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[Turner8509]

Hi,

Me and the husband are looking at DVC can someone please explain this to us, still not understanding it!

We want to buy direct from disney, no resale.

Thanks

 

[Minniesgal]

What is it you are having trouble with?

 

[Turner8509]

Everything, I'm getting confused with everything (not difficult for me)

Points, prices - literally everything

 

[Brian Noble]

If you are certain you want to buy from Disney, the right thing to do is to go on a tour when you are next in Orlando. They will spend a lot of one-on-one time with you explaining how things work.

(However, you probably should not be so certain you want to buy from Disney given how little you understand overall...)

 

[AmyB2006]

If you are certain you want to buy from Disney, the right thing to do is to go on a tour when you are next in Orlando. They will spend a lot of one-on-one time with you explaining how things work.

(However, you probably should not be so certain you want to buy from Disney given how little you understand overall...)

ITA... not to be condescending either, but if you're confused by all of it, how do you know that you don't want a resale?

I bought direct from Disney for our first purchase. Second purchase we bought VGF, so again direct through Disney. I'll probably never buy direct again, unless it's for POLY, LOL.

Is it that you don't understand how the point system works?

A simple breakdown is... you buy points. Whether from Disney direct or resale contract, is your choice.

Each contract has a Use Year. Ours is April, so let's use that for an example. Each April 1st, there are 200 points in our account. We can use them however we want. All at once, broken up, etc. You can also bank and borrow points from different years.

For example. April 2014 I received 200 points. April 2015 and 2015 also have points. If I want to plan a huge family reunion in my 2015 Use Year, which is April 2015 to March 31st 2016, I can bank my 2014 points into 2015 and borrow my 2016 points into 2015, and have 600 points total.

You buy a contract at a specific resort, for example let's use BCV. 11 months from the day I want to arrive I can make my reservation there. It is considered my Home resort. If I want to stay at any of the other DVC properties, I have to wait till 7 months from the day of my arrival before I can make my reservation. Some resorts fill up by people who own there before the 7 month mark, so some resorts are easier than others to book at the 7 month mark.

Bottom line and best tip anyone can give you... Buy where you WANT to stay. Don't buy Old Key West points because they're cheaper thinking you're going to be able to stay at BCV during Food and Wine Festival.

Also each resort has a "lifespan". BCV only has 20 something years left, so if you buy points there, in 28 or 29 years, your contract is over. If you buy a contract at Animal Kingdom, the points are usable for much longer.

Each resort also has a points chart. It tells you the amount of points each night requires. The total amount of points can never change unless they actually add rooms to the resort, I believe. They can move points around within the matrix, but never add.

I agree, go take a tour, talk to a DVC guide, and get some information. Do NOT make a purchase on that first trip. That was my mistake. This was actually the third time my mother had talked to a guide, so I gave her way too much credit and thought she knew more than she really did. I bought with her.

Anyway, take a tour, talk to a guide, then come back here with your questions.

Good Luck.

 

[Turner8509]

Thanks Amy, you have know made it clear to me I was on websites nothing was that clear.

Thanks

 

[Turner8509]

Plus websites where saying stay away from resale so that's why I was against it but that is down to everyone's else's experiences

 

[dundey]

Read everything you can on this board. That is the best way to learn.

You will then understand what DVC is and how to use it. You will most likely change your opinion of resale as well!

 

[LisaS]

Plus websites where saying stay away from resale so that's why I was against it but that is down to everyone's else's experiences

Really? I can't recall seeing even one website that recommends against buying DVC on the resale market.

Some resale brokers are much better than others so perhaps you saw some discussion about avoiding certain resale brokers? Many (maybe most?) of us here have purchased at least one of our contracts on the resale market and would not hesitate to purchase that way again. There are several very reputable resale brokers so as long as you deal with one of those, your transaction will go smoothly.

Some reasons I've seen for recommending buying directly from Disney are the ease of getting financing but the problem there is that Disney charges a VERY high interest rate. Buying direct also allows you to use your points for Disney cruises, Adventures by Disney and Disney hotels but these options take a LOT of points and you will pay more than if you rent your points out for cash and then pay out of pocket for the cruise/ABD/hotel. The one case where purchasing directly from Disney makes sense to me is if you absolutely must have the newest resort (VGF in this case) and there are very few resale contracts on the market for that resort and they are selling for only a bit less than Disney's price.

