Resale Versus Disney

[doubletrouble_vb]

Friends are purchasing points at BCV...which I think is fine because they don't envision themselves staying at Old Key West.

My question is....eliminating the notion of "Buy Where You Want to Stay" what is the break-even point between buying resale and buying from Disney. Every time I look at it there doesn't appear to be much of difference unless you are buying large point contracts.

By breakeven point I mean the difference in point cost. For example a $68 per point resale versus $75 (not using MB). Which would be cheaper? I realize that the size of the contract is an additional variable so I expect imprecise answers.

 

[CRobin]

To make it simple...throw out financing (where you can probably always get a better rate from Disney).

I have purchased 3 resales. Closing costs run from $450 - $500.

So, if you buy a 200 point contract at $63, your "real" cost per point is 12600+500/200, or $65.50.

You then throw an intangible factor up or down depending upon whether you are getting banked points, whether points have been borrowed against next year, and how many points are available for this year.

Not an exact science, but it puts you in the ballpark.

 

[Dean]

Every contract will be different depending on the points availability, closing costs and what the seller expects in reimbursement for the maint fees. Assuming the same use year, points availability, maint fees and home resort, I'd say about $1000 difference is needed to make it worthwhile. That's about $450 for closing, a few other costs and $500 actual difference in cash amounts.

Now there are other reasons to buy resale like home resort. Also, a $500 difference on 50 points is different than $500 difference on 300 points.

 

[PKS44]

With resale contracts having banked an borrowed points I think the best comparison is to just total the points of the contract and divide the total cost by the total points.

This is done easily with Disney by dividing the price per point by the number of years you will get points.( Example Disney 150 points @$75/point for April Use Year ( with assumption we will get points in 2041 -who knows how they will handle the end ?-that is a whole different subject) 75 x 150=$11,250 for 39 years of points or 39 x 150 =5850 points or 75 x150/39 x 150 =75/39=$1.92 per point.

On a resale you total all the available points for the life of the contract- with borrowed/banked inlcuded in the calculation and divide by the total cost (closing fees, etc.) This gives the best price per point comparison.

 

[Magicmom]

Don't forget that OKW maintenance fees are quite a bit less (that could add up over time with large contracts) and you use fewer points for your typical stays onsite at Disney. Only OKW has the 8 point a night studio. Basically, you get more bang for your buck at OKW. Typically, a 150 point resale at OKW sells like a hotcake.