resale market vs. through DVC

[stenogoddess]

Hey y'all! My DH and I have been going back and forth on whether to buy our DVC through Disney or on the resale market. We had been thinking about a year or so out, but this new deal they have going for SSR resort has just kicked the discussion into high gear. I've pretty much ruled Hilton Head and Vero Beach, though both very nice I'm sure, out of the discussion because I want to actually own at Disney so if it ever happens that we can only get a ressie at our home resort, at least our home resort is at Disney. That said, there are still some resorts, like OKW, that still seem to be a bit cheaper or at least the same as the SSR sale going on now. Other than basic price, is there anything else that we should be considering in whether to go through Disney or resale? I would dearly love all of your ideas. This SSR sale has me all in a whirl I must say. Thanks for all of your advice.

 

[vascubaguy]

Here's my advice:

If you want a specific resort and can book more than 7 months in advance... ie if you just have to buy VWL, BWV or BCV you would probably benefit from buying resale. If you just HAVE to have a grand villa at OKW each year, buy at OKW thru resale. If you want less than 150 points to start, you can only buy that thru resale.

Otherwise, I would recommend you get a referral and buy at SSR. You'll get the 12 more years over all the other resorts. And at $83.30 per point with no closing costs! You can't beat that thru resale for an onsite DVC.

If you need a referral let me know.

 

[nestlejean]

I think, other than a preference for a certain resort-that the deciding factor for me (if I didn't already own) would be the number of points I wanted. If I wanted under 150, then trying for a good deal on resale would be an option (don't forget to add the closing costs in to the per point cost). If I wanted 150 or more, I think I would go for SSR even though I prefer BCV or BWV due to location. The price with the discount is good and it's for a longer memebership time. We have stayed at various resorts and they all have pros and cons (mainly the location adn at BCV the pool). Just because you would own at SSR doesn't mean you would only stay there. I guess I would think about the number of points and go from there. I also wopul;d say if you are considring a large amount of points, I would purchase them in 2 contracts, if possible. Once you own a contract, it can't be divided. example: if you wanted 300 points, I would purchase 2 - 150 point contracts. It's easier to resell a smaller contract so if your needs ever change you have that option. You could also buy 150 at SSR and later add on thru Disney or resale at another resort. This could be your foot in the door beginning!

 

[Caskbill]

There are several things to consider:

1. Financing. If you need to finance, you can do so thru Disney very easily, although not the best rates. If you have some other way to finance (such as a home equity loan, or you'll be paying cash), then Resale and DVC direct are equal choices.

2. When looking at a resale, be sure you equate the 'value' of the resale. Value includes all the following: Price per point, closing fees, use year month, points for 2005, 2006, any banked points, any borrowed points, any Holding points, any Reservation points. For example if you bought from Disney a December UY for example, you'd get 2005 points. If a December resale had all 2005 points borrowed and used, and no points till 2006 (Dec), then deduct the 'value' of the purchase. If on the other hand a resale had banked points (perhaps 2004 points banked into 2005, then those are extra points so increase the 'value' of the resale.

3. With DVC you can specify exactly how many points you want to purchase (starting at 150 minimum). With resale you can only purchase the size of the contracts being offered. If you know what kind of vacations you'll be taking and have a rough idea of how many points you'll need, that will help.

4. If you really want to be able to get into a specific resort you may need the 8-11-month booking advantage. If it's a resort other than SSR, then you're best off resale. If you only care that it's a WDW resort, then you can consider SSR or resale.

Good Luck, and let us all know when we can send you a bunch of 'Welcome Homes....

 

[stenogoddess]

Thanks for the thoughts. I really appreciate y'all taking the time to respond. Thinking about it in the shower last night, where all great thinking gets done!, I've decided (unless someone changes my mind!) that it's time to put on my big girl pants. In other words, just because something is on sale, doesn't always mean it's on sale for you.

