Resale vs Direct a different perspective

[patm95]

Hello all.

I know this has been discussed ad nauseam, but I have a somewhat different perspective about this than I have read elsewhere.

Up front, it appears resale is so much cheaper, but if I look at the cost spread over the life of the contract, it appears (to me) at least that buying direct is the better buy.

Example:

resale: 200 Boardwalk Points $118 PP, 19 years left on contract, Maint fees $8.53 PP/yr. If you add up the annual fees for all 19 years (yes I know this will increase over time, but it's all I have) plus the buying cost, the total $56, 014 over 19 years or $2948.11 per year.

Direct: 200 Floridian Points $217 PP, 41 years left on contract, Maint Fees $7.53 PP/yr. Annual fees for all 41 years plus the buy in cost (with current discount) is $60188. Spread out over 41 years the total is $2424.83 per year

Plus with member benefits, we would save minimum $200 per year. Does this make sense? Am I missing something?

Thank you!

 

[Ensusieasm]

Hello all.

I know this has been discussed ad nauseam, but I have a somewhat different perspective about this than I have read elsewhere.

Up front, it appears resale is so much cheaper, but if I look at the cost spread over the life of the contract, it appears (to me) at least that buying direct is the better buy.

Example:

resale: 200 Boardwalk Points $118 PP, 19 years left on contract, Maint fees $8.53 PP/yr. If you add up the annual fees for all 19 years (yes I know this will increase over time, but it's all I have) plus the buying cost, the total $56, 014 over 19 years or $2948.11 per year.

Direct: 200 Floridian Points $217 PP, 41 years left on contract, Maint Fees $7.53 PP/yr. Annual fees for all 41 years plus the buy in cost (with current discount) is $60188. Spread out over 41 years the total is $2424.83 per year

Plus with member benefits, we would save minimum $200 per year. Does this make sense? Am I missing something?

Thank you!

The comparison should be made between direct vs. resale points at the same resort.

 

[CarolynFH]

Hello all.

I know this has been discussed ad nauseam, but I have a somewhat different perspective about this than I have read elsewhere.

Up front, it appears resale is so much cheaper, but if I look at the cost spread over the life of the contract, it appears (to me) at least that buying direct is the better buy.

Example:

resale: 200 Boardwalk Points $118 PP, 19 years left on contract, Maint fees $8.53 PP/yr. If you add up the annual fees for all 19 years (yes I know this will increase over time, but it's all I have) plus the buying cost, the total $56, 014 over 19 years or $2948.11 per year.

Direct: 200 Floridian Points $217 PP, 41 years left on contract, Maint Fees $7.53 PP/yr. Annual fees for all 41 years plus the buy in cost (with current discount) is $60188. Spread out over 41 years the total is $2424.83 per year

Plus with member benefits, we would save minimum $200 per year. Does this make sense? Am I missing something?

Thank you!

I'm assuming you'd be planning to use the points at the home resort most of the time. If so, you also need to look at what those points will get you. 200 points at BWV goes a lot farther than 200 at VGF, even if you stay in the more expensive Pool/Garden/Boardwalk view villas rather than the Standard view villas at BW. Compare point charts!

That said, I am a sincere proponent of "buy where you want to stay." Both BWV and VGF are wonderful resorts. Buy the one you like better!

 

[patm95]

The comparison should be made between direct vs. resale points at the same resort.

I get what you are saying however, we have stayed at both Floridian and Old Key West and I'm fine using Floridian points on OKW if that is where there is more value.

 

[patm95]

I'm assuming you'd be planning to use the points at the home resort most of the time. If so, you also need to look at what those points will get you. 200 points at BWV goes a lot farther than 200 at VGF, even if you stay in the more expensive Pool/Garden/Boardwalk view villas rather than the Standard view villas at BW. Compare point charts!

That said, I am a sincere proponent of "buy where you want to stay." Both BWV and VGF are wonderful resorts. Buy the one you like better!

That does make sense. We would eventually like to stay at BWV and I'm sure it's impossible to book at 7 months out, but we are not opposed to staying at other resorts if there is more value in it.

 

[karen4546]

That does make sense. We would eventually like to stay at BWV and I'm sure it's impossible to book at 7 months out, but we are not opposed to staying at other resorts if there is more value in it.

I own at AKV and I have use my points at AKV not once since purchasing in 2019. BCV, PVB, BWV, CCV, BLT, BWV, BWV but our October stay is at AKV Jambo.

I have flexibility with vacations though.

 

[lilsonicfan]

Respectfully, that’s not a great comparison. You are literally comparing a resort with under 20 years left to one with double that amount of time. Of course it looks way cheaper to buy at VGF.

In reality, what really matters is different for all of us. Resale made sense for us, I’m sure it does not for everyone.

 

[patm95]

Respectfully, that’s not a great comparison. You are literally comparing a resort with under 20 years left to one with double that amount of time. Of course it looks way cheaper to buy at VGF.

In reality, what really matters is different for all of us. Resale made sense for us, I’m sure it does not for everyone.

Actually that was the whole point. Almost any resale contract will have less years therefore I am looking at overall value of points per year.

I did the same thing with a OKW contract with 34 years left on it and got a per year value of 2585.88.

I even did a GF contract and the per year cost was only 7 dollars difference between resale and a direct buy.

 

[kristenrice]

I understand the idea, but the "buy where you want to stay" is still a key point for some resorts, even if there are only 19 years left on the contract. If you want to stay at HHI in June/July/August, do not buy an SSR or AKV contract and "hope you'll get lucky". It's imperative at HHI and VB because there are no alternatives at 7 months. If you are forced to wait until the 7 month window, there may be nothing left, as is often the case with HHI in the summer.

