Disney vs. resale?

[auntsue]

I'm trying to educate my nephew about the differences between buying through Disney vs. resale and I realized I don't know all the current particulars.

What's the current price per point and what places are still for sale through Disney?

Are there other restrictions besides not being able to use resale points for DCL or Adventures by Disney? You can still trade through RCI, can't you? I know he can't finance resale.

Are there any other major differences? Thanks for your help.

 

[drusba]

You cannot use resale points for the Disney Cruise or Disney Collections: other Disney hotels (except you can still use them for Disneyland hotels), Adventures from Disney vacations, and the Concierge Collection (certain private hotels that have direct deals with DVC. Other than those restrictions, everything is the same for new buyers from DVD and resale. You can still use points for any DVC resort, RCI exchanges, and Club Intrawest and the Disneyland hotels.

All resorts are available through Disney since even sold out resorts usually have points due to foreclosures or DVD's exercising right of first refusal on resales. Go to DVCNews (add .com) which has a page that lists all prices and any incentives. Resale prices are generally a lot lower these days. I do not believe it is true that one cannot finance a resale although market for timeshare lending is probably a lot more tight these days.

 

[KAT4DISNEY]

You cannot use resale points for the Disney Cruise or Disney Collections: other Disney hotels (except you can still use them for Disneyland hotels), Adventures from Disney vacations, and the Concierge Collection (certain private hotels that have direct deals with DVC. Other than those restrictions, everything is the same for new buyers from DVD and resale. You can still use points for any DVC resort, RCI exchanges, and Club Intrawest and the Disneyland hotels.
.

The highlighted above is not correct. I think you may be confusing the fact that the rule of 4 does not apply to DL hotels but the resale restrictions do.

 

[Breyean]

The highlighted above is not correct. I think you may be confusing the fact that the rule of 4 does not apply to DL hotels but the resale restrictions do.

Thanks. That statement was driving me crazy, looking for a source since I'd never heard this before.

I know they don't charge the $95 exchange fee for the DL hotels as well, but was surprised to read about the exemption from the restrictions.

Glad to have it cleared up.

 

[KAT4DISNEY]

Thanks. That statement was driving me crazy, looking for a source since I'd never heard this before.

I know they don't charge the $95 exchange fee for the DL hotels as well, but was surprised to read about the exemption from the restrictions.

Glad to have it cleared up.

Ah yes - and no $95 fee for DL.

 

[Mtnman44]

Keep in mind that the trading options seem to be a lot more about marketing DVC to new owners that they are about providing real value to DVC members. Trade outs are very point-expensive, they also cost $95 cash, and they have unreliable, if not very hard to get, availability. Generally, the consensus has always been that buying DVC with the intent to actually use these options more than once in a blue moon is a poor choice.

For the last couple of years, the maket value of DVC contracts have dropped quite a bit. The financial market meltdown and the general economic conditions are obviously the main reasons for this. It is presumed that DVC was unable to continue purchasing via ROFR (in order to reduce direct competition and maintain pricing) and re-sell all the contracts getting sold on the secondary market. So, they cut back quite a bit on ROFR and implemented a different strategy with the intent to reduce the value of a resale and drive more purchasers to direct DVC. These were the new rules restricting the trading options for resale contracts.

As it stands right now, many including myself see very little value in purchasing direct as compared to resale. The price difference is literally double to buy the exact same thing from DVC. (exact, with the exception of the disney and concierge collection trades, which are a poor value to begin with, as explained already)

 

[Fatalbie]

When I purchased the price direct was pretty much the same as the resale price. At the time, the benefits of direct over resale included loaded contracts with prior year points, no maint fees on those prior points, and no closing costs.

I believe Disney now charges closing costs on the loans. Not sure about how maint. fees on prior year points are handled now.

To many, myself included, the recent change to the points use for resale points, is a net minus to the value of the points for the current owners looking to sell. For buyers purchasing resale, the use restrictions seem to be far less impactful compared to the monetary savings. This argument is based on the premise that you intend to use the points for stays on property and not the ancillary uses.
Jim

 

[spiceycat]

I brought all my contracts directly from DVC. Now would go resale. DVC has lower the values of our contracts by not using ROFR - instead they are building new resorts. Again lowering our value.

pretty soon it will be cheaper to buy at SSR or OKW and use it instead of going every year to a value or moderate. that is to me silly.

even their new resorts they are not using ROFR - the only one they do is BCV.

 

[JimMIA]

At the time, the benefits of direct over resale included loaded contracts with prior year points, no maint fees on those prior points, and no closing costs.

I believe Disney now charges closing costs on the loans. Not sure about how maint. fees on prior year points are handled now.

I could be wrong, but I don't believe DVD has ever sold contracts with prior year points included. In fact, I don't think it's even possible because by definition prior year points would be expired.

You get whatever points go with the UY your buying. So right now, if you bought a contract with a December UY direct, you would get the full allotment of 2010 points. Even though we're late in calendar 2011, because of the Dec UY you'd still be in your 2010 Use Year so you get the 2010 points. You're NOT getting something for nothing.

Those points would expire on 11/31/2011 and would ordinarily be useless to you because they expire in two months and there's no availability between now and then. But often, DVD grants an extension of the banking deadline and lets you bank those current UY points.

The DVD timeshare salesmen phrase that procedure to imply that you're getting "double points" or "free points," but the truth is you're just getting what you paid for with the privilege of being able to bank them.

And then, on Dec 1, of course you'd get your full 2011 allotment.

There's a lot of confusion on MF's, which DVC calls dues. MRs cover the operating costs of the resort on a calendar-year basis -- from January 1 through December 31.

When you purchase direct, DVD apportions those fees the proper way -- pro-rated for the length of time from your closing until 12/31 of that year. You own during part of that year (whether you use the points or not) therefore you pay for part of that year.

However, in resale the opposite usually happens. The default in resale is that the dues go with the points, even though that's really backwards. But in resale, that's negotiable; buying direct, it's not.

 

[Fatalbie]

Listen to the other Jim. I just went back and checked my transaction history. we closed in may of 07 and were able to bank those points into the next year creating the illusion of extra points. I just learned something on the DIS, again.
Jim