Has anyone bought resale through Disney?

[Deb & Bill]

...Those 2011 restrictions aren't weighing heavily on our decision either way, but, hey, if I'm paying top dollar for a "resale," I want all the normal perks that DVC members get.

Do not buy DVC for the perks. Buy DVC to stay in a DVC resort. You are only guaranteed DVC stays anyway. Perks come and go all the time. When we bought into DVC, RCI was the trading company. Shortly thereafter, II became the trading company. Now, RCI is once again the trading company. So don't set your hopes on a specific RCI resort to trade into. It might not be available anyway. Plus trading is an expensive use of your points. You get the best use of your points by staying within DVC resorts.

And, like I mentioned before, you are not purchasing a resale. You are purchasing direct from Disney. Resales are purchased from members who no longer want their DVC points and have decided to sell their contract. When you purchase resale, you find a contract that meets your needs. You can't tell the real estate sales person that you only want 100 points of that 150 point contract. You have to buy all 150 points. But when Disney buys back the contracts, they can repackage the points any way they want. If they buy back a 150 point contract, a 50 point contract, a 75 point contract, they call sell several 40 point contracts if they wish. Or a 62 point contract if that is what the buyer wants.

 

[DizBub]

When we were at WDW in May a CM at a DVC kiosk told us that they were selling resale. We spoke with a guide and specifically asked about BCV. He left us waiting and checked. $115 pp but did not have our Feb UY and could not give us last years' points. I guess things have changed.

We already knew that we wanted to buy resale and did. Got exactly what we wanted, saved $6880 over what we would have paid Disney and got a loaded contract to boot. Certainly not trying to get you to buy resale, you need to do what is right for you. Good Luck!!

 

[ELMC]

When we were at WDW in May a CM at a DVC kiosk told us that they were selling resale. We spoke with a guide and specifically asked about BCV. He left us waiting and checked. $115 pp but did not have our Feb UY and could not give us last years' points. I guess things have changed.

We already knew that we wanted to buy resale and did. Got exactly what we wanted, saved $6880 over what we would have paid Disney and got a loaded contract to boot. Certainly not trying to get you to buy resale, you need to do what is right for you. Good Luck!!

I suppose that technically this could be true because they are reselling points that they have already sold once before. That being said, I am not pleased to hear that DVC representatives are using the term "resale" as it further complicates the issue as evidenced by the OP. I would categorize buying a sold out resort as buying "previously owned points" directly from Disney. Think they'll go for that?

 

[Missyrose]

I suppose that technically this could be true because they are reselling points that they have already sold once before. That being said, I am not pleased to hear that DVC representatives are using the term "resale" as it further complicates the issue as evidenced by the OP. I would categorize buying a sold out resort as buying "previously owned points" directly from Disney. Think they'll go for that?

Honestly, it's just a sales tactic to mirror whatever terminology the customer uses. So if someone goes into the pitch and says they're deciding between buying direct at AKV or resale at BCV, the salesperson just mimics it back to them as "I can sell you a resale contract at BCV. It will cost $115 per point."

 

[DizBub]

I suppose that technically this could be true because they are reselling points that they have already sold once before. That being said, I am not pleased to hear that DVC representatives are using the term "resale" as it further complicates the issue as evidenced by the OP. I would categorize buying a sold out resort as buying "previously owned points" directly from Disney. Think they'll go for that?

We knew full well when we went to speak to the guide how they "get" these points for sold out resorts. The CM at the kiosk actually told my DH that they sold a BCV resale at a reduced rate, under $100 I think. Of course this was not true. I agree that this has the potential to complicate the issue, especially with misinformation being spewed by reckless CMs.

 

[LisaS]

I suppose that technically this could be true because they are reselling points that they have already sold once before. That being said, I am not pleased to hear that DVC representatives are using the term "resale" as it further complicates the issue as evidenced by the OP. I would categorize buying a sold out resort as buying "previously owned points" directly from Disney. Think they'll go for that?

It sounds like a sales tactic. If a potential buyer says "I've heard I should consider buying a resale" the DVC guide can say "We sell resales too. You can buy one from us." except that they don't mention the price difference!

Here on the DIS we usually describe the two situations as either "buying directly from Disney" (whether it's a resort actively marketed or a "sold out" resort) and "buying resale" (meaning buying a contract from another DVC owner, usually via a broker).

