Using DVC vs. buying from Disney Direct

[drakethib]

Hi everyone.

I am a newbie to the board and did a search but can't really find a good answer.

My wife and I will be buying a DVC "membership" very soon.

Our concern is while it looks like I may be able to get somewhat of a better deal; I am a little scared to buy resale.

Can anyone give me some first hand experience to the pros and cons to buying from resale? We will be paying cash so financing is really not a big incentive that Disney offers. I really don’t care where my “home” is other then Vero Beach.

I have talked with the Timeshare Store and they really seem like great people. I know they say you get the same thing as buying from Disney but I am usually a pretty cautious person.

I just don’t want to miss out on something or don’t want to find that there is a hidden clause or something to that nature.

We will be paying cash so financing is really not a big incentive that Disney offers.

Any help would be appreciated.

I am sorry if this topic has been covered but I could not find some hard information.

Please feel free to email me @ drakethib@yahoo.com if you don’t want to Post Publicly.

Thanks

Drake
Beaumont, TX

 

[Happy Birthday Cat]

There is really no difference, especially if you are paying cash since you won't need Disney financing. We bought a resale from A Timeshare Broker and everything went well. I have enjoyed that contract for a number of years now. I have also heard very good things about The Timeshare Store.

Don't worry about buying resale.

HBC

 

[DVCconvert]

Drake,

There's no need to worry about a resale from any of the main-stream licensed brokers. It's no different that buying real estate. I have used both the time share store and a_time_share_.com, and had no proablems whatsoever. Both use a closing company which does a title search, and holds all funds in escrow until all elements of the 'purchase & sales' agreement have been satisfied by both the buyer & the seller!

cautious is fine, but in this case it will simply cost you more $$$.

HTH

 

[laceemouse]

Hey Drake! First let me say that we used to feel much as you do. We bought 160 BCV points from DVC a couple of years ago. We really wanted BCV, and DVC was selling them at the time, but we also thought it was just SAFER to buy directly from Disney. Now we are in the process of getting a re-sale from TTS. We really want some VWL points and have signed a contract of 250 points!!!! The only real difference is that now we have to see if we make it through Disney's rofr process. After we get through and close (I am thinking positive!) things will really be NO DIFFERENT than if we had bought those points from DVC direct. There is no secret clause or disadvantage to owning a contract that was previously owned by someone else. Some folks just don't want the "waiting on rofr" stress, and I can't blame them. BUT, if you want a sold out resort it is the best way to go, as Disney charges more $$$ for them than you pay for a re-sale. Hope this helps. Good luck in your decision.....Lacee

 

[JimC]

Welcome to our little community of the DIS!

We bought from Pat Spell at the Timeshare Store and Byron at DVC. Both were professional, courteous, and prompt. We would easily work with each of them again.

DVC gives you access to easy but expensive financing, no closing costs, and a nice free gift (ours was a backpack/bag), easier selection of contract size and use year.

Buying resale saves money, lets you negotiate more parts of the deal, gives you access to more inventory (DVC sold out resorts), works best if you have the cash, may be a bit more complicated because you need to pay attention to point and maintenance fee status.

We did both and would easily recommend each for different reasons.

Good luck.

 

[drakethib]

Why am I see more OKW for sale?

I can't imagine Disney lettign anythign go to the wayside.

 

[CarolMN]

Originally posted by drakethib
Why am I see more OKW for sale?

I can't imagine Disney lettign anythign go to the wayside.

OKW was the first DVC resort (opened in the early 90's). It is also the largest of the sold out resorts. It makes sense for it to have more contracts for sale than the other resorts.

I don't know where you are looking that is giving you the basis for your statement. The online brokers mentioned here do not by any means handle all the resales. If you had access to a database that held all the contracts currently for sale, your impression that there are more OKW for sale may change.

You are also looking at one point in time. I've read posts over the years asking this same question about some of the other DVC resorts.

Finally, keep in mind that there are over 80,000 DVC members - the number of contracts for sale are a very small percentage of the over all ownership.

To sum it all up, the number of contracts you see for sale for a particular resort has no real meaning - unless you see one you want to buy!

Best wishes -

 

[drakethib]

Originally posted by CarolMN
OKW was the first DVC resort (opened in the early 90's). It is also the largest of the sold out resorts. It makes sense for it to have more contracts for sale than the other resorts.

I don't know where you are looking that is giving you the basis for your statement. The online brokers mentioned here do not by any means handle all the resales. If you had access to a database that held all the contracts currently for sale, your impression that there are more OKW for sale may change.

You are also looking at one point in time. I've read posts over the years asking this same question about some of the other DVC resorts.

Finally, keep in mind that there are over 80,000 DVC members - the number of contracts for sale are a very small percentage of the over all ownership.

