wanting to buy in Direct

[DisneyMarv]

Definitely look at both options. This is not always the case, but there is a big spread between AKV direct and AKV resale. It is a resort that I am considering as an add on because we recently stayed there for the first time and enjoyed it. I am almost positive we would only buy resale, however, because the direct price is so mush higher than resale. The restrictions with resale, in my opinion, are not worth the large difference in price.

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I first spark interest in DVC back in 2010 when a friend first told us to look into it and i've been holding out on it for three years now just trying to see if its well worth it while saving for the least amount of down payment they ask. Reason 1 i really don't like resale also is that some of those contracts are stripped down to the last bit.

 

[Minniesgal]

Not all resale contracts are stripped there are quite a few loded contracts that are sold resale as well. The savings achieved by resale are worth playing the long game for. The key is to keep looking frequently until the right contract comes up. In my head I compare searching for a resale contract to finding a new job. It takes effort and time buy you are saving 1000s.

 

[BestDadEver]

I first spark interest in DVC back in 2010 when a friend first told us to look into it and i've been holding out on it for three years now just trying to see if its well worth it while saving for the least amount of down payment they ask. Reason 1 i really don't like resale also is that some of those contracts are stripped down to the last bit.

I feel like you do . People say that buying direct you aren't guaranteed anything but your home resort . It's true but you also not guaranteed anything resale . IMO who you think they will take from first . They already put restrictions on resale what if they decide to lower the 7 month booking to resale members to 4 months or even restrict them from accessing the new resorts all together . If something like that happens and I bought resale I'd be upset .

IMO you really don't have to worry about the loss of perks overall till they decide they aren't selling anymore DVC properties . Cause how could they sell points for the money asked with no extra perks involved . If all you got was a room at said resort and no other perks why would you pay $160 pp for GFV right now . They may change perks that are existing but from what I have seen they if they move they have also added . Many here don't and won't agree with me that is fine . That's the way I see it .

I also disagree with the financing thing . Waiting till you have cash is could take a really long time and the price pp raises very fast . IMO better get locked in at the lowere price point and plan to pay the loan off faster the the loan term . Had I financed the first time I went to the DVC tour 2 years ago I would have paid $100 pp I bought a year later at $120 pp and now it's $130 pp . My point is that the incress in point prices are raising dramatically

 

[Missyrose]

I feel like you do . People say that buying direct you aren't guaranteed anything but your home resort . It's true but you also not guaranteed anything resale . IMO who you think they will take from first . They already put restrictions on resale what if they decide to lower the 7 month booking to resale members to 4 months or even restrict them from accessing the new resorts all together . If something like that happens and I bought resale I'd be upset .

You have the same guarantees about use at DVC resorts whether you buy direct or resale. Use of points is the same for both (except for the Disney Collection, DCL and ABD -- all of which require so many points, many don't consider them "perks.")

Talking someone out of buying direct by attempting to scare them with what-if scenarios based strictly on rumor and gossip is just blatantly mean and unnecessary.

Technically, it says in AKV contracts that the animals aren't guaranteed, so should people avoid buying there because Disney has the right to take the animals away eventually? It makes no sense to base a decision that could mean a difference of thousands of dollars on conjecture. You base the decision on the market conditions right now. And right now, the only restrictions are the ones mentioned above.

IMO you really don't have to worry about the loss of perks overall till they decide they aren't selling anymore DVC properties . Cause how could they sell points for the money asked with no extra perks involved . If all you got was a room at said resort and no other perks why would you pay $160 pp for GFV right now . They may change perks that are existing but from what I have seen they if they move they have also added . Many here don't and won't agree with me that is fine . That's the way I see it .

VGF is $145 per point, FYI.

 

[BestDadEver]

FYI VGF will be $160 pp when it's available to new buyers

 

[nyck]

I feel like you do . People say that buying direct you aren't guaranteed anything but your home resort . It's true but you also not guaranteed anything resale . IMO who you think they will take from first . They already put restrictions on resale what if they decide to lower the 7 month booking to resale members to 4 months or even restrict them from accessing the new resorts all together . If something like that happens and I bought resale I'd be upset .

