Resale v Direct : First DVC Contract

[Katie2]

We are in the process of buying our first contract. Would you recommend we buy direct or resale? We are looking at AKL, and if we go direct we would buy 150 pts. The resale contract we are considering is 180 pts, but doesn’t have points until 2022. The cost difference, is roughly $6,500. As an aside, we are Florida Residents and AP Holders. We are perfectly fine staying at the legacy 14. However, we do have some concerns on availability issues after the 2042 drop off. Not sure if I’m letting the marketing get to me.

Thanks in advance for all your suggestions.

 

[princesscinderella]

We are in the process of buying our first contract. Would you recommend we buy direct or resale? We are looking at AKL, and if we go direct we would buy 150 pts. The resale contract we are considering is 180 pts, but doesn’t have points until 2022. The cost difference, is roughly $6,500. As an aside, we are Florida Residents and AP Holders. We are perfectly fine staying at the legacy 14. However, we do have some concerns on availability issues after the 2042 drop off. Not sure if I’m letting the marketing get to me.

Thanks in advance for all your suggestions.

I am a Florida resident and DVC holder too. Do not buy a resale that is stripped, but definitely buy resale. There’s no DVC discount that’s better than the Florida resident ones. For you UY won’t matter as much because you could probably drive and make a weekend getaway if you needed to use points quickly vs someone who has to fly to Orlando. Bid on contracts that fit your points needs and figure out the cost per point that’s your maximum and go from there. The ROFR thread has great data on what’s being accepted. New contracts are being added to the resale sites all the time, start monitoring them and when the right one for you pops up be ready to bid.

 

[bobbiwoz]

Since you asked, and are willing to buy direct the number needed for a blue card, I would definitely buy direct.

I have been a member of DVC since 2003. I have enjoyed special DVC events like Member Cruises that are now only available to blue card holders. I want to try Riviera, and I do have a reservation there in September and I do not own there. Going to the Epcot Member Lounge has been fun.

Personally, I am not happy that DVC has made the membership distinctions, and if I was starting out, I would want to be a full member.

 

[10CJ]

Is the resale contract the use year you want? How many points do you think you need?

 

[808blessing]

I’m sure the guide told you this but it’s about $15 more a month to go direct on this one over the life of your contract.

 

[Lorana]

If you think you’ll want to stay at any future resort Disney builds - including when they flip BCV & BWV after 2042 - buy direct. That is one reason we bought some direct points as well.

 

[DVCsloth]

I would consider direct at Riviera. They are still offering incentives and you will be able to have your points right away, you should get current years points. No hassle with ROFR and no restrictions. I think AKV is usually available at 7 months except for value studios. You should be able to book there most of the time and you won't be restricted in any way for membership extras and booking Riviera or any future resorts. I just added on a small direct contract at CCV, paid top dollar but I wanted to add to my current points and didn't want the hassle with resale. I think resale is good for some people and there may be some decent deals in the future, but it doesn't seem worth it to me at the current prices.

 

[KAT4DISNEY]

We are in the process of buying our first contract. Would you recommend we buy direct or resale? We are looking at AKL, and if we go direct we would buy 150 pts. The resale contract we are considering is 180 pts, but doesn’t have points until 2022. The cost difference, is roughly $6,500. As an aside, we are Florida Residents and AP Holders. We are perfectly fine staying at the legacy 14. However, we do have some concerns on availability issues after the 2042 drop off. Not sure if I’m letting the marketing get to me.

Thanks in advance for all your suggestions.

As a FL resident you don't have much to gain monetarily by purchasing direct other than trading into future resorts. Regarding 2042 as the rooms leave so do the owners of them so the room availability shouldn't change too significantly unless DVC has built a ton of resorts by then that they allow to trade in. Of course if there starts to be an issue some owners might finally challenge the legality of them doing that anyway as they are being very liberal towards themselves in doing what they are doing. Really they just flat out ignored the POS.

