Exploring my options

[csw531]

Hi all, I am looking for some advice and am hoping you can help. Here is what is going on.

We are exploring buying 100 pts through DVC at SSR at $95 a point.

- getting 100 bonus pts that are considered to be 2009 pts that will expire in 2011 - we will use them
- no closing costs
- option to finance on my Disney Visa in 3 instalments of 1/3 payments with no interest for 1st 6 months each time. We are planning on paying off each installment within that 6 month time frame

We are also exploring resale and the only things that are holding us back are the financing options and a level of comfort. We cannot put down $9,500 in one lump sum. We could pay 1/2 and then thought about putting the second half on a 0% credit card that we will have to be very diligent about paying off before the interest starts. Are credit cards even allowed through resale transactions? What resales places have folks used?

What is the best way to go in your opinion?

Thanks!!!!

 

[ToddyLu]

I just glanced at two resale contracts on TSS for $6500. Closing costs would be probably about $400. If you can pay $4500 up front you would only owe say $2500 (6500-4500-400= resale). Now I didn't see how many points had been banked in those contracts, I am sure not many. Waiting for a resale would save money. Now if you want instant gratification then you can do like us and finance the whole thing. We got 210 points at AKV last year, minimum buy in was 160.

 

[katybug34]

Hi all, I am looking for some advice and am hoping you can help. Here is what is going on.

We are exploring buying 100 pts through DVC at SSR at $95 a point.

- getting 100 bonus pts that are considered to be 2009 pts that will expire in 2011 - we will use them
- no closing costs
- option to finance on my Disney Visa in 3 instalments of 1/3 payments with no interest for 1st 6 months each time. We are planning on paying off each installment within that 6 month time frame

We are also exploring resale and the only things that are holding us back are the financing options and a level of comfort. We cannot put down $9,500 in one lump sum. We could pay 1/2 and then thought about putting the second half on a 0% credit card that we will have to be very diligent about paying off before the interest starts. Are credit cards even allowed through resale transactions? What resales places have folks used?

What is the best way to go in your opinion?

Thanks!!!!

Direct purchase provides the highest level of comfort and predictability. Resale market provides the lowest price. If I were purchasing SSR, I would have a hard time paying $95 when it is soooo cheap on the resale market. You can't purchase on the resale directly with a credit card but could explore 0% cards or other short term means of financing. The interest you would pay in 6 months is negligible. We own 800 points and have purchased all directly, but have been at AKV and BLT which are considerably higher than SSR on the resale market.

 

[ToddyLu]

Are you sure SSR is where you want to stay? I mean you could get 100 points resale for BLT 101-104$ per point. Just asking inquiring minds want to know...

 

[ToddyLu]

I don't know buying resale sure is tempting. You could get 150 points for the same amount of money you would be giving Disney. Now you do get the 100-2009 points from Disney, but only to use in the next year. Having those 50 extra points for the life of the contract ...pretty sweet.

 

[csw531]

Yes we want SSR.

The only drawbacks on resale is the comfort level and also the financing option. If we buy $7,400 worth of points we need to finance 1/2 of that and really don't want to pay a high interest rate. That is why Disney is so appealing because they let you pay 1/3 at a time with no interest on my Disney Visa.

Anyone know of any other drawbacks to buying resale? My DH said he read that you can't take advantage of Disney incentives offered to DVC members. Is this true?

Thanks for all the help so far!!!!

 

[ELKHUNTER]

If your first choice is to place your purchase on your disney visa, you might contact the bank the card belongs to probably Chase Bank and request visa checks to use with your card. These i believe can be used to purchase a resale contract.

 

[Dean]

Yes we want SSR.

The only drawbacks on resale is the comfort level and also the financing option. If we buy $7,400 worth of points we need to finance 1/2 of that and really don't want to pay a high interest rate. That is why Disney is so appealing because they let you pay 1/3 at a time with no interest on my Disney Visa.

Anyone know of any other drawbacks to buying resale? My DH said he read that you can't take advantage of Disney incentives offered to DVC members. Is this true?

Thanks for all the help so far!!!!

Paying 1/3 more for the incentives doesn't seem reasonable to me. Given your situation I'd start saving and looking for the right resale so you can pay cash for the amount of point's right for you. Doing the CC thing is very risky unless you have the money already to pay it anyway, even then if you miss a deadline, it could cost you hundreds. IF I were going to buy retail I'd consider BLT in this situation even if plan to stay at SSR most trips due to the inherently higher value and the fact that anything you could get with 100 points should be available at 7 months anyway.

You also mentioned moving up to 150 points, if you are familiar enough with DVC, it's likely best to buy what points you know you need if you can initially because you'll save in closing costs and get a better price per point over the 100 pt contract.

 

[JimMIA]

My DH said he read that you can't take advantage of Disney incentives offered to DVC members. Is this true?

It depends on what he means by incentives. If he means dollars off the selling price, he's correct although you will probably negotiate equal dollars off on a resale purchase anyway. Keep in mind, when the Disney timeshare salesmen talk about "dollars off incentives" they're starting from $120 in most cases!

If he's talking about the "free" 100 2009 points, the first thing you need to understand is they are not free! You are BUYING those points because you are buying an September, October or December UY. You're also paying the pro-rated maintenance fees on those points for the balance of 2010...something you would almost certainly not do with a resale.

If he means the other "perks" that go with DVC membership - two things to consider. One is, once you're in, you're in and you get exactly the same perks whether you bought resale or direct. The other thing to keep in mind is that perks come and go, and therefore it's best not to consider them at all in your purchase decision.

