Thoughts on adding on direct after inital resale purchase?

[Reddd.12.18]

Hi all! 2017 I purchased resale for BWV and now am thinking to add on some direct points to get the member perks. What perks exactly do you get for the minimum buy in though? I'm wondering if the perks are worth 25 points at $185/pp

 

[SL6827]

If we go with a 25 point direct, I will look for a lower priced contract.

 

[erionm]

What perks exactly do you get for the minimum buy in though?

Reduced pricing on select Annual Passes
Dining & Merchandise Discounts
Access to any special events hosted by DVC (which includes the current after hours events they are doing)

 

[Ben E N]

Reduced pricing on select Annual Passes
Dining & Merchandise Discounts
Access to any special events hosted by DVC (which includes the current after hours events they are doing)

And that lounge in Epcot

 

[Greg36]

The AP discount was the best perk we found when buying a small direct add on. We are a family of 4 so the AP savings were significant. Besides that, we did the Epcot lounge and it is nice. We just used the AP for 20% off merchandise discount but if we did not have the AP we would have got that as well with the DVC direct discount. There are special events as well like the moonlight magic nights. Overall though, from a financial perspective, it was only the AP discount that sold me on adding on direct. We also felt the cost was small enough (25 direct-AP discount) to hedge our bets on long term ownership and what having a direct contract could mean for our future behaviour/vacation plans.

 

[JETSDAD]

The AP discount was the best perk we found when buying a small direct add on. We are a family of 4 so the AP savings were significant. Besides that, we did the Epcot lounge and it is nice. We just used the AP for 20% off merchandise discount but if we did not have the AP we would have got that as well with the DVC direct discount. There are special events as well like the moonlight magic nights. Overall though, from a financial perspective, it was only the AP discount that sold me on adding on direct. We also felt the cost was small enough (25 direct-AP discount) to hedge our bets on long term ownership and what having a direct contract could mean for our future behaviour/vacation plans.

Same here. As much as I like some of the perks like the lounge and events, we wouldn't have bought a 25 pt add on if not for the AP discount as it will very easily pay for itself.

 

[frabjous]

The merchandise credit and dining credits really add up. Although with the latter the better value is TIW since it covers alcohol(often the same or more than an entree), and is also a higher percentage now that the AP anniversary is over. To buy into TIW though you need member extras or an AP, which to get usually you want the discount which means you also want member extras. There is also the case that some restaurants take only one of the three DVC, AP and TIW, so having all three is the way to go if you can justify the cost.

 

[gharter]

We love the perks that we currently have. We finally have purchased AP s for the last 2 years, and love the discounts. However, this year when they changed/decreased the AP dining discount, it reminded what everyone has always said. What we currently have as perks can be taken away at any time. Whether we were grandfathered in with resale or purchased direct, any perk can be taken away at any time.

 

[SWRdtWD]

I know someone who did a 30 pt direct just last week to obtain the member perks after buying resale at Saratoga last year.

Their resale was about $77 a point. The direct? $145

Both at Saratoga for used contracts.

That's one way to go...I suppose.

 

[Goodwill234]

I've been on the fence about this as well. Just closed our Saratoga contract of 160 points, and was thinking about adding on 25 or 30 direct to get the benefits, but not sure if it's worth it. Would love to do the member events, and get the discounts... but it seems expensive for $145pp. I could maybe find another contract resale that cost the same for double the amount of points...

 

[The Jackal]

I've been on the fence about this as well. Just closed our Saratoga contract of 160 points, and was thinking about adding on 25 or 30 direct to get the benefits, but not sure if it's worth it. Would love to do the member events, and get the discounts... but it seems expensive for $145pp. I could maybe find another contract resale that cost the same for double the amount of points...

Small 25 point resale contracts are the most expensive to buy. Right now they will probably sell near $115-$120 for 25 points at SSR resale. Then you would have to find one with your same use year to make life easier, not impossible, but might take some time. There is also a much higher closing cost through resale compared to direct. But the benefits pay off fast on a 25 point contract, if you get the annual passes, food discounts, use of Epcot Lounge. You would also get 2017 and 2018 points. Right now there is one listed for resale @ $119 a point with $415 in closing costs, no 2017 or 2018 points. Total of $3,390. Direct would be $3,625 with around $100(roughly) in closing costs so around $3,725. That’s a ~$335 difference. Points would be in your account immediately and no waiting to see if it’s taken on ROFR. But if your buying more than 25 points then resale will have the advantage.

