Hubby finally ready to buy...direct or resale?

[DonMacGregor]

RIV absolutely has 2021 points. I don't understand what OP is doing at this point.

Post #57

"I did some math. Leaning towards 200pts Grand FL direct now. Spoke with DVC and we'll receive an additional price/point discount and $1K off on a 200 point contract for GF or Riviera since we just took a Disney Cruise. It brings the lifetime points cost difference between resale and direct to like $0.54 (give or take), which while not insignificant, I think long-term is worth having the flexibility and benefits that come with a direct purchase. Anything I'm not considering? I realize the point chart for Grand FL is higher, but since we will likely use the points for other resorts as well, I think we can make 200 points work for our travel needs. And we wouldn't mind splurging for a GF villa if we travel at a high demand time and need to book in the 11-month window."

Post #58

"Plot twist. I asked DVC about purchasing a Dec UY and getting 2021 points and she said they aren't doing that right now because of the pandemic. I could receive and bank 2022 points with prorated dues for April, June, August, or September UY, but if I purchase a Dec UY, it will start with Dec 2022 points. Guess I'm back to an October UY. Maybe Sept. April banking window wouldn't work for winter and spring travel."

She says she compared RIV to VGF (see spreadsheet, post #57) and is leaning towards VGF. She then called DVC after deciding on VGF (very next post, #58), and was told she couldn't get 2021 points. At VGF.

 

[aka Charles]

FYI​

RUMOR: Disney Vacation Club Price Increase Coming Soon!​

Riviera, Grand Floridian, and Aulani could see a $10 per point increase.

https://dvcfan.com/2022/10/24/rumor-huge-disney-vacation-club-price-increase-coming-soon/

 

[MamaBear12]

FYI​

RUMOR: Disney Vacation Club Price Increase Coming Soon!​

Riviera, Grand Floridian, and Aulani could see a $10 per point increase.

https://dvcfan.com/2022/10/24/rumor-huge-disney-vacation-club-price-increase-coming-soon/

Thanks! So we should probably jump on the offer now if we’re going to buy direct.

 

[Where'sPiglet?]

Thanks! So we should probably jump on the offer now if we’re going to buy direct.

What did you end up doing?

 

[MamaBear12]

What did you end up doing?

Planning to buy 200 VGF points direct, split into 150 and 50 point contracts. We're going to start the process with the current special offer next week and switch to the new offer on Nov 17 if it's better.

 

[FreemanFam]

As a Disney Dad and Husband, it took a little convincing for me for DVC. Once I was in, I was fully in and we did a LOT of comparisons. I think each family will have different needs from their DVC contract so it's difficult to say what others should look for, but for us and our budget, resale was the winner. We close on 200 pts at Animal Kingdom in October and are excitedly awaiting our precious DVC account info and points, lol. If you decide to go resale there are a lot of things you can look for to try to get the most out of your purchase. For example, we purchased a partially stripped contract in order to get a much better overall price-per-point which allowed us to get a 200pt contract whereas we would have otherwise likely been looking more like 140pts. We knew we wanted to go twice annually, to the best of our ability, and for our family, 200 points should allow that. There's lots to look at and lots to consider so take your time looking through resale contracts if you go that route.

 

[Craho]

Decide which is your favorite resort, and buy there. You never go wrong with buying your favorite resort.

What if your favorite resort is BWV or BCV with 2042 expirations?

 

[BeachClub2014]

What if your favorite resort is BWV or BCV with 2042 expirations?

My point holds. Buying those resorts directly from DVC makes no sense but buying resale does if that is the resort you love.

 

[havoc315]

What if your favorite resort is BWV or BCV with 2042 expirations?

Then rent points or do cash stays.... or see if resale price drops more.
There is little reason to buy unless you're saving enough money to make it worth paying a huge chunk up front. At current resale prices, any savings on BWV or BCV are generally negligible.

Remember, it's not like you have to buy points to stay at those resorts.

 

[BeachClub2014]

Then rent points or do cash stays.... or see if resale price drops more.
There is little reason to buy unless you're saving enough money to make it worth paying a huge chunk up front. At current resale prices, any savings on BWV or BCV are generally negligible.

