Resales a bit high- What's your savings percentage threshold?

[kilik64]

Is this the case for folks who buy resale for their first DVC purchase? In other words, if I'm buying 100 points resale, can I then buy 25 points direct as an add-on?

That's my understanding, as long as you are a current member you are not bound by the 150 min direct purchase amount.

 

[davidl81]

My threshold is break-even at 10 years or less.

So VGC math (since that has the mythical $320/pt listing)...

100 hypothetical VGC points x $320/pt = $32,000.
100 points = 5 weekdays/year at the 20pt mark (which is just above the lowest season of 17pts/night). Doing this for math simplicity.
Annual dues = ~$700/yr

Direct comparison = GCH room (the rooms/studios are virtually identical)
5 weeknights a year @ $700/night at GCH = $3,500 per year.

10 years x $3,500/year GCH = $35,000

Therefore, my maximum threshold for a VGC contract in the above case would be:
10 years annual dues = $7,000
$35,000-$7000 annual dues = $28,000/100 points = $280 point

I think your math checks out fine on this. The one exception I could think of is if you are adding on to a current contract and need a specific number of points for whatever reason. If you find the contract that lines up perfectly then it can be worth it to spend the extra money. This would be for someone who maybe bought for studios and now wants 2 BRs etc. And really VGF is the one place where that could work out since getting points transferred in at 11 months to book there can be very tough.

 

[PirateBrigade]

I think your math checks out fine on this. The one exception I could think of is if you are adding on to a current contract and need a specific number of points for whatever reason. If you find the contract that lines up perfectly then it can be worth it to spend the extra money. This would be for someone who maybe bought for studios and now wants 2 BRs etc. And really VGF is the one place where that could work out since getting points transferred in at 11 months to book there can be very tough.

I agree, I guess threshold isn't the right word then, more like general guidance.

I'd for sure pay more for my VGC example if the UY lined up with my existing contract -- I roughly value it at $280/pt, DVC direct price (if you can even get it) is officially $310/pt (a 10.7% premium), the sole resale listing available is $320/pt (a 14.2% premium).

Given that I will likely hold this contract until expiration (2060), whether I break-even at year 10 ($280/pt) or by year 12 (~$320/pt) doesn't really matter.

Other factors: where are local hotel prices going (up), are there replacement options possible (difficult due to limited land in Anaheim), my future travel patterns, etc...

 

[KeithSS]

The only way that makes sense is if you just need 25 points because you want say an extra night in a 2BR each year etc. And for 25 points the difference in $200pp and say $150pp is only $1250. It’s actually not that much of actual cash difference and over 20 years that sure is a lot easier then messing with renting or transferring points.

At that point, I'd pay $210 direct from Disney, have a matching use year, have all the available points (IE 2020,2021 if use year hasn't passed yet), have no restrictions and have them loaded into my account in an hour. The $250 savings isn't even close to worth the wait for ROFR. IMO any contract under about 75 points or so doesn't make any sense to buy resale. The savings don't add up. Its not worth the hassle. Obviously that assumes you are already a member and can add on small contracts direct. I bought 2 50 point contracts in may and did them both direct. These people paying $160/pp for 50 points at AKV is $8000. Direct is $186/pp which comes to $9300. For $1300 you are going to be restricted, wait 3-4 months for the points and hope it passes ROFR? Not me...not even close

 

[davidl81]

At that point, I'd pay $210 direct from Disney, have a matching use year, have all the available points (IE 2020,2021 if use year hasn't passed yet), have no restrictions and have them loaded into my account in an hour. The $250 savings isn't even close to worth the wait for ROFR. IMO any contract under about 75 points or so doesn't make any sense to buy resale. The savings don't add up. Its not worth the hassle. Obviously that assumes you are already a member and can add on small contracts direct. I bought 2 50 point contracts in may and did them both direct. These people paying $160/pp for 50 points at AKV is $8000. Direct is $186/pp which comes to $9300. For $1300 you are going to be restricted, wait 3-4 months for the points and hope it passes ROFR? Not me...not even close

Oh I agree with that 100%. I can’t imagine doing a resale to save $1000 or so when direct is so so so much easier (plus all points and no restrictions).

 

[djjeff]

If you don't have a specific resort, buying direct is back on the table for sure. With incentives you can get a Riviera with full points contract cheaper than a resale Poly or Bay Lake. I know the restrictions but resale has jumped 20-30% real fast.

 

[disneykim17]

Does anyone foresee resale coming back down to a more reasonable level?

