Help with math - direct vs resale?

[erin1715]

So I’m a current DVC owner and saw a small contract for SSR pop up two days ago and I jumped on it. It was for our current home resort and same use year. It was for 26 points and included points banked from 2020 as well as current 2021 points and 2022 points. It was $145/point. Buyer pays closing costs and 2021 dues. When all is said and done, total cost around $4400.
Now I’m wondering if I should have just purchased direct and gotten my points faster. SSR is $165 and I’d likely just buy 25 points. So I’m trying to figure out closing costs for direct purchase. Let’s say they are $500 plus dues. I’m estimating a direct purchase around $4800. Is that accurate? So I’m saving about $400 for the hassle of resale.
I signed my contract yesterday so it says I have 10 days to back out. Though I’m unsure if I’d lose my deposit.

 

[Letsoflyakite]

A three to four month wait isn't worth the $400 savings to me. Plus, those 25 points could be used at RIV.

 

[princesscinderella]

What is your UY? If you have a FEB, MAR or APRIL UY you won’t get those 2020 “extra” points if you go direct. If you choose to back out you will definitely get your deposit back if it’s within the 10 day period. I’d buy direct it’s definitely not worth the resale hassle for so little savings. Plus by the time you get access to use the points going resale depending on your UY you might not have a lot of time to use the 2020 points because the rest of 2020 the rooms really booked up.

 

[erin1715]

What is your UY? If you have a FEB, MAR or APRIL UY you won’t get those 2020 “extra” points if you go direct. If you choose to back out you will definitely get your deposit back if it’s within the 10 day period. I’d buy direct it’s definitely not worth the resale hassle for so little savings. Plus by the time you get access to use the points going resale depending on your UY you might not have a lot of time to use the 2020 points because the rest of 2020 the rooms really booked up.

MAR use year. The only benefit I guess to getting those 2020 points is I could rent them out to recoup some of my costs.

 

[MICKIMINI]

There were two 60 point SSR's today listed each at $125 and gone within two hours. $145 is steep considering direct is $165. You have 10 days to cancel and get your deposit back. Renting 26 points might be an issue and likely someone will want you to dip into 2021 to "even" off a reservation.

My opinion go direct. Good luck!

 

[erin1715]

There were two 60 point SSR's today listed each at $125 and gone within two hours. $145 is steep considering direct is $165. You have 10 days to cancel and get your deposit back. Renting 26 points might be an issue and likely someone will want you to dip into 2021 to "even" off a reservation.

My opinion go direct. Good luck!

Thank you.

 

[igrsod]

It doesn't seem worth the hassle for $400 savings. I would get the instant direct points without resale restrictions.
Resale is only worth it if you are saving a bunch.

 

[Nabas]

I'm also one of those who think the savings, effort, waiting, and restrictions aren't worth it. Go direct if you still can.

 

[starfrenzy]

I agree! Speedy points and ability to book at Riviera are worth the direct cost difference.

 

[erin1715]

Generally I prefer resale for the savings but in this specific case I don’t feel like the savings is worth it vs direct.

 

[Heather07438]

One other thing about going direct... if ever in the future you decide you’re interested in Blue Card you’ll have a 25 point head start.

 

[Great3]

While I am generally team resale all the way, this is one of the few times I myself would just go the Direct route also, others have said. You only lose deposit if you cancel after the 10 days cancelation period, so you should get the deposit back, since you are well within that window with right to cancel.

Great3

 

[fordchevyguy]

I may be alone here, But seems you made your decision when you put in a bid, your offer was accepted and you signed a contract for a resale.
You are an existing owner and understand the the trade offs of buying direct vs resale. The only real issue is a bit of time to get points, You paid a fair price for points just stay the course on your resale contract.

 

[Great3]

I may be alone here, But seems you made your decision when you put in a bid, your offer was accepted and you signed a contract for a resale.
You are an existing owner and understand the the trade offs of buying direct vs resale. The only real issue is a bit of time to get points, You paid a fair price for points just stay the course on your resale contract.

Well said. What I say isn't what I would always do. If I was in the OP's shoes, and already made my offer and signed / executed the contract, me personally, I would just stay the course and keep my end of the bargain. Although legally, in this kind of situation, there is an out, I personally cannot do so myself. But I am me, and OP is OP, asking about what if, so we just answer the questions, and maybe insert own opinions once in a while

Thanks,
Great3

 

[RoseGold]

I don’t think there’s an ethical issue pulling out in the 10 days. It’s what everyone agreed to, and it’s the law for a reason. I mean, you might get blocked by that broker, so there’s that...

Resale or direct, closing costs will eat you alive on a contract this small. It doesn’t make sense to me mathematically either way.

 

[AliceIn]

Everybody's math is different. We went direct because we already had fully paid for reservations in December and March. Member Services switched the cash reservations to points. We got $18k back from that. We probably couldn't have done that with resale, as the dates were too close. The math for those two trips made it a no brainer to go direct. There just wasn't enough savings to be worth it.

We bought our next one as resale.

 

[The Jackal]

A three to four month wait isn't worth the $400 savings to me. Plus, those 25 points could be used at RIV.

25 points at RIV doesn’t get you much. The cheaper rooms, tower and standard studios are almost all gone at 10 months.

closing costs thru DVC is cheaper than resale. Yes direct SSR vs resale yields very little savings. So small direct contracts go direct probably 25-75 points. Possibly even up to 100 points. dVC is buying SSR back pretty good right now. They are selling a lot of it direct

 

[mustinjourney]

I'd cancel within the 10 days. $145 vs $165 is just not enough savings and quite frankly -- it's priced way too high for what it is.

 

[MomOTwins]

I don’t think there’s an ethical issue pulling out in the 10 days. It’s what everyone agreed to, and it’s the law for a reason. I mean, you might get blocked by that broker, so there’s that...

Resale or direct, closing costs will eat you alive on a contract this small. It doesn’t make sense to me mathematically either way.

That's how I see it too. The 10 pause is there so that if you find out your contract is not a good a deal financially, you can back out. That's why it is often recommended here if buying direct from Disney to do so within 10 days of incentives expiring so as to renegotiate if better incentives come out. Similarly, if OP had signed a contract and 2 days later, another contract is listed for the same points/UY at a better price, OP has the right to cancel and bid on the new one. If a resale seller offers a deal that's financially not a meaningful advantage over direct, I think they run the risk of people like OP realizing that and backing out. They can always list lower if they want to be more secure as a seller that the buyer won't find something better (resale or, as in this case, direct).