I don't like the term "previously owned points" because that makes it sound like you are buying a used car vs a new car. With DVC, it doesn't matter if the contract/points previously belonged to someone else because everyone ends up staying in exactly the same set of villas no matter if you are the first owner of that contract or the second, third, etc. owner.

Even if you buy a DVC resort being actively marketed you could still end up with "previously owned points". For example, if Disney takes back an Aulani contract due to ROFR or foreclosure, they will resell that contract. We could both buy a contract at Aulani tomorrow and you could end up with one that was never sold before and I could end up with a foreclosed contract and they could both be tied to the same Unit within Aulani.

 

[KAT4DISNEY]

If DVC is going to sell "resale" won't the points have to come with restrictions? Ahhhhh the tangled web they weave.

 

[ELMC]

I suppose that technically this could be true because they are reselling points that they have already sold once before. That being said, I am not pleased to hear that DVC representatives are using the term "resale" as it further complicates the issue as evidenced by the OP. I would categorize buying a sold out resort as buying "previously owned points" directly from Disney. Think they'll go for that?

I was being tongue in cheek here. Of course it's a sales tactic. So is the free ice cream. Everything they do is a sales tactic, including saying hello.

 

[nunzia]

Oh, one other question that came to mind now that I understand this process a bit better: If we would buy BCV through Disney, those resale rules that went into effect in 2011 (not being able to use the points towards the Disney Collection, Disney Concierge, etc.) would not apply to us since we were buying through Disney? Those 2011 restrictions aren't weighing heavily on our decision either way, but, hey, if I'm paying top dollar for a "resale," I want all the normal perks that DVC members get.

That is correct..if you buy from Disney ...any resort..it is still considered a direct purchase and you get all perks associated with that. Another thing to consider is that Disney's closing costs are lower than resale, plus, as noted, you can finance direct through Disney (at an awful rate, but still). Many will say to never buy direct, but it can make sense. I bought all my VGC contracts direct..I wanted very specific contract sizes in the same use year..I never thought I'd care about using points to stay outside of DVC, but when a son decided to join us on a trip with another son, and VGC was sold out, I was glad to have the option to put him up at DLH. I'm on a waiting list with Disney for more VGC points..they are just not available resale..not of the quantity and use year I want, plus I intend to give them to the kids one day and I want them all to be equal in what they offer. Please remember that your biggest expense is not the purchase price, it is the yearly MF, so do what's right for you and don't let those who think you should never ever buy direct influence you.

 

[DannysMom]

I think we are witnessing a new era in the thought processes that govern the marketing and sales of DVC. When I first saw a presentation back in 2007, in boom times, I think they thought the resale market was only stealing "crumbs" that they could afford to lose.

Now, there is no sale too small, or insignificant. They want every sale they can get. And they need the marks to buy while on vacation and there is no time to research and find out that true resale costs about half as much as they are selling for. Everything from the reduction of the minimum buy in to only 50 points, to the decided uptick in ROFR activity in the sold out resorts points that way to me. I think they are striving to keep points "in stock" for all the sold out resorts in the most popular UYs. So salespeople can say "Oh you want 100 points at BWV? I can sell you that!"

 

[Sandisw]

When we were at WDW in May a CM at a DVC kiosk told us that they were selling resale. We spoke with a guide and specifically asked about BCV. He left us waiting and checked. $115 pp but did not have our Feb UY and could not give us last years' points. I guess things have changed.

We already knew that we wanted to buy resale and did. Got exactly what we wanted, saved $6880 over what we would have paid Disney and got a loaded contract to boot. Certainly not trying to get you to buy resale, you need to do what is right for you. Good Luck!!

Disney never gives last year's points. Disney will usually give the current UY's points when you purchase, no matter where you are in the UY...

If you were there in May, with a Feb UY, then what you were entitled to would have been 2012 UY points because that is the current UY for Feb, providing they had Feb UY points in stock. If your UY had been June, and were buying in May, then you would get June 2011 UY points (providing in stock) since that would have been June's current UY.

What happens sometimes with Disney, is they phrase things as though it sounds like someone is getting extra points.

