Points System Help

[jmcross]

i am new to purchasing DVC and am trying to understand the point system. If I purchase new, it is currently $171 a point. I am considering purchasing resale. Obviously the points would be less.
Here's what I don't understand.
If I purchase 100 points new how is that the same as 100 points resale?Each vacation uses points, right? I don't get how higher priced points are the same as lower priced points. Something doesn't make sense.
Can someone explain this to me?
I apologize in advance if this is a stupid and obvious question.

 

[bumbershoot]

I bought bay lake when price per point was something like 109.

If I go to use our 160 points for a vacation, they spend just the same as someone else's newly purchased Copper Ridge points and the same as someone's first-day-of-OKW points.

Doesn't matter what money you spent to get them. The points spend the same when creating a vacation.

 

[disneynutz]

The points have the same value when using them to book. Disney has placed restrictions on perks and extras if you don't pay more and buy points from them. Many buy resale and save thousands of dollars and then by a small contract from Disney to get the discounts and perks.

Bill

 

[jmcross]

Thanks for your reply!
So why not buy resale? I get that you lose perks and it can be a frustrating process overall. I also understand that you can buy 25 point add ons new to pick up the perks.
What am I missing?

 

[GoofyDisneyDaddy]

Thanks for your reply!
So why not buy resale? I get that you lose perks and it can be a frustrating process overall. I also understand that you can buy 25 point add ons new to pick up the perks.
What am I missing?

You are not missing much. Some of the "perks," such as ability to use points on Disney Cruise, Adventures by Disney, Disney Hotel Collection cannot be purchased by adding a small contract -- they lock to the points. In other words, those 100 resale points can never be used to purchase a Disney Cruise. But, most here will rightfully tell you that is no big deal because using your points on anything other than Disney Vacation Club properties is a waste of points. You'd be much better off renting your points and using the cash for the cruise, for example.

For some properties, the difference is price is minimal (Disney Polynesian, for example) between resale vs direct, so perhaps it's not worth the added "hassle" of resale. Resale also takes considerably longer - 60-90 days - whereas direct is instant. And, that assumes Disney doesn't exercise Right of First Refusal and take the contract, which if they do, can mean it will take even longer. Some people like the pixie dust of dealing directly with Disney. That said, none of those things tip the balance to direct, IMO.

 

[Matty B13]

What DVC resort are you thinking of buying?

The resale process takes up to 3-4 months to complete, the fastest is 2 months. Purchasing direct takes takes 1-2 days with a credit card..... if they have the points at the resort you want.

 

[jmcross]

Thanks so much for the helpful responses!! Can anyone give advice on the best places to find resale contracts?

 

[jmcross]

I'm pretty flexible on the resort.
I don't have any one that I'm set on right now.

 

[aokeefe]

There is no difference of points whether you buy 100 points direct or resale- you will still have 100 points. The differences are:

Direct points- give you discounts on Annual Passes, Member Only events, closing costs are a bit cheaper and you get the points immediately
Resale- you lose out on the direct buy "perks", cost is significantly cheaper but the process is a lot longer- can be around 3 months from start to finish.

Also consider where you want to buy- if you want Poly or Copper Creek sometimes the price difference between direct/resale isn't that big (Copper Creek actually doesn't have an resale yet).

 

[CraigInPA]

Have you ever stayed in a DVC resort, or at least taken the tour?

 

[nyweller6306]

There are many different places to look for resale contracts, but if you want someone who knows the direct and resale sides of DVC, contact DVC Sales. They are great to work with!

 

[EvilDrPorkchop21]

The points have the same value when using them to book. Disney has placed restrictions on perks and extras if you don't pay more and buy points from them. Many buy resale and save thousands of dollars and then by a small contract from Disney to get the discounts and perks.

Bill

This exactly. Plus the 'perks' and 'extras' that you would be excluded from really aren't that great anyway.

 

[Matty B13]

I'm pretty flexible on the resort.
I don't have any one that I'm set on right now.

I would spend a lot of time researching your resort and points needed, along with UY. These are the most important things. I wouldn't contact a broker until after you have researched a lot more.
There are several good broker's out there, including the sponsor of this board.

If you are trying to buy points for an upcoming vacation the resale process takes awhile, so I would buy a year in advance of a planned vacation.

 

[4luv2cdisney]

I would spend a lot of time researching your resort and points needed, along with UY. These are the most important things. I wouldn't contact a broker until after you have researched a lot more.
There are several good broker's out there, including the sponsor of this board.

If you are trying to buy points for an upcoming vacation the resale process takes awhile, so I would buy a year in advance of a planned vacation.

Yes! At least a year ahead if you want to take advantage of your 11 month home resort booking advantage.

