should parents buy direct or resale?

[quandrea]

My parents, 63 and 65 are looking to buy 300 points. They would most likely stay at OKW or SSR most times. Wondering if they should buy resale or direct from Disney. We purchased our add on direct from disney to avoid the hassle of ROFR and to get the extended contract time. Perhaps their case is different though. Thoughts before they proceed?

 

[DVC SSR Owner]

Buy resale. Save 40-60 percent off.

 

[Rob S.]

If they are interested in SSR, they could easily save $13-$15K buying it resale. For 300 points, I would definitely go that route. If I was doing a small add-on at SSR (50 pts or less), I would buy direct.

 

[mysumi]

That's good information! What do you all think about an add on for AK? Or BLT? Would it be better to go through resale for those?

 

[DVC SSR Owner]

Depends on incentives and closing costs. We paid $0 closing for 200 ssr points at $55 pp but no free cruise. Resale.

 

[JimMIA]

My parents, 63 and 65 are looking to buy 300 points. They would most likely stay at OKW or SSR most times. Wondering if they should buy resale or direct from Disney. We purchased our add on direct from disney to avoid the hassle of ROFR and to get the extended contract time. Perhaps their case is different though. Thoughts before they proceed?

I would buy OKW resale and expect to pay $60 per point or slightly less. That would be an $18,000 savings compared to the $120 per point Disney is charging for OKW direct. Yes, they'll probably have to pay closing costs, but those will only be about $600 -- FAR less than the $18,000 they save!

We own at both resorts, but OKW is our favorite, by far -- but the real reason I said OKW is the slightly lower annual dues.

There are plenty of contracts for sale, so they shouldn't settle for a stripped contract. I'd be sure the contract has at least 90% of the current year points.

 

[JimMIA]

That's good information! What do you all think about an add on for AK? Or BLT? Would it be better to go through resale for those?

You just have to do the math -- and you also have to see if you can get the contract you want resale. Especially if you are looking for <100 points, your resale options may be limited.

Especially since you are already IN, and the wait for resale probably won't hurt you, I'd sure look carefully at resale. There's quite a difference in prices, and that difference will increase when BLT goes to $130 per point on Dec 1.

Buying direct is quicker and easier, but it's a question of how much premium you're willing to pay for convenience.

 

[DVC SSR Owner]

How many air tickets, disney ap, etc can you buy for $18,000?
Resales save a lot of money!

 

[Sandisw]

If the resorts they are interested in are OKW and SSR, then going the resale route makes sense as there are a lot of contracts out there for a substantial savings over buying direct from Disney.

As for AKV and BLT, I think the water is a bit more muddied. For BLT, there are not a lot of contracts with that many points out there and the UY being offered on many of them is Feb. Right now, 300 points at BLT will run you around $108/ppt through Disney so while it may be a bit more than resale, the difference may not be enough to override being able to get exactly what they want. Many BLT contracts seem to be going between $95 - $100 or so.

For AKV, I think resale still wins out since those are going somewhere in the $80's.

Unless they need points immediately, need to finance in an easier manner, or just prefer to go through Disney, resale will be the best way to save money.

 

[Brian Noble]

They would most likely stay at OKW or SSR most times.

Absolutely resale.

 

[DenLo]

OKW is currently selling for $90 per point after incentives direct from Disney. SSR for 300 points is about $102 pp. http://dvcnews.com/index.php/dvc-program/financial/pricing-a-promotions There is always the chance that prices will go up or in some cases go down.

It looks like you can purchase either OKW or SSR in the low to mid $60 per point range on the resale market. That's a $30 - $40 per point savings. Do your parents have a specific UY they are interested in? Would they wish to match your UY so you can merge (transfer) your points from time to time. Same use years and points from the same home resort would help if that is what you plan. Also we found when shopping resale that we couldn't always find the number of points we desired or the UY we wanted. Buying smaller contracts (two or three that total 300 points) might be best for your parents in case they want to sale some points later.

If your parents are willing to be patient, buying resale could save them money.

 

[quandrea]

OKW is currently selling for $90 per point after incentives direct from Disney. SSR for 300 points is about $102 pp. http://dvcnews.com/index.php/dvc-program/financial/pricing-a-promotions There is always the chance that prices will go up or in some cases go down.

It looks like you can purchase either OKW or SSR in the low to mid $60 per point range on the resale market. That's a $30 - $40 per point savings. Do your parents have a specific UY they are interested in? Would they wish to match your UY so you can merge (transfer) your points from time to time. Same use years and points from the same home resort would help if that is what you plan. Also we found when shopping resale that we couldn't always find the number of points we desired or the UY we wanted. Buying smaller contracts (two or three that total 300 points) might be best for your parents in case they want to sale some points later.

If your parents are willing to be patient, buying resale could save them money.

