Downside to buying small add on re-sale?

[KAT4DISNEY]

Dean, do you have a guess as to when they will start selling CC?

There is a price increase coming January 18th. I'm going to guess sales will at least be announced within a few weeks of that. No inside knowledge, just a guess, but it follows along with what has happened before.

Resale purchasers after the change do not get a member ID card. They get a digital Member ID.

AFAIK they get a card but apparently it's a white background.

 

[TinyTGO]

I never received a card. I bought my first resale August. I have been sent an email about my digital membership card.

 

[CarolMN]

There is a price increase coming January 18th. I'm going to guess sales will at least be announced within a few weeks of that. No inside knowledge, just a guess, but it follows along with what has happened before..........(snip)........

Makes sense. I also think that the initial sales will come with some type of incentive - perhaps a "discount" to the current (pre-price) increase.

 

[Lynne M]

sorry to jump on this, but we are in the same boat. We want to buy 4 small 50 point contracts for each of our kids. Am I understanding this correctly that if we do this via resale they can not get discounted AP?

But keep in mind, that discounted AP isn't guaranteed even on contracts bought direct. You could pay full Disney prices for 4 direct contracts and the AP discount could be discontinued the next day.

None of the perks are in the contract as part of your membership, no matter how you buy. They're given at the whim of third parties or other divisions of Disney - in this case, Disney Parks.

 

[KAT4DISNEY]

Makes sense. I also think that the initial sales will come with some type of incentive - perhaps a "discount" to the current (pre-price) increase.

That would also follow - they've had a lower price for member add on's for a short period then when public sales opened it was increased, or no discount.

 

[mustinjourney]

One downside to buying a small contract resale is that they are often stripped contracts and the closing costs are relatively high, which drastically increases the price per point.

I bought 25 points direct and the closing costs were only $100. Resale closing would've have been around $500 (that effectively is $16 per point more than direct), and I doubt I would have been able to find one with 2015 and 2016 points.

With VGF, for a contract of 50 points or less, I would strongly consider going direct. They're hard to get, but I have heard of people getting them direct.

 

[TinyTGO]

One downside to buying a small contract resale is that they are often stripped contracts and the closing costs are relatively high, which drastically increases the price per point.

I bought 25 points direct and the closing costs were only $100. Resale closing would've have been around $500 (that effectively is $16 per point more than direct), and I doubt I would have been able to find one with 2015 and 2016 points.

With VGF, for a contract of 50 points or less, I would strongly consider going direct. They're hard to get, but I have heard of people getting them direct.

I agree. I think it makes sense to go direct for small contracts. As you said, considering the high closing costs and high market price for resale teenys, why wouldn't you go direct? I think the phrase "hard to get" is misleading however. You just have to get yourself on the waitlist, and ... wait. Now if you have a specific time frame you need to work with, you may have no choice but to go resale. Direct VGF points are going for, I believe, 180pp, but the closing costs are maybe $100, and they typically come fully loaded... as in double points in the purchased year. Whereas, resale teeny VGF's are between 140-150pp + a few hundred in closing costs, and as Mustin said, come stripped.

 

[Dean]

I agree. I think it makes sense to go direct for small contracts. As you said, considering the high closing costs and high market price for resale teenys, why wouldn't you go direct? I think the phrase "hard to get" is misleading however. You just have to get yourself on the waitlist, and ... wait. Now if you have a specific time frame you need to work with, you may have no choice but to go resale. Direct VGF points are going for, I believe, 180pp, but the closing costs are maybe $100, and they typically come fully loaded... as in double points in the purchased year. Whereas, resale teeny VGF's are between 140-150pp + a few hundred in closing costs, and as Mustin said, come stripped.

IF one is going to buy 25 points it does make sense to do so direct. Best it to avoid it unless one is also trying to have qualified points for the perks so it's important to make good choices up front when possible. One quibble is the direct points are not fully loaded in my book. Fully loaded to me is all current UY points plus last years points banked into the current UY. Now late in the UY it might not matter due to the ability to bank late if buying direct. I think the situation where just buying 25 points is a good choice is fairly limited just for the points. It's not difficult to stretch points but it can be costly. Often buying more is the better choice and certainly at or over 50, resale is the clear advantage for most situations.

