Discounts for cash purchase

[harriettbrawner]

My husband and I have moved to Florida and are now annual passholders...yay! ...and now I'm now seriously considering DVD. Both of my parents passed away in the last 10 months after battling dementia and I have the funds to pay cash. I'm thinking about buying between 150-200 points. Give me your opinions on new vs resale and if I can negotiate a better deal with cash over financing. Resort choices are OKW and SSR.

 

[disneynutz]

Buy either one resale and save some money, no discount for cash. If OKW consider an extended contract.

Bill

 

[_auroraborealis_]

For OKW or SSR, buying direct is profligate madness, especially since you can get Florida resident APs anyway.

In either direct or resale, there's no discount for paying cash, because the buyer gets paid either way.

 

[KAT4DISNEY]

Absolutely agree with auroraborealis about SSR or OKW direct. Just save yourself some money and buy resale. Since you are FL residents you get access to discounted passes which is the most worthwhile reason to buy direct. One things, since you are local, you are in a better location to take advantage of some of the special events. If you feel you would do that and consider it worth the premium buy a resale contract sized approx 25 points less than you need and after you close do a direct add on. It's way more than you need to pay for SSR or OKW but that small direct add on is enough to get you the perks.

Cash/financing - makes no difference at all. There's no negotiating direct anyway, but you may make offers on resale and negotiate.

 

[Dean]

My husband and I have moved to Florida and are now annual passholders...yay! ...and now I'm now seriously considering DVD. Both of my parents passed away in the last 10 months after battling dementia and I have the funds to pay cash. I'm thinking about buying between 150-200 points. Give me your opinions on new vs resale and if I can negotiate a better deal with cash over financing. Resort choices are OKW and SSR.

Buying retail is only reasonable for very knowledgeable and experienced people and for very small initial purchases, usually 50 points only. One gains nothing of reasonable value for the retail price. There are some perks that are nice, like discounts, but they are not worth paying dramatically for and for FL residents, offer very little. I'd buy resale and consider a 25 pt add on to have options later. In your case I likely wouldn't even do that..

 

[LisaS]

Give me your opinions on new vs resale and if I can negotiate a better deal with cash over financing. Resort choices are OKW and SSR.

There is no such thing as buying "new". Whether you purchase directly from Disney or on the resale market, you end up with the same end date on your contract and you end up staying in the same pool of rooms.

 

[DisBuckMan]

The "discount" for buying with cash is you get to save hundreds/thousands of dollars in interest payments.

 

[McCrae]

Buying retail is only reasonable for very knowledgeable and experienced people and for very small initial purchases, usually 50 points only. One gains nothing of reasonable value for the retail price. There are some perks that are nice, like discounts, but they are not worth paying dramatically for and for FL residents, offer very little. I'd buy resale and consider a 25 pt add on to have options later. In your case I likely wouldn't even do that..

Not always the case. Buying direct and early at new resorts can be the best option.

 

[a742246]

Resale vs new, buy resale you will save money. OKW vs SSR, SSR has cheaper MF's and a longer expiration date (I would buy SSR).

 

[Dean]

Not always the case. Buying direct and early at new resorts can be the best option.

If you'll reread my post, I think you'll realize that the "Buying retail is only reasonable for very knowledgeable and experienced people and for very small initial purchases" covers that situation. IMO no new buyer, who doesn't fit the circumstance I mentioned, should buy that new resort. About the best discount for a new resort is $15 a point. Likely the only person who's new to DVC who should buy such are the ones who've been investigating for years and who only want to stay at that resort or those with extensive Disney experience who haven't bought because they'll only stay at that resort. Put another way, IMO, no new buyer should buy that new resort over resale unless they fit into that very small group or they're buying small anyway.

 

[BillPA]

In my opinion you should only buy if you can pay cash. If you have to finance you can't afford DVC. And I would only buy resale now. Disney has nothing worth buying at this time.

 

[_auroraborealis_]

Not always the case. Buying direct and early at new resorts can be the best option.

But she's talking about buying SSR or OKW. It is mathematically impossible to get "member perks!" to pay out over 150 points at either of these purchased direct.

Current direct PPP for Saratoga or OKW is $140. The best "member perk" is the annual pass, and the FL Resident pass is a better deal anyway and not reliant on direct/resale. A resale contract for ~150 OKW points can be had for $80pp, and a resale contract for SSR can be had for $80/81.

For a 150 point contract, that is a savings of $9000. That's not a rounding error. You certainly don't get the financial equivalent benefit direct by trading into the Disney Collection. You still get TOTW and RCI as a resale buyer.

 

[Matty B13]

We saved over $12,000 on two resale contracts compared to direct. The AP perk can save you money, but since the OP lives in Florida it makes no sense to go direct. Also, perks can be taken away at anytime.

 

[harriettbrawner]

Excellent advice! I've done a lot of research through the years....we have always loved Disney. Even being 2 hours away the fact that our kids are grown and my husband works from home means we can pop over any time for the day or just a few hours or, with DVC, we could take a mini-vacation. My husband is also retired military so we can take advantage of the Salute to the Military tickets for our son who lives out of state and take a family vacation every year or two. I'm just trying to decide if it will be a good investment.

 

[disneynutz]

Excellent advice! I've done a lot of research through the years....we have always loved Disney. Even being 2 hours away the fact that our kids are grown and my husband works from home means we can pop over any time for the day or just a few hours or, with DVC, we could take a mini-vacation. My husband is also retired military so we can take advantage of the Salute to the Military tickets for our son who lives out of state and take a family vacation every year or two. I'm just trying to decide if it will be a good investment.

I wouldn't call it an investment, I call it a discount compared to what you would spend without the DVC. It's all about you, your preferences, the type of room you want, how often you will use the DVC, if you book early enough to get the room you want.

Bill

 

[DVC Doctor]

I would suggest driving to Disney and check out both OKW and SSR yourself and even take the official DVC tour (they are promoting Poly).

I personally would advise SSR as it is in the sweet spot for resales, and would even suggest BLT, but you stated you are looking at OKW or SSR.

As far as an investment, you simply hope to break even if and when you sell and not lose money. This is almost guaranteed if you are a member for 5-10 years.

One thing to consider - even if you are local, sometime getting a DVC reservation with less than 3 months advance notice, you will probably only be able to book OKW or SSR as those are the last studios to get sold out. Other times you may have to plan 7 months out for best availability.

 

[_auroraborealis_]

I'd recommend SSR over OKW, as even with SSR points you could probably book OKW 90% of the time at 7 months, and you won't have to deal with the 2042/2057 extension absurdity forthcoming at OKW.

 

[BillPA]

I'd recommend SSR over OKW, as even with SSR points you could probably book OKW 90% of the time at 7 months, and you won't have to deal with the 2042/2057 extension absurdity forthcoming at OKW.

What absurdity are you talking about?

 

[_auroraborealis_]

What absurdity are you talking about?

When DVD offered an extension on the original OKW contracts to 2057, only about 1/3 of owners took it. So, you have that third of contracts extended to 2057. Any contracts Disney takes back (ROFR, foreclosure) are re-sold as 2057 points. But there are a lot of 2042 contracts out there yet and will be.

No one knows how Disney will handle those contracts in 2042, especially with 30-50% of OKW on 2057 contracts.

 

[KAT4DISNEY]

What absurdity are you talking about?

There are potentially a lot of issues to deal with at OKW with maybe 1/2 of the resort extended (if even that).