Remember, it's not like you have to buy points to stay at those resorts.

You don't have to buy DVC at all, but many of us have for many different reasons. Buying resale at BWV and BCV beats paying cash to Disney, is still less than renting and you actually own and control the points.

Many people are also not at all comfortable renting points from complete strangers.

Notwithstanding all of this, it's still hard to refute my premise of buying where you love to stay, and you won't go wrong.

 

[havoc315]

You don't have to buy DVC at all, but many of us have for many different reasons. Buying resale at BWV and BCV beats paying cash to Disney, is still less than renting and you actually own and control the points.

Thing is, at most of the current prices, it's not less than renting.
So yes.. if you want to pay a higher price, to be locked in to vacations.... But at least you can avoid the "hassle" of renting points from an agency or private person, go for it.

I do think most people would prefer not to pay extra just to "own" the points.

Many people are also not at all comfortable renting points from complete strangers.

More typically reliable third-party agencies.

Notwithstanding all of this, it's still hard to refute my premise of buying where you love to stay, and you won't go wrong.

Depends on definition of "go wrong."
I'd say paying extra is "going wrong" in my book.
(It's complicated calculations.. but once you factor in the time value of money, likely inflation rates, point leakage... buying a high priced 2042 re-sale contract ends up being more expensive than renting the points).

 

[Craho]

Then rent points or do cash stays.... or see if resale price drops more.
There is little reason to buy unless you're saving enough money to make it worth paying a huge chunk up front. At current resale prices, any savings on BWV or BCV are generally negligible.

Remember, it's not like you have to buy points to stay at those resorts.

Very true. We are actually renting for the first time at BCV next June to see what the villas are like. We would really like a one-bedroom instead of a studio but those seem few and far between. Would it be easier at 11 months out to pick accommodations at our home resort if we owned?

 

[Craho]

Thing is, at most of the current prices, it's not less than renting.
So yes.. if you want to pay a higher price, to be locked in to vacations.... But at least you can avoid the "hassle" of renting points from an agency or private person, go for it.

I do think most people would prefer not to pay extra just to "own" the points.



More typically reliable third-party agencies.



Depends on definition of "go wrong."
I'd say paying extra is "going wrong" in my book.
(It's complicated calculations.. but once you factor in the time value of money, likely inflation rates, point leakage... buying a high priced 2042 re-sale contract ends up being more expensive than renting the points).

This is what I am worried about. And this leads me to another question, how can these 2042 resorts be so high when there is only 20 years left on the contracts?

 

[havoc315]

This is what I am worried about. And this leads me to another question, how can these 2042 resorts be so high when there is only 20 years left on the contracts?

To some degree, it’s buyers not really crunching the numbers.
To some degree, it’s just that the direct price is so high — but that’s because Disney feels they can make lots of money as cash rooms.

It’s not even 20 years left. Contracts end January 2042… so by the time you close, it’s 18-19 use years left.
With dues, that’s $17-$19 per point, per use year, on some of those contacts. Factor in closing costs and time value of money, it’s more like $20-24 per point, per year.

 

[havoc315]

Very true. We are actually renting for the first time at BCV next June to see what the villas are like. We would really like a one-bedroom instead of a studio but those seem few and far between. Would it be easier at 11 months out to pick accommodations at our home resort if we owned?

Yes, easier to pick out at 11 months by owning. And typically, much much easier to book 1 BRs rather than studios.
If you work with a reputable agency at the 11 month mark, they can often get you what you need.

 

[Nabas]

This is what I am worried about. And this leads me to another question, how can these 2042 resorts be so high when there is only 20 years left on the contracts?

Arguably, BWV and BCV have the best locations of all DVC resorts. This is especially true for empty nesters since Epcot and DHS are perhaps WDW's two most adult theme parks.

BCV in particular is small and has a strong following. There are plenty of people who would rather spend the next 19 years at BCV than 40 years at other DVC resorts.

BWV has Standard View rooms that are, IMO, the best bargain in all of DVC. I can stay in a BWV Standard View room for 10 points per night in December. Conversely, VGF is 18 points while Poly is 19 points.