 

[Bearval]

Does anyone foresee resale coming back down to a more reasonable level?

The only time I can tell the prices dropped was during the recession of 2007- 2009. Other than that they just seem to go higher and higher with periods where the prices stay stable for a little bit. I paid $105 for a 100 point AKV in 8/2020 and I thought that was a little high at the time.

 

[disneykim17]

I guess we'll have to hope for stable periods soon. We paid $165 for a 50 point CCV in 12/2020 and we also thought that was high then...we would like to possibly sell it and purchase a slightly higher point contract at PBV...wishing we had purchased PBV last year when the prices were lower.

 

[Louis morrell]

At that point, I'd pay $210 direct from Disney, have a matching use year, have all the available points (IE 2020,2021 if use year hasn't passed yet), have no restrictions and have them loaded into my account in an hour. The $250 savings isn't even close to worth the wait for ROFR. IMO any contract under about 75 points or so doesn't make any sense to buy resale. The savings don't add up. Its not worth the hassle. Obviously that assumes you are already a member and can add on small contracts direct. I bought 2 50 point contracts in may and did them both direct. These people paying $160/pp for 50 points at AKV is $8000. Direct is $186/pp which comes to $9300. For $1300 you are going to be restricted, wait 3-4 months for the points and hope it passes ROFR? Not me...not even close

Add to this, if you use a Disney Visa you receive about 300.00 in Disney rewards and 6 month interest free financing.

 

[Bearval]

I guess we'll have to hope for stable periods soon. We paid $165 for a 50 point CCV in 12/2020 and we also thought that was high then...we would like to possibly sell it and purchase a slightly higher point contract at PBV...wishing we had purchased PBV last year when the prices were lower.

DVC has to be like the only timeshare where you could have bought resale 5 years ago taken your yearly vacations and then if you sell , recoup your entire initial investment including buying and selling fees, commissions. At the very worst you don't recoup your out of pocket yearly maintenance dues.

 

[Wendysofftoneverland]

Add to this, if you use a Disney Visa you receive about 300.00 in Disney rewards and 6 month interest free financing.

Our issue is we tend to take 5 night vacations, not 7, and tend to travel during less busy seasons, so we estimate that we need just under 100 points. With the 150 point minimum, the incentives don't make up for the extra 50 points we would have to pay dues on. So I am hoping to get a small resale contract so then we can buy direct in less than 150 point increments. Because after 2042, I want to have direct points to be able to stay in Epcot area.

 

[djjeff]

Add to this, if you use a Disney Visa you receive about 300.00 in Disney rewards and 6 month interest free financing.

What is the best Disney Card to use?

 

[disneykim17]

DVC has to be like the only timeshare where you could have bought resale 5 years ago taken your yearly vacations and then if you sell , recoup your entire initial investment including buying and selling fees, commissions. At the very worst you don't recoup your out of pocket yearly maintenance dues.

Lucky for us it was a stripped contract and we don't have to pay maintenance dues until 2022. It would really help if the resale prices came down $10-$20 pp but I think it will only keep going up as the direct prices rise.

 

[Louis morrell]

What is the best Disney Card to use?

I have the Signature card. It does have an annual fee.

 

[Bearval]

I have the Signature card. It does have an anual fee.

Glad you didn't forget the "u"

 

[Louis morrell]

Annual

Glad you didn't forget the "u"

Fixed it for you. I saw a lot of red ink in school.

 

[prouddaddycdn]

The way prices are now, I am most likely to add on direct. Ease of adding on direct is worth the $1500 to $2500 savings I would be looking at by going resale for the size of contract I want. No ROFR to deal with or months of waiting until I can use points etc. Heck, at this point, I may just buy Old Key West at $170 direct which has a 2057 expiry and simply use those as network points. That works out to less than buying another Poly contract via resale currently and allows me to stay anywhere restriction free.

 

[npatellye]

The way prices are now, I am most likely to add on direct. Ease of adding on direct is worth the $1500 to $2500 savings I would be looking at by going resale for the size of contract I want. No ROFR to deal with or months of waiting until I can use points etc. Heck, at this point, I may just buy Old Key West at $170 direct which has a 2057 expiry and simply use those as network points. That works out to less than buying another Poly contract via resale currently and allows me to stay anywhere restriction free.

That’s what we did: OKW direct just before the increase. It wasn’t worth the hassle of ROFR and restricted points to save about $2500.

 

[E2ME2]

Glad you didn't forget the "u"

Yuup - that kind of fee would be a pain in the butt