DVC Member New Annual Pass Discount—Buying Direct Vs. Resale

[mousehouse23]

Remember, too, that the extra money spent on direct NOW is gone, and not invested in stocks/equities that could, over the course of a decade (or whatever), exceed what some families would save on APs during that same time period.

 

[Minniesgal]

So this is interesting. What's stopping people from just backing out as a seller after Disney decides they want the contract? I'm assuming that's still an option since the paperwork hasn't been finalized yet. You might have to deal with the broker fee but maybe they would work something out if you relisted and they got their cut of a higher price. In theory Disney taking it would mean the price was too low and the contract could be sold for more, especially in the current resale market.

To be clear, I would never suggest this if Disney didn't take it, but why not stick it to the man?

A new calculation to consider now when buying resale and not already a blue card owner: the $400 difference in the new annual pass program between the pass available to DVC direct owners and everyone else. Though maybe I’m miscalculating something (and not taking into account the blackout dates on the DVC member / Florida resident pass), that’s an extra $1600 a year for a family of four. That’s $16,000 for 10 years. For 30 years that’s $48,000. For 40 $64,000. Does anyone think this casts a new light on whether to buy direct vs. resale?

That is assuming this perk is around for 10 years which is not a given.

 

[CWTC]

I mean.. unless you just hate money.. it's really not much pain for that kind of savings.

It’s definitely worth it to us and we wouldn’t have paid direct for BLT. We have run into issues with our seller - trying to be patient and compassionate due to their circumstances but closing date has come and gone. Buying direct is instant. We have friends who we tried to encourage them to go resale but they didn’t want the wait so they went direct. They’re happy, we’re happy. It’s all relative worth.

 

[DisneyOutsider]

No pain at all? Though I have bought plenty of resale points, and still will, I disagree. Not every sale goes flawlessly and many sellers are unreliable, which can occasionally lead to interminable delays. Of course the savings can be (but not always are) substantial, but there’s always a price to pay in time, as well as anxiety. For me, there are plenty of times it’s been frustrating.

You're right that it doesn't come without headaches and hassles.

I guess my point is...
People wait in 20 minute lines to get 3 cents off their gas at Costco... When you scale up to a DVC-level of investment, it feels like I should have to put up with far more headaches than I actually do when I'm saving $13K+ on 175 points

 

[DisneyOutsider]

It’s definitely worth it to us and we wouldn’t have paid direct for BLT. We have run into issues with our seller - trying to be patient and compassionate due to their circumstances but closing date has come and gone. Buying direct is instant. We have friends who we tried to encourage them to go resale but they didn’t want the wait so they went direct. They’re happy, we’re happy. It’s all relative worth.

Yeah, I try as best I can to see all sides, and it was much easier to see the other side before the AP price increase. I understand live and let live. If you're happy, that's what matters, etc etc. I usually try to stay out of these discussions because it can be perceived that I'm making a character judgment, and when you're talking this much money that people have plopped down, emotions can get triggered.

But if we're having a discussion and I'm voicing my opinion, I think it's a terrible value to pay 35% more for a direct contract right now... I'll die on that hill

See my other thoughts here

You're right that it doesn't come without headaches and hassles.

I guess my point is...
People wait in 20 minute lines to get 3 cents off their gas at Costco... When you scale up to a DVC-level of investment, it feels like I should have to put up with far more headaches than I actually do when I'm saving $13K+ on 175 points

 

[kilik64]

1 in the hand is worth 2 in the bush.

Rather take the savings for resale up front then try to get it back over the course through discounts (which numerous white card holders indicate a lot of the times they get at retail and dining) and APs (which we'd never buy anyways, but if we did, would take years to see that pay off).

 

[Paul Stupin]

My point is, if you don't need the points right now, then there really isn't a "delay". I just bought a contract with a March UY. I don't need the points for any trips in 2022, as I'm already good for my planned trip next February, so if something goes south, or there is some kind of delay, I don't really care. If the deal falls through, no big deal. There are plenty more out there. If there is some delay in ROFR or estoppel or at the seller's end, then so be it. I'll either get my deposit back, or I'll just wait until the deal goes through. Irritating? Sure, but not the end of the world and certainly not enough to offset the resale savings.

If I was ordering parts for a car I absolutely rely upon for work, school, etc., then that would be an entirely different story and certainly a delay would be a genuine cause for anxiety and frustration. For me, buying DVC points that I really don't need for quality of life just isn't a deal I'm willing to stress over.