 

[sndral]

I suggest you create your hypothetical typical WDW vacation - number of nights, when you'd go, how big a villa you'd need and then compare the various DVC properties to get an idea of how many points you need and how much they'll cost to buy and to pay maintenance fees for them every year.
There are 8 DVC properties @ WDW and a 9th (Poly) will soon be open for sales. Each one requires a different number of points to stay there. Different size units (studio, 1 br, 2 br, grand villa, tree house, etc.) require more or less points and just like Disney rooms, there are seasons associated w/ DVC point costs. Some DVC resorts have different view categories as well, which cost more or less points. So when you go, what your view is, what size villa you want, etc. all determine how many points you need for that stay.
Each DVC property has maintenance fees per point which you must pay on your points each year.
For example to stay in a standard view studio 1/3/15-1/10/15 (7 nights):
BWV (MF $6) & OKW (MF $5.54) cost 76 points
AKV (MF $5.97) costs 81 points
SSR (MF $4.91) costs 90 points
BLT (MF $4.78) costs 102 points
BCV MF $5.79) and WLV (MF $5.92) cost 107 points
GFV (MF 5.41) costs 125 points
The minimum number of points you can buy as a new owner from DVC is 100 and they are selling BCV, BWV, OKW, SSR and WL for $130 per point or $13000 for those 100 points. They are selling AKV & GFV for $155 or $15500 for 100 points and BLT for $165 or $16500 for 100 points.
Resale, of course, costs less, average prices from a couple of months ago ranged from $70.50 per point for SSR to $98 per point for BLT, I think prices are a bit higher now for resale.
Once you have an idea of the numbers that work for you then you can focus on what exactly will fit your family - good luck.

 

[Lynne M]

The question I would ask you is, why do you want to buy DVC? What do you hope to get out of it?

You've gotten some good advice and information here, but keep reading and researching, until you can say you fully understand DVC and how it works. It can be a great purchase, or a really expensive mistake.

It's so important to be an informed buyer. Understand the numbers. Don't be the guy who sits through the presentation and hears it's "x number of dollars a month" and thinks, "oh, wow, I can afford that!" DVC's direct pricing is very, very high, in many cases thousands of dollars more than the same contract would go for at resale, and their interest rate for financing is astronomical.

That monthly figure may be affordable, but it may also mean that your total cost is way, way more than other members paid for the same number of points at the same resort. Make sure you know exactly what you're paying, both up front and in interest payments.

A real world example of why you need to understand the numbers: I read a very sad story on another board from someone who bought at one of the older resorts direct from Disney, and financed most of the purchase. Within a year or so, they realized that a) the payments were becoming a burden, and b) they'd way overpaid. They wanted to sell, but since resale prices on their resort were so much lower than what they'd paid by buying from Disney, they were underwater on their loan. In other words, the amount they could get from selling their contract wouldn't come close to paying off the loan. So there they were, stuck with the loan payments, and stuck with the maintenance fees, for something they no longer wanted.

Another important point is to make sure you know exactly what it is that you're buying. When you buy DVC, you're buying the right to stay at DVC resorts, subject to availability, for the duration of your contract. The other stuff? Cruises? ABD? Exchanges? Perks and discounts? Every single one of those things is 'not part of your vacation ownership' as Disney puts it, and all of them are subject to change or termination at any time. Many of them are controlled by third parties. For instance, DCL has on at least a couple of occasions decided that they don't want to offer cabins for DVC points for months at a time. With no warning. Discounts come and go. Some of those options, for instance ABD, cost a staggering number of points to use, more than the typical buyer will ever have.

I've been happy with my DVC purchase, it's worked out well for me. But I can't emphasize enough that you don't want to buy until you really understand the program.

 

[Turner8509]

Thanks for all your help guys, my confused mind now understands lol

 

[Dean]

Plus websites where saying stay away from resale so that's why I was against it but that is down to everyone's else's experiences

There are a FEW reasons where buying resale makes sense but I cannot think of any reason to specifically stay away from retail unless one simply doesn't care how much they spend up front.

 

[DestyTiger]

Glad to see that this site is helping you understand DVC better. I know I used it extensively when we bought our DVC contract. Buying direct or resale is up to each individual, but don't be afraid to explore the resale option. We went the resale route because it made the most financial sense to my family. We knew we had a limited budget to buy into DVC, so the lower prices that were available through resale made getting into DVC a possibility for my family who loves there annual trips to WDW.

I knew I wasn't going to be using points for anything other that the DVC properties at WDW, so the restrictions placed on resale contracts didn't concern me at all. I also wasn't as tied to an individual resort, so I was able to explore each resort and look at the cost and points needed for our standard stays and figure out what work best for our budget. We ended up buying into OKW and we couldn't be happier. It may be the oldest property, but its styling and feel is perfect for us. The fact that the rooms are larger and the cost was less didn't hurt either.

I am not knocking anyone who buys direct. Each person/family needs to do what they feel is best for their situation. I would just recommend you take time to look into the resale market as well as direct purchases and see what makes the most sense to your and your family.

Best of luck and know that the DIS family is always here to support you!