DVC for Dummies

[lovin'fl]

We're considering buying direct, but for some very specific reasons.

1. We're going to try to get into VGC for our 5th anniversary in September, and having the points immediately available would be advantageous. There's no guarantee a resale would close in time, and many of the ones we're looking at have stripped points anyway.

Might want to do it soon then. It's coming up on the 7 month window. Nevermind what I previuosly said about F&W...you want VGC not VGF.

 

[SuperRob]

Yup. We were just waiting for my bonus to come in, which it did today. My guide is on vacation until the 19th, though. And we're looking at second week of September.

 

[_auroraborealis_]

We're considering buying direct, but for some very specific reasons.

1. We're going to try to get into VGC for our 5th anniversary in September, and having the points immediately available would be advantageous. There's no guarantee a resale would close in time, and many of the ones we're looking at have stripped points anyway.
2. The interest rate is comparable to what we're finding elsewhere, and since we're already members in good standing, it's an automatic approval. Other lenders we've looked at with automatic approval have higher rates than what Disney quoted me.
3. Having Disney handle all the details rather than dealing with a resale broker, another owner, another finance company, etc. is not a minor benefit to us.
4. There's no chance we could spend a month working on a resale, getting our hopes up, and having Disney ROFR it.

Also, I'm not sure where you're getting "2x the price" from. We're seeing Disney's prices for the properties we're looking at are maybe 33-50% higher. And the interest rate we were quoted was WAY lower than 16%.

For the record, normally we wouldn't advocate financing this at all. (It really eats into the time it takes to break even.) We're using the financing more as a bridge loan. We can buy now, pay a sizable down payment, and then pay down the rest if/when we resell our current contract.

Are you looking at AKV? AKV resale vs. direct is a pretty big gap. VGC or somewhere like that, I would believe the prices are closer in.

 

[SuperRob]

Are you looking at AKV? AKV resale vs. direct is a pretty big gap. VGC or somewhere like that, I would believe the prices are closer in.

We're looking at SSR (our current home), Aulani (we've been once, going again in April, and love it, plus we live on the west coast), VGC, VGF, Poly, and BLT. We really enjoy staying on the monorail loop. Price difference between what I was quoted for SSR by Disney and what I'm seeing resale is about $50pp. The gap is less for these other properties, when Disney even has inventory, that is.

 

[_auroraborealis_]

We're looking at SSR (our current home), Aulani (we've been once, going again in April, and love it, plus we live on the west coast), VGC, VGF, Poly, and BLT. We really enjoy staying on the monorail loop. Price difference between what I was quoted for SSR by Disney and what I'm seeing resale is about $50pp. The gap is less for these other properties, when Disney even has inventory, that is.

A friend of mine is in the emotional stage of "DVC!!!!" but wants to buy direct. But doesn't want Poly because they don't want studios. DVD offered them AKL for $150/point.

This would be a first contract (no pre-existing relationship). So I think the considerations can be different between the scenarios. A first-time purchaser needs a really compelling reason to pay $50/point more than they can on the resale market, and most of the reasons quoted by Disney to do so are dubious.

 

[KAT4DISNEY]

. The gap is less for these other properties, when Disney even has inventory, that is.

It is not less for all others. Someone posted above they just bought AKV for $75 resale. When I commented almost double I was using $85 but that was a list price and with all the AKV contracts for sale one should be able to get it for less. AKV is $155 direct per DVC News. So, actually more than double if one would get resale for $75.

SSR is $135 direct. Asking price is again around the $85 to $90 and I suspect you could easily get it for $80-$85 or even less. That's paying an almost 70% premium and, for example, if one is looking at 100 points that's paying somewhere around $5,000 to $5,500 more. That's 8-9 years worth of dues on those $100 points. And for more points the amount of course just gets larger. When looking at AKV, as was being asked about, for say 200 points you're speaking about $16,000 more! One could pay cash for a few vacations before they'd ever equal what they gave unnecessarily to DVC. For smaller contracts the overall cost difference can mean much less and it does very by resort - one just needs to compare the numbers all the way out. You state that it's only $50 difference per point. If you're looking at 25 points that's $1,250 and it can be difficult to even find a $25 contract so it can make sense. But it adds up with more points and the fact that it's easier to find those resale contracts.

 

[KAT4DISNEY]

Thanks for the info! So, if we bought resale, would we forgo any of the other Disney benefits? Are there special discounts, publications, park passes etc, that you only get through buying directly from Disney? Also, trying to get a better understanding of the points expiration (I have read a lot of the intro material, but still don't quite understand it). Do all points expire in the same year (whether buying direct from Disney vs resale)? And what happens to the value of those points once you near the expiration date? For instance, if I buy 150 points at AKV that expire in 2057, at what point do they start to lose their value? Thanks everyone!

You'd still receive all the benefits of discounts etc. The restrictions with resale are not being able to trade points to use on Disney Cruises, Adventures by Disney, stay in their hotels or trade thru the Concierge Collection. With resale you can still trade into the World collection which includes RCI and the Buena Vista Trading Co.

 

[_auroraborealis_]

And with resale, you can still rent your points (for cash!) and use that cash to book a Disney cruise or stay in a different hotel.

 

[SuperRob]

A friend of mine is in the emotional stage of "DVC!!!!" but wants to buy direct. But doesn't want Poly because they don't want studios. DVD offered them AKL for $150/point.

This would be a first contract (no pre-existing relationship). So I think the considerations can be different between the scenarios. A first-time purchaser needs a really compelling reason to pay $50/point more than they can on the resale market, and most of the reasons quoted by Disney to do so are dubious.

