Sale vs. Resale

[MickeyMom2Boys]

Are there any disadvantage to purchasing a resale as opposed to purchasing directly from Disney?

 

[chalee94]

resale takes longer. resale buyers (currently) have all the member benefits of those who buy direct. if you buy an OKW resale, it will most likely expire in 2042 while OKW purchased directly will expire in 2057 (but cost a whole lot more.) all the other resorts have the same expiration whether purchased direct or resale.

here's some general advice stolen from dvcmike:

Here are the basic pros and cons of doing your initial buy-in into DVC direct from Disney or via resale.

Initial Purchase from DVC

• You can get the exact number of points that you want (although you must buy a minimum of 160)
• Faster than resale (you will be in the system and have your points and be able to make reservations much faster than resale)
• No worries about the purchase if Disney executes ROFR, since that only applies to resale purchases
• More expensive cost per point than the resale market
• You can finance through DVC, and Disney doesn’t report the loan to credit reporting agencies
• You can pay with a Rewards credit card and get points/cash back
• The full set of points you buy will be available immediately, versus a resale contract which may be “stripped” of points.
• If you don’t want the resorts they are currently selling (AKV/SSR), you may have to do some firm talking to a guide to convince them you really want an older resort.

Initial Purchase via Resale

• You may not get the exact number of points you want
• You can purchase less than 160 points for your initial buy-in to DVC (Disney won’t let you buy less than 160 points).
• It will take much longer to get into the DVC system and have your points (resales typically take 6-8 weeks)
• Disney may exercise ROFR and you may lose the resale and have to start all over (When buying resale, one of the potential pitfalls to try to avoid is making an offer that will cause Disney to exercise it’s Right of First Refusal)
• Resale is typically less expensive then buying from DVC
• You can’t finance through DVC, although most resale brokers will recommend a finance company
• A resale contract may be “stripped” of points where the user has used many of the current year’s points, and may have borrowed some or all of next year’s points. Be wary of “stripped” contracts on the resale market.
• Easier to pickup large point packages at any of the older DVC resorts.

 

[lesley.a.murray@talk]

Speaking as someone who has recently made their first purchase by resale,I cannot see any disadvantages, only advantages.

It cost me less pp than buying from Disney.
Even with closing costs, I saved around $2500 on the same number of points, same resort.
I also found a contract with almost all the previous years points banked. A nice bonus! I don't believe you get banked points buying direct, although there may be Developer points if you are buying AKV or SSR. (which I wasn't)

Initially I would have said that the only downside to resale, was that it might take longer to complete. We were only 7 weeks from start to finish.
But then again, I have read threads recently about how long people are on the waitlist with Disney to buy points at sold-out resorts. Those threads sometimes make 7 weeks sound great!

I used **** & Jaki at http://www.**********.com/ and would thoroughly recommend them.

Good luck in your purchase!

 

[BillPA]

You get the same "perks and bennies" with resale as anyone who purchased direct from Disney. You are NOT treated any differently in anyway.

 

[PutnamDS]

I've purchased both of my contracts directly through Disney. I am just more comfortable with it - probably because I haven't tried a resale. One thing I really like is that my points are available right away. I can start using them immediately (and I do). With the incentives, it seems like it is also a pretty good deal when comparing to resales.

 

[thepops]

If you're not buying AKV or SSR then resale may be a better value. If you ARE buying AKV or SSR then you need to look at the incentives to see how the costs compare (and you get the points immediately rather than 7 weeks or so depening on how long the ROFR and closing go)

 

[cincinmouse]

I don't believe you get banked points buying direct, although there may be Developer points if you are buying AKV or SSR. (which I wasn't)

Initially I would have said that the only downside to resale, was that it might take longer to complete. We were only 7 weeks from start to finish.
But then again, I have read threads recently about how long people are on the waitlist with Disney to buy points at sold-out resorts.

I purchase direct from Disney in Feb of 2008 for SSR points. I did get 100 developer points plus I also got 2007 points wich I could bank even though I was past the banking deadline. Another bonus for me since I was not financing the purchase was that with Disney I could put 100% purchase on Credit card to get amex points and then pay card off immediately.

I think to buy resale or Disney you first have to ask what resort do you want to buy. If it is not AKV OR SSR then you need to go resale. If you want SSR or AKV then you have to evaluate current promo's(which changes all the time) vs what you can get on the resale and how fast do you need to use the points for a upcoming trip. The promo I got in Feb plus being able to immediately book a trip in May that we had already scheduled made me buy from disney. I told the guide that if we could not get in 2 bed for a May trip there was no deal. This time frame would not be possible with resale. But if I were buying right now for a trip in August with the current promotion I might go resale.

So there is no right or wrong way but what suite YOUR needs best at the time you are making the purchase.

 

[Arthur27]

Speaking as someone who has recently made their first purchase by resale,I cannot see any disadvantages, only advantages.

It cost me less pp than buying from Disney.
Even with closing costs, I saved around $2500 on the same number of points, same resort.
I also found a contract with almost all the previous years points banked. A nice bonus! I don't believe you get banked points buying direct, although there may be Developer points if you are buying AKV or SSR. (which I wasn't)

Initially I would have said that the only downside to resale, was that it might take longer to complete. We were only 7 weeks from start to finish.
But then again, I have read threads recently about how long people are on the waitlist with Disney to buy points at sold-out resorts. Those threads sometimes make 7 weeks sound great!

I used **** & Jaki at http://www.**********.com/ and would thoroughly recommend them.

Good luck in your purchase!