FOMO might be DVC's #1 marketing tool right now. Assuming that DVC is the right product for you then from what you've shared you're probably as prime of a candidate for resale as anyone is. The only thing is that you might want to search a bit more for a contract if you want something with points before 2022.

 

[RoseGold]

I wouldn't buy stripped resale. I'd buy loaded. The loaded points (usually) come without dues, so they flip the math. On the resale market, they have never gotten what the points would have cost to rent. On a contract of this size, this is a four figure discussion. Maybe this requires waiting and watching, but it sounds like you aren't in a hurry.

I think AKL is currently overpriced for what it is, but if you love AKL, then of course go for it! If availability post-2042 matters to you, then resort choice is especially important. If that's AKL for you, then do it! It's not far off the best value math.

https://www.dvcresalemarket.com/blog/best-economical-dvc-resorts-to-purchase-spring-2021/

 

[VdoesDisney]

I think it depends on which resort you’re buying, I’m also a FL resident and AP holder and bought my first contract resale because we really wanted BWV, which is $210 direct and we paid $133 resale. Now I’m shopping around for a second contract and I’m considering direct if I go OKW or SSR but resale for CCV. Basically we (FL residents) derive very little benefit from the “perks” so direct to me is only worth it when the resale price gap is fairly small.

 

[Nabas]

We are in the process of buying our first contract. Would you recommend we buy direct or resale? We are looking at AKL, and if we go direct we would buy 150 pts. The resale contract we are considering is 180 pts, but doesn’t have points until 2022. The cost difference, is roughly $6,500. As an aside, we are Florida Residents and AP Holders. We are perfectly fine staying at the legacy 14. However, we do have some concerns on availability issues after the 2042 drop off. Not sure if I’m letting the marketing get to me.

Thanks in advance for all your suggestions.

At the moment, the DVC resale market is the hottest it has ever been. As a result, the price differential between direct and resale is just about as small as it has ever been.

This is a seller's market, meaning it's a terrible time to buy resale.

Based on the numbers you quote, you're talking about only a 20% savings (i.e. 180 points is 20% more than 150 points).

If you buy direct and pick the correct Use Year, you will get 2 years of points (2020 and 2021). The 2020 points will be free. The 2021 points will cost you only what's left in the current year. This means that if you close on June 30, you'll only pay half price for your 2021 points.

If you want to, you can then rent out your 2020 and 2021 points. As a result, the net cost of the direct contract will be close to the cost of the resale contract.

Seriously, with today's resale prices being so close to direct prices, very few should be buying resale.

Don't buy the stripped 180-point AKV resale contract.

Buy a fully loaded 150-point AKV direct contract and rent the 2020 and 2021 points to someone else.

When you net everything out, these probably will cost similar amounts.

 

[KAT4DISNEY]

This is a seller's market, meaning it's a terrible time to buy resale.

It may be more expensive compared to 1 year ago or 5 years ago but the comparison is still the same as it's been and not that it's now more than it was. First you want to stay onsite at a Disney location and compare to paying Disney for hotel rooms or renting points. If DVC makes sense then you compare the cost of resale to direct. You really don't compare to what resale was a few years ago and then decide it's not as cheap as it was so then buy direct. The final nuance is what the resale contract has for points and that's just shopping until you find the points and price you are comfortable with.

 

[Nabas]

It may be more expensive compared to 1 year ago or 5 years ago but the comparison is still the same as it's been and not that it's now more than it was. First you want to stay onsite at a Disney location and compare to paying Disney for hotel rooms or renting points. If DVC makes sense then you compare the cost of resale to direct. You really don't compare to what resale was a few years ago and then decide it's not as cheap as it was so then buy direct. The final nuance is what the resale contract has for points and that's just shopping until you find the points and price you are comfortable with.

DVC resale prices have skyrocketed in recent months.

I’m not saying don’t buy DVC. I’m saying that with the price differential between direct and resale being so low, don’t buy a stripped resale contract.

Instead, buy direct and rent out the first year or two of your points.

