Pros and Cons of direct v. resale

[meryll83]

Can anyone help me out with some nice concise bullet points on the pros and cons of buying both direct and resale?

Thanks!

 

[supersnoop]

There are very few scenarios in which a direct purchase makes sense. What you interested in buying? Which home resort, use year, and how many points are you looking for?

The main benefits to buying direct is access to new properties and immediate availability of points. The direct sales staff can make some "magic" happen if there isn't availbility for your first reservation.

All that comes at a cost that frequently outweights the benefits. You can rent points or pay cash for the room you need "immediately" and still come out ahead buying resale.

 

[meryll83]

Looking at around 110 BWV OR BCV to roll up and use every other year.
I haven't sussed out yet if the use year is important - when might it be?

 

[disneynutz]

DVC has rules and policies, pluses and minuses. Not knowing all of the details prior to buying can make for a disappointing experience. I suggest that you take your time and start reading the purchase threads here on the DIS, then move to the other DVC threads.

Bill

 

[meryll83]

DVC has rules and policies, pluses and minuses. Not knowing all of the details prior to buying can make for a disappointing experience. I suggest that you take your time and start reading the purchase threads here on the DIS, then move to the other DVC threads.

Bill

Totally understand - just wondered if there's a summary type view of the key points anywhere?

 

[chalee94]

I haven't sussed out yet if the use year is important - when might it be?

i plugged "site:disboards.com use year" (without the quotes) into google and here is the first thread that popped up:

http://www.disboards.com/threads/understanding-use-year-updated-january-2-2015.1942668/

i would read that first post very carefully and maybe scan some of the later posts to verify your understanding.

the short answer with UY is that there is a benefit to traveling early in your UY if you should need to cancel or make changes. i have an oct UY which works great since i like to travel in nov and dec. i never want to go to central FL in july/aug/sept - so that is great since traveling in the last 3 months or so of my UY would add risk if i ever needed to cancel.

 

[chalee94]

Can anyone help me out with some nice concise bullet points on the pros and cons of buying both direct and resale?

here's a good starter thread with links to a lot of issues for potential new owners:

http://disboards.com/threads/dvc-podcast.3041038/#post-47075397

understand that it will take some time (several months) to get a handle on how DVC works and whether it would be a good fit for you.

 

[JimMIA]

Looking at around 110 BWV OR BCV to roll up and use every other year.

With a small contract, the restrictions on resale points will mean little or nothing to you.

The maximum you could put together every third year with banking and borrowing is 330 points. If you look at the points costs of things like Disney Cruises, hotel stays, ABD, etc, you will see that 330 points won't buy much at all -- and that's using ALL your points every third year for that option.

Small contracts at BCV and BWV seem to be selling for $90-100 per point resale vs. $155 per point direct, so there is a substantial savings. In your example of 110 points, you'd save $6,000 - $7,000 buying resale.

The difficulty (possibly) is that you may have to wait a few weeks/months to find a resale contract that meets your needs.

 

[meryll83]

With a small contract, the restrictions on resale points will mean little or nothing to you.

The maximum you could put together every third year with banking and borrowing is 330 points. If you look at the points costs of things like Disney Cruises, hotel stays, ABD, etc, you will see that 330 points won't buy much at all -- and that's using ALL your points every third year for that option.

Small contracts at BCV and BWV seem to be selling for $90-100 per point resale vs. $155 per point direct, so there is a substantial savings. In your example of 110 points, you'd save $6,000 - $7,000 buying resale.

The difficulty (possibly) is that you may have to wait a few weeks/months to find a resale contract that meets your needs.

Thanks for the advice.

Time is something I have plenty of, as we're still only considering DVC and it would probably be 2017 before we next plan to visit anyway as we've got some other destinations on the list before we'd be ready to commit...

 

[MBA]

Great question. Several years ago my family bought into Bay Lake Tower direct from Disney. We decided on a March use year since we usually travel in November. In order to bank points for the next year, you need to do within the first 8 months of your use year. So, that means we must bank by the end of October. If something changes with our plans, this gives us enough time to either bank the points or change our dates between October-March of the current use year. This works for our family.

As for the direct vs. resale question:
Direct:
Pay more but you're entitled to all the benefits of DVC ownership.
Want it now? Your choices are limited to the currently open sales such as the Polynesian resort. Otherwise, you may have months or over a year on the waitlist for some properties. In the meantime, the contract time is ticking away and you'll still pay higher prices. Example: Beach Club resales are $100-$110 but direct is $155 per point with a 1 year waitlist.
You can buy the number of points you want if you're getting a currently-selling property.

Resale:
You may need to buy multiple contracts to add up to the total points you want. For example, 2 contracts of 125 points if you can't find a single 250 point contract.
The big downside is you cannot transfer the points for use at Disney Cruises, Adventures by Disney, and the "Collections". The Collections are the various non-DVC properties that Disney owns.
Lastly, there is always a possibility that more restrictions are added in the future but you can't plan on it either way.

Good luck!

 

[caracarn]

Having been a DVC owner since 2001 I very strongly disagree with the originally reply. Since we joined DVC has added restrictions to resale contracts. In the last few years it seems as if there are one or two new restrictions added. I have lived what the last poster said, restrictions being added. The biggest issue is not being able to use the points outside Disney. As you age and your children grow you will often not be traveling to Disney is all likelihood. One can argue that the "value" is not as good fr the points in non-DVC properties but we have had some wonderful trips to Montana and Virginia to name a few using our DVC points that would not have been possible otherwise. The Virginia trip I could have dne with resale points (it was pre-restriction), but the Montana trip in 2012 would not have happened.