To sum it all up, the number of contracts you see for sale for a particular resort has no real meaning - unless you see one you want to buy!

Best wishes -

Makes sense to me !!!!!

Thanks for the info.

Seems like you are a happy DVCer ???

Sorry for the questions.

While $10 - $15K may be pocket change to some, it will be quite an investment for my wife and I so we are trying to find every bit of info that we can.

Thanks again

 

[Dean]

Originally posted by drakethib
Why am I see more OKW for sale?

I can't imagine Disney lettign anythign go to the wayside.

Also Disney's reason for the ROFR is to keep the resell price high and drive many of those potential customers to Disney directly. They will make little or no money on a resale, even at a $20 per point differential when they resell it.

 

[JimC]

Originally posted by drakethib
Makes sense to me !!!!!

Thanks for the info.

Seems like you are a happy DVCer ???

Sorry for the questions.

While $10 - $15K may be pocket change to some, it will be quite an investment for my wife and I so we are trying to find every bit of info that we can.

Thanks again

Understand completely. You will find mostly very satisfied folks on these Boards. Keep asking questions and you will get the most benefit from the DIS. I found folks here to be very generous, that is one of the reasons why I joined and am a supporter of the DIS.

 

[rigsby25]

We just purchased 210 resale points at OKW. We had originally purchased 160 points at SSR and then thought we acted hastily because of a merger at my company. In the meantime we found this board and resales and I am so glad we did. When we bought from Disney, we were so happy. And then after reading these boards, we have decided to by the most points we could now instead of less points for the future (50 years at SSR). We are extremely satisfied with our decision.

 

[Caskbill]

Looks like you've done your homework, but just remember a few things:

1. Your resale will include both the cost of the points and the closing costs. Buying direct from Disney, Disney pays the closing costs. On a small contract that can make a little difference. For example on a 150 resale point contract, closing costs of about $450 means you're paying $3.00 more per point. (But still probably much cheaper than buying direct.

2. A resale will normally take longer to go through all the paperwork before you can use the points. Purchasing from Disney usually makes the points available right away. If you're not planning on taking a 'vacation' right away, then it's no big deal to wait several weeks longer.

3. Resales can have points banked or points borrowed. Be sure you understand this. A contract with borrowed points on it does not have as much value as a similar contract that has banked points.

4. If a resale has borrowed points on it, those are points you would not receive and therefore you should not have to pay the maintenance fees on them. If someone borrowed and used their 2005 points, you sure don't want to be paying the maintenance fees for them come January 2005.

Likewise if a contract has banked points on it, the seller may want reimbursement for the maintenance fees they have already paid for those points since they won't be using them. This of course is negotiable.

Unfortunately the calculations are a little tougher because points are 'use year' points while maintenance fees are annual (Jan-Dec). So the 'value' of banked points, or the 'devaluation' of borrowed points, is different for different use years in regards to adjustments for payment of the maintenance fees.

Bottom Line: In almost all cases you will save money buying resale but you must compare all issues:

1. Any Disney incentives that affects 'value'
2. Value of Resale banked points or devaluation for borrowed points.
3. Total costs (Disney) vs Resale (point costs, closing costs, maintenance fee adjustments)

Ask if you have any further questions. Good Luck

 

[Kick it up a notch!]

I think Caskbill's post is right on. Your purchase is the exact same product whether you buy it from Disney or not. I bought two contracts from Disney and one resale. I threatened my guide when she was jerking me around on my second purchase to buy a resale. I only wanted to add 50 points and it was at the time they were selling out of BWV, she kept telling me she had to check to see if there were points available because it was sold out, but that sometimes contracts don't go through the process and points become available. I finally called her after two weeks and asked her if it was going to happen for me or not and she gave me the "It might, but I'm not sure right now, we do have points at Vero or HHI and I can sell you those right now." I told her that I had already spoken to someone at the Timeshare Store about a 50 point contract and that I was just going to buy that instead. I wanted to buy them from Disney but since I waited two weeks and got jerked around, I had enough. It was amazing how fast 50 points just becams available (30 minutes). She called me back to tell me that she had just checked with someone else and these just became available. (a miracle) She just wanted to sell a larger BWV contract and push Vero or HHI points on me since thay were almost out of BWV points. My next package was from the Timeshare Store for more points than my original contract and the add on.

Little did I know, when you buy another contract they assign those points to your current guide so I got a phone call from her wondering why I didn't give her a call and let her know I was looking for more points. I just told her that I wanted OKW and she didn't have that inventory available. She started to basically bad mouth the resale process and I just told her that I would take that chance for the $5,000 I saved. There is no chance, you are buying the exact same thing, just from someone else.

Buy a resale, save some green for your vacation.