Resale question...

[meduck]

we are getting getting some money from an Aunt that died, and will be enough to get more DVC. Is resale points or New Points a better deal in the long run? I understand that resale is cheaper, but the contract usage is not as long, also are the value of each point the same (I mean like buying older points like Key West vs. Animal Kingdom)???

can you buy through disney for both or is resale from another company???

and are any fees added to the resale price (prossessing...closing....) do they make bying new a more cost effective option.

Thanks!

 

[Chuck S]

A resale contract at any resort will have the same contract length as a contract purchased through Disney for that resort, except for OKW (and you may even be able to find an extended OKW contract via resale).

Once you purchase, you are treated exactly the same, whether through resale or Disney. The difference is that the resale will need to clear First refusal by DVC, and it will take longer to get in to the DVC system. There have also been occasional reports of the seller backing out of the resale, so you'd have to start over with another contract.

So it depends, if you don't mind waiting a while for the deal to close and get into the DVC system, resale is probably a good option. If you want to use your points within the next few months, it may be an advantage to buy through Disney, as your points are available right away.

 

[sullymoscow]

My husband and I are considering buying for the first time. It seems to be that resale would be the way to go financially. We are really in no hurry. Are the points considerarably higher for SSR through Disney directly? What are the pros and cons of resale? I know these questions seem vague but I feel like I am missing something and want to make the most informed decision I can. Thanks for any info....these boards are so much help.

Lori

 

[wdwfanatic316]

We're in a similar situation (I'm trying to convince my DH of the many benefits of being a DVC Owner!) and are trying to decide whether to go through Disney or a resale website. A couple of things you might want to keep in mind:

Disney has some incentives for buying through them, such as only $500 down pmt- they put in the remaining 10%, and also the matching points to use at SSR or Disneyland but these are only good thru 12/2010- I'd recommend getting in touch with a Disney rep for details- but this current promotion ends on 9/20. Also, the points would be available much quicker through Disney. However, for resale, there seems to be a lot more flexibility as to which resort you'd like to buy into. However, the upfront costs are higher (I believe) because there is the full 10% down, plus the closing costs.

For us personally, I think the deciding factor will be which resort we decide we want to buy into (SSR and AKV are very attractive because of the longer contract, but BCV and BWV because of their location). Good luck!

 

[Caskbill]

Disney subsidizes part of the closing costs. With resale you will most likely have to pay all the closing costs.

Disney gives current year points. With resale the contract may have current points, may have banked points, or may have points already borrowed out and used. You really need to understand the point status. On the rent/trade board points generally go for about $10/point. If you compare a Disney purchase that has full current points versus a resale contract that has no current points, you can figure the difference is about $10/point. (Or about $7/point if you just want to 'value' the original cost plus fees.

Disney pro-rates maintenance fees for the remainder of the calendar year. Many selling resale expect the buyer to pay the maintenance fees for the whole year stating 'you get the points'. However maintenance fees are based on a calendar year, not a use year. Many over pay on resale contracts because of this difference.

Disney will have incentives so be sure to compare the final costs.

Disney will finance if needed. With resale you have to pay in full or find your own financing.

With Disney you get to use the points almost immediately. With resale it can take up to a couple of months, depending on how fast the seller completes their paperwork and how fast Disney does their ROFR evaluation.

With Disney you can purchase as many points as you want (beginning at a 160 minimum). If you want 182 points, you can get that amount. Or 190, 205, whatever you want. With resale you can only get whatever the contract being sold has. It is fixed.

There are a lot of differences so evaluate carefully. If buying resale pay particular attention to the number of points (banked, current, borrowed) are in the contract, and also the maintenance fees.

Hope this helps.