PP Discount for XL Resale Contracts - Thoughts?

[Kailunkat]

Hi Everyone!

There is an unusually large PVB contract for sale that's got me thinking philosophically. It's tempting because the price point is low, but that is such a monster number of points that unless you plan to hold it until expiration - what do you do with it? I know most people on these boards would prefer to buy in smaller chunks as a safety net for resale. But is there a discount/amount off that buying an XL resale contract makes sense? What percentage off would you want to get? How long do you think this beast will hang around for? And the biggest question - would Disney ROFR it? I have to think so.. right?

I love reading these types of debates and value propositions from you all so I would love to hear your thoughts!

 

[VGCgroupie]

I think that the current ppp they want is pretty high for that many points, especially when its about to be on sale from Disney with incentives, even if incentives aren't great in the beginning they should get better, and with Disney you can split your contracts into smaller chunks and still get the incentive for buying a large amount of points. Plus with Disney you can pay by credit card and that can amount to a pretty large sum in cash back bringing your overall price down. I think it makes much more financial sense to spend that much direct than resale on this one.

 

[Kailunkat]

I think that the current ppp they want is pretty high for that many points, especially when its about to be on sale from Disney with incentives, even if incentives aren't great in the beginning they should get better, and with Disney you can split your contracts into smaller chunks and still get the incentive for buying a large amount of points. Plus with Disney you can pay by credit card and that can amount to a pretty large sum in cash back bringing your overall price down. I think it makes much more financial sense to spend that much direct than resale on this one.

Oh I totally agree. It would need to be priced a LOT lower for me to actually consider it. Like maybe if it was 75% of the current market price or something similar. But at that point it gets ROFRed I think - or maybe DVC don't take back contracts that big?
Curious about others experience/wisdom on it.

 

[Chili327]

I think Disney would be happy to get that many points for cheap, they are about to sell a ton of them so why not.
As far as buying it on resale though, either you have that kind of cash to deal with the dues each year or you plan on renting a lot every year.
I agree with VGCinAZ, if I was going to spend that much I might as well look into direct and split it up.

 

[CastAStone]

I mean specific to Poly, there’s so many contracts on the market all of the sudden that you just know the PPP on that contract will be the going rate for a 150 point contract in 2 months.

But to your actual question, prices clearly start to drop by the time you get to 250 points. 15%-25% even, which seems like a crazy discount to me vs 100-150 given how many points the average DVC owner has.

But it is what it is. For something 500+, I’d expect to pay at most 25-30% below the going rate for a 150 point contract.

 

[Kailunkat]

I'm not gonna lie - I have sent a few very lowball ROFR fodder offers this week for PVB contracts - but even I couldn't convince myself into 600 pts. I do feel badly for the owners who will probably have to wait around watching the price drop. They missed the boat for a big pay day by about 3 months

 

[Chili327]

I'm not gonna lie - I have sent a few very lowball ROFR fodder offers this week for PVB contracts - but even I couldn't convince myself into 600 pts. I do feel badly for the owners who will probably have to wait around watching the price drop. They missed the boat for a big pay day by about 3 months

They might have only listed it because of the recent surge. Would be a good time to get if that’s what they wanted.

 

[ehh]

The biggest advantage of buying points in more reasonable sized chunks, is future flexibility, not so much future resale.

Future resale, ostensibly, should have the same ppp discount as current resale. Or near enough.

Buying 600pts today when your future-self only needs 350pts (due to things you can't predict, or shifting preferences, etc.) means you need to figure out a plan for the remaining 250pts. And you can't just break off 250pts worth of it to sell, you're stuck with 600.

You could sell it all and buy 350pts of smaller contracts, then the resale discount comes back into play. But considering the volatility of prices over time, the very act of selling and rebuying might be the bigger swing in endgame outlay.

As for this specific contract, considering I've seen much smaller contracts go for near-enough prices and a recent ROFR at a higher price, it does feel both overpriced and ripe for ROFR.

 

[MICKIMINI]

If you have the money and desire for those 2 BR Tower rooms that will soon be in play, make a low offer and see what happens. It sounds like the owners did not have a clue when they originally bought and did not split it up into smaller contracts, but it is what it is. There may or may not be negotiation depending on their circumstances. That does open it up to ROFR, but maybe not since so many points are coming onto the market.