Your's is a much healthier point of view than mine! My UY of March is hard to find, especially in the ideal amount of points I'm looking for. So when I find a contract in which I'm interested, I don't want to let it go, and neither do I want to perpetually be in search of another replacement. So I do stress over every purchase.

 

[Paul Stupin]

That is assuming this perk is around for 10 years which is not a given.

Agreed about that. Personally, I haven't been a DVC owner long enough to miss a bunch of perks that they've taken away. But the annual pass is such a cornerstone, I'd bet on the DVC AP discount not going away for a while.
Again, I'm a huge resale owner, but there's also a hidden cost in not being able to use those points at the new resorts. Its hard to put a value on, and it will mean different things to different people, but that cost will go up as we approach 2042 and lose some of the original 14, when they become DVC2, and as new resorts are added. So over time there's a possibility the value of resale points will get diminished. Just something to think about. Disney is playing the long game here.

 

[Wakey]

I also agree, all this cash direct to get some perk which may or may not be around for long is bad business. Keep that money, invest it in the stock market, pension etc.

 

[dvc lover 1970]

DVC will get a backlash from this I think. The reason to buy direct are no longer there, even if you want RIV. Sure you can't use RIV anywhere but there, but I think many are fine with staying at their home resort. If they want to stay at another resort they can do a point transfer.

 

[Paul Stupin]

I also agree, all this cash direct to get some perk which may or may not be around for long is bad business. Keep that money, invest it in the stock market, pension etc.

DVC will get a backlash from this I think. The reason to buy direct are no longer there, even if you want RIV. Sure you can't use RIV anywhere but there, but I think many are fine with staying at their home resort. If they want to stay at another resort they can do a point transfer.

Everyone always says that there’s no guarantee that any of the perks will be around forever, and of course they’re right! But the $400 per person discount for the new AP for DVC members hasn’t gone away. Yes, the prices went up, but that’s not what this discussion is about. And for most people $400 is a substantial amount. Just for a couple that’s $800 a year! Of course they could take it away any time, there might be years where you don’t buy it, travel plans can change, better to keep that money invested, etc, etc, etc, but for those people who stick to the plan, and stay at WDW frequently enough (we go two weeks twice a year), and if the perk remains (granted, a bit of a gamble but I really don’t think it’s going away), it’s still a $400 per person savings annually. And no fancy number crunching can change that.

But I’m a little more pro buying direct now looking toward the future. First, the bulk of my points are resale. So of course I love resale. But, in addition to the AP savings, which is a solid side benefit to buying direct, it’s the ability to stay at the new resorts that I also value. I like the Riviera. I’m sure I’ll like the Disneyland Tower. And I’m sure I’ll like whatever new resorts pop up in WDW a few years down the line. We’ll probably still stay primarily at our home resorts, but we’ll want to try those out too! We don’t want to be shut out of those. And 2042 is getting closer every day.

No doubt resale, in my opinion for non 2042 resorts, is still the cheapest and best option. All I’m saying is that there’s also a downside buyers should be aware of.

 

[Suzabella]

Prices are also high right now because Disney is exercising their ROFR at lower offered price points. ROFR props up the resale cost and I think Disney uses it to move the marker for direct sales.

 

[dvc lover 1970]

Everyone always says that there’s no guarantee that any of the perks will be around forever, and of course they’re right! But the $400 per person discount for the new AP for DVC members hasn’t gone away. Yes, the prices went up, but that’s not what this discussion is about. And for most people $400 is a substantial amount. Just for a couple that’s $800 a year! Of course they could take it away any time, there might be years where you don’t buy it, travel plans can change, better to keep that money invested, etc, etc, etc, but for those people who stick to the plan, and stay at WDW frequently enough (we go two weeks twice a year), and if the perk remains (granted, a bit of a gamble but I really don’t think it’s going away), it’s still a $400 per person savings annually. And no fancy number crunching can change that.

But I’m a little more pro buying direct now looking toward the future. First, the bulk of my points are resale. So of course I love resale. But, in addition to the AP savings, which is a solid side benefit to buying direct, it’s the ability to stay at the new resorts that I also value. I like the Riviera. I’m sure I’ll like the Disneyland Tower. And I’m sure I’ll like whatever new resorts pop up in WDW a few years down the line. We’ll probably still stay primarily at our home resorts, but we’ll want to try those out too! We don’t want to be shut out of those. And 2042 is getting closer every day.