The issue I'm up against is just last month we put in a really nice patio that we had been wanting, but that's tied up our money. I would have to finance the DVC. So I allowed myself to think about that and decided that I might would have a heart attack if I added up patio debt plus DVC debt. Plus, most of the money I would save would be spent on interest because I've been putting our resources to pay off the patio. So I should go back to the plan I had to start with, which is to wait a year or so before we can buy in and try to save up at least half to put down.

I tell myself that you never know what could happen in a year. They could start presales at AKL! LOL Not likely, I know, but I have to come up with something to cheer myself up. I'm really bummed, but I'm pretty sure it's the right choice. Debt is not magical, ya know?

I hate being a grown up. Bring on the instant gratification!

 

[Pluto 2]

with this new price of 83.30 at ssr i wouldnt even be thinking about anything else. you probaly know that ssr gives you 12 more years than the other places, which you can pass it on to your children or whoever else. and ssr has the lowest maintenance fees. i dont know what use year they are giving for new contracts right now, but my use year is february. i just signed up for more points under this great deal and i get 2005 points also and only have to pay 3 1/2 months maintenance fees.

 

[mydogdrew]

If the new SSR deal is offered for an extended period there will have to be an impact on resale contracts for all resorts. You're going to see a lot of resale contracts on the market if sellers don't lower their expectations. I would guess that DVC has lowered their threshhold for ROFR as well. I would not buy resale until this deal gets priced through the market.

 

[jchice2]

I see where you refer to a special offer at 83.30 per point, I was just on the vacation club site and did not see it. Did I miss simething?? I would love to get in at 83.30 and not 98 per point. Thanks

 

[skibum]

I would like Tom from The Timeshare Store to respond and tell us what he thinks will happen in the resale market. I agree that it should have an impact - ROFR prices should drop, creating a negative for sellers but a positive for buyers (I want to buy).

Why do you think Disney is doing this? Lagging sales? To speed up sales so they can start a new development?

 

[vascubaguy]

JMO, but I don't think it will have a major impact on the "in-demand" resorts like BCV, VWL, and BWV. Those are still set at $92 thru DVC and require 150 pts for initial buy-in.

I think the resales it would impact are OKW, HHI and VB. Most people that buy those are buying for the cheaper point price (or lower MN fees). I think that some of these contract (except for those in the below 150 range) will drop a little, but it would be up to DVC at that point. They can still exercise ROFR and I don't think they'll let it get too low.

Of course I think there will be a drop-off of SSR resale sales depending on how long this promo lasts. Of course if lots of folks sign up with this price, I imagine in a year or 2 there will be lots of them that end up on the resale market.

Guess we'll just have to wait and see.

 

[DrTomorrow]

JMO, but I don't think it will have a major impact on the "in-demand" resorts like BCV, VWL, and BWV. Those are still set at $92 thru DVC and require 150 pts for initial buy-in.[...]
Guess we'll just have to wait and see.

I just wonder how many people are on the fence and don't have a strong desire for B/W/B who will be swayed by the $83.30 / point price.

 

[T.E. Yeary]

Since this news hit the boards, we at The Timeshare Store, Inc., have been making a desperate attempt to contact every one of our sellers to keep them abreast of the change in price at SSR.

Once they know, it's up to them if they want to lower their price to be more competitive or hang in there and wait it out.

My opinion is, and that's just what it is, an opinion, I think SSR "resale" prices will drop drastically, that's a no brainer! I suspect SSR was not selling as well as they'd hoped, the economy & Katrina played a big part in this, as well as purchasers wanting the other resorts, hence the incentives.

I suspect Disney will keep the price at $92 for the sold out resorts in order to steer people to SSR. I also think that the prices for the sold out Resale resorts will go down, but not drastically.

I also predict there will be less ROFR at all of the resorts.

I suspect Disney has plans for newer resorts beyond SSR and the more they piddle with the sold out resorts, the longer it will take them to sell out SSR and go on to the next development. That's where the real money is, in the developer sale, NOT the resale.

