purchasing resale direct from DVC--questions

[MARCIAKAZ]

I spoke to a guide last week...she was very pleasant and informative, but there was this one thing: I told her we were considering both SSR and resale direct from DVC, and she seemed to be steering me away from resale. She did tell me that there were contracts available, but we kept ending up talking about SSR. Anyway, I now have a burning question about resale direct from DVC...Suppose we bought a 200 point contract in August 05 with a March use year--would we receive a full allotment of 05 points? And if so, would they be bankable? And if bankable, by what deadline (or what is the rule so I can apply it to other UY scenarios)? As always, thank you all for your input.

 

[tamu91]

I spoke to a guide last week...she was very pleasant and informative, but there was this one thing: I told her we were considering both SSR and resale direct from DVC, and she seemed to be steering me away from resale. She did tell me that there were contracts available, but we kept ending up talking about SSR. Anyway, I now have a burning question about resale direct from DVC...Suppose we bought a 200 point contract in August 05 with a March use year--would we receive a full allotment of 05 points? And if so, would they be bankable? And if bankable, by what deadline (or what is the rule so I can apply it to other UY scenarios)? As always, thank you all for your input.

Technically, you're not buying "resale" from Disney. You can purchase points at the sold out resort from Disney but only if they have points in inventory that Disney claimed back thru ROFR.
I believe if you purchase March UY points in August, those points would be avaiable to you now and would be bankable since you'd be still within 100% banking window. Somebody correct me if the point allotment is based on whether the contract was intacted or stripped during ROFR process.

 

[JimMIA]

You can bank as many times as you like, but there are restrictions and deadlines. The banking deadlines are as follows:

Through the end of the 6th month of your use year - you can bank 100% of that year's points.

Through the end of the 9th month, you can bank a cumulative total of 50% of that year's points. By the end of the 10th month, you can bank a cumulative total of 25% of that year's points.

(So, if you banked 50% at the end of your 6th month, you would be done banking for the year.)

Having said that, DVC often makes exceptions to the banking deadlines when people close past the 100% deadline.

 

[JimMIA]

Somebody correct me if the point allotment is based on whether the contract was intacted or stripped during ROFR process.

I suspect that is NOT correct. I'm pretty sure Disney doesn't sell stripped contracts, nor do they include any banked points from a ROFR. I'm pretty sure they just put all the points back into a big bag and pull out however many they need for the next contract.

 

[Canadian Tom]

Hello: I just spent time investigating this. Here's what I decided. I purchased direct.

Resaleper point) $87. + 2.62(closing fee) + 4 =$93. 62
If there are points left this year, you have to pay the maint. fee approx. $4

Direct from Disney(their special): $87
They also include 100 developer points, this years points back to March and they pay the maint. for this year. Here is the way I priced this:

200 points $17,400
rent 2005 points $-2,000(value of points)
rent dev. points $-1,000(value of points)
________
Net cost $14, 400
Net cost per point $14, 400 / 200 = $72 per point

The bottom line: Unless the resale has lots of banked points or is substatially less than $87 I'd go direct. Another point, a reslae will take at least 6 weeks until you can make ressies, if you get it. Direct takes about 4 days at the most and you know you got it.

Go luck, Canadian Tom

 

[TammyAlphabet]

Tom, you did a great job on that math! Let me know, when did you buy and what resort? Did you buy SSR?

OP: I have never heard of Disney selling a stripped contract. They always are full of the last use year points. Secondly, they will always steer you to SSR, I don't know why either. But I bought BWV this year, direct from disney, and personnally, I thought that buying BWV, BCV and even VWL direct from Disney makes more sense than buying those resorts resale, even with the wicked wait list. Tell them what you want and they will sell it to you. Just stand your ground. You will be happy to purchase at the resort you really want.

 

[vascubaguy]

How did you arrive at the $87 add-on price direct thru DVC?
Is that for any resort or does it exclude SSR?

 

[Doctor P]

Good question. Our last add on was at $89 per point (last October) and I don't think there are any incentives for the sold-out resorts.

 

[vascubaguy]

Hello: I just spent time investigating this. Here's what I decided. I purchased direct.

Resaleper point) $87. + 2.62(closing fee) + 4 =$93. 62
If there are points left this year, you have to pay the maint. fee approx. $4

Direct from Disney(their special): $87
They also include 100 developer points, this years points back to March and they pay the maint. for this year. Here is the way I priced this:

200 points $17,400
rent 2005 points $-2,000(value of points)
rent dev. points $-1,000(value of points)
________
Net cost $14, 400
Net cost per point $14, 400 / 200 = $72 per point

The bottom line: Unless the resale has lots of banked points or is substatially less than $87 I'd go direct. Another point, a reslae will take at least 6 weeks until you can make ressies, if you get it. Direct takes about 4 days at the most and you know you got it.