IMO you really don't have to worry about the loss of perks overall till they decide they aren't selling anymore DVC properties . Cause how could they sell points for the money asked with no extra perks involved . If all you got was a room at said resort and no other perks why would you pay $160 pp for GFV right now . They may change perks that are existing but from what I have seen they if they move they have also added . Many here don't and won't agree with me that is fine . That's the way I see it .

I also disagree with the financing thing . Waiting till you have cash is could take a really long time and the price pp raises very fast . IMO better get locked in at the lowere price point and plan to pay the loan off faster the the loan term . Had I financed the first time I went to the DVC tour 2 years ago I would have paid $100 pp I bought a year later at $120 pp and now it's $130 pp . My point is that the incress in point prices are raising dramatically

I agree with you. I actually buy more points because I like the ability to use them at various locations and reasons ( like the cruises, Disney collection, etc). I would never buy resale unless they take that away, in which if they did I would sell some of my points off in several years. I bought DVC to use till it expires or I die, which ever happens first. I didn't and do not care about what folks consider is a "waste" of points on this,that, or the other. If I use it how I want the next 45-50 years then it is worth every penny considering that it pays for itself 5-10 years into the purchase. Do what is good for you and your family, not what others THINK is good for you and your family. If finanicing what you have to do, then that is what you do. The longer you wait the price goes up, that has been proven. I am glad I bought BCV when it was $90/point instead of waiting 10 years ago.

 

[crisi]

Jim's post is excellent and its probably worthwhile to spend a little time in Excel and come up with an anticipated point when you wouldn't be under water.

A lot of people pay for the options that aren't available resale (whether they have restrictions or not) by renting points out and paying cash to cruise. Resale points are worth the same as direct points on the rental market and arbitraging points is pretty darn attractive in those situations.

 

[Missyrose]

For the record, the e-mail that DVC just sent to members says that the price of VGF will go up to $150 per point when it goes on sale to non-members. Just want those thinking of buying to have the correct information.

 

[DizBub]

For the record, the e-mail that DVC just sent to members says that the price of VGF will go up to $150 per point when it goes on sale to non-members. Just want those thinking of buying to have the correct information.

Agree, the e-mail I just got says $150. Who knows how long that will last?

Question. I have read here that new buyers are already purchasing but cannot close until June. What price are they paying?? $145 or the $150?

 

[Missyrose]

Agree, the e-mail I just got says $150. Who knows how long that will last?

Question. I have read here that new buyers are already purchasing but cannot close until June. What price are they paying?? $145 or the $150?

A Twitter buddy of mine just did this and they're paying $150 (which, up until that e-mail from DVC, I thought may have been some sort of presale discount. I guess it wasn't).

 

[BestDadEver]

For the record, the e-mail that DVC just sent to members says that the price of VGF will go up to $150 per point when it goes on sale to non-members. Just want those thinking of buying to have the correct information.

Well you said it was $145 I guess we were both wrong .

 

[DizBub]

Well you said it was $145 I guess we were both wrong .

Currently, the price for members is $145. Going up to $150 for new buyers/general public in June. For members also? I think is is officially a presale period for members.

 

[AmyB2006]

Currently, the price for members is $145. Going up to $150 for new buyers/general public in June. For members also? I think is is officially a presale period for members.

Yes. Price goes up in June for everybody, including members. Members have until June 18/19 (can't remember) to lock in at $145.

And in BestDad's defense, I think all he was saying is, Disney can and has restricted resales before. We don't know what or if any new restrictions might be coming down the line.

 

[MsTessP]

[

I feel like you do . People say that buying direct you aren't guaranteed anything but your home resort . It's true but you also not guaranteed anything resale .

Except saving a whole ton of $$$! In my case, I saved $7,000 over direct by waiting 7 weeks for my small 140 pt. resale contract. That wait seemed forever at the time, but now it seems very insignificant.

Look, everyone has to do what's comfortable for them. In my case, for example, I could never justify spending $1000+ to stay at the concierge level at the Ritz Carleton for one night in NYC when I'm there for business. Other folks think nothing of doing that. I'm not wrong and they are not wrong (assuming they have the financial stability to live so luxuriously),it's just a decision we both make based on our situations and comfort levels.