For example, I go in February 2013 to buy and I am offered a March UY. The guide might say "And, if you buy now, we will give you 2012 points and on March 1st, 2013, you will get another set off points.". To the new buyer, it sounds like they are getting last year's points. But, in reality, they are not since Feb 2013 would still be in the March 2012 UY...

 

[ELMC]

That is correct..if you buy from Disney ...any resort..it is still considered a direct purchase and you get all perks associated with that. Another thing to consider is that Disney's closing costs are lower than resale, plus, as noted, you can finance direct through Disney (at an awful rate, but still). Many will say to never buy direct, but it can make sense. I bought all my VGC contracts direct..I wanted very specific contract sizes in the same use year..I never thought I'd care about using points to stay outside of DVC, but when a son decided to join us on a trip with another son, and VGC was sold out, I was glad to have the option to put him up at DLH. I'm on a waiting list with Disney for more VGC points..they are just not available resale..not of the quantity and use year I want, plus I intend to give them to the kids one day and I want them all to be equal in what they offer. Please remember that your biggest expense is not the purchase price, it is the yearly MF, so do what's right for you and don't let those who think you should never ever buy direct influence you.

It's so interesting to read the different points of view on here, and I think that your experience is particularly unique. I think that VGC is a very different animal than the WDW DVC resorts for the reasons you mentioned. Add to that the fact that it is such a small resort that the chance of a non owner being able to book there at will are relatively slim. If I weren't an east coaster and wanted to own at VGC I would most likely buy direct as well. However, I don't think that your experiences translate directly to WDW DVC resorts. There are so many options at such a great savings that I would be hard pressed to recommend a direct purchase there.

 

[Sandisw]

It's so interesting to read the different points of view on here, and I think that your experience is particularly unique. I think that VGC is a very different animal than the WDW DVC resorts for the reasons you mentioned. Add to that the fact that it is such a small resort that the chance of a non owner being able to book there at will are relatively slim. If I weren't an east coaster and wanted to own at VGC I would most likely buy direct as well. However, I don't think that your experiences translate directly to WDW DVC resorts. There are so many options at such a great savings that I would be hard pressed to recommend a direct purchase there.

I tend to agree, except possibly when someone wants a smaller amount of points. Now that you can buy in at Disney with only 50 points, it could make more sense in the long term for someone who plans to maybe only visit every other year.

For example, I have $6000 to spend on DVC points. That $6000 will get me around 58 points through Disney (plenty for my travel patterns) or get close to 100 via resale...

But, those 100 points come with double the MF's--or about $300 per year. Since I know going in that I don't need that many points, and really don't want to spend an extra $300 on something I don't need, I go through Disney. I buy with my Disney Visa and get the rewards, plus 6 months, 0% interest to pay it off.

Granted, some will say "you can just rent out the extra points", but that sounds easier than it is and you have to be willing to deal with the work involved in that and take the risks, no matter how minimal...I know personally I would never get involved in it.

We all know that the bulk of the costs for DVC ownership are the MF"s and to buy double what one needs, just because its a good deal, may not make sense for everyone.

Obviously, if you can find the contract size you need via resale, then it will save you purchasing that way...

 

[DizBub]

I tend to agree, except possibly when someone wants a smaller amount of points. Now that you can buy in at Disney with only 50 points, it could make more sense in the long term for someone who plans to maybe only visit every other year.

For example, I have $6000 to spend on DVC points. That $6000 will get me around 58 points through Disney (plenty for my travel patterns) or get close to 100 via resale...

But, those 100 points come with double the MF's--or about $300 per year. Since I know going in that I don't need that many points, and really don't want to spend an extra $300 on something I don't need, I go through Disney. I buy with my Disney Visa and get the rewards, plus 6 months, 0% interest to pay it off.

Granted, some will say "you can just rent out the extra points", but that sounds easier than it is and you have to be willing to deal with the work involved in that and take the risks, no matter how minimal...I know personally I would never get involved in it.

We all know that the bulk of the costs for DVC ownership are the MF"s and to buy double what one needs, just because its a good deal, may not make sense for everyone.

Obviously, if you can find the contract size you need via resale, then it will save you purchasing that way...

All excellent points. Going forward I know that our 160 points at BCV probably won't be enough and can see that going direct through Disney, using Disney Visa will be a viable option to get the 30/40 points needed. I know it's cheaper to buy resale but almost impossible to find such small contracts with a specific UY.

