thinking of buying dvc

[rsjj]

first, let me apologize if i don't use the "proper" terms here...

is it better to buy directly from disney? or thru a resale? and do i think of buying at a "home resort" of my choice? or anywhere would be fine? thank you in advance!!

 

[DVC Mike]

is it better to buy directly from disney? or thru a 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 loose 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. Just be aware of “stripped” contracts on the resale market.
• Easier to pickup large point packages at any of the older DVC resorts.

 

[DVC Mike]

do i think of buying at a "home resort" of my choice? or anywhere would be fine?

One of the first decisions a prospective DVC member has to make, after deciding to buy into DVC, is which resort they should purchase and make their home resort. DVC members who wish to add-on face the similar issue of choosing which resort to add-on points at.

Prospective DVC members may not be aware that they are not limited to just the resorts that DVC is actively marketing, but that it is possible to buy into any of the DVC resorts, even the older “sold-out” resorts. You can buy these resorts on the resales market, as well as direct from Disney (once you convince your sales guide that you simply are not interested in the resorts DVC is actively marketing).

Now, what factors should one consider in choosing their home resort?

The most popular philosophy, and the one I personally adhere to, is “Buy Where You Want to Stay”. If you really love a particular resort, then buy into it. There are some people who have a particular fondness for a resort and really want to stay at that particular resort, and they would be unhappy if they were not able to book there. These folks should buy where they want to stay, provided that they can reliably plan and book to take advantage of the 11-month home resort booking advantage.

If a specific resort (theme/style, location, villa type and/or view) is important to you and you want the 11-month home resort booking advantage, then buy into that resort. The need for the home resort booking advantage varies by resort, villa type, view and time of year that you most often vacation.


If you don’t have a particular fondness for a certain resort, or if you’re not a planner and anticipate always booking at the 7-month window (or less), then one of the next two philosophies may be best for you.

One alternative philosophy states “Buy Where You Wouldn't Mind Staying”. This view states that people should avoid buying at a resort that they really wouldn't be happy staying at. Since the resort you buy into will be your default location should your other options fall through at the 7-month window, you should pick a resort that you would wouldn’t mind staying at; i.e., it would not make you unhappy.

Finally, others promote the idea of “Buy the best deal”; that is, whatever resort has the lowest overall cost. If any resort is fine, then buy where you get the best overall deal for total cost of ownership. Recognize that the variables for that depend on purchase cost (price, closing costs and finance charges), annual dues, expected length of ownership and likely resale value upon disposition. Keep in mind that any savings in upfront purchase cost will probably be offset by the difference in maintenance fees.

One other factor to consider is the contract length. Some resorts (VWL, BWV, BCV, HHI, and VB) have significantly shorter contracts than SSR and AKV (and now perhaps OKW). If you are older, this may not be a factor. However, if you are young, then the additional years may play a role in your decision-making.

 

[Buckeye Fan]

first, let me apologize if i don't use the "proper" terms here...

is it better to buy directly from disney? or thru a resale? and do i think of buying at a "home resort" of my choice? or anywhere would be fine? thank you in advance!!

Mike did an excellent job answering both the resale/direct question and where should I buy.

The only thing that I'll add is that certain resorts offer a greater savings via resale and may be worth the wait. I really wanted points at Vero Beach because my family loves beach vacations. We didn't want HHI because we wanted to be able to tie in a few days at WDW. So, I am getting ready to close on a contract that was loaded (150 point contract with 150 '07 points and all '08 points coming) for $60 per point. Had I gone through Dis, I would have paid $86 per point for the exact same contract. I negotiated for the seller to cover all costs except for maintenance fees (which I would have paid through Dis as well), so with that said, I saved $3,900 by buying resale on 150 points. I think that's going to be your most extreme example.

For the record, VB's maintenance fees are so much higher than the other resorts (VB = 6.04 and SSR = 4.21 per point). So, I would buy a DVC resort in WDW unless you want to make regular trips to either HHI or VB. The MFs over time will eventually make a higher price per point purchase at other resorts a better value.

 

[rsjj]

thanx for all the info! would any of you know if we can buy into the one being built at grand californian in disneyland? or how about the one at hawaii? any info you may have would be appreciated.

and this is what i understand so far...you're saying that whatever resort you buy into, is your home resort. and thus, you would be able to book easier there. and if i want to book at another resort, it might be likely that i won't get the dates i request?

again, thanx for taking the time to help & answer my questions!!

 

[rsjj]

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please explain the young/old age factor. i don't quite understand why that would matter. (i'm sure it's pretty obvious, but i don't quite see it) again, thank you!!

 

[dianeschlicht]

please explain the young/old age factor. i don't quite understand why that would matter. (i'm sure it's pretty obvious, but i don't quite see it) again, thank you!!

Mike is refering to the 50 year end lease of DVC. Many of the DVC resorts end in 2042. SSR has a 2054 end date, and AKV has a 2057 end date. Some of the OKW contracts were extended to 2057, and if you buy OKW from DVC directly, that is the end date you will get. If you are in your 30's or younger, that end date might mean a great deal, but if you are in your 50's or older, maybe not so much. I am in my 60's. We decided NOT to extend our OKW contract the extra 15 years because we don't see ourselves vacationing at Disney in our 90's, and we don't wish to saddle our grown kids (who will be in their 60's by the time the original contract would end) with the extra maintenance either.

 

[chalee94]

and this is what i understand so far...you're saying that whatever resort you buy into, is your home resort. and thus, you would be able to book easier there.

exactly!

(as long as you can book 8-11 months prior to arrival. if you can't or don't book until 7 months out or less, home resort is a non-factor. except for annual dues...as already stated, different home resorts charge different annual dues.)