

 

[DizBub]

Quick answer is that buying direct from Disney is quick, easy and EXPENSIVE!!!
Resale is a better value because you can buy contracts for as much as 50% off. There are restrictions on resales like you cannot cruise on those points or use them for certain other travel. If this important to you resale is not the way to go. If you only intend to use them at WDW then resale is worth looking into.

 

[WsPrincess]

Add on to the last question: If we buy resale can we use our points for any DVC property? We don't care about cruising but we would like to have Hawaii as a choice.

 

[ELMC]

Simple answer is yes.

Right now you can use both resale and direct purchase points to book any of the 11 DVC properties (7 at WDW, Vero Beach, Hilton Head, Aulani and Grand Californian). Technically speaking, the only contractual guarantee is that you can use your DVC points to book your home resort. However, prevailing wisdom is that DVD will not change the ability to book any DVC resorts for either direct purchasers or resale purchasers.

If you don't care about any of the trades (cruises, Adventures by Disney,etc.) and you are not afraid of sheer speculation (that DVD might someday in the future take more steps to restrict resale contracts) and you don't need the points immediately then looking into resale and saving a TON of cash should be something you consider doing.

Personally, I own one resale contract (BWV) and am looking at buying a second resale at BLT. I want DVC points to stay at Disney, and that's it.

If you do decide to go resale, make sure you shop around for the best deal. Consider not only the price per point, but how many points from past years are in the contract.

Hope this helps and good luck with your purchase!

 

[Metr0star1]

I was also told that a direct purchase through disney is financed through their private bank and it wont show up on your credit report. I don't know how true it is, but it doesnt kill your debt to income ratio.

 

[TheYellowDart]

Our guide did tell us that it is their private bank so they do not check credit or have anything on your report... Also their rates were not too bad if you have only a year loan with 50% down (4.9% if I recall correctly)

 

[tarzanman]

DVD does use its own private funding source, which as long as you are in good standing on a loan with them will not hit your credit report. They do run your credit when deciding if they are going to give you a loan.

 

[JennStar]

From our personal experience, it depends on the current incentives and available properties. When we purchased, we did so outright from Disney- Bay Lake Tower with an incentive of a 4 night cruise. We are big-time number crunchers and this was, by far, the best way to purchase at the time we did. And with the other properties going "down in value" (I say that loosly, as a few, have only gone through a few of their years of use and already resell WAY below their original starting price) vs some that have gone up (Beach Club, for example, was sold for something like $55 a point at the beginning of DVC, and it sells on the resale for $80-ish a point with only 31 years (give or take a year) left on the contract). We felt that BLT would follow suit, and thus far, it has.
We are currently looking for a 2nd contract, and this time we're looking at resale, simply because we don't need another BLT contract, and would like to purchase something we know we'll use now, but may dump 10 years or so down the road, depending on how we use it then. For this reason, we're looking at SS, as the price per point per year left on the life of the contract is lower (with the addition of reasonable maintenance fees).
Hope that helps a bit. Honestly, it really depends on you, what you want, and what you feel comfortable purchasing for your use.