Not Worth Purchasing Resale

[BWV Dreamin]

Resale prices have really increased and at what point does it not make sense to purchase resale? Recently I purchased VGF direct because I could not find a contract under 100 points for less than $190-$200/ pt. depending the number of points. I finally purchased at $255/pt. The resale prices have jumped so high I fail to see any savings at this time. The advertising of ” save up to 40% purchasing resale” is simply not true.

With that said, when might direct prices increase?

 

[Sandisw]

I think there will still be times it would make sense, but it is no longer what it was, especially now that there are differences between the products,

Granted, for some, the additional things you get direct are not worth it. But, the gap has closed recently for sure!

 

[scbruno]

This time of the year prices seem to be higher. I try to buy during the winter time and seem to do better. But smaller contracts, I agree that some resorts might be easier to buy direct because you not paying that much more. I saw a 50 point Feb use SSR listing today on for $149 per point. To me a for a few bucks more I can go direct with out the stress of passing ROFR, additional fees, the time to close and DVC adding the points in your account waiting period as well. Plus dues are prorated and closing is a little less as well so when you look at the difference in this case its not much more and you have your points in a couple of days.

 

[BWV Dreamin]

This time of the year prices seem to be higher. I try to buy during the winter time and seem to do better. But smaller contracts, I agree that some resorts might be easier to buy direct because you not paying that much more. I saw a 50 point Feb use SSR listing today on for $149 per point. To me a for a few bucks more I can go direct with out the stress of passing ROFR, additional fees, the time to close and DVC adding the points in your account waiting period as well. Plus dues are prorated and closing is a little less as well so when you look at the difference in this case its not much more and you have your points in a couple of days.

Agree. Not to mention depending on your UY you can also get previous years points with no dues. That value there brings down that direct price very close to the current resales.

 

[stwaldman]

Resale prices have really increased and at what point does it not make sense to purchase resale? Recently I purchased VGF direct because I could not find a contract under 100 points for less than $190-$200/ pt. depending the number of points. I finally purchased at $255/pt. The resale prices have jumped so high I fail to see any savings at this time. The advertising of ” save up to 40% purchasing resale” is simply not true.

With that said, when might direct prices increase?

The 190-200 asking is recent for VGF and is above the latest reported sales prices. It's certainly possible things never come down, but even just month or two ago they had a high "value" against the direct price.

I won't speak to who or what is driving the price rise but this does feel like a little spike here that may have some relation to those travel budgets saved up from 2020.

 

[stwaldman]

The 190-200 asking is recent for VGF and is above the latest reported sales prices. It's certainly possible things never come down, but even just month or two ago they had a high "value" against the direct price.

I won't speak to who or what is driving the price rise but this does feel like a little spike here that may have some relation to those travel budgets saved up from 2020.

That said I agree w. (I think) Sandi's point from another thread, I think small add ons (50 or less) probably look good direct, especially if the current UY points are usable or rented, since that savings is applied against fewer points.

 

[BWV Dreamin]

The 190-200 asking is recent for VGF and is above the latest reported sales prices. It's certainly possible things never come down, but even just month or two ago they had a high "value" against the direct price.

I won't speak to who or what is driving the price rise but this does feel like a little spike here that may have some relation to those travel budgets saved up from 2020.

Well, real estate prices Are at an all time high with little inventory and bidding wars. While I would not group timeshares in that same real estate category, they are following the same inflated pricing along with little resale inventory. I just read on these boards today resale prices are now selling over asking prices in some situations. Who would have ever thought this would happen post pandemic?

 

[Flynn's Gal]

I'm new to DVC so I have no prior experience with following pricing trends. Does this happen every so often where resale prices get close enough to direct that a lot of buyers end up going that way? A part of me thinks the resale brokers are guiding sellers to price themselves out of buyers, but as I said, I've never followed the trends before. Is there typically a ceiling then prices level out for a while? I mean, $149 for SSR?? Even seeing $120something for SSR seems a bit of a shock. When I first started watching last fall, SSR was hovering around $100. I know a 50 pt will see for more, but $149! Would love to know from long time watchers what generally happens when there are overall price increases. These now weren't gradual. They jumped in a matter of one to two months.

 

[stwaldman]

Well, real estate prices Are at an all time high with little inventory and bidding wars. While I would not group timeshares in that same real estate category, they are following the same inflated pricing along with little resale inventory. I just read on these boards today resale prices are now selling over asking prices in some situations. Who would have ever thought this would happen post pandemic?

I think DVC (boutique timeshare) is probably made up of a workforce population that didn't feel as much pain as others, and you really are seeing people take the thousands from 2020 vacations and out them into down payments. Hell, I think a lot of people on these forums thought they might be able to prey on some hard luck situations of others the past year, only to find that the exact opposite happened in the resale market over time.

