DVC resale

[pigget74]

What is the downside of buying points through a resale company and not through Disney?

 

[DisneyMama21]

What is the downside of buying points through a resale company and not through Disney?

You lose the ability to use your points with some of the collections...like to go on Disney Cruises with points or stay at one of the non DVC resorts on points.

 

[DizBub]

The only real downside I can think of is the lengthy process. Typically 60 days. The timeline is:
Find a property/contract you like.
Make an offer.
Sometimes there is negotiating until you can agree on a price.
You, the buyer, get a contract to sign and return with down payment.
You wait for the sellers to sign and return their contract.
Broker has to do a title search.
Contract gets sent to Disney for ROFR. This takes 30 days alone.
You get notified that it passes ROFR (or not and then you start all over).
Then there are Estoppels (?) that can take another week or less.
You get final documents to sign.
You send your documents back with final payment and wait for sellers to sign and have their papers notarized.
It can take another week or so for your contract and points loaded into Disney's system. If you're lucky, this should take 60 days.

Most resales seem to go off without a hitch and the considerable savings make it worth the wait.

 

[sweetdana]

agree with pp.

Time : turn around from offer to being able to book (longer if ROFR) is about 60 days.

There are a small amount of things you currently cannot book with resale points, this could always grow. Depending on if Disney wants to have a bigger selling feature on the direct points. You will be always allowed to book your home resort, and IMO always other resorts at a slightly closer to date (maybe 11-7 month changes, but still something). But anything else can change.

It also is difficult to finance resale contracts. Your options are cash or using your own credit IE a credit card (you take cash out of), HELOC, installment loan from bank (usually not secured so HIGH interest) ect

All things being = it saves you some where between 60 and 100$ per point and I could not imagine paying 160$ a point new, when resale is 90$ at the highest (est of BLT) and 50ish at the lowest (est VB).

 

[pigget74]

agree with pp.

Time : turn around from offer to being able to book (longer if ROFR) is about 60 days.

All things being = it saves you some where between 60 and 100$ per point and I could not imagine paying 160$ a point new, when resale is 90$ at the highest (est of BLT) and 50ish at the lowest (est VB).

The turn around does not bother me. We are thinking about adding on next year, but when I went to look at some prices I was like

We currently have 200 points and was thinking about 50 or 100 to add on. When I did the math the 100 is almost for what we paid the 200! Not going to do that!

 

[Dean]

You lose the ability to use your points with some of the collections...like to go on Disney Cruises with points or stay at one of the non DVC resorts on points.

In other words, no downside since these options are more expensive than buying less points and using cash. IMO, the only reasons to buy retail are for options you can't reasonably get resale (GF, fixed week HI, smaller amount) or when the price difference isn't enough to make it worthwhile. Obviously all of this assumes that buying at all is a reasonable choice for a given person.

 

[ELMC]

Resale points are currently restricted so that they may not be used for the Adventures by Disney, Disney Cruise Line or the Concierge Collection. However, these benefits are not guaranteed even for direct points, so buying direct so you can have them comes with a small element of risk.

It sounds to me that you main consideration is cost, in which case resale is typically the way to go. That being said, if you are not careful in negotiating, a 50 point resale contract could approach the cost of a direct contract because there is a pretty substantial closing cost associated with resale (approximately $425). To mitigate this you can either buy 100 points and amortize the closing cost over more points, or negotiate that the seller pay or split the closing cost with you. You can also save some money by negotiating whether or not you will reimburse for the 2012 maintenance fees. If you don't, or if you split them, that will be another savings over buying direct.

Take your time to read about the resale market and the process of negotiating for contracts. But like I said, if cost is your main consideration, resale is the way to go. Good luck!