Resale Vs Direct buy

[fuji]

My wife and I are going to buy DVC. Thats already been decided. My question is: Are there any benefits to buying through Disney? The resale market seems to be so much cheaper. I feel like I'm missing something. Why would anyone buy direct when resale is about 30 dollars cheaper per point.

 

[Minne's Friend]

We bought direct the 1st time because it was simpler and faster - did not have to wait for ROFR from Disney we had purchased and were done in about 3 days over the month that resale takes. Also, I have heard stories about resale of owners changing their minds half way through (which they do have the right to do) or Disney saying no and you have to start all over - so if you have already waited 30 days - you now have another 30 days process to go through.

With that said we are thinking about resale for add on points. We already own at AKV and would like to have about 50 to 75 points at BWV if a contract comes up. But if it does not we will buy from Disney.

 

[Granny]

The spread traditionally has been nowhere near $30 per point. So it used to be a closer financial deal going direct through Disney.

The main advantages of going though Disney are that you can buy exactly the number of points at the resort of your choice and pretty much with the UY of your choice. Also, it seems that Disney is easier for those for whom outside financing may be challenging.

Minnie's Friend pointed out the other issue with resale...it can be a long and sometimes frustrating process. Usually though it seems pretty painless and relatively quick.

We bought our first contract direct through Disney and our second on the resale market. If there's that big of a price spread at the resort that you want to buy into, I'd go with the resale market.

I'm assuming you are comparing apples to apples...the same resort and number of points direct vs resale. Just didn't want you to be comparing Vero Beach resale (for example) with BLT direct.

 

[DenLo]

We bought our first contract direct with Disney. It was a BLT contract. We really wanted the home resort advantage at BLT. Later we bought an add on at BLT also direct. When figuring the closing costs for a resale and the total number of points we could get on a resale contract versus direct, the price per point was lower going direct. However, we then wanted an AKV contract and there was no doubt that buying resale was the best way to go. Although if we had bought a week earlier then buying through Disney would have been best. Our latest contract an AKV add on and we also did that direct. Why, because we tried for 3 months trying to find a contract on the resale market that was at AKV with our UY and even close to the number of points we wanted. We finally gave up and bought direct. That's was six weeks ago we made our purchase and we have used the points for a reservation and still have not seen a resale contract that work for us.

My advice is that don't let the low price be the only thing that influences your choice of home resort. There will be times that having the home resort advantage might matter in getting a reservation you really want, so buy where you want to stay.

 

[lilpooh108]

For resales, don't forget to add closing costs, admin fee (if going thru Fidelity) and other costs. Disney also gives you 2009 points depending on which UY you pick, so the your "baseline" price from Disney might be a smaller difference compared to resale.

We did resale (after MUCH research) for our 1st contract, and just added on at Aulani directly through Disney (its in presale, so no resale available). We bought right before Disney dropped SSR down to $95 retail, but we still got a pretty good price. I'm very glad we went resale for our 1st--it saved us alot of money which can be used for add ons

 

[fuji]

we are looking at SSR. Disney direct is selling it at $95 per point. We are looking for around 200 points. We found a resale for $66 per point and 210 points with a FEB UY. We also have been looking at AKV which Disney sells for $112 or $110(if you purchase atleast 200 points). On resale AKV is going for $79 to $85 per point. that is a huge difference per point at both these resorts. Thanks for the responses

 

[JimMIA]

Disney also gives you 2009 points depending on which UY you pick, so the your "baseline" price from Disney might be a smaller difference compared to resale.

This information is simply not true. It is a fiction, perpetrated by DVC timeshare salespeople to make prospective buyers think they are getting a "something for nothing" special deal.

In order to "get" 2009 points, you must buy an August, September, October, or December Use Year. If you do that, August 2010 is not here yet -- so you are buying within that contract's 2009 Use Year. If you buy in 2009, you get 2009 points. They are the points you are buying -- nobody is giving you anything.

What DVC is legitimately giving you is an extension of the banking deadline so you can bank your 2009 points into the 2010 UY. Obviously you would not be able to use your 2009 points otherwise. There is value to that extension, but is not the "bonus points" many people fall for. They are your points anyway.

 

[JimMIA]

This will not be a comprehensive list, but here are some of the benefits I see to buying direct from Disney and also for buying resale. (This is just off the top of my head, and I'm sure others will improve on this list.)

Direct

• Quick, easy, and certain
• In some cases (Aulani, for example) direct is the only game in town. There are no resale contracts yet for Aulani.
• You can't find a suitable contract in the resale market. (usually a problem only if you are looking for a very small contract.)
• You can't buy without financing, and the interest savings with Disney financing is more than the purchase price savings with resale.
• You're buying a very small contract, and by the time you factor in closing costs, the difference is not worth worrying about.
• The direct price is actually lower. That doesn't happen much these days, but it has happened in the past.