In the many meetings held at Disney everyday, they make forecasts, when they start to fall behind in those forecasts, it doesn't look good to the powers that be. A drop in price will help them reach those forecasts. They can reach the dollar figure forecast through volume.

There's also the possibility of what is known as the "pain threshold" being reached. SSR is supposed to be $98per point. No one that I know of has ever paid that much for their membership. It may take some time, a couple of years, for the general public to accept and pay the $98. I do believe it will eventually, but certainly not this year and I doubt it in 2006.

In the mean while, how about saying a little prayer for the SSR sellers. They have been caught up in something they have no control over and will not be able to enjoy the "forced inflation" aka price increases brought on by the developer and ROFR that the other DVC sellers have enjoyed in the past.

Are the glory days over? I don't think so, we're just taking a little breather!

Tom

 

[LoveBWVVBR]

We've done both, resale for our BWV contract and purchase through Disney for VB. The deal for VB was very good because they were pushing to sell it out at that point. I would have stuck to resale otherwise. I think that Disney has gotten a lot more strict about letting resales go through since we bought our resale, though. That could affect whether or not buying resale is still a bargain like it was when we did it a couple of years ago.

 

[3DisneyKids]

I just wonder how many people are on the fence and don't have a strong desire for B/W/B who will be swayed by the $83.30 / point price.

This is me exactly! I am LOVING this price, plus the extra 12 years...BUT I would rather have a slightly smaller contract (100-120 instead of 150) and at BWV. However, the extra years more than make up the value piece of the decision.

For me, it is a matter of about $2500 right now. I was committed to paying about $10K for a small re-sale. This SSR deal will cost $12,500 since I need to start at 150. I know that in the long run, $2500 is nothing (and we do have the money available...do not need financing), it's just a mental thing I have to work through. I had planned on one thing, now the game has changed.

Answers to some questions posted here:

--They are current selling for JUNE use year for new members.
--This promo will last at least until the end of the month (so sayeth my guide, anyway).

I am taking the week-end to think about it.

 

[3DisneyKids]

Since this news hit the boards, we at The Timeshare Store, Inc., have been making a desperate attempt to contact every one of our sellers to keep them abreast of the change in price at SSR.

Once they know, it's up to them if they want to lower their price to be more competitive or hang in there and wait it out.

My opinion is, and that's just what it is, an opinion, I think SSR "resale" prices will drop drastically, that's a no brainer! I suspect SSR was not selling as well as they'd hoped, the economy & Katrina played a big part in this, as well as purchasers wanting the other resorts, hence the incentives.

I suspect Disney will keep the price at $92 for the sold out resorts in order to steer people to SSR. I also think that the prices for the sold out Resale resorts will go down, but not drastically.

I also predict there will be less ROFR at all of the resorts.

I suspect Disney has plans for newer resorts beyond SSR and the more they piddle with the sold out resorts, the longer it will take them to sell out SSR and go on to the next development. That's where the real money is, in the developer sale, NOT the resale.

In the many meetings held at Disney everyday, they make forecasts, when they start to fall behind in those forecasts, it doesn't look good to the powers that be. A drop in price will help them reach those forecasts. They can reach the dollar figure forecast through volume.

There's also the possibility of what is known as the "pain threshold" being reached. SSR is supposed to be $98per point. No one that I know of has ever paid that much for their membership. It may take some time, a couple of years, for the general public to accept and pay the $98. I do believe it will eventually, but certainly not this year and I doubt it in 2006.

In the mean while, how about saying a little prayer for the SSR sellers. They have been caught up in something they have no control over and will not be able to enjoy the "forced inflation" aka price increases brought on by the developer and ROFR that the other DVC sellers have enjoyed in the past.

Are the glory days over? I don't think so, we're just taking a little breather!

Tom

As always, Tom, thanks for your sage words of advice and your opinion. You have a better eye on this market than any of us.

And you are right...the current SSR owners who are trying to sell are really in a bind here. I'm sure this totally blind-sided them.

