Help! Resale vs SSR

[Goofy&Grumpy1]

Hi all. I'm new to this board so forgive me if I have alot of questions.

DW and I have decided to take the plunge and buy DVC. We are trying to decide between SSR or an OKW resale. We love OKW and have been there 3 times. However, the current incentives for SSR and the additional years are a big factor for buying SSR. It also seems Disney has been exercising ROFR more frequently. We are leaning towards buying SSR with the intention of staying mostly at OKW. Has anyone else bought at one resort to get into DVC but never stayed at their home resort?
Of course, our decision might have been easier had we toured SSR when we at DW in July!

Thanks for your help!

 

[carlos1117]

Do you realize that on a 230 point contract, if you purchased a resale with a fully loaded cost of $75.00 (which is reasonable) you would save $2300.00 over Disney; $85-$75=$10x230=$2300.

The only advantage is the extra 12 years.

Good luck with your decision.

 

[tjkraz]

If you can afford to go resale, I'd go resale. OKW and SSR are both large resorts, and you will have little trouble booking at either. In addition to the upfront savings with OKW, you will also have lower annual dues.

 

[Coach Rick]

Originally posted by carlos1117
Do you realize that on a 230 point contract, if you purchased a resale with a fully loaded cost of $75.00 (which is reasonable) you would save $2300.00 over Disney; $85-$75=$10x230=$2300.

The only advantage is the extra 12 years.

Good luck with your decision.

Ok, while we are doing the math, $2300 divided by the extra twelve years equals $191.66. In my estimation you will never find a place to stay for under $200 a week. JMO now.

Don't know if you are just plucking the money for your purchase from a tree, but DVC is offering 0% financing till April, with 0 payments till May. Cheap money if you ask me.

I have one contract at VB, and just did an add on at SSR. I too looked at the resale options, but found the DVC way was easier, and cheaper in the long run. BTW, I just stayed at OKW with my VB points and had NO problem booking at the required 7 months.

 

[vonderbar]

My DH and I bought at Vero Beach, just to get into DVC but haven't stayed there yet. We hope to one of these days. We took advantage of the special offer they were giving at the time. It is what made it economical for us. Plus, I wanted all the years they were offering. It will be great to share this with future generations.

We recently bought additional points at SSR in May. Again, we took advantage of the special offer they were having.

I can honestly say that I haven't had any problems booking 7months ahead at any resort. Even if we have to be on a wait list, Disney has always come through.

We have had the pleasure of staying at OKW, Wilderness Lodge, Boardwalk and in October, this will be our 2nd time at Beach Club.

Some people feel it is better to save money and buy resale. I like having the extra years.
My husband just added, if you are members and it's affordable then that's the key. Also said, beware that sometimes buying used, the points may have been borrowed a year or two in advance.

No matter what your decision, once you become a DVC member, you will never regret it.

 

[pplasky]

The twelve extra years was a major factor for my DH and I. No, we will not be utilizing it 50 years from now, but our grandkids will! Definitely worth the extra money now.

 

[ripleysmom]

To be honest.....I would buy SSR. The extra years on the contract wind up being $1 per point per year. I think it worth the extra couple of thousand it would cost.

 

[pakdayton]

hi all ...
regarding resales
dont forget that if you can get a full loaded contract you would have to re-emburse the seller 2004 MF ... at OKW for 203 pts (MF= 850.00) + your closing costs (500) ... now you're talking a savings of about 900.oo for an extra 12 years
that's the reason we went for SSR after we got ROFR'ed ...

good luck with your decision ... we've been on both sides of this fence

also luck and pixie dust to the "waiters"

 

[RuthnPaul]

Originally posted by pakdayton
regarding resales dont forget that if you can get a full loaded contract you would have to re-emburse the seller 2004 MF ... at OKW for 203 pts (MF= 850.00) + your closing costs (500) ... now you're talking a savings of about 900.oo for an extra 12 years
that's the reason we went for SSR after we got ROFR'ed ...

In our case, the VWL contract we're purchasing has 370 banked points from 2003! I'm not into all the financial analysis but those points will allow us an extra trip or two next year which certainly counts for something in our estimation! In fact, the availability of banked points has been a selling point for us in the purchase of each of our contracts. Ah, the flexibility of DVC!!

 

[LIFERBABE]

Especially when comparing OKW and SSR. They are on the same street. The dues are the 2 lowest on Disney property. After the slide is finished at OKW the dues may be on par with SSR's.

Why buy a 38 yr. contract when you can purchase a 49 yr contract? This is not buy where you want to stay, because you are not considering the smaller resorts. These are the 2 largest resorts and availability will be greater.

Right now you can buy SSR for $85 or you can buy OKW for $78 when you add in closing, and Dues on all unused points especially if the contract is loaded. You would still have to go thru ROFR on a resale. Remember SSR is part of DVCII. As resorts are added, they will also be a part of DVCII. I own at OKW and love it there also, but if I had to choose I would purchase SSR and the extra 12 years.

The only advantage in purchasing any DVC is the years on the contract and the controlled costs over those years. If members were not worried about the years, then why not pay cash? $30K would take years to exhaust in cash rentals. How can one discount a 12 year extension when they just purchased a 38 year extension?

 

[carlos1117]

Don't know if you are just plucking the money for your purchase from a tree, but DVC is offering 0% financing till April, with 0 payments till May. Cheap money if you ask me.