The 2% back with Disney Visa and the 0% for six months make this kind of purchase a little easier to handle, not to mention the much reduced closing costs. Let's not forget the instant gratification of not having to wait 2 to 3 months for your points.

 

[cz4ever]

I tend to agree, except possibly when someone wants a smaller amount of points. Now that you can buy in at Disney with only 50 points, it could make more sense in the long term for someone who plans to maybe only visit every other year.

For example, I have $6000 to spend on DVC points. That $6000 will get me around 58 points through Disney (plenty for my travel patterns) or get close to 100 via resale...

But, those 100 points come with double the MF's--or about $300 per year. Since I know going in that I don't need that many points, and really don't want to spend an extra $300 on something I don't need, I go through Disney. I buy with my Disney Visa and get the rewards, plus 6 months, 0% interest to pay it off.

Or you could go resale and buy a small contract, thereby putting the difference (after closing costs) in your pocket. Nobody says that you have to buy the largest resale contract that you can afford.

Obviously, if you can find the contract size you need via resale, then it will save you purchasing that way...

Er, exactly.

Personally, I think the best argument for going with Disney for small contracts is the fact that small contracts are not priced as favorably and the amortized closing costs are high for resale. On a 50-point contract, the net cost of resale can be $25-$40/point more than the "best" resale deals reported here when you factor in the closing costs. At that point, the difference between resale and Disney starts to get pretty small (e.g., $1,000), which might not be worth it to some buyers given the much greater hassle of finding, negotiating, and waiting to close a contract with precisely the right number of points and Use Year. 50-point contracts don't go on sale often, and when they do they don't tend to last long, even when priced quite a bit higher than larger contracts.

 

[Sandisw]

All excellent points. Going forward I know that our 160 points at BCV probably won't be enough and can see that going direct through Disney, using Disney Visa will be a viable option to get the 30/40 points needed. I know it's cheaper to buy resale but almost impossible to find such small contracts with a specific UY.

The 2% back with Disney Visa and the 0% for six months make this kind of purchase a little easier to handle, not to mention the much reduced closing costs. Let's not forget the instant gratification of not having to wait 2 to 3 months for your points.

My DH would say this is my BIGGEST problem....

 

[jennybdis]

Thanks for the continued discussion and feedback.

Could I possibly ask two other questions?

Does the Disney Visa offer a reduction on the closing costs? We don't have one and I really would prefer not to get one.

What would you do in this scenario? We're looking to buy about 200-225 points.

We will have about $6-$8k to throw towards this in the spring, with the same amount going towards it the following year (and the year after that). We don't need to vacation at Disney next year as our intention is to take our family every other year and we did Disney last month. We would like to use our DVC in 2014 for sure. Ideally, we are looking then at Hawaii OR splitting our time between Disney/Vero Beach.

(a) Would you purchase what you want (e.g., 225 points at BCV) through Disney putting a significant down payment down with the intention to pay it all off in 2-3 years?

(b) Or would you purchase a third of the points you really want in cash next year (e.g., 75 BCV points)/a third of the same points the following year/and a third of the final points the third year? And cross your fingers you get your use years to line up?

(c) Or would you buy as much as you could with the cheapest contract available next year with the intention to only buy ONE more contract the following year paying no attention to park resort/use year?

This is pretty much what I'm trying to decide on at this point. Thoughts are greatly appreciated.

 

[DizBub]

Thanks for the continued discussion and feedback.

Could I possibly ask two other questions?

Does the Disney Visa offer a reduction on the closing costs? We don't have one and I really would prefer not to get one.

What would you do in this scenario? We're looking to buy about 200-225 points.

We will have about $6-$8k to throw towards this in the spring, with the same amount going towards it the following year (and the year after that). We don't need to vacation at Disney next year as our intention is to take our family every other year and we did Disney last month. We would like to use our DVC in 2014 for sure. Ideally, we are looking then at Hawaii OR splitting our time between Disney/Vero Beach.

(a) Would you purchase what you want (e.g., 225 points at BCV) through Disney putting a significant down payment down with the intention to pay it all off in 2-3 years?

(b) Or would you purchase a third of the points you really want in cash next year (e.g., 75 BCV points)/a third of the same points the following year/and a third of the final points the third year? And cross your fingers you get your use years to line up?