Go luck, Canadian Tom

Just to add a quick comment on that, the resale price listed of $87 seems really high for most resales (I've seen some BCV in that area). Most listings that I have seen have per point costs of approx $74-81.

 

[MARCIAKAZ]

As of last week when I talked to my guide, DVC is selling the sold out-resorts at $92pp with no incentive. Also, at least on the day that I called, there were points available at all resorts except BCV--no waitlist! I didn't ever get into any specifics, though, like available use years, etc...

 

[MARCIAKAZ]

Thanks to all of you for your input so far! I'm trying to factor in all the incidental costs before making a decision, so a couple more questions on this theme: Again, when purchasing a sold out resort/resale direct thru DVC, are there closing costs (I know there aren't on SSR), and if we were to purchase such a contract in the middle of its use-year, then how much of that use-year's maintenance fees would we have to pay? All...pro rata...something else?

 

[vascubaguy]

Thanks to all of you for your input so far! I'm trying to factor in all the incidental costs before making a decision, so a couple more questions on this theme: Again, when purchasing a sold out resort/resale direct thru DVC, are there closing costs (I know there aren't on SSR), and if we were to purchase such a contract in the middle of its use-year, then how much of that use-year's maintenance fees would we have to pay? All...pro rata...something else?

If you buy thru DVC, no closing costs (even on the sold out resorts).

I think I read that you don't pay the current fees, but I'm sure someone else could answer better...

 

[Canadian Tom]

Hello: I owned at BCV and bought an add-on on 123 points at SSR. The price was as I stated $87, there are no closing and no maint. for 2005 and you also received 100 developer points at your home resort as an incentive.

In regard to resale prices, if you look at SSR or BCV the resale prices are all in the $80plus range and all are pretty stripped, check the Timeshare store listings which is this site's sponsor. If you ask Timeshare Store you'll find Disney is not letting BCV or SSR through ROFR for under $80 possibly higher now.

We really wanted to add-on at BCV but it was near impossible through disney and resales were not selling for less than $87 with no points until next year. So we bought SSR at an effective price of $72, it was a no-brainer. By-the-way, we're using our SSR points to stay at the BCV this Sept. I made ressies last month and from the time I contacted our guide it was a 2 day wait to make ressies. Canadian Tom

P.S. There are no closing costs for any contract purchased directly from Disney.

 

[bobbiwoz]

and if we were to purchase such a contract in the middle of its use-year, then how much of that use-year's maintenance fees would we have to pay? All...pro rata...something else?

This is what I think happens. This is July, if you bought a contract from Disney with a Sept. use year (I don't even know if there is a Sept. use year), you would get all of the '04 points (free) and all of the Sept. use year '05 points. You would be paying taxes/dues for '05 from the date of purchase on. If you were to buy a March use year now, you would get all of the '05 points and pay taxes/dues for '05 from the date of purchase on.

Bobbi

 

[MARCIAKAZ]

Bobbi--thanks! This deal is sounding better and better all the time!

 

[mydogdrew]

Price is $92 and you get full 05 points with calendar year prorated dues and no closing costs. However, I would go for Sept - December UY. Then you would also get full 2004 points with no 2004 dues as well. Rent those and your price drops to $82 with no closing costs and full 2005 points. This is as good as 99% of the resales out there.

 

[vascubaguy]

Does the $92 only apply to "sold out" resorts? Or can you add-on SSR for $92 as well?

 

[mydogdrew]

Only sold out. I believe SSR is now $98.

 

[BkrsLoveDis!]

Having said that, DVC often makes exceptions to the banking deadlines when people close past the 100% deadline.

I just tried to do a purchase with DVC directly and they were going to be nice and give me my 2005 UY points but wouldn't allow me to bank them since it was past the banking deadline. No exceptions.

Forced me to do more research and we ended up going for a resale.

 

[JohnNJ]

This is what I think happens. This is July, if you bought a contract from Disney with a Sept. use year (I don't even know if there is a Sept. use year), you would get all of the '04 points (free) and all of the Sept. use year '05 points. You would be paying taxes/dues for '05 from the date of purchase on. If you were to buy a March use year now, you would get all of the '05 points and pay taxes/dues for '05 from the date of purchase on.

You are correct. I just did it and it happened as you described.