Coach Rick,


Is this new? I received the package from Disney 3 weeks ago and it was 4.95% for 1 year and 10.95% for 5 year and up.

Any info on this would be helpful.

 

[av8tor]

I found this board in May and ultimately decided on a resale. There are some old threads that have a pretty in depth finacial analysis of resale vs. SSR taking into account the extra 12 years. I didn't find anything that convinced me one option had a significant advantage over the other (isn't free enterprise great!).

Most of the advice you will get here it to buy where you are most interested in staying since that is where you will have the 11 month booking window. This probably doesn't apply as much to you since you are interested in OKW and it has the most availability. Either way, how can you go wrong? Just remember, you are not making an investment for financial gain but rather an investment in your family's future vacations. Keep that in mind and go with what feels the most right for you.

Good Luck!

 

[tjkraz]

Originally posted by carlos1117
Is this new? I received the package from Disney 3 weeks ago and it was 4.95% for 1 year and 10.95% for 5 year and up.

Any info on this would be helpful.

New contracts being sold now do not receive any SSR points until at least March 2005 (due to ongoing construction of buildings in which points are available.)

If you purchase SSR now there is no interest accured, monthly payments or dues payments until at least April 2005.

 

[3DisneyNUTS]

Originally posted by carlos1117
Do you realize that on a 230 point contract, if you purchased a resale with a fully loaded cost of $75.00 (which is reasonable) you would save $2300.00 over Disney; $85-$75=$10x230=$2300.

The only advantage is the extra 12 years.

Good luck with your decision.

BUt if you look at that over the course of the 12 years it is only $192 a year and if you have a grandkid that is 12 more years of disney magic to share...So it depends on the individual and the family set up. DS is 3 and we went for the extra time

 

[carlos1117]

People keep saying it's only $192.00 per year. You miss the point; it's $2300.00 NOW. So take that $2300, NOW, and invest it. How much will it be worth in 38 YEARS!!!!!!

You're paying for something you won't use for 38 years.

 

[MagikMom]

I bought my points at Hilton Head (lower Dues) but have never been there. I have stayed at BCV, BWV & planning SSR in Oct. All booked 7 mo. out without a problem.

 

[tjkraz]

Originally posted by carlos1117
People keep saying it's only $192.00 per year. You miss the point; it's $2300.00 NOW. So take that $2300, NOW, and invest it. How much will it be worth in 38 YEARS!!!!!!

You're paying for something you won't use for 38 years.

Well, there's two ways to look at it, and either analysis requires great assumptions along the way.

As you say, you could certainly invest the difference now and have a lot more money down the road. And, over such a large time period, we could come up with a pretty good estimate of how much interest would actually accrue in 38 years.

What we don't know is what will happen to Disney Rack Rates in the next 4 decades. Remember, the entire point behind DVC is to pre-pay for vacations.

The real question is whether the $2300 you invest now will, after accruing interest for 38 years, be sufficient to cover the next 12 years' worth of vacations which it could have purchased back in 2004.

I think you could make very good arguments to go in either direction. IMO, it's more of a "follow your heart" decision rather than something you should drive yourself crazy trying to analyze to the penny.

 

[Coach Rick]

Originally posted by carlos1117
Coach Rick,


Is this new? I received the package from Disney 3 weeks ago and it was 4.95% for 1 year and 10.95% for 5 year and up.

Any info on this would be helpful.

Carlos, My sister and my dad both purchased on 8/24, and I bought a 130 pt. add on the same day, and all three of us were given that perk. I don't know how new it is, but that's the deal on 8/24 anyhow. You can try your guide to see if that is still aplicable to you.

 

[Coach Rick]

Originally posted by carlos1117
People keep saying it's only $192.00 per year. You miss the point; it's $2300.00 NOW. So take that $2300, NOW, and invest it. How much will it be worth in 38 YEARS!!!!!!

You're paying for something you won't use for 38 years.

Invest it in what? The market is as uncertain as knowing what rack rates will be in 38 years. I may not be enjoying its use then, but I know my childeren, and hopefully grandchilderen will be. Everything we do is for our kids. This choice is no different even though we enjoy it now with them. Using your analogy why buy at all Carlos? Invest your money that you may be using for next years vacation. I just think that is toooooo risky in today's economy. We could stay in a much cheaper hotel if it were all about the money, but obviously it's not. We work way too hard to not pamper ourselves once or twice a year. JMO

 

[Mike]

Originally posted by Coach Rick
Invest it in what? The market is as uncertain as knowing what rack rates will be in 38 years. I may not be enjoying its use then, but I know my childeren, and hopefully grandchilderen will be. Everything we do is for our kids. This choice is no different even though we enjoy it now with them. Using your analogy why buy at all Carlos? Invest your money that you may be using for next years vacation. I just think that is toooooo risky in today's economy. We could stay in a much cheaper hotel if it were all about the money, but obviously it's not. We work way too hard to not pamper ourselves once or twice a year. JMO

This is the difference between an "emotional" analysis and a financial analysis. The question was raised about the true worth of the 12 additional years. To answer this question accurately, a Net Present Value analysis as Carlos suggested using the assumptions pointed out by tjkraz is the proper way to do this.

You can take it how you want. If you would rather purchase the extra 12 years because it feels right, then go right ahead. Everyone needs to make themselves comfortable with their decision to purchase. Some need to check out each resort. Some buy sight unseen. Some crunch numbers. Some go by their gut. IMHO, there is no right or wrong answer as long as you feel comfortable with your decision.