Purchasing Resale and Adding on direct

[DVCPGA]

This board has valuable information on buying and directing new buyers to resale to save money.

I have a question/point I want some discussion on.

Once you buy resale to find the exact use year and add-on points can be difficult unless you want to just get more points than you really want. Or get a different use year that makes things more difficult.

Arguments can be made both ways but look this way.

If you buy a resort for resale and it cost you $14,000.00 for 175 points (SSR as example) 80.00 per point

You then go buy direct for say 75 points that cost you $10,875.00 (again SSR as example) 145.00 per point

You now have 250 points with an average cost of $99.50 per point and same use year. (maybe a bit more with closing costs, but a few dollars a point at most.

Buying 250 points at 100.00 apiece looks a lot better than at retail of 145.00 per point.

You can end up with total points you want in this example and not have to rent out points, pay more dues or make yourself take more trips.

In the above scenario you end up with direct benefits if you want or need them and same use year for the one or two resorts you own. Most posts are about how much you save resale. This is still a savings from retail of over $11,000.00.

 

[_auroraborealis_]

There are many, many threads where many of the regular posters advocate the following:

• Buy resale first, because it gives you the best choice of UY and contract size/doesn't pen you in
• Buy a 25-point add on to get the benefits from DVC
• If buying 50 points or fewer, buying direct is generally going to be easier/faster/better because of the limited number of small contracts in resale, their fast turnover, and UY alignment issues
• Buying direct makes sense for current 'new' resorts

These points are made in almost every resale v. direct post.

 

[mustinjourney]

I might have missed it. But what was your question?

If it is whether your idea is logical, then yes. I would say it is.

 

[DVCPGA]

Sorry. My question is....

At what point as a total all in price per point would you say is a good deal?

Years ago 50-70 per point was a lot but looks good now.

In 5-10 years will 100-120 look good?

Or even higher with direct prices now?

 

[mustinjourney]

Sorry. My question is....

At what point as a total all in price per point would you say is a good deal?

Years ago 50-70 per point was a lot but looks good now.

In 5-10 years will 100-120 look good?

Or even higher with direct prices now?

Depends on the home resort.

It's a function of replacement cost. HOw much would the room cost via cash vs how much is your cost for same room.

$120 per point would be bad deal for vero beach but a really good deal for VGF.

 

[ELMC]

This board has valuable information on buying and directing new buyers to resale to save money.

I have a question/point I want some discussion on.

Once you buy resale to find the exact use year and add-on points can be difficult unless you want to just get more points than you really want. Or get a different use year that makes things more difficult.

Arguments can be made both ways but look this way.

If you buy a resort for resale and it cost you $14,000.00 for 175 points (SSR as example) 80.00 per point

You then go buy direct for say 75 points that cost you $10,875.00 (again SSR as example) 145.00 per point

You now have 250 points with an average cost of $99.50 per point and same use year. (maybe a bit more with closing costs, but a few dollars a point at most.

Buying 250 points at 100.00 apiece looks a lot better than at retail of 145.00 per point.

You can end up with total points you want in this example and not have to rent out points, pay more dues or make yourself take more trips.

In the above scenario you end up with direct benefits if you want or need them and same use year for the one or two resorts you own. Most posts are about how much you save resale. This is still a savings from retail of over $11,000.00.

You make a good point and there are really two variables in play here. The first is math, the second is patience. Math would suggest that you should take your example and extend it out. Simply put, buy 225 points resale and 25 points direct. Same amount of points with a total buy in (using your assumptions) of $21,625 as opposed to the $24,875 in your example. That's where the second variable comes in, patience. It might take awhile to find a 225 point contract. So to your point, if you view it as a sliding scale then the savings vs. time relationship will come into play. Also, there's nothing saying that you have to buy 25 points. You can buy 26, or 39, or 43. Whatever amount you need to add to the resale contract you find to give you your desired number of points. But again, to your point, it might be worth the extra $3,200 to simply put this to bed and not have to wait around forever for that perfect contract.

In essence, though, I think your point addresses the goal of having the resale + direct combination (and the associated benefits) while sticking firmly to your desired amount of points, which from reading other threads I have learned is very important to you. Thanks for sharing your thoughts.

 

[ELMC]

Sorry. My question is....

At what point as a total all in price per point would you say is a good deal?

Years ago 50-70 per point was a lot but looks good now.

In 5-10 years will 100-120 look good?

Or even higher with direct prices now?

This is going to be a bit of an oversimplification because I am going to talk strictly about price per point and ignore the other variables that make some contracts more valuable than others (mostly banked points).

That aside, I think the two benchmarks are actually the cost for direct points and the cost of what similar contracts are selling for resale. If you want to own at BLT then strictly from a financial standpoint anything less than $180 per point is a good deal because that it what it would cost you to buy direct. But it's a bad deal because you could probably get a BLT contract for around $115 per point. So using those two data points as your guide, it is fairly intuitive to determine what a good deal is.

 

[Dean]

This board has valuable information on buying and directing new buyers to resale to save money.

I have a question/point I want some discussion on.

Once you buy resale to find the exact use year and add-on points can be difficult unless you want to just get more points than you really want. Or get a different use year that makes things more difficult.

Arguments can be made both ways but look this way.

If you buy a resort for resale and it cost you $14,000.00 for 175 points (SSR as example) 80.00 per point

You then go buy direct for say 75 points that cost you $10,875.00 (again SSR as example) 145.00 per point

You now have 250 points with an average cost of $99.50 per point and same use year. (maybe a bit more with closing costs, but a few dollars a point at most.

Buying 250 points at 100.00 apiece looks a lot better than at retail of 145.00 per point.

You can end up with total points you want in this example and not have to rent out points, pay more dues or make yourself take more trips.

In the above scenario you end up with direct benefits if you want or need them and same use year for the one or two resorts you own. Most posts are about how much you save resale. This is still a savings from retail of over $11,000.00.

I don't think buy-ing 25 points at SSR or a number of the resorts will be that difficult to match UY. In your example, you still have points worth $80 a point, you just paid more and lost the money on the retail points, like buying a new car. In this example you could have easily bought 230 SSR points resale and 25 retail so the total cost just over $80 a point and you have ALL of the retail benefits that are a savings to recoup the money due to benefits. But let's say for sake of discussion you couldn't find your home resort AND UY, a far better choice would be to buy either 230 or 250 points resale and 25 points somewhere in the same UY even if a different home resort. I'd do that over the same home resort different UY for 25. Even if you NEVER used the 25 points themselves, it'd be 8 years before it'd cost more than the 75 points in this example.

IMO trying to fine tune the number of points one owns too much is a mistake. No matter how much planning one does, things change & people change. Plus one needs a cushion anyway in many situations. Certainly the number change with certain home resorts and that's part of the evaluation process. IMO this exact plan would be a poor one for SSR, OKW or AKV (WDW). IF one were going to buy 75 or so retail, I'd buy a home resort with more value and/or that gave other options. I'd probably buy a fixed week studio at VGF or CCR if the points were close even if I didn't plan to use that week.