Small point purchase direct vs resale

[KeithSS]

I posted this on the FB DVC fan page too but figured maybe some people weren’t on there so wanted to post it here for opinions as well.
Ok, so I’ve been working on something and want to make sure I’m not missing anything here. I currently have a grandfathered in 25 point OKW contract. My parents have another 210 point direct contract from back in 1994 so there is zero restrictions on that as well. They are eventually going to be giving that to me in probably the next 5-10 years. So I want to get another smaller 60ish point contract of my own at a different resort for the 11mo booking window as we tend to like to go in late nov early dec. it’s just my wife and I so we typically get studios. I’ve done a comparison chart on excel to compare buying direct vs resale. From what I’m seeing it’s not that big of a savings to go resale since the point total is so low. And by going to direct the transaction would be a whole lot easier as well as matching use year etc with my current contract. Can anyone take a look at this and see where I might be missing anything? Any input is greatly appreciated. I feel like I may be starting to get analysis paralysis LOL

Edit: it wont let me post the dropbox link or attach the file. Let me try and find another way to attach it

 

[KeithSS]

It keeps telling me the dropbox and google drive links are spam and it wont let me post. Anyone know how to attach a file directly from the computer? Is it because I dont have enough posts?

 

[jillt2ph]

I have purchased 3 small contracts directly - 25 BLT to match the use year for my 80 point resale contact, 50 Poly, and 58 Riviera. I figure if I pay a few extra dollars for immediate access to points and an easy transaction, so be it. I am totally comfortable with that. Direct closing costs were cheaper, and I used a credit card to get rewards. I only buy when I have the cash available so I never pay any interest. It is a personal decision, and you have to do what feels right for you.

Buying resale today probably isn't quite the hassle in was in 2011 and 2012 when I did it - that was a pain getting checks sent, receiving/signing the paperwork, getting it notarized and sending it back. etc.

 

[princesscinderella]

I would say it depends on what Resort you want to buy direct at. Some of the direct points are $100 more per point than what you can find on the resale market. Small contracts do come with a bit higher price tag on the resale market. 60 points isn’t going to go very far at a different resort for a 11 month home booking window as they can’t be combined with the OKW points, unless you plan to bank and borrow only using these points every 2-3 years.

 

[KeithSS]

Right now I think the frontrunners as far as which resort to purchase at are Riviera, Poly, Copper Creek and Grand Floridian. We know that only using our 60 point contract would get us like 3-4 nights per year or we could bank/borrow to get a week. Those resorts seem to have the best value left when you figure out the price per point/years left + maint fees.

Direct for 60 points:
Riviera $741
Poly $756
CC $736
GF $764

Resale:
Riviera $698 - $2100 total saving vs direct
Poly $639 - $5280 savings
CC $664 - $3360 savings
GF $666 - $4200 savings

We are going to be financing these points right now so the % difference in direct vs resale comes into play as well. although those savings aren't factored into these #'s, it is something to think about. I'm leaning towards Riviera or CC direct I think as those are the overall best values, plus for the little bit of $$ difference i think having no restrictions on anything is worth it as far as being able to use the point anywhere.

Does anyone think the Riviera will be worth more than $25/pp less than CC down the road if we had to resell it? Cause CC is currently $25/pp more to purchase and if the difference down the line isn't going to be significantly different than that I'm not sure its worth the $25/pp premium

 

[Sandisw]

Honestly, i think direct may be better, simply because you are looking for not only a small contract but a specific UY.

Even if you were buying one of the 2042 resorts direct, it’s 20 years worth of points. Even at $100 more, on 60 points, its $6000...so $300 extra a year to own now.

Also, if you have any interest in using the points at RIV, those resale points can’t even be combined with the OKW points you have now...direct ones can.

If you are thinking about going in November/Dec 2021, buying direct would allow you to book that resort immediately vs 3 months from now when you have the resale points...assuming, you find something quickly.

 

[Lumpy1106]

Finding a small contract with a specific resort and UY is going to be hard. That said, you gain almost nothing by buying direct. What's the cost of the search worth to you? There's your answer.

 

[KeithSS]

Finding a small contract with a specific resort and UY is going to be hard. That said, you gain almost nothing by buying direct. What's the cost of the search worth to you? There's your answer.

well I suppose the other gain from buying Direct is the ability to use the points at any resort vs the restriction of either not using them at Riv or only being able to use them at Riv. I agree that the specific use year and contract size will be hard though going resale. Definitely a lot of moving parts to consider. That is exactly why I wanted to post something here, to get a bunch of opinions and to make sure I was considering everything I needed to be looking at.

 

[Louis morrell]

We started with a resale SSR contract in 2017. In 2018 we wanted to add on 75 points. I i looked for a june use year contract for 2 months with no success. At the time there was about a $40 difference between a small resale and a direct contract. We went direct. We had points added in less than 12 hours. To save a few bucks I opened a new Disney Chase Visa and got a $300 statement credit. Then we got $250 reward points for the purchase. On top of that we took advantage of the 6mo interest free float offered by Chase. In all that saved us about $7.25 a point bringing the difference closer to $33. At the time it also got us a blue card.

 

[KeithSS]

The more I think about it, I think the advantages of going direct outweigh waiting for a resale contract. For the small amount of points I'm looking at, the $$ difference just isn't enough to make a huge swing one way or the other. So it comes down to using the points at any resort, ease of transaction I believe. Now to just figure out which resort lol. Ill have to make a poll and see what people think

 

[Spinster Travel]

When it comes to small contracts, I'm in favor of getting the points direct. I just added on 25 points at OKW and it just made so much more sense for me to get them Direct. It was the difference of a few hundred dollars which was worth every penny to get it done without ROFR, in my Use Year and not having to wait for sellers to sign paperwork etc. Not to mention, that if RR is on your list, you'll probably appreciate being able to use those points anywhere rather than just at RR if you bought resale. I also took advantage of putting that small contract on my Disney Visa for the 2% in points and 6 months of zero interest payments. I'll have it paid off in less than 3 months, but that is an option I wouldn't have with resale. Good luck!

 

[Ginamarie]

It's definitely easier to go direct and match your use year. If you're looking at Riviera, I would only buy direct because those resale points will be restricted to only using them at Riviera, so you lose a lot of flexibility.

I saved a lot of money on my AKV contract because it was around $80 per point difference, and I bought 300 points. So resale was the way to go. For a smaller contract you're difference will always be less.