DVC Buying resales

[LindaC]

This is my first post. I have been reading the posts and have a question. Why is Disney buying up the resales? What do they gain by doing so?

 

[MommaluvsDis]

First off, welcome to the boards. Disney is buying some of the contracts so that they can sell add-on points to the exsisting members. This is how they replenish their "bank" of points.

 

[LindaC]

Thanks. Slowly I'll start understanding the in's and out's of DVC.

 

[MommaluvsDis]

Well, you're in the right place!! Ask any ???? you want to. The people on this board have been a wonderful source of info for me. It's because of them that DH and I bought with confidence!

 

[Dean]

Actually the only reason they buy points is to keep the resale prices high and making it difficult for people to buy resale thus directing them more toward buying from DVC directly. Getting the points to sell to current members is a byproduct. Even with a spread of $20 pp, they don't really make enough for it to be worthwhile from a $$$ standpoint as the main reason.

 

[ditzy]

I don't understand how Disney can keep raising the point cost ($95 less incentives) when resales seem to be selling in the low $70s (sometimes with banked points.) Even after adding closing costs for resales, it seems that the spread has increased in the last year.

 

[tjkraz]

Originally posted by ditzy
I don't understand how Disney can keep raising the point cost ($95 less incentives) when resales seem to be selling in the low $70s (sometimes with banked points.) Even after adding closing costs for resales, it seems that the spread has increased in the last year.

There are a number of reasons. Probably the most relevant are:

1. A lot of people just don't know about the resale market. They discover DVC...take the tour...recognize the financial benefit and buy whatever resort Disney is selling.

2. The contracts at Saratoga Springs (the only one currently selling for $95) are 12 years longer than the other resorts. Contracts at SSR end in 2054 while ALL of the other resorts end in 2042.

3. Contracts in the low $70s are actually getting grabbed by ROFR pretty consistently. Seems buyers need to be in the $74+ range to get through at present. Add in closing costs and maintenance on any points currently available and you're actually closer to $80.

Also, don't discount the ease of purchase and financing through DVC. Check the boards and you'll see some folks who are pretty disappointed and frustrated over losing their resales to ROFR. If I wanted to buy points from DVC, I could literally call them now, give my CC number for the a deposit, and make a reservation 30 minutes later. DVC will finance, and the reports of someone being turned down are extremely rare. In a resale, you either need to organize your own financing or be willing/able to pay cash.

 

[Cinderpals]

Hi, Sorry, I'm still a rookie to this DVC thing. I haven't purchased yet, but have these questions if anyone would care to respond, I'd appreciate it. 1) I'm looking to stay the week before Christmas regulary. Does it matter which use year I purchase in? Depending on resort choice: VWL or BWV I understand I can book from 11 months out if I own points at that DVC property** If I want VWL, should I look to purchase resale VWL with use month December or January? 2) I believe that I would need to have the points available at time of booking, correct? 3) Which resort property is most popular (harder to get) during week before Christmas? Thanks!!! We plan on going more often than 1 per year, but would love to have use of a villa in December.

 

[Happy Birthday Cat]

Originally posted by Cinderpals
1) I'm looking to stay the week before Christmas regulary. Does it matter which use year I purchase in? Depending on resort choice: VWL or BWV I understand I can book from 11 months out if I own points at that DVC property** If I want VWL, should I look to purchase resale VWL with use month December or January? 2) I believe that I would need to have the points available at time of booking, correct? 3) Which resort property is most popular (harder to get) during week before Christmas? Thanks!!! We plan on going more often than 1 per year, but would love to have use of a villa in December.

ROFR is Disney's contractual Right Of First Refusal. This gives them the right to purchase back any contract which is sold. They get to look at it and decide if they want it.

You can make a reservation regardless of when your use year is. Use year doesn't matter when it comes to when you can make a reservation. You can always make a reservation 11 months in advance of your stay, no matter what your use year is.

Use year matters if you have to cancel a reservation. If you will usually travel in December, your best bet would be a September or October use year. That way if you had to cancel your December trip, you would be able to bank your points to the following year.

Good luck and don't worry about asking questions.

HBC

 

[Cinderpals]

That clears things up for me****