Resale

• SAVE BIG BUCKS. If you're not saving enough money to make it worthwhile, why bother?
• You might find a contract with banked points that would provide a legitimate benefit without some salesman telling you a fairy tale.

I also think both the speed of resale closings and much of the uncertainty have improved with resale. People seem to be closing pretty quickly now, compared to 5 years ago when we bought. And, these days, if you make a reasonable offer there is much less likelihood of getting ROFR'd.

You'll hear many other legitimate reasons to support one decision or the other, and also some silly logical contortions used to justify a decision someone wanted to make.

Probably the one really important fact is this -- no matter how you purchase, once you're in DVC, you are in. Unlike some other timeshare systems, there is absolutely no difference between points purchased resale and points purchased direct -- all of the perks and benefits are identical.

Personally, in this market, I wouldn't even look at buying direct unless I really could not get what I wanted in the resale marketplace. The money differences are just too great right now.

Take your time, research carefully, and enjoy the hunt!

 

[walkdmc]

I bought my first contract for BLT on resale. The going rate was (I think) $112/point from Disney. I paid $102/point and about $500 in closing costs. So, I save quite a bit. There was a span of about 6 weeks from when I made the offer and I was fully recognized by DVC and able to book our first DVC trip.

Recently, I added on 50 points. I think I paid $114/point (don't hold me to it, I've forgotten). But one call to my DVC rep and the points were in my account by that afternoon. I needed the points in there for an upcoming trip, so it was a no brainer. However, if I were adding over 100 points, I think the difference makes the resale market more appealing.

BTW, when I bought 160 points resale, the contract was LOADED. It had all 2009 as well as 2010 and 2011 points. I closed in June 2010. So, I guess the seller gave me a special "bonus", LOL. I'm so glad the Disboards set people straight on that "bonus" point stuff DVC agents speak about.

 

[Minne's Friend]

BTW, when I bought 160 points resale, the contract was LOADED. It had all 2009 as well as 2010 and 2011 points. I closed in June 2010. So, I guess the seller gave me a special "bonus", LOL. I'm so glad the Disboards set people straight on that "bonus" point stuff DVC agents speak about.[/QUOTE]

The thing is that a lot of the contracts in resale are not loaded - they are pretty much stripped of points until 2012. I have been doing a lot of looking at the resale markets so just make sure you get what you want. Buy DVC is a big investment but one I have never regretted

 

[Sandisw]

we are looking at SSR. Disney direct is selling it at $95 per point. We are looking for around 200 points. We found a resale for $66 per point and 210 points with a FEB UY. We also have been looking at AKV which Disney sells for $112 or $110(if you purchase atleast 200 points). On resale AKV is going for $79 to $85 per point. that is a huge difference per point at both these resorts. Thanks for the responses

Based on this, going resale will definitely save you money. If you are in no hurry and can wait the 4 - 6 weeks that it takes for the resale process, you will end up with the same product as if you had gone direct (well, as someone else mentioned in another thread-no ice cream or tote bag).

We bought direct for BLT last year because at the time, they were not yet available on the resale market.

Even now, those contracts are few and far between so even though the cost might be more via Disney, for this resort, it probably would work out via Disney.

However, for SSR and AKV, the price difference, if those are the resorts you are interested, would make it hard pressed to buy direct--unless you need and/or want the financing that Disney has to offer--it is supposed to be easier to get and does not show up on one's credit report. This could be a plus for someone and worth spending the extra $$'s over resale. Plus, if someone is looking to get in at a smaller contract amount, the difference becomes easier to swallow.

Good luck!!!

 

[calypso726]

We purchased our first contract direct 180 points at SSR back 2006 during the friends and fmily promotion at $86 per point. We didn't have the cash on hand to go resale and didn't want to finance and pay interest either so we got the best of both worlds. We paid with a Disney Visa credit card and earned points plus as new card holders we had 0% interest for a year. We'd been in borrow mode for a while so earlier this year we were short on points for an AKV stay we wanted so we added on 50 points direct at $97 per point, got the points right away and made our ressies. We also paid that with the Disney Visa taking advantage of the 0% interest for 6 months. We loved AKV so much and really wanted to have enough to do a 2 bdrm CL stay for a week or Grand Villa for a week every so often so we just added on again. This time we went resale since the money ha dbeen saved up for it. We found a 200 point contract with our UY that included all of the 2009 points banked into 2010 all 2010 and all 2011 points. We offered $80 per point the sellers accepted and Disney waived ROFR after an agonizing three weeks. That's a $5000 difference.

 

[wdrl]

Disney also gives you 2009 points depending on which UY you pick, so the your "baseline" price from Disney might be a smaller difference compared to resale.