If you were buying BLT because you REALLY wanted BLT, the math for buying direct would still be bad, but not quite so bad. But with SSR, it's pretty hard to justify the $30 per point difference! (I personally can't think of an intellectually-honest rationalization.) You're paying $3,000 + the interest as the price of financing.

If I were in your shoes, I'd either buy your 100 points resale now -- or if you can't quite swing that right now, buy a smaller contract resale and add the rest of the points when you are able. You can add as few as 25 points later if you don't need financing, 50 points minimum to finance.

 

[Ryansdad0727]

The interest you will pay on a 10% loan over 3 years will not even come close to the $3000+ you will save buying resale or getting more points for the same money. Resale will take 8-10 weeks to close and have the points ready to use but the price on SSR is $62 to $70 per point.

 

[Metsoskil]

If what you can afford is $4500 right now and SSR is where you want to own, I'd look at a 60-70 point resale contract. Then in a few months when you can pay the rest, look for another resale contract for 50-60 points. You won't need to finance anything that way, you'll spend the about same amount of money (maybe about $400 more for the second set of closing costs), and you'll end up with more points.

 

[DMKEDM]

All this math has its place...but here's a response to the "comfort level" factor:

1. Were you wanting to use points fairly soon? If you buy direct, you'll have your points within a day (it's happened w/me that I had them within 2 hours!), AND help from the guide if your first reservation is wanted for a time when availability is a problem...if you have no plans to do a Disney trip in the next 3-4 (or even 5-6) months, then this factor doesn't count. If, however, you're wanting to do a trip on points within the next three to six months, then buying direct ups your chances for getting a villa on points by quite a lot.

2. How's your "nervous system?" There are an awful lot of stories here on the DIS about resales that fall through--due to Disney ROFR'ing, or due to sellers changing minds (or messing up). Now, I'm sure far more often than not, a sale, once agreed to, goes through smoothly. But enough don't that your ability to "take it" if things crash is a very real factor.

3. A slight twist on a combination of numbers 1 and 2...buying via resale takes a LOT longer, and you do have to wait out ROFR...you can do some educated guessing (and your resale agent will be hugely helpful on that) as to your chances, but you can't know for sure that your sale will go through until Disney actually waives ROFR--which can take a month. So you have to find the "wait it out" phase tolerable--or at least more tolerable than the idea of spending more money to buy direct.

4. Then, there's the "hassle factor"...Disney makes it SO easy...you do have to come up with a notarized signature, and you do have to send a photocopy of your driver's license (both "pain-in-the-everyday-routine" issues for me)...other than that, it's zippety-quick easy. Resale seems to have significantly more hoops to jump through--particularly if you have to arrange for any kind of financing...

Now, back to the math: in general, I'm sure it's true that using 0% financing is a risky procedure. But you're not "in general." You're you. You know just how risky it is or isn't to incur a 0% loan. In my case, the only real risk is "act of god" type stuff--will I get so sick I can't get paid and therefore can't pay my bills? There's NO risk that I won't pay my bill, on time, in time to pay off the debt prior to the 0% financing ending. Only you know the degree to which your jobs/income levels are stable/predictable; and only you know the degree to which your life might sometimes result in a late payment..."in general" doesn't count if you're confident in your own financial situation...

So, the procedure Disney is offering you is (assuming you find no or acceptable risk in it) is the equivalent of paying cash. The differential, then, is the cost per point (as adjusted for closing costs and prorated maintenance fees)...so what you need to evaluate is if that differential (and it surely does seem there will be one, given the price of SSR points on the resale market) is worth having to wait out the resale process versus getting to use points right away if you buy direct...

Only you can assess the value (in monetary terms) of your comfort level/factor...for me, the 0% financing in three separate payments would probably make it worth it--especially if there's a trip I want to take in the next 3 months or so, or during a low-availability time frame...

Good luck with your decision!

 

[csw531]

Thank you, Thank you everyone for all of the help. Now we just have to digest everything we have learned and make a decision as to wheather to go resale or disney and actually consider more if SSR is the right place for us. We are heading to Disney this fall and hope to be DVC members soon after our trip.

 

[csw531]

I was also wondering for those that bought resale who did you use? DVC resale, Time Share Company etc? Thanks again!

 

[JimMIA]

We've used The Timeshare Store, the sponsor of the DIS DVC boards, several times. They are great to work with, and we highly recommend them.

 

[Metsoskil]

I was also wondering for those that bought resale who did you use? DVC resale, Time Share Company etc? Thanks again!

Yes, to both. And I can't say enough positive things about both companies. Some of the most professional people with whom I've ever done business.

I also bought a 25 point add-on contract directly through DVC which went flawlessly. For an add-on contract that small the lack of closing costs w/ DVC is almost equal to the extra cost per point.

 

[Ryansdad0727]

I used DVC resale and they were great. No problems at all.

 

[SabresFan]

Anybody ever use Resales DVC
at www_resalesdvc_com

Not to be confused with DVC by Resale
at www_dvcbyresale_com

And no offense intended to the board sponsor by my mentioning these other competitors - I've heard good things about you guys (Time Share Store)

 

[william1375]

I used both TSS and DVC resale both are excellent. Even adding ~$10 per point (based on a 50 point contract) or ~$500 for closing costs you are better off going resale most of the time. Also you get to make the offer and the seller accepts or declines it as far as spitting costs or who pays Maintenance Fees. I have noticed alot of the smaller resale contracts getting sold out faster lately.