[

I also disagree with the financing thing . Waiting till you have cash is could take a really long time and the price pp raises very fast . IMO better get locked in at the lowere price point and plan to pay the loan off faster the the loan term .

What we did was to grab the smaller resale contract we could afford easily with the cash on hand with plans to add on in the future. Sure, we are now seeing resale prices soar so it appears that we will be paying more pp in the future. But even when factoring in the increased pp costs, when I eventually add on 100 or so more points for a resale contract which meets our needs, our cost savings over direct (for the older resorts) will be very significant. Our cost savings over financed direct, even paid off early, will be even more significant.

 

[ELMC]

I agree with you. I actually buy more points because I like the ability to use them at various locations and reasons ( like the cruises, Disney collection, etc). I would never buy resale unless they take that away, in which if they did I would sell some of my points off in several years. I bought DVC to use till it expires or I die, which ever happens first. I didn't and do not care about what folks consider is a "waste" of points on this,that, or the other. If I use it how I want the next 45-50 years then it is worth every penny considering that it pays for itself 5-10 years into the purchase. Do what is good for you and your family, not what others THINK is good for you and your family. If finanicing what you have to do, then that is what you do. The longer you wait the price goes up, that has been proven. I am glad I bought BCV when it was $90/point instead of waiting 10 years ago.

I'm sorry that some posts have led you to believe that you are "wasting" your points by using the other options available to direct DVC purchasers. Certainly there is a whole convenience/enjoyment factor that comes into play that cannot be measured by dollars and cents. It is on that ground that you can "win" the argument against those options being a "waste" of points.

Where you lose the argument, however, is when you try to use math to support your position, because it doesn't. A direct purchase (even at prices from 10 years ago) does not pay for itself in 5 years as you suggested. Recommending that somebody finance a direct timeshare purchase is financially irresponsible and just plain bad advice, no matter how happy it makes them. And being happy that you paid $90 in 2003 dollars direct vs. $75 in 2013 dollars resale makes no sense, financially speaking, as the former is clearly a worse deal than the latter.

Yes. Price goes up in June for everybody, including members. Members have until June 18/19 (can't remember) to lock in at $145.

And in BestDad's defense, I think all he was saying is, Disney can and has restricted resales before. We don't know what or if any new restrictions might be coming down the line.

That is certainly true. The counter argument is that one should buy based on what is, not out of fear of what may be. I'm all for insurance, and my life, home, business and car are all insured just in case of accidents or loss. But these insurances also carry a small premium relative to the benefit they would provide. Buying insurance for your timeshare and paying a 100% premium to me seems like folly.

The problem I have with posts like these that advocate buying direct and financing with utter disregard for the consequences is that the givers of said advice have no idea to whom they are speaking. Just because it works for them and they have a safety cushion does not mean that others are in that same position. Buying direct and paying double the cost of resale is a frivolous expenditure. It's not stupid, irresponsible or illogical. But it's frivolous. It's spending money that one doesn't have to. Financing that purchase can potentially be wasteful (in the sense of throwing money away) and, depending on one's financial situation, can be quite problematic. I feel that emboldening people who are thinking of taking this course of action without having all the facts is being irresponsible. I would much prefer people such as Best Dad Ever to qualify his statements by saying something like "it worked for me for xxx reason, but it might not work for you" as opposed to suggesting that it will work for everyone because he and his family members have done it. With all due respect, he is in year one of his ownership and that contract that he owes $100+ per point on is only worth $65 on the resale market should he need to get out of that loan. Explain to me again how this is a good thing?

 

[Kidanifan08]

FYI VGF will be $160 pp when it's available to new buyers

For the record, the e-mail that DVC just sent to members says that the price of VGF will go up to $150 per point when it goes on sale to non-members. Just want those thinking of buying to have the correct information.

Agree, the e-mail I just got says $150. Who knows how long that will last?

Question. I have read here that new buyers are already purchasing but cannot close until June. What price are they paying?? $145 or the $150?

