My head is spinning! Please school me on DVC!

[julluvsdisney]

So my husband and I went to the DVC tour this week and fell in love with it! Now I am researching and I am wondering what is better ? Direct or resale? We would like to own at the Grand Floridian. Can we buy a small contract for the Grand and a bigger contract somewhere else for a lower price? I am just so confused!

Please school a newbie!!

TIA!

 

[DisK]

So my husband and I went to the DVC tour this week and fell in love with it! Now I am researching and I am wondering what is better ? Direct or resale? We would like to own at the Grand Floridian. Can we buy a small contract for the Grand and a bigger contract somewhere else for a lower price? I am just so confused!

Please school a newbie!!

TIA!

50 points is the current minimum on a Direct buy. Resale is definitely a better purchase, but when it comes to VGF, you'll likely not be saving much.

You can buy a small contract at VGF and a larger one via resale - just bear in mind that your points are good for each hotel until the 7 month mark. Meaning you cannot combine your contracts until 7 months.

 

[disneynutz]

So my husband and I went to the DVC tour this week and fell in love with it! Now I am researching and I am wondering what is better ? Direct or resale? We would like to own at the Grand Floridian. Can we buy a small contract for the Grand and a bigger contract somewhere else for a lower price? I am just so confused!

Please school a newbie!!

TIA!

First issue is that you fell in love with a pre-paid hotel room.

Don't let emotion affect your business decision to maybe buy a timeshare.

Take some time to read through the DVC threads here on the DIS to learn the pros and cons, DVC may be a good fit or it may not.

Buying resale can save you thousands of dollars if that works for you.

Bill

 

[MountainMouse]

If you're set on the GF then best to buy there. It's expensive, but better than being unhappy. You can buy a small contract and bank/borrow so that you can go every 2 or three years. Booking GFV with another resorts points is difficult now, may ease up in a few years but I have a feeling demand will always be high which is why you should own there if you want to stay there.

I'm one to talk since I bought DVC without ever actually visiting a room, but if you can it would be worthwhile to check out a few other resorts while you are there. Also, if you are going to buy GFV then the PP was right on in saying that they isn't much resale benefit. Other resorts are much cheaper via resale. Good luck!

 

[julluvsdisney]

Thank you all for the quick responses! This has been something we have wanted for awhile but I was waiting to graduate nursing school before I made this step!

What is the lowest you can buy direct?

Does the resale financing work the same way as direct? Can you claim it on your taxes?

Im really torn! My DH says by direct Im on the fence!

 

[chalee94]

So my husband and I went to the DVC tour this week and fell in love with it! Now I am researching and I am wondering what is better ? Direct or resale? We would like to own at the Grand Floridian.

resale is better in general as it is cheaper and you lose nothing of value (a few trading options that are really expensive.)

direct is "better" as it is faster - you get the contract for use much more quickly. you can also pick exactly how many pts you want.

direct is the better option for VGF as there won't be many resales available at this point.

Can we buy a small contract for the Grand and a bigger contract somewhere else for a lower price?

won't do you much good to buy 50 pts at VGF and 200 pts at SSR if you cannot use the SSR pts to book VGF at 11 months out (and you cannot, under any circumstances.)

What is the lowest you can buy direct?

if you care about price, buy resale.

direct pricing is locked in and cannot be negotiated. VGF is $165 per pt plus small closing fees.

http://www.dvcnews.com/index.php/dvc-program/financial/pricing-a-promotions

Does the resale financing work the same way as direct? Can you claim it on your taxes?

depends on how you set it up. generally no, but some will set up the financing so that it qualifies...you'd have to check with your accountant and look at the terms of the financing to be sure.

but i don't recommend paying higher prices to buy direct and financing DVC for 12% or so just so you can take a small additional deduction on your taxes.

you are much better off not financing a luxury purchase like DVC.

take your time and do some research on DVC to make sure it would fit your vacation style. are you ok with little or no housekeeping? are you ok with pullout sofabeds? do you plan 10-11 months in advance? (if you buy VGF and try to book at 6-8 months out, you may find availability very limited at certain times of year and for certain villa types.)

