Resale Vs Direct

[lorie13]

As resale prices are climbing rapidly, what is the point where going direct becomes a better choice.

I see two BCV listed at $117/point, where are you can buy direct for $130/point, that is now only a difference of $13/point or 10% and for direct you get the extra perks. I know you would have to wait list it direct and there could be time involved.

But this makes me stop and think, "how high will it go before it shifts to being a better choice to buy direct than resale?"

 

[geraghty]

For me, it would take a difference of $20 or less. Also, they would have to give me those points right away. I would not wait on Disney to rofr a contract because from what I've seen, they want a bigger mark up than that. There's plenty of people waiting for contracts that they could have filled by using rofr, but for whatever reason they have chosen not to.

 

[MiramarQE]

I see two BCV listed at $117/point

Resale sellers can list (asking price) anything they want - that does NOT mean they will GET $117/point - a resale purchase is 100% negotiable.

Disney does not negotiate point price - in fact, they don't negotiate. You MAY get the perk-of-the-day or whatever incentive they're running that day, or they may just talk you into believing you're getting a good deal ("XX" bonus points included! - of course, they are THIS years points . . . . )

 

[Mickbee]

There's plenty of people waiting for contracts that they could have filled by using rofr, but for whatever reason they have chosen not to.

In my humble opinion, the ROFR will pick up again starting in October. This is Dinsey's 4th quarter of the fiscal year. Perhaps there is a connection...

Just a wild guess they could be refraining to exercise until the new FY...

 

[NoleFan]

Closing costs are less buying direct, I think MF's are prorated, and some UY are eligible for 2012 points. I have only bought resale but at current resales prices, buying direct (assuming no wait list) may be a better choice for some resorts.

Personally, I would wait for the resale market to go back down a bit at least.

 

[bakerworld]

Depends on the amount of pts. For a smaller contract under 70 it might not make a big difference when you factor in the fees, dues, and higher closing costs.

If you're buying more that 75, and are into games, than resale is a 'go to' activity that, if worked well, will be worth the time and effort. It's like asian open markets where you're expected to bargain and respected more if you can get the seller to go low.

 

[JustTinking]

Given the long wait lists for going direct right now, and the uncertainty of when they will come through, timing ceases to be a factor between resale vs. direct. Lack of inventory with the smaller contracts in the resale market would color my decision and drive me more towards direct sales for those. But I agree with PP that in general a $20 or more savings on the resale side would drive me towards resale.

 

[Msmithmd]

$20 pp seems like a lot to me...on a 100 point contract that would be spending $2000 more for the "privilege" of booking options that are an inefficient use of points, and are better booked with cash anyway.

And sure, we could rehash the discussion about what limitations DVC might put into the program in the future, but IMO that's a moot discussion until it comes to pass- as they could put in pretty draconian limits on direct purchasers too if they so chose.

For me, the incentive to buy direct would be for either 1. A new resort not available resale. Or 2. A tiny contract where the point cost differential was meaningless (like a couple hundred dollars at most) or where the necessary specific contract simply wasn't available resale. Such as a 25-point add-on at BCV in a less popular UY...

That purchase decision shouldn't even consider financing, as I really hope people grasp just how bad an idea it is to finance a timeshare. Just look at the rates charged for this type of purchase, if you're not sure whether lenders think it is a good idea. Even the people fronting you the money realize what a terrible plan it is; that's why they charge such high interest, to cover the defaults and still turn their profit.

So if the differential gets to be $5/pt or less, then I'm buying straight from Mickey. Or under the other scenarios above. But I'm quite confident that won't happen, except for the first few resale contracts to hit the market on any new property.