You have a small number of points you are looking at now, but if you are like many your will add-on and this will become a bigger and bigger issue. With regards to your home resort, I have stayed at a non-home resort more often than not and have never had an issue even in busy seasons switching out. You need to book out at your 7 month window, but there are so many rooms these days it is much less a problem that it used to be.

 

[JimMIA]

The biggest issue is not being able to use the points outside Disney. As you age and your children grow you will often not be traveling to Disney is all likelihood. One can argue that the "value" is not as good fr the points in non-DVC properties but we have had some wonderful trips to Montana and Virginia to name a few using our DVC points that would not have been possible otherwise. The Virginia trip I could have dne with resale points (it was pre-restriction), but the Montana trip in 2012 would not have happened.

Are you talking about RCI exchanges? If so, resale buyers CAN use their DVC points for RCI exchanges. That was never taken away, and probably can't be taken away.

 

[JimMIA]

Having been a DVC owner since 2001 ...

Also, any points you owned before the 2011 restrictions were grandfathered and there are NO restrictions on those points.

 

[Erigeni5]

Time is something I have plenty of, as we're still only considering DVC and it would probably be 2017 before we next plan to visit anyway as we've got some other destinations on the list before we'd be ready to commit...

Then I highly suggest the resales route; you'll save big! I almost bought my Aulani direct; decided to learn more of resales vs direct and finally decided to buy my first contract from resales. I never regret because I saved a lot!

 

[btr2trvl]

Having been a DVC owner since 2001 I very strongly disagree with the originally reply. Since we joined DVC has added restrictions to resale contracts. In the last few years it seems as if there are one or two new restrictions added. I have lived what the last poster said, restrictions being added. The biggest issue is not being able to use the points outside Disney. As you age and your children grow you will often not be traveling to Disney is all likelihood. One can argue that the "value" is not as good fr the points in non-DVC properties but we have had some wonderful trips to Montana and Virginia to name a few using our DVC points that would not have been possible otherwise. The Virginia trip I could have dne with resale points (it was pre-restriction), but the Montana trip in 2012 would not have happened.

I disagree. Renting your points and paying cash for your Disney Cruises and Adventures by Disney trips is a better value for both resale and direct purchasers.

 

[meryll83]

Is RCI Royal Caribbean?

 

[supersnoop]

Is RCI Royal Caribbean?

No, RCI is "Resort Condominiums International," a timeshare exchange system that allows you to trade your week or points for a week or points at another timeshare.

 

[meryll83]

Ah!

 

[drusba]

Direct From Disney: Disadvantages: high, non-negotiable, per point price although if you want a new resort like Poly, direct purchase is often the only way to go; may have to wait list for an older resort. Advantages: easy sale to closing process, financing if needed fairly easy to get (though loan rate is high), can make reservations right after sale rather than waiting until after closing, can get exactly number of points wanted for use year wanted, and points usually begin some months before purchase and thus you get a second allotment within less than year of purchase.

Resale: Advantages: Price per point is way less than Disney (except if buying new resort); price and who pays what proportion of closing costs are negotiable terms. Disadvantages: slower sale to closing process including because seller can easily delay things just by not returning paperwork quickly; cannot make a reservation until after closing and you are in system; financing if needed can be more diffiuclt to get and likely high interest rate unles you have own source of lending (e.g., home equity loan); may have difficulty finding contract with close to number of points and use year you want; quality of contracts differs and affects price (e.g.,. full contract may have all current points and some banked, stripped contract may have no current points and next year's are already borrowed and used; thus need to carefully evaluate the contracts being sold to know status of the points you are getting); Disney can take away your contract by exercising right of first refusal.

Some may also think a disadavntage is that a resale purchaser cannot trade out for certain of the Disney Collections (cruise, adventure trips, Disney hotels (other than Disneyland), and collection hotels). I, like many, believe those are not a "benefit" having even a value 1% of the difference in price between Disney's price and resale. Those things are overpriced in point value, point price can and does go up annually, those who are buying now from Disney will likely need to buy more points in the future to even be able to use the collections in 10 years, and Disney can actually take away the collections from even those who purchase from Disney at any time it feels like it.

As to use year to purchase, the better use years are those that begin shortly before you usually go annually and the worst are ones that start just after you usually go. The reason has to do with being able to bank if you have to cancel and it has nothing to do with when you can go (always any time of year regardless of use year) and when you can call to reserve (always 11 months out at home resort and 7 for others.

In considering which resort to purchase, there are important factors to consider other than price per point, number of points needed for usual trip, and which resort you like the most: (a) length of contract: BWV, BCV, VWL, and much of OKW still owned by members, have a January 2042 end date (which means everything you own is gone when that date comes); SSR is 2054, AKV 2057, BLT 2060 (VGF and Poly even later as new resorts); (b) time of year you go: peak season for DVC at WDW is late Sep through marathon weekend in Jan and off-season is rest of year; if you want any near park resort during peak season you better own at the particular resort and use the 11 month window; if you only go between mid-Jan and mid-Sep, you can usually find rooms at two or more near park resorts at 7 months out even during the holidays in that period; (c) category of room you may want: studios are usually the first to fill and thus can sometimes be harder at 7 months out than others; certain room categories can disappear year round before 7 months out dictating that if you want one of them, you should own at the particular resort: AKV club level and value, BWV standard and boardwalk view, BLT standard view, VGF studios; (d) annual dues per resort: traditionally some resorts have always had annual dues higher than others and that is likely to continue in the future; for history of the annual dues per point per resort go to the DVC Resource Center, second post in the thread:
http://www.disboards.com/threads/dvc-resource-center.2823949/