This information is simply not true. It is a fiction, perpetrated by DVC timeshare salespeople.

Jim, I understand your feeling on this issue of "2009" points, but I think its wrong to say lilpooh108's statement is "simply not true" and that "It is a fiction, perpetrated by DVC timeshare people."

Lilpooh108 is correct in saying that 2009 points are available depending on which UY is picked. October UY buyers can get 2009 points, February UY buyers won't get 2009 points. Why is that statement "simply not true?" And my ongoing review of DVC deeds recorded at OCC confirms that people who buy certain UYs are actually receiving these 2009 points. Thus, it is not a "fiction" perpetrated by DVC timeshare people.

 

[JimMIA]

Jim, I understand your feeling on this issue of "2009" points, but I think its wrong to say lilpooh108's statement is "simply not true" and that "It is a fiction, perpetrated by DVC timeshare people."

Lilpooh108 is correct in saying that 2009 points are available depending on which UY is picked. October UY buyers can get 2009 points, February UY buyers won't get 2009 points. Why is that statement "simply not true?" And my ongoing review of DVC deeds recorded at OCC confirms that people who buy certain UYs are actually receiving these 2009 points. Thus, it is not a "fiction" perpetrated by DVC timeshare people.

You're right. I mispoke (or mistyped, if that's a word). lilpooh108's statement was correct...as far as it goes.

What is a fairy tale is the almost universal implication by guides (I've only heard of one who was honest about this question) that this is somehow a "special deal." It's not, and nobody is giving anyone anything. The buyer is just getting the points they are entitled to anyway.

This is the kind of shady timeshare salesman "Weasel Speak" that DVC salespersons didn't use in the early years.

The part that drives me nuts is that if the guides wanted to be straight with their customers, they have a legitimate benefit to tout -- the banking extension.

But they don't do that because it's complicated and they don't want to make anyone think too hard about buying DVC. Instead they tell them they're giving them a "special deal," when in fact, they're just delivering what the customer is buying.

 

[fuji]

When we first contacted an agent, this past January, She told my wife that if we bought in before the end of the month we would receive 09 points as a special incentive. and if we waited that she could not promise me that deal would be available the following month. Unfortunately for her we were already aware of how to put your UY ahead of the time you buy so you could receive current years points and hold them for your next UY. This sales pitch didn't work on us thanks to the DIS

 

[gkrykewy]

When we first contacted an agent, this past January, She told my wife that if we bought in before the end of the month we would receive 09 points as a special incentive. and if we waited that she could not promise me that deal would be available the following month. Unfortunately for her we were already aware of how to put your UY ahead of the time you buy so you could receive current years points and hold them for your next UY. This sales pitch didn't work on us thanks to the DIS

Wow, that *is* really sleazy. I'm beginning to come around to Jim's opinion on this

 

[Granny]

we are looking at SSR. Disney direct is selling it at $95 per point. We are looking for around 200 points. We found a resale for $66 per point and 210 points with a FEB UY. We also have been looking at AKV which Disney sells for $112 or $110(if you purchase atleast 200 points). On resale AKV is going for $79 to $85 per point. that is a huge difference per point at both these resorts. Thanks for the responses

These examples are no-brainers. Resale market it is.

I'm hoping that you really like SSR or AKV and want to stay there the most? Or at a minimum will be happy to stay there if other resorts are not available at the 7 month booking window?

 

[johnsbelt]

BTW, when I bought 160 points resale, the contract was LOADED. It had all 2009 as well as 2010 and 2011 points. I closed in June 2010. So, I guess the seller gave me a special "bonus", LOL. I'm so glad the Disboards set people straight on that "bonus" point stuff DVC agents speak about.

The thing is that a lot of the contracts in resale are not loaded - they are pretty much stripped of points until 2012. I have been doing a lot of looking at the resale markets so just make sure you get what you want. Buy DVC is a big investment but one I have never regretted [/QUOTE]

Looking at BLT, they are almost all stripped! :-( There is one 70 pt contract out there that is priced at 94/pt but no points until 2012! Factor in closing costs and the possibility of renting points next year and you are almost at the price of going direct.

I'd love to have something purchased by December. My wife wants to go down in 2011 for the 40th anniv of MK and we also want to go in December this time to see all of the decorations. Looks like a road trip to Chicago .

John

 

[Antonia]

My guide didn't make it seem like we are getting the 2009 points for nothing. But she did say that we have an extended time to bank them that we would not normally have. And there are no closing costs since we are buying direct.

 

[william1375]

Do your homework. I bought 2 contracts resale. If you have time, and factor in closing costs to the resale and getting the "2009" points for a UY after purchase as a "bonus". Lots of misinformation on the "bonus" UY points. They are your points you bought them, you just had the insight to buy a UY that happened to start after your purchase, thus getting "extra points". With resale all is negotiable.