Spontaneous Purchase of SSR and Experience buying Direct vs. Resale

[bobbiwoz]

Congratulations!

 

[TakeMe2DisneyNow]

to sum up:

if you pay extra to buy direct, you get access to your pts faster (usually just about immediately). DVC will usually make an effort to access their inventory if you need a reservation that would otherwise be sold out (first reservation perk only). DVC will also cheerfully bank pts that would otherwise be past the banking window (say, if you buy a sept UY in july/august - at initial time of purchase only).

buying direct also (usually) allows you to dictate exactly how many pts you want for your contract. if you want a 53 pt contract or a 147 pt contract, you might be waiting a long time for that exact number to come along on a resale.

and of course, by paying more to buy direct, it's easy to get a loan from disney to pay an extra 10-15% on your timeshare purchase. (this is not really a perk in my book.)

as others have said, buying direct also gives you the option to make (expensive, by my calculations) trades for disney hotels and disney cruises (also adventures by disney but those point charts are completely ridiculous).

all other perks are consistent between direct and resale buyers. (but all perks are subject to change at any time for BOTH direct and resale buyers.)

resale buyers still have the option to book DVC resorts (including aulani in hawaii and hilton head island in south carolina) in the same booking windows as direct purchasers and resale buyers can trade for other destinations through RCI for other timeshares (these options are both very, very unlikely to ever change).

whether you pay $135 per pt for SSR or $80 per pt for SSR resale, you will still be staying in the exact same rooms...and all SSR contracts end in 2054 whether you buy direct or resale...so it's not as if you are buying "new" as opposed to buying "used." i should also add that if you decide to end your DVC ownership so you can stop paying annual dues, disney will NOT buy back your contract and you will be forced into the resale market as a seller - so you might as well get comfortable with it now...

(i almost forgot to add: if circumstances do force you to sell your DVC earlier than you planned, obviously you will lose less money if you paid less upfront - even if you pay extra to buy direct, you cannot pass along those benefits and will be selling at resale prices no matter how you initially purchased DVC.)

take some time and read random threads on the DVC forums - search for more info on things that pique your interest - ask questions. learn about how things like "use year" work. it's a pretty big purchase.

I am doing a lot of research in advance for this exact reason. It will be AT LEAST a year before we purchase. I think we will rent until we decide them time is right to purchase. I just want to make sure we are making the best decision for us. We did the tour at the sales center on our last trip, which helped us decide that DVC is definitely for us. We just have to decide the best way to go about it for our purposes. Your information was super helpful. Thank you!

 

[mort1331]

If the value is there for you and you are happy that is fantastic - congratulations!

Buying direct takes away so much of the hassle. Maybe one day for us but I still shiver at the idea of $135/point for SS. I don't know if it is b/c hubby and I are accountants but my mind automatically calculates how many points that would have gotten us via resale.

I understand how you shiver, but remember OP was paying for a room that is now covered from there purchase. So take that off the 5o/point spread and it makes it alittle better. Add to it a smaller contract, under 100, and the lower closing costs. What your down to paying is a convenience fee to have direct points added right away to be used right away.

To the OP welcome home and welcome neighbour, we love SSR.

 

[freediverdude]

Well that is an awfully big convenience fee, lol. If SSR is going for $80 resale, that's a $4400 convenience fee. That would have to be a pretty pricey SSR cash reservation, lol. I don't think I could justify a direct SSR purchase like that, but it's the op's money, she can do with it as she pleases.

 

[MountainMouse]

Well that is an awfully big convenience fee, lol. If SSR is going for $80 resale, that's a $4400 convenience fee. That would have to be a pretty pricey SSR cash reservation, lol. I don't think I could justify a direct SSR purchase like that, but it's the op's money, she can do with it as she pleases.

How loaded would the $80 contract be? Also, I doubt you're getting an 85 point contract for $80/point. It's not as good as resale but it's not as bad as a $4400 fee either.

