Resale or New

[jdes88]

Hi Everyone....

I'm just starting to get my feet wet with this. My husband & I are thinking about purchasing into DVC. Would you guys go resale or would you go direct? I definatley want to purchase a DVC that has many years left on it, as I'm in my mid 20's and want to go forever....

 

[chalee94]

i don't need 160 pts so i bought a resale. (i also don't need the newer expiration dates offered at AKV and SSR, and that's also why i declined the extension at OKW.)

resale buyers currently are identical to direct purchasers with regard to perks and benefits.

DVC contracts expire based on what resort you purchase, not whether you buy resale or direct.

you may find it useful to scan through threads on the DVC forums and learn to use the search function to find out more about DVC before you buy...

more info, stolen from DVCMike:

Initial Purchase from DVC

• You can get the exact number of points that you want (although you must buy a minimum of 160)
• Faster than resale (you will be in the system and have your points and be able to make reservations much faster than resale)
• No worries about the purchase if Disney executes ROFR, since that only applies to resale purchases
• More expensive cost per point than the resale market
• You can finance through DVC, and Disney doesn’t report the loan to credit reporting agencies
• You can pay with a Rewards credit card and get points/cash back
• The full set of points you buy will be available immediately, versus a resale contract which may be “stripped” of points.
• If you don’t want the resorts they are currently selling (AKV/SSR), you may have to do some firm talking to a guide to convince them you really want an older resort.

Initial Purchase via Resale

• You may not get the exact number of points you want
• You can purchase less than 160 points for your initial buy-in to DVC (Disney won’t let you buy less than 160 points).
• It will take much longer to get into the DVC system and have your points (resales typically take 6-8 weeks)
• Disney may exercise ROFR and you may lose the resale and have to start all over (When buying resale, one of the potential pitfalls to try to avoid is making an offer that will cause Disney to exercise it’s Right of First Refusal)
• Resale is typically less expensive then buying from DVC
• You can’t finance through DVC, although most resale brokers will recommend a finance company
• A resale contract may be “stripped” of points where the user has used many of the current year’s points, and may have borrowed some or all of next year’s points. Just be aware of “stripped” contracts on the resale market.
• Easier to pickup large point packages at any of the older DVC resorts.

 

[Maistre Gracey]

Unlike other timeshares, DVC will cost you almost as much when purchasing resale. You will save some money, just not a big wad.

There are advantages to both.
Buying direct from Disney is more "a-la-carte". In other words, you can specify number of points, use year, and resort (with possible restrictions). You will also have no waiting time, right of first refusal, or possible seller hassles.

Purchasing resale, you can only purchase the package as presented.
Again, the upside of resale is you will probably save some loot.

MG

 

[Maistre Gracey]

Okay, good.. chalee94 put together a great list while I was typing (very slowly) my thoughts..

MG

 

[LisaS]

Just wanted to comment on your title "Resale or New". It implies that if you purchase from Disney you get a longer expiration date. The expiration date is exactly the same no matter whether you purchase from Disney or on the resale market. For example, AKV contracts expire Jan 31, 2057 no matter how you purchase them. SSR contracts expire Jan 31, 2054 and BCV, BWV, HHI, VB and VWL contracts expire Jan 31, 2042 whether you purchase from Disney or via resale.

The only odd one out is OKW. There are two types of OKW contracts, extended and non-extended. The extended contracts expire on Jan 31, 2057. The non-extended contracts expire on Jan 31, 2042. The vast majority of OKW contracts on the resale market are non-extended. Disney sells only the extended contracts. So if you wanted to purchase an extended OKW contract, it will be difficult to find one other than through Disney.

 

[MEK]

I bought a resale because it saved me a few dollars per point and I didn't need the points right away. It was a very painless experience. I think I was still assigned the same guide who originally toured me. I think there is a nice selection of resales available from the TSS. You can also negotiate a bit on price.

I think it matters how quickly you want to use the points (make your first reservation) and whether you have your heart set on a contract at a home resort that is already sold out. From the time I made my first offer to the time I made my first reservation was about 10 - 12 weeks.

 

[kapeman]

I can't understand why so many people downplay the amount of money that can be saved by going the resale route.

For example, OKW direct is $101 per point. The rough selling price resale is around $74 per point.

On 100 points that is a $2700 savings!

Even with closing costs being around $350-400 that's still a mighty big savings.

The catch here is with the small contracts, around 50 or less, that's where the closing costs negate some of the savings of resale.

Just trying to help give you a clearer picture.

 

[moredisneyplease]

That is indeed a hefty amount to save!!

Another thing to think about with resale vs/ Disney is incentive. Disney offers some rather decent incentives here and there so just keep your ears open.

 

[chalee94]

I can't understand why so many people downplay the amount of money that can be saved by going the resale route.

For example, OKW direct is $101 per point. The rough selling price resale is around $74 per point.

On 100 points that is a $2700 savings!

Even with closing costs being around $350-400 that's still a mighty big savings.

except that you are comparing OKW ending in 2057 (direct) with prices for OKW ending in 2042 (resale). OKW resales that end in 2057 have been listed at much higher than $74...(not sure what they are actually selling for.)

OTOH, i would generally agree that on larger contracts or for non-wdw resorts like VB, there are some deals to be had by going resale.

 

[LisaS]

I can't understand why so many people downplay the amount of money that can be saved by going the resale route.

For example, OKW direct is $101 per point. The rough selling price resale is around $74 per point.

On 100 points that is a $2700 savings!

Even with closing costs being around $350-400 that's still a mighty big savings.

The catch here is with the small contracts, around 50 or less, that's where the closing costs negate some of the savings of resale.

Just trying to help give you a clearer picture.

I agree you can save money buying on the resale market but for OKW you need to compare Disney's price against the resale market's prices for extended contracts which are around $89-$90. So the savings on a 100 pt contract would be $1100-$1200. Factor in closing costs ($350?), full dues reimbursement vs Disney's pro-rated dues: $250-ish but negotiable, and you're down to a $500-$600 difference. Disney gives you a full set of current-year points while a resale may be anywhere from stripped to loaded so you need to look at which deal gives you more points. If the resale has no current-year points Disney's deal is better, if the resale is loaded then it's a better deal, valuing the points at their wholesale price. With Disney you get your points immediately, with resale you have to wait up to 2 months. Also with Disney you can pay with a credit card. With something like a Disney VISA, your reward dollars provide a rebate of 1% of the price. I used my reward dollars towards my dues.

I agree that in many cases buying resale saves money but you do have to look at every line item to see if a particular contract/deal is better than buying direct and decide how much it's worth to you to get into the system immediately.

ETA: If you don't care about the extra years (2057 vs 2042) then resale is definitely better because you save another $15/pt, plus you cannot purchase a 2042 OKW contract from Disney.