 

[TinyTGO]

IF one is going to buy 25 points it does make sense to do so direct. Best it to avoid it unless one is also trying to have qualified points for the perks so it's important to make good choices up front when possible. One quibble is the direct points are not fully loaded in my book. Fully loaded to me is all current UY points plus last years points banked into the current UY. Now late in the UY it might not matter due to the ability to bank late if buying direct. I think the situation where just buying 25 points is a good choice is fairly limited just for the points. It's not difficult to stretch points but it can be costly. Often buying more is the better choice and certainly at or over 50, resale is the clear advantage for most situations.

When I was there this summer, they offered me direct points with 2015 points and 2016 points free of maintenance fees with a Dec UY.

 

[CMNJ]

When I was there this summer, they offered me direct points with 2015 points and 2016 points free of maintenance fees with a Dec UY.

In the summer of 2016 a buyer with a Dec UY is actually still in their 2015 UY so buying direct will always result in getting those points plus the 2016 points when your Dec 2016 UY starts on Dec 1 2016. Usually they prorate dues based on when you buy as dues are charged by the calendar year not UY. So if they were waiving all 2016 dues and not making you pay any until 2017 that was a "deal" as normally you would pay for the months of 2016 remaining from they day you bought (i.e. June 30th you'd pay 1/2 year's MF but if you waited until Nov 30th you'd normally pay 1/12 MF)
To me a "fully" loaded contract would be having bought Dec UY contract back over the summer and receiving 2014 points banked into 2015 plus 2015 points banked into 2016 and full 2016 points coming on Dec 1 2016-that kind of contract is never avail direct as Disney only sells with full current UY points (ignoring any special limited time promo they may have run in the past). However as previous posters have pointed out loaded small resale contracts (or even those with full current points) are often hard to come by and for some resorts aren't that much cheaper than direct (due to higher listing prices and much higher closing costs)

 

[CarolMN]

When I was there this summer, they offered me direct points with 2015 points and 2016 points free of maintenance fees with a Dec UY.

That's the usual practice. With a December use year, summer 2016 would have fallen within the 2015 use year. So you would have received current use year points, not banked points.

Usually, they prorate maintenance fees from dates of purchase, so if you wouldn't have had to pay fees until January, 2017, that would have been a better deal than they have been offering for direct purchases. My guess is that they meant you wouldn't pay fees for calendar year 2015, just going forward from the date of purchase. Fees are charged on a calendar year basis, not use year.

 

[mustinjourney]

That's the usual practice. With a December use year, summer 2016 would have fallen within the 2015 use year. So you would have received current use year points, not banked points.

Usually, they prorate maintenance fees from dates of purchase, so if you wouldn't have had to pay fees until January, 2017, that would have been a better deal than they have been offering for direct purchases. My guess is that they meant you wouldn't pay fees for calendar year 2015, just going forward from the date of purchase. Fees are charged on a calendar year basis, not use year.

when I bought my 25 DEC UY BCV points back in October, I didn't pay MFs on 2015 or 2016 points.

 

[Dean]

When I was there this summer, they offered me direct points with 2015 points and 2016 points free of maintenance fees with a Dec UY.

As noted, this is normal but it's not a fully loaded contract. Fully loaded would have come with 2014 points banked to 2015 and expiring the end of Nov. The UY timing can bring them close to the same or not depending. Paying dues based on the time left in the UY is normal and is the way it should be resale as well but some companies hold you up in that area. One just needs to take this into account as part of the overall pricing evaluation.

 

[KAT4DISNEY]

when I bought my 25 DEC UY BCV points back in October, I didn't pay MFs on 2015 or 2016 points.

And you're certain you just haven't received the bill yet? It is not paid at the time of the purchase but is a bill that is sent later. If not then that would be a change - all sales agreements from the past stated dues would be pro-rated from the date of the sale in the situation you describe.