 

[dsnydaddy]

How loaded would the $80 contract be? Also, I doubt you're getting an 85 point contract for $80/point. It's not as good as resale but it's not as bad as a $4400 fee either.

I was thinking about this. In my case I could use about 25-30 more points. SSR resale for that amount would be better than $90 for a contract that size (if I could find one). And more than likely it'll not come with previous years points and possibly not next years points. So for the sake of argument if I was to purchase a 25 pt contract on resale for $90 but with only points in 2016 then I would miss out on 50 pts worth about $15 a peice for a total of $750 in value. Buying Direct from Disney costs about $45 more than resale which costs me $1125 more for the contract but subtracting the $750 means that the excess is about $375. I'm thinking that is not a terribly high convenience fee. Particularly if I know that I'll be renting those extra points anyway.

 

[freediverdude]

How loaded would the $80 contract be? Also, I doubt you're getting an 85 point contract for $80/point. It's not as good as resale but it's not as bad as a $4400 fee either.

I'm not going to continue the argument, because I don't want to offend the op any more than I may have already. My opinion is that it's a larger convenience fee than the likely cash reservation it's replacing, and for myself would be hard to justify. But if the op has decided to keep it, then I hope she has many happy years using the points.

 

[AnnaS]

Congratulations and Welcome Home!!!!! Enjoy your upcoming trip!!!

 

[DisneyGirlFlorida]

This has turned into an interesting thread on purchasing resale vs. direct and the "convenience fee". LOL I'm enjoying the debate and I'm not offended by the posts at all. I appreciate the various points of view

I'll admit I had a few days of buyer's remorse, and since I haven't actually "paid" for the contract yet (Disney gave me 60 days since it was a cash sale), I thought about what my options were had I changed my mind (I'm beyond the 10 day cooling off period) and expected estoppel on my resale purchase to be any day now.

Then the Neighborhood Summer Party at Typhoon Lagoon was posted and it's a water park my sister has NEVER been to (I've been before about 10 years ago). So, I booked a spontaneous 2-day split stay at AKR-Jambo and SSR (my sister's request!). I haven't seen such happiness or excitement with my sister when I emailed her asking if she wanted to go and where she wanted to stay. When I told her the choices, she said BOTH! LOL It was heartwarming seeing a 40 year old act like a 10 year old for the first time in a LONG time. I quickly realized had I not bought direct, I wouldn't have had access to that event.

Then I found out that Disney is taking their time on estoppel, with the broker telling me the closing company just got estoppel paperwork from resales waived on June 2nd (Mine was waived June 15), so it'll be another few more weeks of waiting which I would be okay with except....

I forgot I booked my Jan trip for Marathon weekend (bad blonde moment) and went to look for dates, only to see that everything was booked through DVC and started to panic thinking where am I going to stay now (and how much will it cost) until I looked at my dashboard again and saw that I HAD booked my trip for January.

So while the $4400 convenience fee stings knowing I could have bought a lot more points resale, I look at what I would have been giving up in exchange such as not making the Typhoon Lagoon DVC event and not being able to book reservations for Marathon Weekend. Sometimes it's not all about the money, like the master card commercial would say, the memories and extra benefits I get now rather than later are priceless.

 

[disneynutz]

My understanding is that Typhoon Lagoon DVC event is paid for by the members with dues money and everyone can attend. The sales events like the Poly Luau is put on by DVD marketing and it targets sales prospects, new buyers and some existing owners.

Bill

 

[nonnasally]

This has turned into an interesting thread on purchasing resale vs. direct and the "convenience fee". LOL I'm enjoying the debate and I'm not offended by the posts at all. I appreciate the various points of view

I'll admit I had a few days of buyer's remorse, and since I haven't actually "paid" for the contract yet (Disney gave me 60 days since it was a cash sale), I thought about what my options were had I changed my mind (I'm beyond the 10 day cooling off period) and expected estoppel on my resale purchase to be any day now.