No offense intended, but it sounds like you haven't researched much so far. So, how do you know you how many points you want / need? I'm asking because for smaller contracts, there is less difference in price via direct vs resale and it can take more time to find. At least that's what I'm encountering right now.

 

[mustinjourney]

Read all of the topics on this stickie...most of your questions are covered there.

https://www.disboards.com/threads/dvc-resource-center-updated-july-2017.3514540/

 

[jmcross]

Thanks. I'll read the stickie. I will admit I haven't researched much yet. I was stuck on how a point at $90 has the same value as a point at $171.
I did a tour of Saratoga Springs when it was fairly new and have stayed at almost every Disney resort at this point so I have an idea of what each is like and their locations.

 

[mustinjourney]

It's kind of like buying a car (but this analogy still isn't perfect). You essentially have three choices:

1. buy the brand new 2018 model from the dealer (direct purchase with Copper Creek -- you'll pay a premium, but you get a brand spanking new resort with 50 years of life left).
2. buy a certified pre-owned car from the dealer (direct purchase at one of the older resorts -- there are some safeties built into this. It's fast, financing is available quite easily -- one stop shop. There are practically no risks of the deal going bad -- but you will be paying a premium for the benefits. You also get member benefits (kind of like free car washes or 2 years maintenance on a pre-owned car) -- they're nice to have, but they don't make up for the increased costs.
3. buy a used car direct from an owner (resale). This is often the least expensive, but it takes longer and there is always a chance that the seller backs out at the last minute...and even if they do, while you could technically sue for specific performance, it is unlikely as the cost to sue would outweigh the benefit in both time and money.

Like the car analogy, the underlying asset is the same no matter how you buy. Unlike the car analogy though, you don't really need to worry about buying a lemon. When looking at points at the same resort, they are all worth the exact same whether they are direct or resale (e.g., my VGF points purchased resale allow me the same purchasing power as anyone else's VGF points -- I get the same 11 month advantage and I am not treated any differently on the phone with member services or at the resort).

The primary difference is time vs. money. The member benefits buying direct can be nice -- but oftentimes they do not make up the difference in the amount you'd save buying resale. for example, if you can save $60 per point and buy 200 points, that's $12,000 difference between direct and resale. Even with the AP discounts -- it does not make financial sense. However, if you like the peace of mind in working with Disney the whole time and you must have your points now...then direct can make more sense. Sometimes money isn't the only factor.

Where direct does make sense is for small contracts because the additional $2000 you spend buying direct can be made up with the member benefits (AP/dining/merchandise discounts) rather quickly if you have a family of four or more. Also -- direct can make sense for these contracts because small contracts on the resale market go extremely fast and they can be very hard to come by. You could easily wait a year trying to find a small one that matches your UY/resort and be the first one to respond to an email.

 

[Toreby]

Google DVC resale (the term, not the company) and there'll be several brokers from whom you can buy DVC properties. I keep an eye on the lists from 10-12 brokers. Some have mailing lists and some do not. Get on the mailing lists to get access to new properties as quickly as possible. Some might also have twitter or FB pages.

Unless you're buying a small contract from a resort that is expensive resale (VGC, VGF, Poly) then I see no reason to buy direct. If you need the AP discount then you can always do a small direct add on later.

 

[lbus42]

Thanks. I'll read the stickie. I will admit I haven't researched much yet. I was stuck on how a point at $90 has the same value as a point at $171.

I wondered these same things myself. I would see SSR or OKW listings in the low 70's and wondered if I owned there would I have to use twice as many points to stay at a resort like the POLY. I soon learned that if I wished to take advantage of the low point listings that there were times of the year I would not be able to book anywhere else but at those resorts. I ended up bidding on a BWV contract (in ROFR right now) because that is the resort I know I can get and want to stay in at the 11 month mark.

mustinjourney's car sale analogy was pretty good. A couple of things that I'd like to add,
1) the folks selling the $90 contracts paid a lot less than that 25 years ago when the contracts first came up for sale
2) these folks have used their points or rented them out continuously during this time period (kind of like buying a 1992 Mustang, using it for 25 years, then selling it for more than they paid for it)
3) some of the folks are selling because of some financial and will take what the current market value holds

 

[tjkraz]

This exactly. Plus the 'perks' and 'extras' that you would be excluded from really aren't that great anyway.

Well, some of the perks actually are quite good. Discounts on annual passes and other ticket media. Free admission to after-hours parties at theme parks. Exclusive lounge in Epcot. Access to a slate of holiday-themed dining events and dessert parties (for a fee.) There isn't another group of WDW guests who have regular access to perks/events of that nature.

Are perks alone worth the higher cost of buying direct? Probably not. But combined with longer contracts & higher resale value of the newer resorts, it's certainly a defensible decision. Maybe not for OP who has no strong preference for any given resort. But to a buyer who wants to own Poly, paying (net) $165 direct is defensible compared to $150 resale.