I was wondering the same thing. After reading alot and talking to different people, it seems that the way to go is through resale. I'd love to have it direct through disney but other than price and points there is no difference.
If you want to buy either Bay Lake Tower or Grand Californian, then buying direct from Disney is cheaper than resale. Not only is the cost-per-point cheaper on these resorts than the current resales, but Disney almost always has cheaper closing costs. In addition, Disney can usually assure you of a full allotment of current year points (at least on BLT), while some resale contracts are stripped of points.
I don't want to take out a loan so i figure I would pay via cash for say $4k and 40 or 50 points. How did these people only get the 40 or 50 points in the first place? Second, how do they vacation on just this, when a studio is at least 80 points.
Disney offers add-on contracts as small as 25 points to DVC members. When members no longer want or need these contracts, they put them on the resale market. Some members buy these small contracts to augment their existing contracts. Perhaps they want longer vacations, or larger accommodations and their existing 160-point contract just doesn't give them enough. Or perhaps they plan on vacationing every two or three years. By banking, using, and borrowing the points, a 40 point contract can let you apply 120 points on one vacation every three years.
Also, if you pay cash all up front and dont finance, the only thing you pay a year are dues right? the points automatically come every year wthout charge?