 

[supersnoop]

Here's a good summary of taxes and interest deductions: http://www.tug2.net/timeshare_advice/TUG_Taxes_and_Timeshares.html

In general, you can deduct property taxes as long as they're broken out on your statement. You can deduct interest only if the loan is a true mortgage secured by the property, as long as you only claim interest for one property in addition to your primary residence.

 

[disneynutz]

Thank you all for the quick responses! This has been something we have wanted for awhile but I was waiting to graduate nursing school before I made this step!

What is the lowest you can buy direct?

Does the resale financing work the same way as direct? Can you claim it on your taxes?

Im really torn! My DH says by direct Im on the fence!

Until you stay at the different resorts, how do you know where to buy?

DVC is usually a separate building at the deluxe resorts, we pay with our dues to have access to the front desk, security, housekeeping, transportation, everything.

You are best off to buy where you love to stay because booking at a non-home resort at 7 months can be a challenge. Keep in mind that all you are getting is a discounted room, everything else is just like a normal cash stay.

DVC does offer some discounts but they change and are not guaranteed.

Bill

 

[Minniesgal]

Until you stay at the different resorts, how do you know where to buy? DVC is usually a separate building at the deluxe resorts, we pay with our dues to have access to the front desk, security, housekeeping, transportation, everything. You are best off to buy where you love to stay because booking at a non-home resort at 7 months can be a challenge. Keep in mind that all you are getting is a discounted room, everything else is just like a normal cash stay. DVC does offer some discounts but they change and are not guaranteed. Bill

I'm not sure you actually need to stay at the resorts. We visited them all and dined at most before we bought and knew our favorites when we bought. Spend some time in each resort and research the differences in the rooms like the extra bathroom at AKV and BLT.

 

[MountainMouse]

It's a tough call for me whether it is better to spend the money so that you can stay at a resort and make sure you like it or take the risk and look at it as extra savings on your purchase price. I chose to buy in to BLT where I had not stayed, though I did stay at the Contemporary. I thought about it and decided that the most important thing to me was location so as long as they don't move BLT, the monorail, or the MK I'll be happy. A lot of folks will say not to finance and I wholeheartedly agree, but it's also you're call and it's not necessarily a bad idea just a riskier more expensive one. Just make sure you don't impulse buy, take your time and do all the research. I was almost an impulse purchaser for AKL, wouldn't have been the end of the world but I'm glad I waited and thought more about what I wanted. Make sure you know what you really want. Best case scenario you find out you want something else and are able to change your mind without penalty. Worst case you aren't a DVC owner for a little longer.

 

[disneynutz]

I'm not sure you actually need to stay at the resorts. We visited them all and dined at most before we bought and knew our favorites when we bought. Spend some time in each resort and research the differences in the rooms like the extra bathroom at AKV and BLT.

I agree that you can get a feel for the resort but what about the room. Studio or 1 bedroom, room colors, locations, layout, kitchen, bathrooms.

I remember a few years back talking to a new DVC owner who bought BCV and was very excited looking forward to a BCV lake view. I felt really bad when I explained that the DVC rooms were at the rear of the resort and that they couldn't possibly get a lake view.

Bill

 

[HokieGCC]

1 - DVC might save you some money if you buy resale (cash) and fine tune your purchase. The comparison is only favorable with Deluxe resorts.
2 - To make the $ work in your favor you need to be able to plan your vacations 11 months in advance.
3 - You can go do Disney whenever you want with or without DVC so there is no need to rush into it.

 

[J and R's mom]

We bought DVC back in 2003 when SSR was being built. I cannot even remember what flyer I received in the mail that made me call that day, but I did...and bought that day. All site-unseen (heck, SSR wasn't even open for stays yet).

We fit the bill, though. We traveled about once a year (or more) and always stayed in Deluxe resorts with plans to continue doing so far into the future.

I knew NOTHING about DVC other than what my salesperson was telling me (and some common sense) and seeing the sales podiums at BWI lobby. And I had never even heard of the DIS or DVC forums and didn't even know resale was an option. That knowledge all came about two years later.

We have had many trips since we purchased DVC (my signature lists them). We have had NO REGRETS other than not buying more points (but resale costs about the same now as what I paid then, so we still might add on).

From my signature, you will also notice that we have NEVER actually stayed at SSR. We typically travel during the first two weeks of December, April, October and November. We always waitlist and have been fortunate to get our waitlists to come through these past eleven years. We are flexible and sometimes are able to book/waitlist at 7 months out and sometimes not. We also always go into each waitlist knowing that it may never come through.