(c) Or would you buy as much as you could with the cheapest contract available next year with the intention to only buy ONE more contract the following year paying no attention to park resort/use year?

This is pretty much what I'm trying to decide on at this point. Thoughts are greatly appreciated.

No, no reduction in closing costs with the Visa card. It's just that Disney doesn't charge as much closing as the resalers do. They say they take the hit on that for you. They used to not charge closing costs at all.

If I were going to buy that many points I would just go resale. Just know that if you buy 3 small contracts (if you can find them) then you will get hit with sizeable closing costs each time.

I would think that you could get a contract that size through resale at a considerable savings, at least $35 to $40 off the direct price. Use what you've saved to put down and get a loan to pay the rest and pay it off early if you can. This is what I would do and it's only my opinion.

If you don't HAVE to stay BCV, then SSR does have the most attractive combination of resale prices and MFs. A 200-225 point SSR contract is even cheaper and you can use those points anywhere at 7 months if you want to take your chances. Again, only my opinion. If buying direct is what works for you your plan is certainly doable.

Good Luck!!

 

[Sandisw]

Or you could go resale and buy a small contract, thereby putting the difference (after closing costs) in your pocket. Nobody says that you have to buy the largest resale contract that you can afford.

If you can find what you want via the resale market and have the time to go that route, absolutely it would make sense to do that and then pocket the difference. Given Disney's direct prices, going resale is always going to be cheaper than direct, providing it's what you want.

But finding small contracts are not easy and waiting months to find one may or may not make sense for every single situation, especially for someone who has a cash trip already planned.

When your options are wait, buy a bigger contract, or go through Disney, there are going to be times when going through Disney makes the best sense--doesn't mean the Disney option is the cheapest, but rather its the option that best fits the person's needs...

 

[Sandisw]

Thanks for the continued discussion and feedback.

Could I possibly ask two other questions?

Does the Disney Visa offer a reduction on the closing costs? We don't have one and I really would prefer not to get one.

What would you do in this scenario? We're looking to buy about 200-225 points.

We will have about $6-$8k to throw towards this in the spring, with the same amount going towards it the following year (and the year after that). We don't need to vacation at Disney next year as our intention is to take our family every other year and we did Disney last month. We would like to use our DVC in 2014 for sure. Ideally, we are looking then at Hawaii OR splitting our time between Disney/Vero Beach.

(a) Would you purchase what you want (e.g., 225 points at BCV) through Disney putting a significant down payment down with the intention to pay it all off in 2-3 years?

(b) Or would you purchase a third of the points you really want in cash next year (e.g., 75 BCV points)/a third of the same points the following year/and a third of the final points the third year? And cross your fingers you get your use years to line up?

(c) Or would you buy as much as you could with the cheapest contract available next year with the intention to only buy ONE more contract the following year paying no attention to park resort/use year?

This is pretty much what I'm trying to decide on at this point. Thoughts are greatly appreciated.

If you know the next time you will be visiting Disney will be 2014, I would not buy direct at this time. There is really no need and you have time to search for a BCV contract that meets your needs.

If your ultimate goal is to buy around 225 points, then I would start looking to buy and closing on resale before your 11 month window for that 2014 trip

If you find what you need, then I would buy it and finance with the goal of paying it off within a short time. The difference between resale and buying direct from Disney is around $40/pt for BCV--so even if you have to finance 1/2 of your resale purchase, its still cheaper than going through Disney and paying cash, especially since it sounds like you would need, at most, 2 years of financing to cover the cost completely. The way I figure it, its adding about $12/pt to your cost of those resale points.

Of course, you could also look for a loaded contract that you can pay cash for which will give you enough points to cover your 2014 trip and then continue to look for a 2nd contract.

IMO, I would not lock myself into any decision at this point. In terms of what resort to buy, buy at one, regardless of the price, that you would be comfortable staying at if you can't trade out. If the cheapest resort is okay with you, go that route...if not, go with the one you know you like.

I could have saved around $5000 when I first bought getting SSR resale over buying in at BLT direct. I went with BLT because where I stay matters. Over the course of the contract, that difference amounts to little. Even if I only owned 10 years, it would mean I spent an extra $500/yr to own the resort of my dreams...well worth it!!!

Good luck!