Fair enough. I just listed my reasons for considering direct. We did buy direct for our first contract, and maybe it was a mistake in retrospect, but we feel like we've done OK. (We bought SSR direct at $99pp for 60.)

It is not less for all others. Someone posted above they just bought AKV for $75 resale. When I commented almost double I was using $85 but that was a list price and with all the AKV contracts for sale one should be able to get it for less. AKV is $155 direct per DVC News. So, actually more than double if one would get resale for $75.

SSR is $135 direct. Asking price is again around the $85 to $90 and I suspect you could easily get it for $80-$85 or even less. That's paying an almost 70% premium and, for example, if one is looking at 100 points that's paying somewhere around $5,000 to $5,500 more. That's 8-9 years worth of dues on those $100 points. And for more points the amount of course just gets larger. When looking at AKV, as was being asked about, for say 200 points you're speaking about $16,000 more! One could pay cash for a few vacations before they'd ever equal what they gave unnecessarily to DVC. For smaller contracts the overall cost difference can mean much less and it does very by resort - one just needs to compare the numbers all the way out. You state that it's only $50 difference per point. If you're looking at 25 points that's $1,250 and it can be difficult to even find a $25 contract so it can make sense. But it adds up with more points and the fact that it's easier to find those resale contracts.

I think AKV is really the exception. Disney thinks that resort is worth way more than the resale market, and I really don't know why. But that wasn't a resort I was considering, so I didn't ask for a price. So when I said "the others", it wasn't on my list. Sorry.

And yes, obviously as you go up in points, the additional cost becomes more significant. That's a choice everyone needs to make, whether the additional cost is worth it or not. We're looking at less than 100 points, and we're considering direct because we think the additional cost could be worth the benefits I outlined. But we're not 100% sure yet. My only point in all of this is that it's never as black and white as people on these boards think, because everyone has different situations.

 

[_auroraborealis_]

As I said, with my friend, it's this emotional thing. Poly is a terrible home resort, because they want 1 or 2BRs for most visits. AKV would be okay if they wanted to stay there (they don't), but if they did want AKV, paying $50-60/point more for points enough for a 2BR every 3 years is nothing short of insanity.

I've been talking them through the "Don't pay $150-165/point when you'll be trying to go elsewhere at 7 months every time or won't even book there at 11 months in the first place" thing.

 

[supersnoop]

We're considering buying direct, but for some very specific reasons.

1. We're going to try to get into VGC for our 5th anniversary in September, and having the points immediately available would be advantageous. There's no guarantee a resale would close in time, and many of the ones we're looking at have stripped points anyway.
2. The interest rate is comparable to what we're finding elsewhere, and since we're already members in good standing, it's an automatic approval. Other lenders we've looked at with automatic approval have higher rates than what Disney quoted me.
3. Having Disney handle all the details rather than dealing with a resale broker, another owner, another finance company, etc. is not a minor benefit to us.
4. There's no chance we could spend a month working on a resale, getting our hopes up, and having Disney ROFR it.

Also, I'm not sure where you're getting "2x the price" from. We're seeing Disney's prices for the properties we're looking at are maybe 33-50% higher. And the interest rate we were quoted was WAY lower than 16%.

For the record, normally we wouldn't advocate financing this at all. (It really eats into the time it takes to break even.) We're using the financing more as a bridge loan. We can buy now, pay a sizable down payment, and then pay down the rest if/when we resell our current contract.

Are you planning to buy VGC? Because they won't sell it direct anymore.

 

[SuperRob]

Are you planning to buy VGC? Because they won't sell it direct anymore.

We're looking into a couple resale contracts. As for whether or not Disney will sell, they will, if they have inventory. They'll never turn down a sale if they can fill it. But the odds of them having inventory is extremely low. (And this is all coming from my guide.)

 

[supersnoop]

We're looking into a couple resale contracts. As for whether or not Disney will sell, they will, if they have inventory. They'll never turn down a sale if they can fill it. But the odds of them having inventory is extremely low. (And this is all coming from my guide.)

They have a waitlist over 18 months long. So long that they closed the waitlist.

 

[kissiffer4]

Some great feedback. Thanks so much. If, for instance, I wanted to start with purchasing 100 points resale at AKV, would it be possible to add another 100 at a later date? We have a family of 4, so not sure if squeezing into a studio would be doable.

 

[KAT4DISNEY]

Some great feedback. Thanks so much. If, for instance, I wanted to start with purchasing 100 points resale at AKV, would it be possible to add another 100 at a later date? We have a family of 4, so not sure if squeezing into a studio would be doable.

Yes. When adding on resale you just have to make certain to get everything titled just the same as your other contract and the same UY and then it will be a sub contract under you membership and can be used in conjunction with you first contract.

 

[SuperRob]

They have a waitlist over 18 months long. So long that they closed the waitlist.

Yup. But if they picked up a contract in the past couple of days and I come in and pay cash, they'll sell it to me, waitlist or no waitlist. They'll go with the sure thing every time. And trust me, Disney says there's things they can't do all the time, but cash talks. That's why I have 60 points we bought direct ... they'll tell you that they can't sell less than 100 points, but they certainly did in my case.

 

[supersnoop]

Yup. But if they picked up a contract in the past couple of days and I come in and pay cash, they'll sell it to me, waitlist or no waitlist. They'll go with the sure thing every time. And trust me, Disney says there's things they can't do all the time, but cash talks. That's why I have 60 points we bought direct ... they'll tell you that they can't sell less than 100 points, but they certainly did in my case.

The minimum was reduced to 50 points a while ago. I imagine they'll still hit that waitlist first.