No doubt resale, in my opinion for non 2042 resorts, is still the cheapest and best option. All I’m saying is that there’s also a downside buyers should be aware of.

While APs save 400.00 per ticket ticket prices have gone up and you need to justify the cost. We will probably still renew just because it is easier, but if I did not have the APs I would not miss them. Honestly for my family it is probably cheaper to just buy 10 day hoppers since that is usually all we use of park days anyway.

 

[Suzabella]

We were planning to buy APs for first time and probably still will. I checked the calendar and priced this years prices for times we're planning to get next year (2 trips total to use banked points) and we would break even with the AP after 6 parks days, 3 per trip which is our norm. However, I think if we had the AP, we'd go to some park on our 'off' days just to ride a couple rides or grab a meal and then plan the next year trip earlier as others have mentioned here. The other factor is that we have a couple of nonexpiring hoppers that we would each use to upgrade to AP so that helps the cost a bit. Not sure if we'll ever do AP again because we wouldn't be going that often. Due to covid, we're point rich next year and need to use them or lose them.

 

[dvc lover 1970]

Prices are also high right now because Disney is exercising their ROFR at lower price points. ROFR props up the resale cost and I think Disney uses it to move the marker for direct sales.

Right now people want to buy DVC people have been cooped up from covid and want to get out. I also think there are many impulse buys because of this. The value for dvc is disappearing fast....

 

[Sandisw]

While APs save 400.00 per ticket ticket prices have gone up and you need to justify the cost. We will probably still renew just because it is easier, but if I did not have the APs I would not miss them. Honestly for my family it is probably cheaper to just buy 10 day hoppers since that is usually all we use of park days anyway.

Just to add, the savings for resale, depending on resort, is not as large as it once was. So, someone can get the minimum direct, and offset the extra in a short period of time and have the perks while they last.

Nothing to prevent someone who wants more than 150 to start direct and go resale for the rest.

It won’t work for all and all the additional costs with going may make it harder to even justify resale.

It really is very dependent on each situation.

 

[DonMacGregor]

Again, I'm a huge resale owner, but there's also a hidden cost in not being able to use those points at the new resorts. Its hard to put a value on, and it will mean different things to different people, but that cost will go up as we approach 2042 and lose some of the original 14, when they become DVC2, and as new resorts are added. So over time there's a possibility the value of resale points will get diminished. Just something to think about. Disney is playing the long game here.

Paul, I owe you an apology.

After all that bloviating, I looked at SSR ROFR numbers and realized my current contract is right on the bubble. While I am still a "go with the flow" guy, the idea of having to start over with the process dragging into the holidays just entirely lost its appeal for me about an hour ago.

I am now the proud owner of an additional 150 SSR direct points....

Flame away, I deserve it.

 

[Sandisw]

Paul, I owe you an apology.

After all that bloviating, I looked at SSR ROFR numbers and realized my current contract is right on the bubble. While I am still a "go with the flow" guy, the idea of having to start over with the process dragging into the holidays just entirely lost its appeal for me about an hour ago.

I am now the proud owner of an additional 150 SSR direct points....

Flame away, I deserve it.

Hey,,,you did go with the flow!! Right to DVD direct!! I know I’m done with resale unless RIV points drop below $100…which I do t expect for years!! By then, I hopefully will have hit my 1000 mark and be good!!!

Congrats!

 

[Paul Stupin]

Paul, I owe you an apology.

After all that bloviating, I looked at SSR ROFR numbers and realized my current contract is right on the bubble. While I am still a "go with the flow" guy, the idea of having to start over with the process dragging into the holidays just entirely lost its appeal for me about an hour ago.

I am now the proud owner of an additional 150 SSR direct points....

Flame away, I deserve it.

No flames allowed! And though its value is endlessly debated, you'll find its kinda fun to have the blue card! And I bet your points are already in your account. Congrats!

 

[DonMacGregor]

No flames allowed! And though its value is endlessly debated, you'll find its kinda fun to have the blue card! And I bet your points are already in your account. Congrats!

Points showed up about 30 minutes after I finished the DocuSign. Those 150 2021 points sure do look good sitting there waiting to be banked too...