Disney direct vs. re-sale

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It seems that it is significantly cheaper to buy re-sale through the TimeShare store than to go through Disney directly. So as a prospective buyer, should we focus only on re-sales? Is this always the better deal? Are there any disadvantages? It's not clear to me why you would want to go through Disney, unless you are very eager to get into a new resort as soon as it's available.
 
Resales can be a better deal, but be sure you compare apples to apples.

When comparing the prices be sure to add closing cost to the resale price (Disney does not charge closing cost).

Be sure to examine how many points will be available through your resale. You may have banked points (a bonus) or the seller could have borrowed all of the next years points ( a bummer)

Disney financing is secured by a real estate investment, thus qualifies as a mortage. With a resale you will have to arrange your financing. Most banks will not give you a mortgage on a timeshare, you will have to take out a personal loan (A home equity loan would give you the tax advantages)

Disney will offer Magical Beginnings as a way of helping you meet your downpayment.

At Disney you can buy exactly the number of points you want. On a resale you are limited to what is available.

If you want OKW or BWV you will have to buy a resale. If you want VWL, you will have to buy from Disney. VB and HH are available from both sources (Buy the location where you want to stay the most)


Final point - Look at both options and consider all facets. No one option is always the "Best" option. Each resale must be judged on its own merits.

Disney Vacation Club Board Co-Moderator
DVC and Cruise Chat Hostess
Cruise Board List Mistress

<font size=4 color=blue font face="Comic Sans MS">Robi
 
The resale advantage right now is that you can purchase at OKW and BWV (DVC is not selling these any more).

The advantage of a direct-from-DVC purchase is that you can buy at VWL (few, if any, resales there yet.)

Disney does provide financing and pays all closing costs, but resale can still be cheaper.

Once you are a member, you will have the same benefits/treatment regardless which way your purchase was handled. Enjoy!

Doc DVC Board Co-Moderator
doc@wdwinfo.com
 
I got lucky last month and found a distressed buyer. I got 230 points for 60.50 per point. If I had to pay over 66 I probably would have gone direct through disney.
Try resale...make an offer and don't budge.
Tell your agent to make the same offer to all her listings (well, make sure she stops after one accepts...lol). It worked for me. When first seller learned that I was moving on to next person on the list she buckled right away.
REMEMBER...you don't have to buy!! But sometimes they have to sell. Good Luck!! :)
 

You will have to consider a resale if you want to have your home resort at OKW or BWV, as those resorts are sold out from Disney. Right now, you can buy VB, HH and VWL from Disney. VB and HH are also available resale. VWL apparently is still too new to have any resales yet.

The cardinal rule is you should buy where you plan to stay most because you will be able to make your reservations at your home resort 11 months in advance. At non-home resorts, you can book starting seven months in advance of your planned stay.

I've bought both resale and from Disney. Some of the differences I've seen are:

1. The terms of the deal in a resale are negotiable. That means you can negotiate with the seller on the price per point, who pays the closing costs, and the annual dues for the points. With Disney, it's not negotiable. The price now is $72 per point ($75 come June 3)and that price includes the closing costs. You pay the dues.

2. Although Disney doesn't negotiate, they do offer a program called Magical Beginnings in which they will buy back your points for your first use year, effectively reducing the price per point paid. This apparently varies by resort, so check with your salesperson what's available now.

3. Disney will finance your purchase, and they make it easy. You can lower the interest rate charged by having the payment debited directly from your bank account. The resale broker may be able to direct you to financing, but I've been told the rate charged may not be attractive. Some people use home equity loans to finance their resale purchase because the rate is better than what they can find elsewhere and the interest is tax deductible.

4. Some people have seen resale closings take longer than Disney closings. With a resale, you can't use your points and make reservations until the deed is filed and Disney records you in their computer system. Through Disney, you can use your points (provided you didn't sell them back under MB) pretty much right away, and I've heard some people have made reservations when they closed their deal. I have not done this, so other posters can explain it better. My resale closings have taken about four weeks from the time I signed the purchase contract to the day I got my deed in the mail. Some posters on this board have reported closing as fast as two weeks. Some have seen it take longer than a month.

Overall, my resale experiences have been excellent. My Disney purchase has been good, too.

Good luck! :)
 
Thanks! You guys are awesome for taking the time to reply. My one question is: what's MB?
 
Hey Massachusetts Neighbor:

Here is the name of another resales broker that I can highly recommend. It is good to have more than one since they may or do have different inventory. I used them in Dec 1999 and was very happy with their service and I believe you will find others have had very positive experiences as well. The contact is Jaki Apetz at A TIMESHARE BROKER 888-345-2622. I'd get on their list as well.
If you have any direct questions please email me anytime.

Good luck and I hope that we can welcome you home soon.

Ed
DVC 1994
 
Magical Beginnings is where you can "sell" Disney back all or a portion of your first year allotment of points for $5 (@ VWL) or $10 (@ VB or HH)per point. This is then applied toward your downpayment. Since your use year is typically 5-6 months after your purchase, you will only have to wait a short time till you have points again.

We just purchased 55 points add-on at HH. The 20% downpayment would have been $792. We sold 50 points back thru MB and only paid out $292. If we had sold back all 55, it would have reduced our effective purchase price down to $62 per point. (Comparable to resale that had use all its current year points

Disney Vacation Club Board Co-Moderator
DVC and Cruise Chat Hostess
Cruise Board List Mistress

<font size=4 color=blue font face="Comic Sans MS">Robin
 
Hi there!

MB is Magical Beginnings (posted two above). It's a great program if you don't plan on going this year or already made ressies. DH and I took full advantage of this for TWO reasons:

1) We were buying at VB where Disney credits you for $13.00 per point (more than any other resort I think!!)

2) We didn't need this years points becase we ALREADY had cash ressies made at the GF.

This was a great opportunity for us. Good luck with your decision.

Rima :D

*** Biggest Aladdin Fan in the WORLD!!!***

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