A Twitter buddy of mine just did this and they're paying $150 (which, up until that e-mail from DVC, I thought may have been some sort of presale discount. I guess it wasn't).

Here is the wording from the e-mail sent today:

"A Grand invitation for Members like you.
Because we value our Members, we're excited to extend you the Members-only price of $145 per vacation point. The price increases to $150 per vacation point on June 19, 2013."

It does not specifically say that the $150 price point is for new members. I wonder if $150 will be the price for existing members as of 6/19, but buyers who are new to DVC will pay more? The member site does not even say that the $150 price is for new members, it just says the price is going up to $150 on June 19.

It seems like with all of the DVC properties that are not sold out, current DVC members get a little break from the going rate that is offered to new members.

 

[AmyB2006]

That is certainly true. The counter argument is that one should buy based on what is, not out of fear of what may be. I'm all for insurance, and my life, home, business and car are all insured just in case of accidents or loss. But these insurances also carry a small premium relative to the benefit they would provide. Buying insurance for your timeshare and paying a 100% premium to me seems like folly.

The problem I have with posts like these that advocate buying direct and financing with utter disregard for the consequences is that the givers of said advice have no idea to whom they are speaking. Just because it works for them and they have a safety cushion does not mean that others are in that same position. Buying direct and paying double the cost of resale is a frivolous expenditure. It's not stupid, irresponsible or illogical. But it's frivolous. It's spending money that one doesn't have to. Financing that purchase can potentially be wasteful (in the sense of throwing money away) and, depending on one's financial situation, can be quite problematic. I feel that emboldening people who are thinking of taking this course of action without having all the facts is being irresponsible. I would much prefer people such as Best Dad Ever to qualify his statements by saying something like "it worked for me for xxx reason, but it might not work for you" as opposed to suggesting that it will work for everyone because he and his family members have done it. With all due respect, he is in year one of his ownership and that contract that he owes $100+ per point on is only worth $65 on the resale market should he need to get out of that loan. Explain to me again how this is a good thing?

But I kind of think that goes without saying. Maybe I'm naive. We're all on here saying what we've done and experienced.

Why do his statements have to come with that qualifier but yours (or anyone for that matter) don't? Honestly asking though.

Am I to understand that you are saying unless you can pay cash outright for DVC, that you shouldn't be buying? In your opinion? I mean people finance things every day. Why should this be any different? Because its sole use is for vacationing?

 

[nyck]

I'm sorry that some posts have led you to believe that you are "wasting" your points by using the other options available to direct DVC purchasers. Certainly there is a whole convenience/enjoyment factor that comes into play that cannot be measured by dollars and cents. It is on that ground that you can "win" the argument against those options being a "waste" of points.

Where you lose the argument, however, is when you try to use math to support your position, because it doesn't. A direct purchase (even at prices from 10 years ago) does not pay for itself in 5 years as you suggested. Recommending that somebody finance a direct timeshare purchase is financially irresponsible and just plain bad advice, no matter how happy it makes them. And being happy that you paid $90 in 2003 dollars direct vs. $75 in 2013 dollars resale makes no sense, financially speaking, as the former is clearly a worse deal than the latter.

That is certainly true. The counter argument is that one should buy based on what is, not out of fear of what may be. I'm all for insurance, and my life, home, business and car are all insured just in case of accidents or loss. But these insurances also carry a small premium relative to the benefit they would provide. Buying insurance for your timeshare and paying a 100% premium to me seems like folly.

The problem I have with posts like these that advocate buying direct and financing with utter disregard for the consequences is that the givers of said advice have no idea to whom they are speaking. Just because it works for them and they have a safety cushion does not mean that others are in that same position. Buying direct and paying double the cost of resale is a frivolous expenditure. It's not stupid, irresponsible or illogical. But it's frivolous. It's spending money that one doesn't have to. Financing that purchase can potentially be wasteful (in the sense of throwing money away) and, depending on one's financial situation, can be quite problematic. I feel that emboldening people who are thinking of taking this course of action without having all the facts is being irresponsible. I would much prefer people such as Best Dad Ever to qualify his statements by saying something like "it worked for me for xxx reason, but it might not work for you" as opposed to suggesting that it will work for everyone because he and his family members have done it. With all due respect, he is in year one of his ownership and that contract that he owes $100+ per point on is only worth $65 on the resale market should he need to get out of that loan. Explain to me again how this is a good thing?

