Resell ?

[willory]

Couple of questions for you experts My husband and I have gone Dave Ramsey lately and are contemplating selling our DVC which is paid for--what can you guys tell me about the resell process and another more difficult question...we have a feb. use year and have 175 points becoming available on Feb. 1st; we have planned an extended family vacation using all of those points for June 2005; is it feasible to even think about selling the points now and still being able to do this vacation?? I mean can that be worked out with a buyer--so, in essence the new points would not be available until feb. 2006 --Should we just wait until after the June vacation; or try to sell now and then rent points for the June vacation ????

Crazy I know!

 

[Granny]

My understanding is that if you sell, any reservation you have is cancelled and the points go back to the contract.

So your buyer would have to make the reservations for you. I'm sure something like this could be worked out where you agree on a purchase price and then agree to rent back points from the buyer at a certain price per point. That would have the added advantage of raising your selling price and getting it through Disney's ROFR.

But to me, that sounds like a real mess to find the buyer willing to do that. Most people who buy something want to use it right away.

I'd wait until after your trip. You'll probably get as good of a selling price as you could now and you'll get another vacation in.

 

[CarolA]

Well, you obviously have not gone the full Dave route or you would be giving up vacations. (Sorry about that, but Dave drives me crazy! He is making a fortune and some of his advice...)

Anyway, if you really want to sell why not sell and rent the points for your vacation either from your buyer or someone else. If you put the thing on the market in July with all points gone it might not bring as good a price.

 

[RuthnPaul]

Who in the heck is Dave Ramsey???

 

[msdis]

RuthnPaul- http://www.daveramsey.com/


Willory-all you need is one buyer. I would take the trip if you still want to before listing it. Then list it for what you want. You may sit on it but if you have the time, it will get sold.

 

[DrTomorrow]

Originally posted by RuthnPaul
Who in the heck is Dave Ramsey???

Do a Google for his name and you'll see he's another of those radio-based 'Financial Planners' who - for a fee - will help you along the path to "Fiscal Fitness".

I don't know if I'd sell my DVC right now; with SSR on sale for the next few years - and price increases sure to follow - it would seem reasonable that you could get more for them in a year or two....

IMHO - YMMV

 

[RuthnPaul]

MSDis & Dr. Tomorrow, thanks for the information on Dave Ramsey! Don't know if he is actually helping others get "fiscally fit" but I'm sure he's doing quite well for himself!!

 

[pplasky]

If you own your DVC and still enjoy going to WDW, why would you sell? I could see if you wanted to get rid of debt, but if you are only paying Maintenance fees, that is fiscally a better way to vacation and would be a better financial move, or are not going to vacation any longer?

 

[laceemouse]

RuthnPaul, I never heard of this guy either. pplasky makes a great point, if it is paid for why sell? unless you need the money to pay off other debt. But are you NEVER going to vacation again???

 

[CarolA]

I can't speak for the OP, but Dave's plan is that you sell everything you can to pay off your debt. So you would sell any "toys" (boats, motorcycles) you sell fancy cars and buy cheaper older cars that you can pay for in cash, etc. I assume that he would treat DVC the same way. However, he also advocates giving up pretty much all "non essentials" during the debt payoff stage so Disney vacations would be out.

I have some issues with Dave. For example using his logic I should NOT have a car note. I should have taken the cash out of my savings to pay for the car even though my car note has an interest rate of 0.0%. Now while my investments are not setting the world on fire they do better then 0 so I figure I am better off using Saabs money then mine to pay for the car!

Dave Ramsey managed to get himself into MILLIONS of dollars in debt as a real estate developer. He got himself out of debt and has now made MILLIONS off his Fianancial Peace University program.

 

[doubletrouble_vb]

Willory...

Not knowing your financial situation...and I'm not asking about it... If you are going to sell your DVC I would suggest doing one of two things.

Wait until June, take the vacation, put the unit on the market. It appears to me DVC sales uptick in the summer.

Or, rent out all of your points into a relatively short horizon (find a renter who wants to go sooner than later). After the renter has gone on their trip sell the contract...as far as I can tell renting then selling an empty contract is more profitable than selling a loaded contract.

More importantly if this is a toy you really want to keep take a look at what it would take to retain it. Don't sell assets just for the sake of selling them.

 

[ErinC]

You might also consider keeping your contract and just renting out the points to pay for it right now. That way when your "debt" is paid down, you will still have your DVC contract and it will have cost you nothing in the process. I guess it just depends on how many points you have as to whether there will be enough extra to slip yourself in a trip. JMHO

 

[willory]

Thanks for all of the advice. As for Dave Ramsey--he only makes $ if you buy some of his books/ or products--not if you check the book out of the library I like a lot of what Dave Ramsey says and other stuff not so much--my husband's car is financed at 0% and no matter what anyone says in our opinion that can't be beat--as far as DVC--we do love it and it is paid for--but looking at if from DR's perspective we should let loose of our toy and pay off our cars and one student loan...then if we want to go back into DVC and have the cash to do so go for it...it is just an always cash thing with the exception of your house....BUT WITH DR AS LONG AS YOU ARE NOT PULLED INTO THE SEMINARS OR BUYING PRODUCTS he does have a lot of good advice--anyone who only takes debit cards or bank draft for payment can't be all bad!

 

[CarolA]

Originally posted by willory
anyone who only takes debit cards or bank draft for payment can't be all bad!

You have got to be kidding. This man wants me to give him my DEBIT card to buy from him. There is NO way I would give that to anyone, I really don't want him or anyone else having access to my BANK ACCOUNT! Yes, there are some protections but if someone takes the cash out it is gone until you and the bank work out the issue. YIKES!!!

 

[dis-happy]

Woah, Carol, debit cards have a lot of protections.

When they are used as a credit card is used, they have the same protection limitations as a credit card. However, if you use a debit card in a store and punch in an ID number, that becomes use like a ATM, and ATM protections are not as good.

In the OP's case, giving a debit card number, it is run through like a credit card, but the money it taken out of the checking account immediately. This helps people who have a problem with spending not get stuck with a big unpayable bill at the end of the month. They have to be accountable to their spending immediately. Nothing sinister there.

Personally, I am quite a bit more concerned with paypal, and the open access to checking accounts there. For that reason, I've always stayed as a cc customer only.

As far as bank draft goes, very soon all banks will have the ability to send your checks through electronically, with immediate withdrawal from your account. So basically, when you write a check from now on, it becomes a bank draft. My doctor's office already does this--zips my check through a machine and then hands me back my check, as the money is already withdrawn.