So what does this have to do with your question? Well...

Many on here will tell you to "buy where you want to stay" which is sage advice, especially if you plan on going during crowded times of year (major holidays and summers...you'll need the 11month booking window). And if you have the funds/funding to do so, then absolutely do this. (I'm sure I will get quoted and told that my waitlist "luck" may not always hold out...which again...is true...but....).

If, however, someplace like SSR or OKW looks intriguing on the resale market because of the lower cost per point, that would not be a bad buy either...assuming that you won't be too disappointed if the only option available when you go is your home resort.

ALSO, keep in mind that OKW, BWV, VWL, BCV all have points that expire several years before SSR, AKV, BLT, VGF and soon the Poly DVC. THAT might matter quite a bit to you. I'll be in my 80s when our SSR contract expires, so I am fine owning/buying there.

I say GO FOR IT! Buy resale to save some money, if possible. If not, buy direct (there are advantages mentioned in previous posts that might make up for the added expense).

 

[dsnydaddy]

1 - DVC might save you some money if you buy resale (cash) and fine tune your purchase. The comparison is only favorable with Deluxe resorts.
2 - To make the $ work in your favor you need to be able to plan your vacations 11 months in advance.
3 - You can go do Disney whenever you want with or without DVC so there is no need to rush into it.

I agree with your "rules." except, for that which made me finally take the dive into DVC. I've heard it said many times that DVC makes sense only when compared to Deluxe resorts. And while I agree with that and have done my math many times with that in mind. It never occurred to me what I would do once my kids grew into teenagers and suddenly those value and moderate resort rooms were VERY small with teenage children of the opposite sex who no longer want to sleep in the same bed. When I started to do the math differently and look into suites or getting two rooms my outlook on DVC being not such a good financial decision changed drastically. Our last trip to Hawaii we stayed in a non-DVC timeshare and LOVED the elbow room. During that trip we did spend one night at the Aulani in a studio and it became painfully obvious... we had outgrown the "hotel room."

My advice to the OP mirrors that which has been said many times here... Buy resale. There was no way that I could do the math that would justify the direct purchase. Even to get into the new resorts... you'd not only have to pay top dollar but you'll have to also purchase more points that you would at other resorts to get the same thing.

 

[Minniesgal]

You don't need to be staying Deluxe for DVC to make sense you only need to want to stay deluxe. We moved offsite once we had three kids but I aka was wanted to be staying insure preferably deluxe but didn't want a hotel room. The two bedrooms are perfect for our family. We bought fully aware it wouldn't save us money compared to offsite but it bought us what we wanted. We also go more often than we did before DVC however we do less park time and eat out less so it probably balances. What I love is although our plan is every other year we unexpectedly can't go next year due to work constraints we rented out points really easily.

 

[rmcildw2m]

I thought you already had to be a member before you can add on direct with a small contract like the 50 points mentioned.?

 

[Msmithmd]

I thought you already had to be a member before you can add on direct with a small contract like the 50 points mentioned.?

You're historically correct, and DVC still wants you to buy more.

But several new owners have reported being able to buy in with just 50 points initial purchase over the past few months.

 

[julluvsdisney]

Thank you so much for all of the replies! It's really helping with our research! Thank you to all of the dvc experts! It's really helping sort out the info!!

 

[HokieGCC]

You don't need to be staying Deluxe for DVC to make sense you only need to want to stay deluxe.

This is a good point. When you first start going to Disney you tend to try to cram in as many of the attractions as you can. During this "phase" Moderate and Value resorts work just fine. However, after 5 trips and 100 Space Mountain rides you start to discover that it is a better vacation if you hang out at the resort some. This grows and grows over time and your resort becomes the focal point of your vacation not the parks.

So .. if you are still in the "Park Commando" mode stick with the Value and Moderates for now and then later on move into DVC.

 

[MUFFYCAT]

I'm also thinking of buying but definetly know it would be resale. There is so much to learn as I'm finding each day.

We've always stayed deluxe with 2 queen beds as we have 2 DD ( now 20 & 23). I've noticed the studios and even one bedroom only have a bed and pullout couch, which I'm not fond of. How do these rooms hold 3 or 4 comfortably?