Question about selling.

[dudelydude]

I read through hundreds of threads and only found a couple that touched (a wee bit) on my question. I see so many people that really stress about whether or not they should buy into DVC if they have to commit for 47 years. What's the problem with simply selling your DVC membership after 10 years if it doesn't work out. I get that the 47 years minus 10 years is 10 years less for a prospective buyer. And I get that you cannot recoup the annual dues. But if I buy 160 points at $100/pt and can sell my 160 points at $100/pt, was there so much lost for trying? I hope I am not being too naive, but am correct?...or do I have this totally wrong. Thanks in advance.

 

[crisi]

Well, ten years from now, maybe those 160 points are only going to be able to be sold for $70?

I think if you can own for long enough that any salvage value on your points is gravy in the overall scheme, its fine. That is - depending on how you figure it and if you are DVC's marketing department - somewhere between six and ten years worth of consistant and sensible use. But if you buy and decide after trip one that you don't like it, you'll be out some money if you sell it immediately.

 

[OKW Lover]

Disclaimer: past practice may not be an indication of future performance.

We bought into OKW in 1995 for somewhere around $65/point. I could easily sell it today for more than that amount. The real question is, do you feel lucky?

 

[dudelydude]

Well, ten years from now, maybe those 160 points are only going to be able to be sold for $70?

I think if you can own for long enough that any salvage value on your points is gravy in the overall scheme, its fine. That is - depending on how you figure it and if you are DVC's marketing department - somewhere between six and ten years worth of consistant and sensible use. But if you buy and decide after trip one that you don't like it, you'll be out some money if you sell it immediately.

Thanks...I did consider that the points may not sell for as much as you paid, but at least you recoup most of your $16k. I also considered that I could buy a resale at $80/pt and stand a good chance at recouping that if I sold. We love WDW way too much not to give it at least 10 years...probably the entire life of the membership. I guess it's just easier to buy if you know that you have some way out without losing too much.

 

[BrentR]

Thanks...I did consider that the points may not sell for as much as you paid, but at least you recoup most of your $16k. I also considered that I could buy a resale at $80/pt and stand a good chance at recouping that if I sold. We love WDW way too much not to give it at least 10 years...probably the entire life of the membership. I guess it's just easier to buy if you know that you have some way out without losing too much.

This is the same thoughts we had when we purchased our points. We know that after a few trips, if we do not like it we can sell it and not lose the total initial investment. We do realize that if we sell within the next few years we will lose $$ and most likely not recoup all of our initial investment whenever we sell. However we will have had several great trips by then and would not have been able to stay in the types of accomodations DVC allows us to stay in if we did not have DVC.

If we keep and use our points til the end of our contract we will still be money ahead becuase of the savings we have realized throughout the years.

 

[crisi]

And you probably do. But it isn't a certainty - its a little bit of a gamble. If you've been enjoying WDW for several years - it probably isn't that much of a gamble to believe you'll enjoy it for long enough to recoup your costs - and it probably isn't too much of a gamble to say that you'll be content with DVC as a solution.

There are some ways to reduce the gamble - one is to actually do a DVC stay prior to buying - which means that you have spent more money you could use to buy earlier - but which might keep you from buying something you sell after one trip because it turns out that you really do want to stay at the Poly.

 

[CarolMN]

I read through hundreds of threads and only found a couple that touched (a wee bit) on my question. I see so many people that really stress about whether or not they should buy into DVC if they have to commit for 47 years. What's the problem with simply selling your DVC membership after 10 years if it doesn't work out. I get that the 47 years minus 10 years is 10 years less for a prospective buyer. And I get that you cannot recoup the annual dues. But if I buy 160 points at $100/pt and can sell my 160 points at $100/pt, was there so much lost for trying? I hope I am not being too naive, but am correct?...or do I have this totally wrong. Thanks in advance.

There's no guarantee that you will be able to sell at the price you paid (or to sell at all). If Disney decides to stop exercising ROFR (or drops its ROFR "floor"), your contract may not be worth much. Everyone has a different take on when or if that will happen, but it's a risk members assume.

FWIW, I think it is good that prospective members think the commitment through. DVC is a prepaid vacation plan and IMHO, the dollars to fund it should come out of discretionary income. YMMV.