I think it is a great opportunity for a cash paying buyer!

 

[BuzzLightyr]

I'd suggest a $25 per point discount once you start getting into prices above an average car.
First off these buyers of the large contracts likely got a larger discount. Think about the OKW direct deal and how much 150 cost vs. 500.
There are a lot of larger 500+ contracts that have just sat out there. I wouldn't treat the list price as a market clearing price - and think of that as a starting point for negotiations.
Lots of tempting options to buy and potentially rent out.

 

[lilsonicfan]

There was someone who paid around $60 per point for a 1,000 point contract at Aulani when the going rate was anywhere from 90-120 (I can't remember, but I think that might have been a subsidized dues contract). I will say that while that was a really good per point price, there is no way I'd want to be saddled with paying dues on 1,000 points every year at one location. But, that is also because I would have trouble using that many points and because I have a full-time job that interferes with my ability to, say, rent out half the points on a regular basis. If either of those were not true, I'd consider it to be a pretty great way of diving in to DVC!

 

[RichVIII]

Buyers who have six figures (almost in this case) limit the buying pool (for some obvious reasons). Also agree with others; it is more challenging once you get beyond the typical price of a new car so I would start with offers. I would love to have 600 points and I am sure I would buy to use half and rent the others, falling in love with the 2BR Penthouses or Bungalows and blow them because I had them defeating the purpose.

 

[Kailunkat]

Buyers who have six figures (almost in this case) limit the buying pool (for some obvious reasons). Also agree with others; it is more challenging once you get beyond the typical price of a new car so I would start with offers. I would love to have 600 points and I am sure I would buy to use half and rent the others, falling in love with the 2BR Penthouses or Bungalows and blow them because I had them defeating the purpose.

That is part of the problem - I've already stayed in the bungalows... it was NICE
Honestly, if either PVB or PIT offered a grand villa I would be all over this contract with low ball offers. But because I usually travel with a large group it makes more sense for us to go to VGF or BLT on the monorail loop, or AKV in general with the 3 bedroom suites right now. Certainly buying a large AKL or BLT contract would be the more economical way to go right now.

 

[Chili327]

Buyers who have six figures (almost in this case) limit the buying pool (for some obvious reasons). Also agree with others; it is more challenging once you get beyond the typical price of a new car so I would start with offers. I would love to have 600 points and I am sure I would buy to use half and rent the others, falling in love with the 2BR Penthouses or Bungalows and blow them because I had them defeating the purpose.

Haha, well you have to try it don’t ya. lol

 

[MICKIMINI]

That is part of the problem - I've already stayed in the bungalows... it was NICE
Honestly, if either PVB or PIT offered a grand villa I would be all over this contract with low ball offers. But because I usually travel with a large group it makes more sense for us to go to VGF or BLT on the monorail loop, or AKV in general with the 3 bedroom suites right now. Certainly buying a large AKL or BLT contract would be the more economical way to go right now.

Well, I didn't stay in a bungalow, but did get a tour of one with DH! The tour guide liked us so much (even though we said we weren't buying - but are DVC), she gave us $200 in gift cards LOL! It was gorgeous. That was 2022. I say go for it!!

 

[CWTC]

I would love to have 600 points and I am sure I would buy to use half and rent the others, falling in love with the 2BR Penthouses or Bungalows and blow them because I had them defeating the purpose.

We stayed for a week in the bungalows because we had a ton of extra points in 2023. Loved it. This is why we bought our most recent BLT resale: to be used as SAP for the bungalows. Once we had the plunge pool, it’s hard to go back.

 

[Cfabar1]

We stayed for a week in the bungalows because we had a ton of extra points in 2023. Loved it. This is why we bought our most recent BLT resale: to be used as SAP for the bungalows. Once we had the plunge pool, it’s hard to go back.

How cold is the plunge pool? That has been a turnoff for me - at least the cabins have hot tubs…

 

[CWTC]

How cold is the plunge pool? That has been a turnoff for me - at least the cabins have hot tubs…

It’s comfortable - perfect to cool off in and just sit in (I like to take my kindle in and read).

 

[Kailunkat]

It is not heated (if you go in Dec/Jan it would be a little chilly!).

 

[CWTC]

It is not heated (if you go in Dec/Jan it would be a little chilly!).

Those are the perfect months for the hot tub at the Copper Creek Cabins!!!