I almost forgot the most important thing for my wife. The DVC bag they give you when you buy direct.

 

[SWRdtWD]

Small 25 point resale contracts are the most expensive to buy. Right now they will probably sell near $115-$120 for 25 points at SSR resale. Then you would have to find one with your same use year to make life easier, not impossible, but might take some time. There is also a much higher closing cost through resale compared to direct. But the benefits pay off fast on a 25 point contract, if you get the annual passes, food discounts, use of Epcot Lounge. You would also get 2017 and 2018 points. Right now there is one listed for resale @ $119 a point with $415 in closing costs, no 2017 or 2018 points. Total of $3,390. Direct would be $3,625 with around $100(roughly) in closing costs so around $3,725. That’s a ~$335 difference. Points would be in your account immediately and no waiting to see if it’s taken on ROFR. But if your buying more than 25 points then resale will have the advantage.

I almost forgot the most important thing for my wife. The DVC bag they give you when you buy direct.

I think that's valid...but buying anymore than the 25-50
Point range from disney is silly. Their point pricing is completely loony at this point...and I heard a rumor (hopefully untrue) that they are going to like a huge jump to $220 a point.

They have no idea where to get more revenue and have lost their minds. People need to say "no"

 

[Ben E N]

I think that's valid...but buying anymore than the 25-50
Point range from disney is silly. Their point pricing is completely loony at this point...and I heard a rumor (hopefully untrue) that they are going to like a huge jump to $220 a point.

They have no idea where to get more revenue and have lost their minds. People need to say "no"

The rumor is confirmed. Many resorts moving to it on 1/18. People are allowed to respond as they best see fit, as long as they are not financing it or taking my money to spend on it. Is it a sign of a growing divide between rich and poor? Probably. But Disney does not have a moral obligation to fight it.

 

[SWRdtWD]

The rumor is confirmed. Many resorts moving to it on 1/18. People are allowed to respond as they best see fit, as long as they are not financing it or taking my money to spend on it. Is it a sign of a growing divide between rich and poor? Probably. But Disney does not have a moral obligation to fight it.

No dispute...but I think it's reasonable for the consumer to value things over time and protect themselves.

You can't just slap a tag on the door at Saratoga and call it "luxury". That's not how hotels work.

 

[Ben E N]

No dispute...but I think it's reasonable for the consumer to value things over time and protect themselves.

You can't just slap a tag on the door at Saratoga and call it "luxury". That's not how hotels work.

I completely agree there. It is only GCV, GFV, and Poly that are going up that high. When Poly was only like $165 or so DVC tried to sell it to me. There was no way I was going to pay that much even for a monorail resort. It wasn't until I found out about resale that I even considered buying in. My wife's uncle, on the otherhand, has little enough concern for money that he only looks at direct purchase. Price is no barrier for him, and he can spend his money as he best sees fit.

Speaking of crazy, Disney charges over $200 a person for a tea party on their cruise ships. I laughed when I saw that price, but I bet they sell out due to other people being happy to spend that sort of money on what they want.

 

[kboo]

Following the advice here, we bought 160resale+25direct with the aim of having 185 points total. For the same price, we could have gotten 200 points total via resale. the cost differential between 160+25 and 185 resale was around $2500-3000. Before being DVC owners, we'd done 1 year where we had APs and TiW and found that to be a good value. The savings on the Gold AP would have been worth it, and I told myself that we didn't want to spend super costly points on Easter or Christmas anyway. We ended up taking advantage of the platinum plus deal for 2 years (bought another set of passes we will activate in November 2018 and likely use over Easter 2019), so we will likely end up saving some $.

HOWEVER --- to me it feels like a wash. We were probably always going to get some kind of AP and TiW, which works well for us since we like the TS restaurants a lot. So the incremental additional savings from the direct perks are not huge - just whether we get another AP deal. For a few thousand $ up front that won't realize real "savings" until several trips in, it seems like a bit of a pain. And it turns out 185 points wasn't "enough" anyway.... we are now in the process of buying another 200 points at a different home resort, when our original plan was to have 2 home resorts with a total of around 285 points - 185 BLT, 100 BWV.

I guess all this to say, the "perks" matter a little to me, but I could have been fine not going that route as well. it would have been an extra few hundred $ each year if we decided to get APs, and we save more $ via TiW anyway.

