New Question resale or not?

[Renate_do]

Hi,

just thought trying to figure out the pros and cons about resales.

Pro:
1. TTS says its 5-10$ cheaper.
2. You can buy other resorts than SSR

Contra:
1. how much are the closing costs? (%)
2. annual fees seems to be higher
3. contracts last till 2043 (SSR = 2052)

did anyone do the maths in comparing the 9 more years to use to the cheaper points?

Okay that is not that important for me but I hope to go to WDW when I´m 85 or 94

Greets Renate

 

[simpilotswife]

Unless I was buying a very small contract I would buy SSR. The attraction of the old resorts is nice but the additional time is what I would be looking for. I just can't see the attraction of buying something when for approx $10/point more I would get an extra 12 yrs. To me the advantages of that outweighs pretty much everything else.

 

[NMW]

I think the biggest reason to buy a resale is getting a sold out home resort (like VWL). You would have the 11 mos home booking advantage, which many on this board believe will be important as SSR grows. Are they right? Who knows. I do believe that if you want to stay at a certain resort or location (like an Epcot resort) MOST of the time, you should probably buy that location.
We bought a BWV resale because we MOSTLY want to stay at an Epcot resort. We have no regrets. The extra 12 years didn't seem very important to us, we are 33 and 35 and will be very OLD in 2052! Since DVC is not the kind of timeshare you own forever, we did not even consider our children. In fact, our youngest child will be 41 in 2043. I certainly hope she can afford her own vacations by then! Besides who knows what is going to happen even in 20 years! Buying SSR instead of BWV just for 12 extra years seemed silly to us. I know others feel differently and I'm not trying to insult anyone!
Also, resales are cheaper most of the time (even with closing costs) than buying through Disney. As for the annual fees, do you mean the yearly dues? The annual dues are based on the number of points you own and at what resort you own them. If that makes any sense! I'm sure someone can post the exact figures, but in general you pay aprox. $3-$4 per point at all of the DVC resorts. This can change from year to year also.
The best advice I can give you is to do what is right for your family. Good luck!

 

[JimMIA]

Hi,

Pro:
1. TTS says its 5-10$ cheaper.

SSR is $87 per point from Disney, other resorts are $89 from Disney. Look at the listings and do the math. It's usually at least $5, sometimes more than $10, depending on resort.

2. You can buy other resorts than SSR

You can buy resorts other than SSR from Disney too. It doesn't make any sense to buy a lower priced resort direct, but if you are looking at BCV at $85 + closing, you may be better off buying direct from Disney.

You can sometimes get contracts of fewer than 150 points resale; you have to buy at least 150 from Disney as a new owner.

Contra:
1. how much are the closing costs? (%)

Pick a contract and ask TTS. They'll be happy to tell you. There are minimum closing costs, and then there is a sliding scale. On a $20,000 contract, it's about $600, but TTS can tell you exactly. You may also find contracts where the seller is willing to pay the closing costs.

2. annual fees seems to be higher

Annual fees have nothing to do with how you buy. They vary from resort to resort - from a low of $3.82 at SSR to a high of $4.87 currently at VB.

3. contracts last till 2043 (SSR = 2052)

It's actually 2042, and SSR is 2054, but that's January of both years, so it is actually 48 years of points vs. 36, not 49/37 as most of us (including myself) usually say.

did anyone do the maths in comparing the 9 more years to use to the cheaper points?

It's 12 extra years, and I would argue those years are important whether you plan to live to 100 or not. I think they will be very material down the road for resales, as well as for use.

I did the math using 300 points bought direct from Disney at SSR at $87 vs. 300 points resale at $75 with full '05 points, none banked or borrowed + closing costs of $600.

I got a lower entry price by $4,200 with resale, but a per point cost of $1.87 SSR vs $2.08 resale, because of the 33% longer duration of the contract - hence more points. When I assumed 300 '04 points available or banked on the resale, the per point cost dropped to $2.03...but you won't find contracts like that every day.

[Edit - Obviously, if you change the assumptions, the results change. For example, if a seller agreed to pay closing costs resale looks a little better. If you are paying $80 instead of $75, resale looks a little less attractive than it looked at $75]

Others may give you different numbers, so you just have to check the logic and the math to see if it makes sense to you.

 

[RobDoc]

Pro:
1. TTS says its 5-10$ cheaper.
2. You can buy other resorts than SSR

Contra:
1. how much are the closing costs? (%)
2. annual fees seems to be higher
3. contracts last till 2043 (SSR = 2052)

did anyone do the maths in comparing the 9 more years to use to the cheaper points?

All resorts are available both from DVC directly and via resale.

Annual fees are prorated from time of purchase when bought from DVC and some resale sellers are also now negotiating these same fees.

Closing costs are included in sales from Disney and some resale sellers are also including these costs in their sales.

Minimum purchase thru DVC is 150 points, minimum purchase thru resale is 25 points.

As already pointed out, end dates are January 31, 2042 (OKW, VB, HH, BW, VWL and BCV) and January 31, 2054 for SSR- a difference of 12 years.

The bottom line is that buyers need to know the full cost of their purchase and consider both avenues for purchase. Once a member, everyone is treated the same, regardless how many points are owned.

All aspects of a resale purchase are negotiable, DVC is not flexible on terms. Resales will have to pass ROFR, but resale brokers should be able to advise about that issue.

Just do the math and figure out which avenue will offer the best deal for what you are looking for.

Enjoy!

 

[SuzanneSLO]

As Doc described so well, all the resorts are available from Disney. With an apparently short waitlist at this time, we felt that BWV was a good deal thru them.

Buying thru Disney was incredibly convenient. We put our name on the wait list on a TH afternoon, put our deposit down by credit card at the end of the following week and made our reservation for our October vacation the next Monday.

In addition, we felt it was a good deal for us because we knew before we waitlisted that we could use points instead of cash for our already planned vacation. Our contract included 2004 & 2005 points (Aug UY) and we only paid about ¾ of the 2005 dues, no closing costs.

Without these Boards, we wouldn’t have known about this option. Since our Fall vacation was going to cost us so much, we would have probably put off even looking for a resale at BWV until that time.

Instead, we are members now!

Good luck in your decision -- Suzanne

 

[Renate_do]

thanks for your answers.

Buying sold out resort wht Disney, how does it work? Is there a listing somewhere at the web?

Greets Renate

 

[RobDoc]

thanks for your answers.

Buying sold out resort wht Disney, how does it work? Is there a listing somewhere at the web?

Greets Renate

Thru DVC, the sold out resorts are $89 per point with no incentives. Some are available immediately, others may require a wait until points become available. If interested in a direct purchase of these resorts, just call your vacation guide (or call 1-800-800-9100 if you don't yet have a guide).

In most cases, you will be able to find a resale for less, but be sure to do the math and include all costs. You can put anything you'd like in your resale offer, so if you want the seller to pay closing costs, make sure you include that in your original offer.

Enjoy!

 

[Renate_do]

. If interested in a direct purchase of these resorts, just call your vacation guide (or call 1-800-800-9100 if you don't yet have a guide).

Enjoy!

Hi,

thanks, but my main problem is that I wount get any information cause I live at Germany and they are not registered here

Thats why I´m going on your nerves here at the board

Greets Renate