 

[BeachClub2014]

Thing is, at most of the current prices, it's not less than renting.
So yes.. if you want to pay a higher price, to be locked in to vacations.... But at least you can avoid the "hassle" of renting points from an agency or private person, go for it.

I do think most people would prefer not to pay extra just to "own" the points.

Yes, one can avoid the hassle of renting points if one owns them. Thanks for that acknowledgment.

I have no idea what most people prefer. I do know that there are an awful lot of people who have chosen to "own" their points versus trying to potentially save a few bucks by renting.

More typically reliable third-party agencies.

Who is just the agent for an individual owner who actually controls the reservation even while you are staying at the resort. There's an old saying in the emergency management world: "If it's predictable then it's preventable." So, the easiest way to manage the risk of renting is by not doing it.

If you don't mind jumping through the hoops to safely rent and don't mind the associated risk, then have at it. But one shouldn't presume that renting is for everyone.

Depends on definition of "go wrong."
I'd say paying extra is "going wrong" in my book.
(It's complicated calculations.. but once you factor in the time value of money, likely inflation rates, point leakage... buying a high priced 2042 re-sale contract ends up being more expensive than renting the points).

Then I suggest that you not buy points at a 2042 resort.

My advice in reference to "buy where you want to stay" is just an opinion, and happily acknowledge that, as is your advice that renting is always better than buying. The beauty of it all is that we are both entitled to have, and share those opinions.

 

[Bearval]

I started perusing the Disboards and researching DVC 6+ years ago, but I haven't been following the last year or so because I figured there was no point. Well, now DH wants to buy in so I'm back into figuring out what our best option is. We can afford direct if it's worth it. We have enjoyed staying Beach Club, and would enjoy trying out all the DVC resorts. We want to use the points for larger accommodations at WDW (1-2 bedroom depending on who we're traveling with). We will rarely/never book at the 11-month mark. 6-8 months is more likely.

Resort: Previously I had settled on resale AKV as our best option in terms of price/point, expiration, and resort for our 11-month window. Is that still our best option?

Use year: In the past, we've traveled to WDW over Christmas/New Years, spring break, summer, and fall break (mid-October), but summer is my least favorite, so I think we would aim for an October UY. Good idea, or should I consider something else?

Direct vs. Resale: Any new factors I should consider?

Buy resale, the perks for direct are not worth the much higher prices and if you have to or want to sell down the road you will most likely get back all if not more of your money and your room will have only cost you the annual maintenance fees. We bought resale at AKV and we take a car so we have no issue with it not being " close " to the parks. I love the resort and have had good luck getting a one or two bedroom at BWV a couple of times.

 

[Craho]

To some degree, it’s buyers not really crunching the numbers.
To some degree, it’s just that the direct price is so high — but that’s because Disney feels they can make lots of money as cash rooms.

It’s not even 20 years left. Contracts end January 2042… so by the time you close, it’s 18-19 use years left.
With dues, that’s $17-$19 per point, per use year, on some of those contacts. Factor in closing costs and time value of money, it’s more like $20-24 per point, per year.

So I think what I hear most people saying is that the 2042 resorts are not really worth it. Easier to rent. Although I do have to say that I just rented 100 points at BCV next June for $28/pt. Ouch. So $20-$24 is starting to sound not do bad!

 

[Sandisw]

So I think what I hear most people saying is that the 2042 resorts are not really worth it. Easier to rent. Although I do have to say that I just rented 100 points at BCV next June for $28/pt. Ouch. So $20-$24 is starting to sound not do bad!

I would have a hard time buying those resorts now based on the financial aspect of it but I am also one who was not ever comfortable with renting either so it didn’t make sense to compare to that.

I also think there is a difference between BWV and BCV as well. BWV can be easier to get in to at 7 months….so, if BWV was my top choice I might be willing with less than 19 years left to use…accounting for time to buy and close…but not so much with BCV.

So, in the end if you know you want to go to BCV year after year and owning outweighs the potential risk of renting…even if it’s not much of a saving at all…then for you it might make sense.