Torn between DVC direct and resale

[meggiebeth]

Hello all,

After your helpful advice a few months ago, I took the leap and purchased a 100 point resale contract at Beach Club Villas - our favourite DVC property. We want to purchase another contract (of between 100-150 points) and I am torn between getting another resale contract or purchasing directly with Disney. We are looking at SSR resale, or OKWe or Aulani direct.

We don’t have a direct contract with Disney yet and I would very much like to secure the DVC perks and discounts that go along with one, but I am struggling to decide. The cost per point (for Aulani or Old Key West) is approximately double what we would pay buying at Saratoga Springs resale. Unfortunately as I live in Europe, I’m not able to access the discounts another way (e.g. with a Disney Visa) and it isn’t cost effective to get them with the top tier annual pass either. UK tickets are admittedly better value than their US counterparts, so we would only be saving about $400 every other year if we had access to the Sorcerer AP instead of having to buy the UK 14 day tickets. I imagine we would save $300-400 every other year with the dining/merch discounts, amounting to about $800 of savings every two years. We would love access to Moonlight Magic and the lounges but that doesn’t really sway our decision either way.

Old Key West does expire 3 years after a resale Saratoga contract would, and I am told that if I purchase before the end of the month, I would get 2023 use year points too, so that is four years’ extra use on top of a Saratoga resale contract. It is an extra $15,000 for the same amount of points though, and the resale value per point is about half the direct cost.

If we were to purchase an Aulani contract direct, we would get an extra 9 years’ use out of it on top of Saratoga resale, but again, it is an extra $15,000 and the resale value for Aulani seems to be little more than Saratoga. It’s a lot of money upfront and I don’t know that I will still be vacationing in WDW in 40 years time (though in all likelihood I probably will). I also have concerns because we wouldn’t want to use the points at Aulani and it seems a bit pointless to purchase there instead of WDW.

I find Riviera and Disneyland Hotel the least appealing given the resale restrictions. I feel like if I’d have purchased when the Poly or VGF were being actively sold by Disney, I could have justified the direct cost more easily because their resale values are still pretty high and I could at least get most of my money back if I decided to sell down the road. If those options were still available, I’d feel much better about paying the extra money to purchase direct.

I suppose my head is telling me that resale is the way to go, but my heart is saying that I’d like to secure a direct contract for the perks. I wish I was in the position to purchase a few years ago when the direct offerings were better and the minimum purchase requirement was lower. Has anyone else been in a similar position? Would really appreciate your advice. Is it worth waiting to see if the Poly or VGF are actively sold again? (I am guessing unlikely for VGF but more likely for the Poly.)

Thanks in advance

 

[T00dles]

Poly tower is coming soon. Sounds like it might be worth waiting so you can buy Poly direct.

 

[supercarrie]

We are in a similar situation, albeit with more things swaying us to buy direct. We just bought 100 points resale and are leaning towards adding 150-175 direct. I live 10-15 minutes from Disneyland, so the Star View Station access is appealing to us (along with the dining/merch discounts).

One thing to consider - while Riviera and VDH may not appeal now, DVC will continue to build new resorts, almost certainly with resale restrictions. We wanted to ensure that at least a portion of our points were unrestricted so that we have the option to stay at all resorts at least occasionally. Additionally, post 2042, when some of the original 14 begin to expire, there will be even more competition for the remaining resorts without resale restrictions. That is a long way off, of course, so who knows what the future holds.

The new Poly tower will be on sale soon - if you can hold on for a few more months, you'll have your choice to buy Poly direct again, hopefully with some ok incentives as well. Personally, we are trying to decide if we'll hold on for Poly or buy our direct points at VDH. We are waiting to see what new incentives come out April 2nd.

 

[CVG]

I'm never paying Disney $15,000+ for a 10% discount card (+ some other extras). I'm a tight European too! Actually, my last OKW contract saved me over $30,000 versus buying direct.

I'll be honest. The food at WDW is really pretty rubbish for a European so I love buying my own ingredients and cooking in my kitchen at OWK. So that's not much of a saving there if I have a discount card.