 

[JimC]

This is me exactly! I am LOVING this price, plus the extra 12 years...BUT I would rather have a slightly smaller contract (100-120 instead of 150) and at BWV. However, the extra years more than make up the value piece of the decision.

For me, it is a matter of about $2500 right now. I was committed to paying about $10K for a small re-sale. This SSR deal will cost $12,500 since I need to start at 150. I know that in the long run, $2500 is nothing (and we do have the money available...do not need financing), it's just a mental thing I have to work through. I had planned on one thing, now the game has changed....I am taking the week-end to think about it.

I think the discount at SSR is a very strong factor towards spending the extra money -- if you can afford the extra annual dues -- in the end that is where we all spend the most money -- many times over the original purchase price.

 

[redmomof4]

For me, it is a matter of about $2500 right now. I was committed to paying about $10K for a small re-sale. This SSR deal will cost $12,500 since I need to start at 150. I know that in the long run, $2500 is nothing (and we do have the money available...do not need financing), it's just a mental thing I have to work through. I had planned on one thing, now the game has changed.

Have you looked at the Timeshare Stores posts. I thought there was some SSR listings for 120pts for $77-$79/point. The only downfall was the points weren't available til 4/07. If you weren't planning on going right away it might be a good option for you. Couldn't you even borrow into '06 too from those?

 

[vascubaguy]

Have you looked at the Timeshare Stores posts. I thought there was some SSR listings for 120pts for $77-$79/point. The only downfall was the points weren't available til 4/07. If you weren't planning on going right away it might be a good option for you. Couldn't you even borrow into '06 too from those?

It is actually cheaper to get the 150 points with the current incentive than to buy any of those 120 point resales. Here's how I make that determination:

If you buy direct, you will get both 2005 points and you'll get the 2006 points when they come due. To buy 150 SSR points right now you'd be looking at $12495. You could rent the 2005 points at $10 per point and knock that total down to $10995. Then to get an equal comparison, you could "borrow" the 2006 points and rent those for $10 per point and ultimately get the cost down to $9495. For those resales, you'd be looking at least $9240 and then may have to add in the closing costs. Even if the seller pays closing you are looking at $255 more to get 30 more points every year for the next 48 years.

Now if those were 50 point resales I might would recommend those for first-timers that didn't want to buy the 150 minimum, but IMO you are better off buying SSR thru DVC right now.

 

[redmomof4]

Great comparison. Thanks. I was just throwing an idea out there. I am still working on dh for 160 through DVC at SSR. I don't care where we stay as long as it is at WDW. We weren't planning on going back until 2007 so I could rent my 2005 points and then bank my 2006 points, or... maybe we'll have to go earlier!!!

 

[Anewman]

It is actually cheaper to get the 150 points with the current incentive than to buy any of those 120 point resales. Here's how I make that determination:

If you buy direct, you will get both 2005 points and you'll get the 2006 points when they come due. To buy 150 SSR points right now you'd be looking at $12495. You could rent the 2005 points at $10 per point and knock that total down to $10995. Then to get an equal comparison, you could "borrow" the 2006 points and rent those for $10 per point and ultimately get the cost down to $9495. For those resales, you'd be looking at least $9240 and then may have to add in the closing costs. Even if the seller pays closing you are looking at $255 more to get 30 more points every year for the next 48 years.

Now if those were 50 point resales I might would recommend those for first-timers that didn't want to buy the 150 minimum, but IMO you are better off buying SSR thru DVC right now.

While I do agree 100% that right now SSR direct from disney is a much better deal than resale. Just to make the comparison more accurate one would have to factor in MFs.

While the fees on 2005 points would be prorated you still have to pay at least 2 months(if purchased today) worth of fees. And you would still have to pay 100% of the fees next for 2006. On a resale stripped till 2007 those fees should be covered by the seller.

So IMO you are not just looking at $255 more. But I still think it is the better deal.