 

[Sandisw]

DVC is about long term and not just short term so future resorts, even RIV, is an important thing to consider. Take it from someone who never thought she would like RIV and now its a top resort. Now, if you have toured or stayed there and realize its not a favorite, then definitely take that off the list of pros.

But, as you said, there will be future DVC resorts at some point...even though things are on hold right now other than DLH...and you will have to decide if that is worth the extra cost right now.

I agree with others that going with a stripped AKV vs a contract direct that will give you current UY points and beyond, makes the numbers in favor of direct. The other piece is to consider if you plan to visit using cash before the potential points of resale can be bought and used. If you are planning a trip in the next 3 months, and buy direct, that cash cost can be rolled in (assuming you ask your guide to ensure you will be able to get a reservation somewhere).

Good luck!

 

[KAT4DISNEY]

DVC resale prices have skyrocketed in recent months.

I’m not saying don’t buy DVC. I’m saying that with the price differential between direct and resale being so low, don’t buy a stripped resale contract.

Instead, buy direct and rent out the first year or two of your points.

$50/pt is still $50/pt difference. Stripped resale contracts have never priced accordingly but I don't think the suggestion necessarily becomes buy direct but might be to search a bit more for the right resale contract.

 

[Drewski77]

I

At the moment, the DVC resale market is the hottest it has ever been. As a result, the price differential between direct and resale is just about as small as it has ever been.

This is a seller's market, meaning it's a terrible time to buy resale.

Based on the numbers you quote, you're talking about only a 20% savings (i.e. 180 points is 20% more than 150 points).

If you buy direct and pick the correct Use Year, you will get 2 years of points (2020 and 2021). The 2020 points will be free. The 2021 points will cost you only what's left in the current year. This means that if you close on June 30, you'll only pay half price for your 2021 points.

If you want to, you can then rent out your 2020 and 2021 points. As a result, the net cost of the direct contract will be close to the cost of the resale contract.

Seriously, with today's resale prices being so close to direct prices, very few should be buying resale.

Don't buy the stripped 180-point AKV resale contract.

Buy a fully loaded 180-point AKV direct contract and rent the 2020 and 2021 points to someone else.

When you net everything out, these probably will cost similar amounts.

It is a bit ironic that the primary reason to buy into DVC is to save money on future vacations in exchange for various hassles...yet resale is a bad route as you have to deal with some initial hassles to...save money on future vacations.

As a happy DVC owner who went resale that is my vote. I didn’t buy in for perks, and I’m more than happy with the O14 resorts...I wouldn’t want to pay thousands more for the the ability to book future resorts (at 7 months) which is far from a guarantee anyway.

 

[Brian Noble]

I wouldn't buy stripped resale. I'd buy loaded.

To elaborate on this: the market seems to under-value loaded contracts, but over-value stripped ones.

 

[Nabas]

$50/pt is still $50/pt difference. Stripped resale contracts have never priced accordingly but I don't think the suggestion necessarily becomes buy direct but might be to search a bit more for the right resale contract.

The OP said the 150-point direct contract would $6,500 cost more than the 180-point resale contract.

Renting out 2 years of points from the direct contract yields:
150 x 2 x $18pp = $5,400

I'm simply pointing out that the cost differential is not as large as the OP things.

 

[Nabas]

$50/pt is still $50/pt difference. Stripped resale contracts have never priced accordingly but I don't think the suggestion necessarily becomes buy direct but might be to search a bit more for the right resale contract.

And I agree that finding the right resale contract is critical.

 

[Drewski77]

The OP said the 150-point direct contract would $6,500 cost more than the 180-point resale contract.

Renting out 2 years of points from the direct contract yields:
150 x 2 x $18pp = $5,400

I'm simply pointing out that the cost differential is not as large as the OP things.

Couldn’t the OP buy a loaded resale contract?

And I’m not sure that a brand new owner to DVC would want to start off with renting out points.

Renting brings a lot more hassles and potential complications than buying resale...this is coming from someone who rented points in 2020.