 

[BWV Dreamin]

In real estate there is an old saying “ Homes are worth what people are willing to pay for them.” Comparable s are for guidance but at the end of the day other factors will drive the price. I would agree with you for a while brokers were setting the floor because within their listing agreements they would “ buy back “ the contract at a certain sales price. So there was no incentive for the seller to lower their price or negotiate. So this caveat in fact raised the floor and over time people accepted these prices because sellers would not negotiate

 

[stwaldman]

In real estate there is an old saying “ Homes are worth what people are willing to pay for them.” Comparable s are for guidance but at the end of the day other factors will drive the price. I would agree with you for a while brokers were setting the floor because within their listing agreements they would “ buy back “ the contract at a certain sales price. So there was no incentive for the seller to lower their price or negotiate. So this caveat in fact raise the floor and over time people accepted these prices because sellers would not
negociate.

Speaking of what somebody is willing to pay, I feel like there is an understanding amongst buyers these ticket and hotel deals are going to disappear quick when the 50th starts and park capacity/distancing rules change. Staying at Coronado or deluxe cash bookings won't get cheaper.

 

[808blessing]

Lots of loaded resale contracts as of late. It is now changed and drying up some interest as many are selling stripped. That will cause a plateau for a bit.

 

[BWV Dreamin]

Lots of loaded resale contracts as of late. It is now changed and drying up some interest as many are selling stripped. That will cause a plateau for a bit.

And these loaded contracts are not “worth” the extra price. DVC inventory is extremely limited and the buyer unlikely to be able to use the extra points.

 

[BWV Dreamin]

I think DVC (boutique timeshare) is probably made up of a workforce population that didn't feel as much pain as others, and you really are seeing people take the thousands from 2020 vacations and out them into down payments. Hell, I think a lot of people on these forums thought they might be able to prey on some hard luck situations of others the past year, only to find that the exact opposite happened in the resale market over time.

Hahah yes I was one of them! Waited a whole year and when the exact opposite happened, well it was time to go direct.

 

[kmorlock]

I agree that often it is not just the price per point buyers look at. It’s the overall value of time, fees, and price. If DVD is running a special that bridges the gap and maybe the buyer gets a cast member discount or “extra” points, direct can be a better overall value. We are OKW(E) so, depending on the availability of contracts, direct makes sense sometimes.

 

[KAT4DISNEY]

Resale prices have really increased and at what point does it not make sense to purchase resale? Recently I purchased VGF direct because I could not find a contract under 100 points for less than $190-$200/ pt. depending the number of points. I finally purchased at $255/pt. The resale prices have jumped so high I fail to see any savings at this time. The advertising of ” save up to 40% purchasing resale” is simply not true.

With that said, when might direct prices increase?

I don't recall resale advertisement of 40% off? That did used to be DVC's marketing of savings vs cash hotel rooms though wasn't it?

I think it still depends on the resort and it's just a moment in time. It was only 5 months ago that a VGF resale could be gotten for $100 less per point vs direct. It seems like DVC is following right around into the recent real estate frenzy going on all over.

And it will vary by number of points too. Even 50 VGF points could be a $2500 difference vs direct. Make it 250 and I'd think you could get it for $190 or less and that is now $15K +/- savings. So I'd say that yes, resale still can make a lot of sense. Since direct is fixed with no negotiating it makes it pretty easy to compare too and see the difference.

 

[corgi_monster]

Agree. Not to mention depending on your UY you can also get previous years points with no dues. That value there brings down that direct price very close to the current resales.

Wow, I’ve never heard of this before! How does this work and how can I take advantage of this? I have a March use year.

 

[stwaldman]

Wow, I’ve never heard of this before! How does this work and how can I take advantage of this? I have a March use year.

My understanding is if you purchase a direct contract prior to the beginning of your UY in the year of purchase, you typically get the "PY" points that are still eligible for use. So for example, I'm December, and if I buy right now, I am still within UY 2020 and could get 2020 points (which I could use or bank at this point) even though I only pay under the contract 2021 dues.

 

[stwaldman]

Somebody else can correct me though, I'm white card

 

[KAT4DISNEY]

Wow, I’ve never heard of this before! How does this work and how can I take advantage of this? I have a March use year.

It's getting current years points that DVC allows to bank even if you're past your banking deadline. With a March UY if you purchased direct now you would receive current 2021 points as your first allotment and because dues are based on the calendar year you would pay a pro-rated dues from the date you sign the contract. Now for example a Sept UY is currently in their 2020 UY so if they purchased now they would start with 2020 points and could bank them if they wish. March is already in it's 2021 UY though so current points are 2021.