Then the Neighborhood Summer Party at Typhoon Lagoon was posted and it's a water park my sister has NEVER been to (I've been before about 10 years ago). So, I booked a spontaneous 2-day split stay at AKR-Jambo and SSR (my sister's request!). I haven't seen such happiness or excitement with my sister when I emailed her asking if she wanted to go and where she wanted to stay. When I told her the choices, she said BOTH! LOL It was heartwarming seeing a 40 year old act like a 10 year old for the first time in a LONG time. I quickly realized had I not bought direct, I wouldn't have had access to that event.

Then I found out that Disney is taking their time on estoppel, with the broker telling me the closing company just got estoppel paperwork from resales waived on June 2nd (Mine was waived June 15), so it'll be another few more weeks of waiting which I would be okay with except....

I forgot I booked my Jan trip for Marathon weekend (bad blonde moment) and went to look for dates, only to see that everything was booked through DVC and started to panic thinking where am I going to stay now (and how much will it cost) until I looked at my dashboard again and saw that I HAD booked my trip for January.

So while the $4400 convenience fee stings knowing I could have bought a lot more points resale, I look at what I would have been giving up in exchange such as not making the Typhoon Lagoon DVC event and not being able to book reservations for Marathon Weekend. Sometimes it's not all about the money, like the master card commercial would say, the memories and extra benefits I get now rather than later are priceless.

 

[Juliet25]

OP, how were you able to buy so few points from Disney? I thought the minimum buy in was 160.

Do you happen to know the "Disney rate" for AKV?

 

[chalee94]

OP, how were you able to buy so few points from Disney? I thought the minimum buy in was 160.

Do you happen to know the "Disney rate" for AKV?

http://www.dvcnews.com/index.php/dvc-program/financial/pricing-a-promotions

looks like AKV is $155 per pt direct, minimum 100 pts.

 

[DisneyGirlFlorida]

OP, how were you able to buy so few points from Disney? I thought the minimum buy in was 160.

Do you happen to know the "Disney rate" for AKV?

When I purchased my SSR contract through Disney, I told them from the start that I wasn't 100% sure of purchasing, since I had a resale contract. The sales person was not happy to hear I was in the process of buying resale (and tried to talk me out of it several times emphasizing how "limited" I would be with using my points). I told them I did not want to buy a large contract, but rather a small contract, and I was just seeing what was available. The sales person told me contracts are only sold for 100 points. I told her I didn't want that many. She then asked how many points I wanted and where, and I told her 80 points at SSR. I also emphasized the fact I would be paying cash rather than financing. Her eyes lit up like SHE was going on a vacation to Disney. LOL

After she went to talk to her "quality assurance manager" to "see if it can be done", she came back and told me they can do it. When I was told I had to make the cash payment within 30 days, I asked if they can extend that further. She gave me 60 days to make the final payment. After another trip to get approval from her "QA manager", I was told they can do 60 days final payment due, and they started drawing up the paperwork.

So, my situation may be unique or it may be replicable. My advice to anyone looking to buy direct, know what you want, ask for what you want, don't let emotions get in the way, and be ready to walk away if you are not 100% happy with the deal. The worst that can happen is you get "no, can't do that". They have more to lose if you walk away then you do. You can always go resale, they need you. I'm not saying insult them and offer them resale price or ask for a 25 point contract but be willing and try to negotiate. I asked for SSR price and was told 140 per point. I knew it was double the resale price, but I also knew it was within the "going rate" for direct from Disney. In hindsight, I think going in to the purchase knowing exactly what I wanted helped. It sent the message that the sales person wasn't going to make an "emotional sale" with me, and keeping my emotions out of the picture helped me think clearly and not be afraid to walk away if I wasn't 100% satisfied with the purchase.

 

[DVC Doctor]

Congrats on your purchase, if you are a long term holder (i.e. 15+ years) the purchase price will become a distant memory and the years of enjoyment will take center stage.