Hypothetical add-on Poll: Direct vs Resale - WWYD in this situation?

[intamin]

I see a smaller contract listed for 104/pt, so I'm assuming someone could reasonably swing a deal for a big 300 point contract.

You're right, you could probably get the direct price down lower. So if it's in the 160s, that's around $50,000 for direct and $30,000 for the resale. Would you buy it then? (considering the reason you're getting the contract is to use at OKW)

That’s still 20k I could just put toward RIV even though of course it’d mean more annual dues.

 

[Straulin]

Resale.

The price difference is too great. They already have blue card benefits that will expire after this contract, so the only benefit is flexibility of booking restricted resorts. As this one expires in 2057, you will have exchange options up to expiration for AKL, BLT, PVB, VGF, CCV, AUL, and VGC.

 

[Stargazer65]

That’s still 20k I could just put toward RIV even though of course it’d mean more annual dues.

That's a good consideration. For the same money as 300 OKW(e) direct by itself, you could buy 300 OKW(e) resale and add on 100 or so direct Riviera points.

 

[Stargazer65]

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[Brian Noble]

Resale every day and twice on Sundays.

The annual cost difference of the extra $100, amortizing at 3% cost-of-capital for the life of the deed, is about $4.70 per point per year, present-value. If I wanted to alway use my resale OKW points for some other restricted DVC resort, I can rent them out and rent the stay I want. As long as the spread between the two is less than $4.70 (indexed for inflation), I win.

And, that's if I do that with every point. For every point I use at OKW (or another non-restricted resort) I get to bank that $4.70 savings.

Seems like a sure-fire no-brainer to me. And that's using a probably-too-low 3% as CoC.

 

[RoseGold]

Years ago, OKW was a good direct pick if you needed direct points, because it was priced well and longer than resale. Def not true right now.

 

[DanCali]

Buy resale OKW. Use the savings to buy resale Riviera. Rent excess points whenever you have them to offset dues.

 

[TinkAgainU]

Just off of personal preference, we only buy direct points. When the rules of the game can be changed anytime Disney wants, it seems to me direct is just a safer option.

I know this is an old thread, but when I read the purchase documents (almost 50 pages, plus references to the POS online) that came with a recent Direct purchase, it seemed Disney was leaving a lot of outs for many of the current programs. Read that stuff carefully before you spend extra for perceived "safety." The safety might be more in being Grandfathered in, than whether you purchased Resale or Direct. As you know, every additional document you sign with Disney is likely to be to their benefit, not yours, and conceivably changes prior agreements already in place. And there can be little additions in any contract ...

Here is just one example - I believe, per the Direct purchase documents, DVD has the right, even if you are not financing, to run a credit and background check on Direct Buyers and share that with DVD's affiliated companies. You can opt out, but you'd have to Read that part to know about it...