Disney or resale?

[sleepyone]

Would you please tell me the advantages/disadvantages of buying through Disney vs. resale?

 

[CarnotaurDad]

Here are my quick thoughts (I'm sure others have more). We have done both so hopefully we can provide some insight. I'll list the positives first:

Resale:
* More choices of resorts (most are sold out if you buy through Disney)
* Contracts of fewer than 150 pts (Disney requires at least a 150 buy in if you are a new owner; with resale, you can get first contracts as small as 25 points)
* Cost per point is generally less than Disney

Disney:
* Quick (transaction can be done quickly and points in your account are there the next day; generally resale takes anywhere from 4 - 8 weeks)
* Financing through Disney (The 9.75% is a little high, but if you are looking for quick financing with a minimum of paperwork, it isn't bad)
* If you're not financing, you can charge it on a credit card and get something through your credit card program (airline miles, hotel points, etc.)
* Full points for your use year

Those are just a few to start.

 

[sleepyone]

* If you're not financing, you can charge it on a credit card and get some points

Thanks for your quick reply but, what do you mean "get some points"?

 

[CarnotaurDad]

Sorry, shouldn't have used the word points and I went back and edited it. What I meant is, if you have a credit card that gives you airline miles, or hotel points, or any other affinity program, it might be worthwhile to charge the purchase and then pay it back. You cannot do that with resale, it has to be a cashiers check.

 

[sleepyone]

Sorry, shouldn't have used the word points and I went back and edited it. What I meant is, if you have a credit card that gives you airline miles, or hotel points, or any other affinity program, it might be worthwhile to charge the purchase and then pay it back. You cannot do that with resale, it has to be a cashiers check.

OIC! Thanks!

 

[LisaS]

Just to add to what CarnotaurDad has already stated:

With resale you will pay closing costs. It varies with the number of points but as an example you will pay $500 on a 150-point contract. It is common with resale contracts that the buyer reimburses the seller for the full current-year dues as well. Both of these things are negotiable. You need to add these costs to the price/point to calculate the true cost/point you are paying with a resale contract.

With Disney, there are no closing costs and current-year dues are pro-rated. If you purchase in October, you will only pay dues for part of Oct, and all of Nov and Dec.

Disney will sell you any resort, even those that are sold out (for $92/point) but you may have to wait a long time if you want to purchase points at BCV, especially if you want a particular use year. BCV contracts are readily available through the resale markets, as are all of the other sold-out resorts and also SSR.

Buying resale, if you negotiate a really good deal with the seller, you risk Disney stepping in through their "Right of First Refusal" and purchasing the contract out from under you. So while there are some good deals in the resale market, there is always a risk that you will lose the contract to Disney if the deal is "too" good.

 

[DrTomorrow]

Also, if you do go through Disney, you can get the exact amount of points you want, as long as it is above the minimum (150). With resale you are limited to the size of contracts offered; owners can not split their contract.

 

[allison k]

One of our reasons for deciding to go ahead and purchase with Disney is that we'll get a 50 year contract at SSR, where with resale we would only get the 38 years that are left from the original 50 year contract.

Thanks to some wise folks here, we wouldn't have looked at it that way.

* If you're not financing, you can charge it on a credit card and get something through your credit card program (airline miles,
hotel points, etc.)

CarnotaurDad, you answered one of my DH's questions! We weren't sure if we could use our CC for the purchase. Now we'll have enough FF miles for our first trip!