newbie Help Please!

[Wolfie68]

Hello, I am new to all this, and trying to gather info on if buying a dvc is right for us... what does ROFR mean and what is better, to buy new or a resale contract?

does Disney finance or do I need my own financing?

thanks for the help!

 

[DizBub]

Hello, I am new to all this, and trying to gather info on if buying a dvc is right for us... what does ROFR mean and what is better, to buy new or a resale contract?

does Disney finance or do I need my own financing?

thanks for the help!

I can't help you with whether it's right for you but ROFR is Right Of First Refusal. When you agree to buy a resale contract and settle on a price Disney gets a chance to look at the details of your deal and they can decide if they want to let you buy it at that price or if they will buy it back themselves. This is the way they keep the resale prices up.

Of course if you want to save lots of money it's better to buy resale. If you want to have the newest DVC resort, Villas at Grand Floridian, you will have to buy direct for now since there are no decent resale prices yet. I hear they are raising the price to $160 per point in June, price is $155 per point currently.

Disney will finance at a very high interest rate but you can arrange your own financing if you so desire. We did with 2 direct and one resale purchases.

Feel free to ask more questions any time. Good luck with your research!

 

[bakerworld]

Hello, I am new to all this, and trying to gather info on if buying a dvc is right for us... what does ROFR mean and what is better, to buy new or a resale contract?

does Disney finance or do I need my own financing?

thanks for the help!

Disney does financing. The plus about direct purchase is that is easy and fast. We financed with Disney and based our pay-off timeline on a 4y car payment. There are calculators to figure out the payment that you would be comfortable. The nice part currently is the minimum buy in is 100 pts - which is very doable for a 6N stay in a studio.

Personally we didn't decide to purchase until we were going twice yearly for several years consecutively and wanting to stay in Deluxe venues.

 

[HokieGCC]

Resale is much less expensive but takes longer to get your points and you don't get to use your points outside of the Disney resorts (including the cruise).

So the rue of thumb is if you want DVC for just the Disney resorts then resale is (quite a bit) better (note Vero and Hilton Head are included).

One additional thing - the only thing you are actually guaranteed are your points for your home resort. The rest are perks that can be changed by Disney. For that reason and the 11 month booking window you want to pick a resort you will be happy with.

 

[MsTessP]

Not correct about inability to use resale points outside of DVC. For example resale points can still be used for RCI trades. However - for resale and direct owners alike - use of points will always have more value if used for DVC resorts.

 

[jonida3]

Not correct about inability to use resale points outside of DVC. For example resale points can still be used for RCI trades. However - for resale and direct owners alike - use of points will always have more value if used for DVC resorts.

That's great information! I had not realized that. I'm a newbie too!

 

[chalee94]

what is better, to buy new or a resale contract?

you cannot buy "new." you'll be staying in the same DVC villas whether you buy direct or resale.

i think of it more like buying a new car by negotiating or by walking in and paying full sticker price. negotiating takes time and is more stressful, but will likely save you a lot, possibly thousands, just like buying resale.

paying the sticker price makes it easy and fast (and some people have a lot of money and don't want the hassle of going back and forth with the manager and so on...)

there are a handful of cases where direct may be the only option (for a new resort or tiny contract at a small resort), but the above is pretty typical IMO.

if you buy resale, you do lose the options to trade points for disney cruises and disney hotel rooms, but the additional fees and high point costs for trading make that a non-issue.

(resale buyers can still rent their pts for cash, and use that cash to pay for cruises or hotel rooms, which virtually always beats trading pts directly...but again, it adds time and stress for some people. you have to decide what is more important to you.)

does Disney finance or do I need my own financing?

http://dvcnews.com/index.php/dvc-program-51703/financial-75803/news-19220/2351-dvc-interest-rates-rise

Rates vary depending upon the amount of downpayment and credit-worthiness of the buyer. The chart below illustrates the previous and current rates for each category:

Previous Rate Current Rate
Premium, 10% down 11.5% 12.0%
Premium, 20% down 9.0% 9.99%
Preferred, 10% down 14.5% 14.5%
Preferred, 20% down 10.5% 12.0%
Standard, 10% down 17.5% 17.5%
Standard, 20% down 12.5% 14.5%

Buyers who enroll in the automatic payment program and agree to have funds Direct Debited from a U.S. Checking or Savings account will receive a 1% discount on the rates above.

Rates are for a 10-year loan with no pre-payment penalties.