If I'm not mistaken Disney will ony charge the closing cost up to the 160 point value, thus you won't pay more closing cost after that value. Also, once you have purchased through Disney and wish to add more points to your contract there is no more closing costs, it's just a direck purchase.

 

[lesley.a.murray@talk]

If I'm not mistaken Disney will ony charge the closing cost up to the 160 point value, thus you won't pay more closing cost after that value. Also, once you have purchased through Disney and wish to add more points to your contract there is no more closing costs, it's just a direck purchase.

Oooh I didn't know that Disney charged any closing costs. I must have missed that bit! Sorry!

I was basing my "savings calculation" on my points at Disney's rate versus my resale total bill which was around $25000. My savings would have been even more then if Disney charges closing costs.

 

[MickeyMom2Boys]

Thanks for all the tips! I'm definitely going to check into the resale. Looks like I can save a good bit of money that way and I'm not concerned about the time it will take for closing. Our next trip isn't scheduled until May of '09. I'm not-so-patiently waiting to return, so that will give me something to do to keep me busy until then!!

 

[Saratoga Souris]

I bought 100 OKW points (add-on) in January for a March use year.
I got ALL of the 2007 points!
Be careful.... make sure you aren't buying a "stripped contract" without being aware.
When I priced out my add-on, it was actually "cheaper" to buy through Disney than thorugh re-sale.
That is..... factoring in.... closing costs (none through Disney) and the value of the 2007 points on the rental market.

 

[djwood24]

Thanks for all the tips! I'm definitely going to check into the resale. Looks like I can save a good bit of money that way and I'm not concerned about the time it will take for closing. Our next trip isn't scheduled until May of '09. I'm not-so-patiently waiting to return, so that will give me something to do to keep me busy until then!!

I just passed ROFR on 150 pts BCV for $89/pt resale
closing by months end with 86 pts available immediately
Closing costs are around $500...good deal in my opinion as I would ONLY wany BCV
Do your homework first and ask questions

 

[PADISFAM]

Thanks for all the tips! I'm definitely going to check into the resale. Looks like I can save a good bit of money that way and I'm not concerned about the time it will take for closing. Our next trip isn't scheduled until May of '09. I'm not-so-patiently waiting to return, so that will give me something to do to keep me busy until then!!

When we bought AKV in 11/07, we got a full 50 years worth of points.
This was one of the deciding factor to buy Direct vs. resale. You may save $2500, but I don't think you will get 50 years. I don't know how many years you get with resale, but I don't think you get 50 years.
If you figure out your cost per year, you will get a true comparison.
(cost/# of years=per year cost)
Also the incentive program are worth looking at. For example we got an extra $500.00 just for putting our down payment on a Disney Visa card.
Just trying to help. Good luck with whatever you choose.

 

[Buckeye Fan]

As the OPs say, depending on the resort, the savings can be minimal to pretty grand.

DH, the kids and I really LOVE the beach. We were dropping $1500 - $2000 per year at Daytona and then going over to Dis for a few days. We decided that since we do this every year, we'd look into VB. I know the MFs can be really high there (6.04 per point compared to our 4.21 at SSR), but we went ahead and decided to make an offer on a 150 pt contract, knowing that we can also use these points at WDW if we wanted to do so.

For that particular contract, it had 150 '07 points and 150 '08 points coming. We passed ROFR on 3/27. We're paying $60 per point (Dec UY) and MFs. The seller is paying the GMAC fee of $195 and closing costs. My contract will be $9,906 in total. Had we purchased through Dis, it would have been an add on, so we wouldn't have had any closing costs either. We would have still paid the '08 MFs of $906, but the purchase price for the points would have been around $12,750 (I think Direct is $85 or $86 per point for VB). At $85 per point, I saved about $3,750 purchasing resale.

 

[Inkmahm]

I think to buy resale or Disney you first have to ask what resort do you want to buy. If it is not AKV OR SSR then you need to go resale.

Why?

I bought BWV resale and then did addons for VWL and AKV through Disney. No "need" to do resale at all.

Buying through Disney was quicker and less hassle. And yes, I didn't have to come up with a bank check to pay for it. I put the whole thing on my VISA card for a month and got rebate $ for that. Love that deal!

 

[Saratoga Souris]

I just passed ROFR on 150 pts BCV for $89/pt resale
closing by months end with 86 pts available immediately
Closing costs are around $500...good deal in my opinion as I would ONLY wany BCV
Do your homework first and ask questions

Let me see... I looked at all of this before deciding whether or not to go resale. Here is the logic I used!

BCV at $89/point =$8900 + $500 closing costs + you "lost" 64 "one-time"pts not buying through Disney (you would have received all 2007 from them)
"Value of those points" is $11-$12 per point for rental = $704

You "paid" (yes... I am including "rental value" just to make a point) of $10104.
BCV is $104 through Disney??

You did save a couple of hundred dollars but you invested extra time and energy. I signed everything while I was at Disney and book a trip on my "new points" the next day

 

[lesley.a.murray@talk]

When we bought AKV in 11/07, we got a full 50 years worth of points.
This was one of the deciding factor to buy Direct vs. resale. You may save $2500, but I don't think you will get 50 years. I don't know how many years you get with resale, but I don't think you get 50 years.

The 50 years is more to do with the fact that you bought AKV, not whether it was direct or resale.

Different resorts have different lengths of contract remaining. I bought BCV and the contract runs until 2042. This would have been the same whether I had bought direct or resale.

The only one which differs is OKW, where you will most likely get a 50 year contract through Disney, or the shorter (non-extended) one via resale. Thats not to say that an OKW owner who took up the offer to extend, might not then sell their contract on with a broker, therefore a 50 year OKW could be available via resale.