 

[SWRdtWD]

Following the advice here, we bought 160resale+25direct with the aim of having 185 points total. For the same price, we could have gotten 200 points total via resale. the cost differential between 160+25 and 185 resale was around $2500-3000. Before being DVC owners, we'd done 1 year where we had APs and TiW and found that to be a good value. The savings on the Gold AP would have been worth it, and I told myself that we didn't want to spend super costly points on Easter or Christmas anyway. We ended up taking advantage of the platinum plus deal for 2 years (bought another set of passes we will activate in November 2018 and likely use over Easter 2019), so we will likely end up saving some $.

HOWEVER --- to me it feels like a wash. We were probably always going to get some kind of AP and TiW, which works well for us since we like the TS restaurants a lot. So the incremental additional savings from the direct perks are not huge - just whether we get another AP deal. For a few thousand $ up front that won't realize real "savings" until several trips in, it seems like a bit of a pain. And it turns out 185 points wasn't "enough" anyway.... we are now in the process of buying another 200 points at a different home resort, when our original plan was to have 2 home resorts with a total of around 285 points - 185 BLT, 100 BWV.

I guess all this to say, the "perks" matter a little to me, but I could have been fine not going that route as well. it would have been an extra few hundred $ each year if we decided to get APs, and we save more $ via TiW anyway.

I think it's a wash in the short term...if they continue to offer good perks and discounts over the next 10-15 years...you would have done the smart thing...no way to know until then.

 

[The Jackal]

Following the advice here, we bought 160resale+25direct with the aim of having 185 points total. For the same price, we could have gotten 200 points total via resale. the cost differential between 160+25 and 185 resale was around $2500-3000. Before being DVC owners, we'd done 1 year where we had APs and TiW and found that to be a good value.

BLT is/was $185 per point direct. So the direct cost is about 25*185= $4,625. If you could have saved 2,500-3,000 than direct your extra 25 point (185 total resale) $4,625-$2,500= $2,125. So you at the most would have spent $2,125 on that contract with 25 more points than the one you bought. $2,125/25 points= $85 per point. That is a nice price per point and most likely won’t be that low for 10 or so years. So your rate on return is much longer for buying direct. My math could be wrong, it’s not the first time, nor the last. Current prices for BLT are around $130 per point. $130*25= $3,250. Direct for 25 is $4,625. $4,625-$3,250=$1,375. So return rate is less at current prices.

 

[Ben E N]

BLT is/was $185 per point direct. So the direct cost is about 25*185= $4,625. If you could have saved 2,500-3,000 than direct your extra 25 point (185 total resale) $4,625-$2,500= $2,125. So you at the most would have spent $2,125 on that contract with 25 more points than the one you bought. $2,125/25 points= $85 per point. That is a nice price per point and most likely won’t be that low for 10 or so years. So your rate on return is much longer for buying direct. My math could be wrong, it’s not the first time, nor the last.

Your math seems good to me. The one extra factor to consider is that larger contracts tend to go cheaper per point.
This past summer I paid $121 for 160 points at BLT, then $185 for 25 more ($24,000 total). Had I bought 200 at $115, it would have cost me $23000.
Yes, I could have had 15 extra points for $1000 less, assuming I could have found a contract like that, but I would have to pay more in MFs for them, and I would be missing out on the perks that I am already enjoying.
I have loved the resale + direct add on combo. If I find that I am ever running low on points, I can use my discounted AP to get a discount on resort hotel rooms, or can use my AP to get free parking as a stay at a resort off property. It opens up a lot more options for me.

 

[SWRdtWD]

BLT is/was $185 per point direct. So the direct cost is about 25*185= $4,625. If you could have saved 2,500-3,000 than direct your extra 25 point (185 total resale) $4,625-$2,500= $2,125. So you at the most would have spent $2,125 on that contract with 25 more points than the one you bought. $2,125/25 points= $85 per point. That is a nice price per point and most likely won’t be that low for 10 or so years. So your rate on return is much longer for buying direct. My math could be wrong, it’s not the first time, nor the last. Current prices for BLT are around $130 per point. $130*25= $3,250. Direct for 25 is $4,625. $4,625-$3,250=$1,375. So return rate is less at curren prices.

Good insight...

But the economy will go into recession at some point...probably this year or by 2019...which makes determining future resale price points difficult.