 

[mustinjourney]

And you're certain you just haven't received the bill yet? It is not paid at the time of the purchase but is a bill that is sent later. If not then that would be a change - all sales agreements from the past stated dues would be pro-rated from the date of the sale in the situation you describe.

Purchased back in August -- don't think I've seen a bill yet.

 

[Dean]

And you're certain you just haven't received the bill yet? It is not paid at the time of the purchase but is a bill that is sent later. If not then that would be a change - all sales agreements from the past stated dues would be pro-rated from the date of the sale in the situation you describe.

The dues for the rest of this year should have been included in the closing and the 2017 dues would be coming up. Kathy I know you know this but for perspective for others, dues are paid by calendar year not UY so what is to be paid by a buyer of a Dec UY back in Oct who got 2015 points is 3 months of dues at closing and then the 2017 calendar dues which will cover 11 months of the 2016 points.

 

[KAT4DISNEY]

The dues for the rest of this year should have been included in the closing and the 2017 dues would be coming up. Kathy I know you know this but for perspective for others, dues are paid by calendar year not UY so what is to be paid by a buyer of a Dec UY back in Oct who got 2015 points is 3 months of dues at closing and then the 2017 calendar dues which will cover 11 months of the 2016 points.

It's been several years now since I did a direct add on but the dues were calculated and sent as a statement sometime within one to two months of closing as I recall. VGF was the last and I guess I don't recall that specifically, maybe there was a change, but I remember back to BLT when the statement I received well after closing had incorrectly calculated what was owed for the proration.

I have heard that they now have resale buyers pay even the upcoming dues for any closings if purchased late in the calendar year which is a change from a few years ago so maybe they've changed when direct is paid too.

 

[Dean]

It's been several years now since I did a direct add on but the dues were calculated and sent as a statement sometime within one to two months of closing as I recall. VGF was the last and I guess I don't recall that specifically, maybe there was a change, but I remember back to BLT when the statement I received well after closing had incorrectly calculated what was owed for the proration.

I have heard that they now have resale buyers pay even the upcoming dues for any closings if purchased late in the calendar year which is a change from a few years ago so maybe they've changed when direct is paid too.

Since dues are paid at the beginning of the UY, it is my understanding they include this in the closing. The dues are calculated from the later of the date signed or the first day the points are available, which ever is later. I'm not sure about resales for DVC having dues paid ahead late in the UY. Historically dues are paid in advance unless the seller is on the installment plan. Either way the seller is technically responsible. Most resale companies take the stance you get the points you pay the dues but this is technically wrong and illustrates a lack of understanding of the process. The buyer would be responsible as soon as they are the legal owner even if the dues are past due.

 

[TinkerBellLiz]

Since dues are paid at the beginning of the UY, it is my understanding they include this in the closing. The dues are calculated from the later of the date signed or the first day the points are available, which ever is later. I'm not sure about resales for DVC having dues paid ahead late in the UY. Historically dues are paid in advance unless the seller is on the installment plan. Either way the seller is technically responsible. Most resale companies take the stance you get the points you pay the dues but this is technically wrong and illustrates a lack of understanding of the process. The buyer would be responsible as soon as they are the legal owner even if the dues are past due.

The direct Poly contract we purchased last month did not include any dues. We had anticipated paying them at signing but we were told we would get 2 separate statements: one prorated for December 2016 dues and one for estimated 2017 dues. We paid cash so I don't know if financing is different. I know closing costs were less since it was cash.

Oddly I received my card yesterday (2 weeks after signing) even though the contract status still shows pending online.

Liz

 

[KAT4DISNEY]

The direct Poly contract we purchased last month did not include any dues. We had anticipated paying them at signing but we were told we would get 2 separate statements: one prorated for December 2016 dues and one for estimated 2017 dues. We paid cash so I don't know if financing is different. I know closing costs were less since it was cash.
.......

That is how our direct purchases were done.