And the merchandise? Mainly plastic tat from China. You don't really need it. Call me a miserable old git.

 

[Ruttangel]

Buying direct from U.K. would only make sense when a better USD exchange rate is available or spectacular sale came along. 1.27USD per GBP is historically low

As OKW and AUL will drop over 50% in resale value as soon as you buy them you could also lose another 10-20% if you sold in 3 years and rate is now 1.55

 

[ocdb8r1]

I can tell you that mathematically you're never going to be better off purchasing direct. The annual discount savings are not going to be enough to recoup the losses (both in principle and potential interest if you just sat the money in a fixed interest account of some sort). Either accept it's a mostly "emotional" decision to have the "blue card" and associated non-monetary perks (and don't try to justify it as a good "financial" decision) or move on an buy resale.

 

[LittleBitGoofy]

I can tell you that mathematically you're never going to be better off purchasing direct. The annual discount savings are not going to be enough to recoup the losses (both in principle and potential interest if you just sat the money in a fixed interest account of some sort). Either accept it's a mostly "emotional" decision to have the "blue card" and associated non-monetary perks (and don't try to justify it as a good "financial" decision) or move on an buy resale.

Never say never. VGF direct this past summer was effectively $161/pt after MB. Compare that to resale pricing there. Of course that deal is gone, but something down the road could come along. In the right circumstances direct can make a lot of sense, albeit a limited set of circumstances.

 

[🍀TwinsMom]

I'd wait for Poly if you're that worried about resale restrictions. It's going to be veryyyyy expensive though, I think. IDK what incentives they'll feel they need to offer. I would not buy Aulani if you're not going to go there. Aside from Christmas week and June/graduation season, it doesn't seem hard to get into.

We own Riviera and love it. The cost per point direct and length of the contract, plus really well laid-out rooms, are great. It's fine if you're 100% against it, but if you plan to come for another 40 years, I wouldn't rule it out. It's quickly going to become the only Epcot area DVC with direct access, and I do think it's only a matter of time (hopefully soon!) that the Skyliner is expanded. Riviera is the only resort (right now) with direct Skyliner access, and it's pretty darn great, IMO.

I, personally, think the resale restriction hysteria is overblown. We bought our first contract at $188 (no deals for us on the opening prices at 100 minimum,) and then $172pp for the second contract. Resale is around $120-$130pp, which I don't think is in any way terrible, and as soon as it's sold out in a couple years, it's only going to go up. There's lots of folks who were never-Riviera's and then stayed there and end up buying a resale contract.

 

[ocdb8r1]

Never say never. VGF direct this past summer was effectively $161/pt after MB. Compare that to resale pricing there. Of course that deal is gone, but something down the road could come along. In the right circumstances direct can make a lot of sense, albeit a limited set of circumstances.

VGF wasn't in the equation here and the math STILL didn't make it mathematically better than resale during the VGF direct offers last summer. There was nothing "magic" about MB - anyone is free to rent whatever portion of their points they want even on resale. Yes, DVC packages it up all nice and tidy with MB, but it's not that big of a premium over what one can get renting the points on their own.

 

[Ruttangel]

VGF wasn't in the equation here and the math STILL didn't make it mathematically better than resale during the VGF direct offers last summer. There was nothing "magic" about MB - anyone is free to rent whatever portion of their points they want even on resale. Yes, DVC packages it up all nice and tidy with MB, but it's not that big of a premium over what one can get renting the points on their own.

The deal was $183pp and even now resale is >$150pp so about a 20% difference which is much better than the other direct sales. Probably the closest direct to resale %age in quite a few years.

 

[gmang]

I don't think any of the perks are worth buying direct right now. Maybe some day in the future, but right now the perks are minimal.

 

[CVG]

I'd consider buying direct if they got rid of that Genie+ system and park reservations (I haven't checked the current rules recently because I have no trip due), and offered DVC members an enhanced fast pass option.

It won't happen so I see no likelihood of buying direct for the current benefits. The two-tier system of DVC membership just irritates me. I aim to spend as little with Disney as possible while it exists, and I'll accept any benefits offered by CM's if they just ask am I DVC member. I say yes. I'm not going to keep saying, Yes, but not the type you want on the bottom of your shoes.

