should I buy?

[chickamu]

Help.. Im really interested in buying into dvc.. but go mostly to disneyland. Would a resale be worth it.. We go twice a year usually. . But this year we also did a dis cruise and a trip to wdw.. I am thinking about purchasing a resale for disney california. I could only purchase a small amount of points maybe 50 to 100 I would pay cash.. any suggestions

 

[Dean]

Help.. Im really interested in buying into dvc.. but go mostly to disneyland. Would a resale be worth it.. We go twice a year usually. . But this year we also did a dis cruise and a trip to wdw.. I am thinking about purchasing a resale for disney california. I could only purchase a small amount of points maybe 50 to 100 I would pay cash.. any suggestions

For your plan you need to own there. The price difference isn't as great for VGC as it is for some between resale and retail plus you're looking small. I'd look for resale but get on the wait list for retail as well. There are contracts listed currently various places that seem to fit your situation. You really aren't going to save much resale so you may as well have qualified points if you can. Retail will be $16500 plus modest closing cost 100 pt min. Resale maybe $14500 plus you'll pay more for dues in all likelihood resale than retail. I'd say in this situation I'd buy retail IF DVC had what I wanted in UY and points. If not or you want to buy less than 100, resale is your best option, esp if you can find a loaded contract you like otherwise.

 

[DVC Dude]

Disney prices is $160

Resale price is $130-140 range

But if you can get a resale with current and banked points then the effective cost will drop to $110-120 per point

the only advantage of VGC is that it gives you an 11 month window to book California vs waiting 7 months.

 

[CailinFig]

Resale maybe $14500 plus you'll pay more for dues in all likelihood resale than retail.

Just curious how you'd pay more for dues resale than direct? Do you mean one might pay MF for a stripped contract? (Versus direct it would be prorated?

 

[DVC Dude]

Just curious how you'd pay more for dues resale than direct? Do you mean one might pay MF for a stripped contract? (Versus direct it would be prorated?

I think he means that the 40 year total of dues payments will be significantly more than either the resale or developer purchase price.

The total annual dues over 40+ years will be at least 3-4x the original purchase price.

People often get hung up over $10-15 per point differences in the cost of a contract, when they will easily spend $200+ in total annual dues payments

 

[Dean]

Just curious how you'd pay more for dues resale than direct? Do you mean one might pay MF for a stripped contract? (Versus direct it would be prorated?

I think he means that the 40 year total of dues payments will be significantly more than either the resale or developer purchase price.

The total annual dues over 40+ years will be at least 3-4x the original purchase price.

People often get hung up over $10-15 per point differences in the cost of a contract, when they will easily spend $200+ in total annual dues payments

No, my point is that one almost alway overpays on dues resale at closing and that the "you buy the points you pay the dues" approach is simply wrong but it is the reality of resale. Generally you're saving enough that you can just roll it in to the big picture but when you're on such a tight margin as in this case, it can be make or break. Lets take 100 points VGC and assume dues at $5 pp to make it simple. Yearly dues are around $500. Lets assume one bought a Feb UY today getting all 2013 points and closed soon. With the above info you'd pay $500 in dues for 2013 resale but around $50 if you bough directly signing today. That's a $450 difference, plus you get direct options and immediate access for essentially no cost when you add up the small price difference, immediate access has a value of about 2-3 months in dues and the difference in the purchase dues as I describe. From a dues standpoint, you're essentially always do better retail, from a points standpoint it depends. Sometimes with resales you'll get an extra part of a years worth of banked points or even a years worth of points but less than a year to use them and you normally don't have to pay dues on the banked points, but the price pp tends to be a little higher comparatively speaking. Plus, in the example I gave, you wouldn't have time to close before the next UY started so if the points from this year weren't already banked, you'd lose them completely where for retail you can bank them even the last day. This line of thinking only reasonably applies to things you can't get resale or where the price difference simply isn't there. Currently that's very small packages like 25, VGC and VGF. Thus I'd say that resale and retail are literally almost the same price on a smaller contract currently and that for a close UY, may actually be cheaper retail when you give the points an inherent value. Now DVC may not have the points sell to right now and that changes things as a few month delay also has some cost and resale isn't more expensive in most situation.

As for your last sentence suggesting one shouldn't worry about a $10-15 difference up front because in the long run dues are the big expense, I disagree in most situations. It's still lost money and it can still be significant, esp when you look at the time value of money. I believe there's a difference in micromanaging vs paying attention to what one spends, this would fall into the later generally with DVC (other than very small contracts maybe). It's the type of approach that makes people poor that don't have to be otherwise because people who do this usually do this in many areas. It's literally death by a thousand paper cuts.

 

[DVC Dude]

I have bought several DVC contracts both from Disney and resale.

I never pay for banked or current points and buy the resale contracts at below market rates. It does take a long time to find a perfect contract if you want a true bargain and VGC is even harder to find bargains.

As funny as this sounds, I had a 100 point VGC contract (around $92pp) direct from Disney contract that I switched to BLT as I figured my trips to california would be minimal. I knew that the limited inventory would be valuable, but the current VGC prices vs BLT is higher than I ever imagined.

I am still happy owning BLT for $92, but NOW regret switching out VGC for BLT.