 

[lilsonicfan]

Actually that was the whole point. Almost any resale contract will have less years therefore I am looking at overall value of points per year.

I did the same thing with a OKW contract with 34 years left on it and got a per year value of 2585.88.

I even did a GF contract and the per year cost was only 7 dollars difference between resale and a direct buy.

I’m just saying, invalid comparison.

By the same math, Aulani resale which has 38 years left is a better deal, but most people here would say, Aulani doesn’t compare to WDW.

Don’t get me wrong, the VGF incentives right now are great. Disney has obviously realized that their pricing was off. Or they are interested in moving inventory fast.

 

[Brian Noble]

You are not accounting for the fact that $100 today is worth (much) more than $100 in thirty years. If you amortized the purchase price across the horizon at, say, 3% (a reasonable estimate of long-run inflation) you get:

$118 over 18 years @ 3%: $8.58/pt/year
$217 over 41 years @ 3%: $9.27/pt/year

This inverts the order that you'd get if you did straight division:

$118/18 is $6.56
$217/41 is $5.29

The crossover point is pretty close to 2%/year. If you think the Fed will be able to keep inflation, in the long run, at or below 2%, then the GFV buy is equal to (or better than) BWV. If you think the Fed won't be able to do that (and historically, they haven't) then BWV is better.

(No, you aren't borrowing the purchase price, but the loan calculator gives you an easy way to compute the "real" costs when you factor in the time-value of money).

 

[Ruttangel]

Here is a table I've put together for standard studios in August.
If you want to stay as cheap as possible then it's saying to buy a SSR contract and then stay at OKW which means using 7 month window but not a problem for that resort. The table is saying the worst idea would be buying BCV and then staying at PVB, depends on what you paid and how dues will change over time of course.

Resort	Resale 2023	Price per year	Dues	Resale Price/Yr	Points for Week in Studio -Aug 2023	Equivalent Cost
OKW-E	$ 105.00	$ 3.12	$ 9.36	$ 12.48	87	$ 1,085
SSR	$ 95.00	$ 3.10	$ 7.86	$ 10.96	102	$ 1,118
AKV	$ 105.00	$ 3.12	$ 8.81	$ 11.93	100	$ 1,193
OKW	$ 95.00	$ 5.09	$ 9.36	$ 14.45	87	$ 1,257
CCV	$ 140.00	$ 3.14	$ 7.92	$ 11.06	121	$ 1,338
BLT	$ 135.00	$ 3.68	$ 7.43	$ 11.11	123	$ 1,366
BWV	$ 120.00	$ 6.43	$ 8.53	$ 14.96	92	$ 1,377
RIV	$ 130.00	$ 2.79	$ 8.50	$ 11.29	125	$ 1,411
VGF	$ 155.00	$ 3.81	$ 7.33	$ 11.15	132	$ 1,471
BRV	$ 95.00	$ 5.09	$ 8.51	$ 13.60	116	$ 1,578
PVB	$ 145.00	$ 3.40	$ 7.95	$ 11.35	146	$ 1,657
BCV	$ 130.00	$ 6.97	$ 8.17	$ 15.13	116	$ 1,755

 

[CanadaDisney05]

Actually that was the whole point. Almost any resale contract will have less years therefore I am looking at overall value of points per year.

I did the same thing with a OKW contract with 34 years left on it and got a per year value of 2585.88.

I even did a GF contract and the per year cost was only 7 dollars difference between resale and a direct buy.

What about comparing resale Grand Floridian to direct grand floridian.

Or resale Riviera to direct Riviera.

Or resale boardwalk to direct boardwalk.

Other than probably the Disneyland Hotel, you can likely find any resort you want on the resale market.

Comparing a brand new Riviera or Grand Floridian contract to 20 year old contract at an alternative resort is like saying buying a new car is cheaper than buying used because a new Toyota Corolla is cheaper than a 2 year old Ferrari. It's not an apples to apples comparison.

Having said that, financially buying a direct 40 to 50 year contract may be better than a resale contract at a popular 2042 resort. But the key variable driving the result is the resort, not the direct vs resale.

 

[CarolynFH]

That does make sense. We would eventually like to stay at BWV and I'm sure it's impossible to book at 7 months out, but we are not opposed to staying at other resorts if there is more value in it.

Just wanted to reassure you that BWV at 7 months is not impossible if you’re happy with P/G view. It’s the less-expensive Standard view and the (IMHO) glorious BW view that are hard to get at 7 months.

 

[BrianLa]

I own at AKV and I have use my points at AKV not once since purchasing in 2019. BCV, PVB, BWV, CCV, BLT, BWV, BWV but our October stay is at AKV Jambo.

I have flexibility with vacations though.

100% agree. Since we bought our first contract in 2014 at AKV (we now have 4), we have stayed at DVC 200 nights of which only 15 were at AKV. All of those AKV trips were November and December. We typically travel for Easter break and summer and then occasionally winter break and November - Early December. There have been plenty of options at 7 month window (we book 1BR and 2BR) at the other resorts. That being said, when we decided on purchasing DVC we looked at what contract got us the best value (cost/length/point charts) as well as a place we would be happy staying at if we could not get into another resort at 7 months. For us OKW and SSR would not work for us.

 

[jimim]

i don't get into the math of it much but when we bought resale many years ago i saved like 30 grand plus. i payed cash so in my eyes i'm good. i have gotten my discounts on tickets and merchandise along with food and deff feel we have gotten our money out of it. with the number of trips we have taken I have gotten my money and use out of it in my eyes. just my opinion.