This is really helpful. I spoke with our guide yesterday. She mentioned the $90 per point price at OKW. They have points available but not during our December use year. I hadn't thought about having the same use year. We wouldn't be travelling together for the most part. What I liked about the disney direct points is that they expire in 2057 not 2042. Isn't that better value for money. We'd also be able to make reservations immediately. How long does the resale process really take. Timeshare store says thirty days plus a week. Disney says it's more like ninety days. I don't like that. Timeshare store has lots of OKW contracts right now--with points. We'll see. My dad seems to be waffling on the whole thing. I think he doesn't like that he isn't actually buying a real piece of land. I think it is a great vacation property exactlly for that reason--no responsibility

 

[Mtnman44]

just to add my two cents: There are no circumstances where I would ever want to buy 300 points all in one contract. I realize that buying them separately via resale adds some extra expense and hassle, but I feel it is minimal for the reduced risks and flexibility benefits of smaller contracts.

 

[KPOP]

definitely resale - I just closed on a contract w/ the timeshare store and it was easy, and much cheaper than going through disney direct

 

[quandrea]

just to add my two cents: There are no circumstances where I would ever want to buy 300 points all in one contract. I realize that buying them separately via resale adds some extra expense and hassle, but I feel it is minimal for the reduced risks and flexibility benefits of smaller contracts.

This intigues me. Tell me why. Should the smaller contracts be at the same resort, same use year? I know we have 3 contracts but that is b/c we added on twice. What are the benefits. Thanks so much for this input.

 

[Mtnman44]

Really the only reason is that once purchased, the number of points in a contract cannot be changed. This really only comes into play if you want or need to sell all or part of it in the future, or will it to someone else. Even if you never plan to, you never can be sure right?...

Large point contracts, say over 160 points, command a lower per point resale value. Larger contracts are also more difficult to find a buyer for. You have probably seen this while looking at resale listings. Larger contracts have a lower $ per point asking price. This is simply due to the fact that the larger the contract, the smaller the market of potential buyers due to high overall cost. The other is the fact that larger contracts are less desireable (reasons I am currently explaining).

Other beneifts include the ability to sell some of your ownership if your needs or financial situation changes. If you own 3 x 100 point contracts, you could sell one of two of them. With a single 300 point contract, it is an all or nothing deal.

The same goes for passing the deeds onto children. A single contract is more difficult to distribute than several smaller ones.

Whether or not you want multiple contracts at the same resort or at different resorts depends entirely on your needs and preferences. 3 contracts at the same resort is functionally the same as one large one (same Use Year -add ons). Contracts at separate resorts would give you home resort advantages at more places, but with a lower amount of points at each one.

Bottom line. As the owner, you are in a much better position holding 3, 100 point contracts than a single 300 point contract. Not only are the threy more valuable combined in terms of market value, they are also easier to sell, and can be sold or willed separately. In the current market, many 25, 50, 75 point contracts sell before they can even be listed there is such a high demand. This makes them almost a liquid assest (an exaggeration, yes).

and Yes, I would definately want all contracts to be of the same Use year, aka: "Add ons".

This intigues me. Tell me why. Should the smaller contracts be at the same resort, same use year? I know we have 3 contracts but that is b/c we added on twice. What are the benefits. Thanks so much for this input.

 

[dj~merlin]

i think one factor is what do they want to do in the future,
it sounded liked something they also want to pass on
to their children. & if that true, then maybe you should
sit down & talk about the resorts that the children prefer.
one advantage , ssr is so large, it is one of the easiest to
get @ 7mos. . so while resales may be the cheaper choice,
the others may make the better "gift."

 

[cayman01]

The only DVC worth buying direct from Disney now is BLT. Once you add in closing costs with resale it adds up to be about the same price. I always thought resale was the best way to go but you have to remember that over the life of the contract most all the upfront savings you get by buying a re-sale you will give back in higher maintenance costs.

Now this may not matter to the OP because their parents are older, but to younger buyers this is an important consideration.

For example if you bought a SSR contract for $64 including closing costs your actual cost per point for this year would be $5.82. If you bought BLT direct from Disney at $102 your cost per point would also be $5.82.

How is this figured?

( purchase price / yrs left on contract) + 2010 MF's/pt.

So for BLT you have 102/50 + 3.78
And for SSR u have 64/47 + 4.46

It will take awhile but eventually your upfront savings will get eaten by higher MF's. Contracts ending in 2042 have the highest per point costs.

As to breaking up the contract I would highly agree.
Smaller contracts demand higher prices if you have to sell them down the road. I would do six 50 point contracts for the 300 point total. You might get muscle cramps signing the docs but it is to your advantage. Also, it's is much easier to divide them among children down the road.

 

[yfchen22]

We bought both of our contracts through the timeshare store many years ago. It was easy and pretty quick. We even saved tons of money back then. Disney treat all members the same so why pay more?

 

[DVC SSR Owner]

Two contracts wouldn't cost any more than one IF you find an eager seller like we did who paid all closing costs. I personally did this. We bought ssr resale in July and our Dvc online account was ready with points in it at the start of September. We sent offer to Disney for rofr in June. So, I think from start of contract signing to points in account for reservations, 90 days is pretty accurate. I know you can get ssr for less than $60 pp. We took a year to decide to join and the price was right! Good luck!