And once again here you are telling people what to do. At least I tell people to do WHAT IS GOOD FOR THEM AND THEIR FAMILIES. Period. People do not come on these boards and tell you EVERYTHING in their financial portfolio. They come here, ask fairly simple questions, and move on. If they wanted all this commentary and a breakdown of their financial structure then they will call Susie Orman, or better yet, their accountant or banker.

And BTW, I paid a TOTAL of $19,800 for my BCV 10 years ago. With all the vacations I have taken with it I have saved well over that amount of money. People can by resale if it works for them, but if they want to buy direct let them.

 

[DizBub]

Here is the wording from the e-mail sent today:

"A Grand invitation for Members like you.
Because we value our Members, we're excited to extend you the Members-only price of $145 per vacation point. The price increases to $150 per vacation point on June 19, 2013."

It does not specifically say that the $150 price point is for new members. I wonder if $150 will be the price for existing members as of 6/19, but buyers who are new to DVC will pay more? The member site does not even say that the $150 price is for new members, it just says the price is going up to $150 on June 19.

It seems like with all of the DVC properties that are not sold out, current DVC members get a little break from the going rate that is offered to new members.

You are quite right to point this out. I assumed that the general public/new owner price was to start June 19 at $150 because this is the buzz around the Disney sites and what people have been told touring the models. All we know for sure is the price right now is $145 for existing members and that price will go up to $150. Period. Beyond that, who knows?

 

[ELMC]

But I kind of think that goes without saying. Maybe I'm naive. We're all on here saying what we've done and experienced.

One would think it goes without saying, but oftentimes people on here put forth their opinions as if they were facts. Then people read them as if they were facts and it becomes a problem.

Why do his statements have to come with that qualifier but yours (or anyone for that matter) don't? Honestly asking though.

Good question. They do. When speaking about theory of finances, it's a matter of opinion that doesn't need to be qualified. But when I speak of my own personal experiences, I do try to qualify them. I'm not trying to single out Best Dad Ever, as I expect myself to follow the same protocols that I am suggesting he follow. But when any poster states his opinion as a fact, it should be challenged, mine included.

Am I to understand that you are saying unless you can pay cash outright for DVC, that you shouldn't be buying? In your opinion? I mean people finance things every day. Why should this be any different? Because its sole use is for vacationing?

Another fair question. That's a judgement call and I am not here to judge. What I will say is that financing a DVC purchase, especially at today's direct prices, is a risky proposition that lacks value. You instantly go upside down on your contract and the number of years it takes to break even vis-a-vis other options is extended past the point where it makes financial sense to purchase. Financing DVC, which is a luxury purchase that is not necessary, is different then financing a necessity such as a car. So people can do whatever they want, but I personally would prefer not to finance anything other than a house, and certainly not a timeshare.

The sad fact of our society is that there are things that are accessible to some but not all, and people have a hard time admitting that. Case in point...I had lunch with a friend at her country club today. As you can imagine it was gorgeous with a beautiful golf course and clubhouse. The initiation fee alone is out of my price range, I simply cannot afford it. But she told me that they have a special offer that would allow me to pay the initiation fee over the course of three years. Well, I could afford the fee under these circumstances...but that does not change the fact that I cannot afford to become a member of this country club. There's a difference between being able to afford something and being able to make the monthly payments, in my opinion. DVC is the same, but nobody wants to say it. Not everybody can afford to buy DVC. By offering financing options, Disney makes DVC available to more people by means of charging exorbitant interest rates on ridiculous purchase prices. In my opinion they are exploiting those with less means by enticing them into unenviable financial situations with potentially negative financial ramifications. I'm sorry if you (the reader) finds this to be offensive, as that is not my intent. But since when has preaching financial responsibility and living within one's means become offensive?