 

[LittleBitGoofy]

VGF wasn't in the equation here and the math STILL didn't make it mathematically better than resale during the VGF direct offers last summer. There was nothing "magic" about MB - anyone is free to rent whatever portion of their points they want even on resale. Yes, DVC packages it up all nice and tidy with MB, but it's not that big of a premium over what one can get renting the points on their own.

Okay. The math math'd very well for us to get VGF direct on that sale.

As a bonus, we're enjoying the never-guaranteed-to-last-benefits Sorcerer Pass savings (4x passes this year) over Incredi-pass for the time being.

MB @ $22/pt tax-free is generally better than private rentals after being taxed, but every situation can be different.

 

[geargrinder]

It all depends on timing and incentives. I bought resale AKL in late 2022 during the ROFR bloodbath for $136. Then I bought direct AKL in 2023 during the flash sale for $143. About 7 months apart.

For me direct, was a much better deal. Between the member lounges, discounts, and restricted resort stays direct has been worthwhile.

 

[AstroBlasters]

Happy #TeamHybrid owner here.

I personally would not do OKW or SSR direct because I don’t think you need the home resort advantage and they aren’t the most desired resorts if you want to sell or rent. I love Aulani, but would only buy if you plan to use them predominantly there.

I think the council to hold off and see what happens with Poly2 is the best advice at the moment.

From there I would either break up the points into smaller contracts OR get a fixed week to maximize resale value.

 

[ocdb8r1]

MB @ $22/pt tax-free is generally better than private rentals after being taxed, but every situation can be different.

Similarly, there is nothing "magic" about the tax treatment for MB (and given DVC structures it as a rebate check rather than a true price reduction, accountants may differ as to whether you need to claim that rebate on your taxes regardless of whether DVC issued you a 1099 or not). One could equally use depreciation to reduce your tax on rentals to nil. The effect is the same, reducing your cost basis for the asset (which would have a tax impact if ever sold at a gain).

 

[AstroBlasters]

Similarly, there is nothing "magic" about the tax treatment for MB (and given DVC structures it as a rebate check rather than a true price reduction, accountants may differ as to whether you need to claim that rebate on your taxes regardless of whether DVC issued you a 1099 or not). One could equally use depreciation to reduce your tax on rentals to nil. The effect is the same, reducing your cost basis for the asset (which would have a tax impact if ever sold at a gain).

It is so much simpler to just get a rebate check with no 1099 then to try and rent and depreciate a point based time share with a 1099….

 

[Lil Micky]

I don't think any of the perks are worth buying direct right now. Maybe some day in the future, but right now the perks are minimal.

This is 100% why they have been adding resale restrictions at new resorts. Every booking at RIV, VDH, CFW, ... (future resorts) will be on direct points.

It costs them nothing, boosts direct sales, and makes capacity planning easier at new resorts compared to the original 14. There's a huge pool of points that can be used at the original resorts @ 7 months but a relatively smaller one that can book post-CCV resorts at all.

 

[lilsonicfan]

Some things to consider: if you buy direct, you'll be able to stay at the resorts like Riv, VDH etc that some of us newer resale folks can't. That's potentially valuable in the long term - i say potentially b/c it depends on so many factors. For me, I don't think I'll be doing a ton of Disney in 20-30+ years and I am not buying into DVC for my kids, I'm the big disney fan in the family. Others who are buying in might be a lot younger, or live a lot closer to WDW etc. I want points to use in the short-ish term and at the places I want to visit, so resale works. Even when 2042 rolls around, if I'm still doing WDW, I'm fine with using my SSR points at SSR.

 

[bbeagle]

Buying direct was definitely worth it for us. We were able to stay at the Villas at Disneyland Hotel in February. Wouldn't have been able to if we bought resale.

If we want to stay at the Riviera, or the new Poly Tower - we can, no matter if it's a new association or part of Poly. It's nice peace-of-mind to know we can stay where we want.