Direct vs Resale

[Louise Potts]

Hello all

Aside from having more choice of home resorts via resale and it costing less what are the differences between purchasing DVC direct vs resale please?

I would like to purchase our home resort at the Boardwalk and would be looking for around 250 points per year to allow for a 2 week stay around October time.

I am finding the resale web pages a bit challenging what with being very new to the DVC set up so any top tips would be greatly appreciated

Thanks so much!

Lou

 

[disneynutz]

Take some time to read the posts here in the DVC section. Your questions get asked at least once a week and many of your other questions not yet thought of will be answered also.

Bill

 

[chalee94]

You lose a few perks with resale - the only perk with an real financial value is the AP discount. You also can't trade points for cruises or hotels outside the DVC system. You also can't book the Member cruises or certain membership events.

Resale owners have all the same rights within the DVC system to book DVC resorts. Resale owners also have the same access to booking other timeshares through RCI.

Perks can change or go away for all owners (resale or direct) at any time.

 

[chalee94]

I am finding the resale web pages a bit challenging what with being very new to the DVC set up so any top tips would be greatly appreciated.

Plan to take a few months to do some searches and ask some questions on the boards before buying. Timeshares - even DVC - are a little tricky and require doing some homework before you can decide if it's a good fit for you...

 

[gharter]

Before even considering purchasing, read all of the sticky threads at the top. There is a lot of really helpful information to go through there. We spent a lot of time reading through. Then spent more time asking questions here. There is a lot of really good knowledge here and very helpful people.
As mentioned above, outside of AP discounts, most of the other perks are jsut not that useful with proces where they are for direct.
For us it made sense. but it doesn't for everyone.

 

[Louise Potts]

You lose a few perks with resale - the only perk with an real financial value is the AP discount. You also can't trade points for cruises or hotels outside the DVC system. You also can't book the Member cruises or certain membership events.

Resale owners have all the same rights within the DVC system to book DVC resorts. Resale owners also have the same access to booking other timeshares through RCI.

Perks can change or go away for all owners (resale or direct) at any time.

Thank you for that, thats helpful, i dont think i would miss the direct perks what with being UK based, i have just done some good reading on a resale site which has really helped me with the facts too

 

[Louise Potts]

Before even considering purchasing, read all of the sticky threads at the top. There is a lot of really helpful information to go through there. We spent a lot of time reading through. Then spent more time asking questions here. There is a lot of really good knowledge here and very helpful people.
As mentioned above, outside of AP discounts, most of the other perks are jsut not that useful with proces where they are for direct.
For us it made sense. but it doesn't for everyone.

I will do - thanks so much! I am really grateful

 

[_auroraborealis_]

FWIW, on a 250 BWV purchase, as a UK buyer, the odds that you would ever get any economic benefit equal to what you'd save buying resale are tiny. You are unlikely to be able to plan trips around Moonlight Magic, annual passes may not be worthwhile and UK ticket pricing can be pretty good.

I'm seeing a $40-50 per point gap between direct and resale for 200+ point contracts. So that's a minimum of $8000 saved on a 200 point contract, which is pretty significant compared to how long it would take you to squeeze similar value out of direct "benefits."

 

[eaglesrest]

I've just had a 210 point contract at SSR waived by Disney and am looking to top up about 75 points, which of course is the minimum direct purchase requirement for perks.

To get a similar sized contract for our UY and resort via resale is about $115 per point, although they are very rare and often stripped. That works out at $8625 + closing so say $9k-ish.

A direct purchase would be $10.9k so an additional $1.9k. That extra 1.9k gets the incidental perks including discount on AP, discount on dining and option to purchase TiW. By purchasing direct we can also use credit card which gets us 0.5 % cashback with good exchange rate, and is also much simpler and quicker as no chance of ROFR being exercised.

If the incidental perks were of minimal benefit then I'd probably go for a larger initial contract at a lower price per point, and hope to get it past ROFR. That is actually what we did originally with a 300 point $89 per point contract but Disney took it. While waiting on ROFR, we looked into the perks, special events etc and kind of had buyers remorse. When Disney took our contract we were sort of glad as we had the option to do what we are now doing, albeit at more cost.

I don't know if that helps address any points of your question, but I guess for us we got the relative value by buying the bulk of our points resale, and perks and a simple purchase by going direct. Additionally if we do decide to sell for whatever reason, 2 smaller sized contracts should be easier and command a slightly higher price point.

 

[Dean]

Hello all

Aside from having more choice of home resorts via resale and it costing less what are the differences between purchasing DVC direct vs resale please?

I would like to purchase our home resort at the Boardwalk and would be looking for around 250 points per year to allow for a 2 week stay around October time.

I am finding the resale web pages a bit challenging what with being very new to the DVC set up so any top tips would be greatly appreciated

Thanks so much!

Lou

As noted, you'll lose the option of discounts, special events and losing money using points for DCL and the like. Nothing guaranteed and nothing worth paying the difference for between resale and retail for most resorts. You also may be less or more total points with resale depending on the state of banking/borrowing. For BWV I'd definitely look resale.

 

[chalee94]

I would like to purchase our home resort at the Boardwalk...

BTW, the Boardwalk contracts expire in 2042 - that is the same whether you purchase direct or resale.

 

[Louise Potts]

FWIW, on a 250 BWV purchase, as a UK buyer, the odds that you would ever get any economic benefit equal to what you'd save buying resale are tiny. You are unlikely to be able to plan trips around Moonlight Magic, annual passes may not be worthwhile and UK ticket pricing can be pretty good.

I'm seeing a $40-50 per point gap between direct and resale for 200+ point contracts. So that's a minimum of $8000 saved on a 200 point contract, which is pretty significant compared to how long it would take you to squeeze similar value out of direct "benefits."

Yes I was thinking the same, good to hear someone else also seeing that - resale certainly seems the best option for us!

 

[Louise Potts]

BTW, the Boardwalk contracts expire in 2042 - that is the same whether you purchase direct or resale.

What happens after that? Do you have the option to rebuy?

 

[_auroraborealis_]

What happens after that? Do you have the option to rebuy?

They will probably refurbish the resort, do new point charts, and sell all points under new 50 year contracts for the going rate at that time.

 

[chalee94]

What happens after that? Do you have the option to rebuy?

No one knows for sure. DVC will regain full control of the property and you will own nothing and owe nothing. DVC can offer an extension for $600 per point...or bulldoze the resort and rebuild a new one...or a parking deck or whatever they want.

There was an attempt made several years back to sell an extension to OKW owners. If you do a search for "OKW extension disaster", I'm sure it's easy to find out more about it...