I'm sorry, I am really confused, I hope someone can help me understand a "resale." We have been seriously considering DVC (and are looking into staying deluxe for the 3rd year in a row next summer.) It's just that we really can't finagle another bill right now (and don't have the lump sum to pay at once.)
What exactly is a resale, and is it much cheaper to buy through a resale than directly through Disney?
What are the pros/cons?
Thank you!
Well, a resale is someone who purchase from Disney, and wishes to now sell it. Things change, finances, family, travel plans, etc...that would lead someone to decide they no longer want the contract they have. If you buy from Disney, the resorts you can "buy into" are BLT, SSR, and AKV. BLT may be sold out, I'm not sure. Resales can save you $ on the up front purchase price, and you can buy into a resort that is currently sold out. These resorts also have earlier end dates to the contract as well. You sound like you need to do a lot more research on whether this is right for you. Since you don't have the lump sum as you say, you can still finance it, but remember you are adding an extra cost in interest to your purchase. Not that this is a bad thing, if it's something you will use, it can still save you money.
If you are paying cash for "deluxe" accommodations, then DVC could certainly save you. Check out the various
points charts for the time of year you typically travel. If you plan to continue with these travel plans, then compare the DVC room type you would use. It will give you an idea of how many points you need. With Banking and Borrowing points someone like me who travels every other year, can still make use of it, I just need less points.
To help you with your math to see how much you could save with an ownership.....Take the purchase price and divide by the total number of points you are buying in the contract (ex. 100 points per year at BCV would be 3000 points left in the contract till 2042) Then add the cost of dues per point. This will give you how much you paid per point for 2012. Multiply the price per point by the points required for the trip you want to take. Compare that to the cash price you would pay without an ownership. This will give you an idea of how much you could save each year.
Of course if you let your points expire without using them in a year, you are throwing away that much money as well. Also, dues increase every year so your price per point you are paying will go up as well. The purchase price divided by the total points is your base price per point. That will never change. But the yearly dues cost will go up. Prices for rooms direct through Disney will continue to increase in price in the future as well, but there is no guarantee that the price increase will be the same rate as the dues increases. So far over the history it seems to me they are on par with each other with an advantage to DVC. So, it can save you money, if you are a frequent WDW traveler.
There are restrictions to uses of your points to resale buyers that started this year, but most people will agree these other uses are not a cost effective way of using the points.
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Bill
and will not even look twice at a contract that does not have current year points unless the price is real low. I purchased a contract 6 months ago with 2009, 2010 and 2011 (coming after closing). there were lower price contracts out there but once I rented the 2009 points my price per point was decreased by 10.00 PP which made the contract a great price! I just do the math when a contract catches my eye!
