What's so bad about buying resale?

[twinklebug]

Other than the waiting to pass ROFR, is there anything else negative about buying resale?

Does anyone who's bought resale have any regrets as for not going through Disney?

Just wondering as it seems to be the least expensive option for buying into DVC, even assuming a 160 pt contract. Unless, of course, you feel the need to buy one of the newer DVCs Disney is offering incentives on (read: AKV). Those deals are all too tempting but the more I think about it, the more I want to own at VWL and resale seems to be a no-brainer.

 

[CarolA]

Bought both ways.

The only downside to resale is the process takes longer.... the upside, it costs less.... I can wait for savings LOL!

 

[simzac]

Resale buyer here, entire process took about 6 weeks. Our first trip on points wasn't going to happen untill 9 months after we first started the purchase process so 6 weeks didn't bother us at all. Good luck with your decision.

 

[Sheribo]

We bought resale and were very happy. Of course, once we made the decision to buy, we were quite impatient to book our first 'home' stay. Our resale was complete in about 7 weeks and we were very pleased with what we saved. Other than that, no difference. Once the sale is final, you are one of the family and Disney treats you the same as everyone else.

 

[JimMIA]

Bought both ways.

The only downside to resale is the process takes longer.... the upside, it costs less.... I can wait for savings LOL!

We're in the same boat - bought both ways, found TTS more professional than our DVC guide, no complaints.

The downsides are time and the uncertainty of ROFR, but you can figure ROFR out if you just remember that it's silly to lose a great contract for pennies. I'm still surprised when I see someone get ROFR'd for $1 a point, but people do it all the time.

 

[bookwormde]

Resale does take more time and a little more effort. If you want to get as close as possible to ROFR then it may take more time and effort if you get ROFRed the first time. For me it was a time vs. $ decision and I pushed the ROFR limits pretty hard but it still went through. There were (and are) lots of contracts for sale so I was willing to take the extra time to save an extra $300, but I am just cheap also.

One funny thing is according to my membership cards I have been a member since 1995, I guess I must have a bad memory (I think DVC forgot to reset the date when they entered my data).

bookwormde

 

[Disney_Villain]

We bought both ways, intitially through TTS for 230 of OKW in 2006 . . . and failed ROFR only once - we got it on our 2nd attempt. It was pretty easy, but worth the wait.

By buying resale, we also got OKW cheaper that what DVC is currently selling it for (and that's factoring our 15-year extension we added on later).

One thing I've found about resale . . . it is easier to do resale for your 1st contract than for add-ons. After that, trying to match the resort you want with the right number of points and the matching UY . . . becomes a bit more effort. We opted to add-on direct through Disney after our 1st contract, just to simplify that process - and we have no regrets.

 

[nunzia]

Bought resale and had no problems and would certainly reccomend it. Will buy from DVC next time, since it will be a new location and as an added plus there's no closing costs through DVC..not to mention the tote bag.

 

[Buckeye Fan]

Other than the waiting to pass ROFR, is there anything else negative about buying resale?

Does anyone who's bought resale have any regrets as for not going through Disney?

No regrets here, other than my UY. That was my own fault for not educating myself more before we bought.

Overall, we've purchased 3 contracts via resale. Biggest downside...the wait. If you are emotionally invested and aren't a patient person, it can seem like an eternity!!! I'm not speaking from experience or anything! For us, the entire process (offer to in Dis's system) took about 2 1/2 months for each contract.

As far as Dis goes, there is no difference. My BIL/SIL purchased direct back in 1995, and we purchased resale a couple of years ago. We both called MS for reservations at the 5 month for spring break. We were both told that all that was available was a 2-BR lock-off at SSR. We both reserved the 2-BR lock-off and waitlisted a dedicated 2-BR. Our dedicated came both came through about a week or two after making the reservation.

Just wondering as it seems to be the least expensive option for buying into DVC, even assuming a 160 pt contract. Unless, of course, you feel the need to buy one of the newer DVCs Disney is offering incentives on (read: AKV). Those deals are all too tempting but the more I think about it, the more I want to own at VWL and resale seems to be a no-brainer.

Yes, it usually is cheaper, and will be for VWL. On smaller point contracts, by the time you add in closing costs, it can actually be more expensive. Those contracts can sell for a higher price per point, and there are closing costs. So if you are buying a small point contract via resale or if/when you decide to add on, look at the whole picture. For add-ons, Dis doesn't charge closing costs, so it can actually be less expensive through Dis overall.

 

[musical2]

We initially bought resale from TTS. Then we added on in small increments from Disney. It was just more convenient to do small add-ons direct without having to pay closing costs, and I had use of the new points right away.

I would do either again depending on the number of points and the cost.

 

[crisi]

Bought mine resale - downsides.....

The wait - resale can take a while - getting all the paperwork back and forth. And DVC won't book anything until you are in their system - about a week after close. If you buy direct from Disney, your guide can help you get a reservation before you even close.

The uncertainty - Disney can exercise ROFR, but the seller can also back out of the sale.

Difficultly in Financing - Disney has a financing program. Some of the timeshare resellers (including the TSS) can help you get financing - but Disney's financing is generally better.

Educating yourself - Disney is going to sell you current points. Resale contracts come in all sorts of statuses - loaded (sometimes with banked points from previous years) to stripped (no point available now, and all borrowed from next year so it will be a year before you can even borrow points).

Lack of Promos - in some circumstances, Disney promotions will more than make up any cost savings you can get on resale - but in other cases, those developer points or whatever Disney has currently aren't as valuable to you as cash in your pocket.

Lack of other Disney materials - At one point they gave you a nice bag or a lithograph if you bought through Disney - don't know if they still do. Also, you get all of the contracts, the POS document, etc, when buying from Disney - if you buy resale you'll need to call Disney if you want the legal stuff.

 

[Coach81]

Few things:

1. ROFR
2. The wait is the worst!
3. Stripped contracts.

Other than these.. it's great, that is how we got our 150 pt. contract!

Good luck with your decision!

 

[Caskbill]

Not mentioned yet:

With resale you'll probably have to pay all closing costs. With Disney, DVC partially subsidizes the closing costs. (If you're buying an add-on from DVC they pay all the closing costs)

Maintenance Fees:

DVC prorates the fees based on the remainder of the calendar year and when you purchase. Makes no difference on the use year. Resellers generally do not understand this and generally try to get the buyer to pay all maintenance fees, usually stating something like "you get all the points". While maintenance fees are paid by the calendar year, for resale contracts, they need to be prorated on the use year and how many points are applicable to the specific calendar year's fees.

Examples: 1. You buy from Disney today purchasing a June UY. You will get all your June 2008 points, and will pay 5/12th of the annual fees (Aug,Sep,Oct,Nov,Dec)

2. You buy resale, June UY, which has all 2008 points available. Generally the seller will ask for all 2008 maintenance fees. (12/12ths) saying you get all the 2008 points. The kicker is that June 2008 points go from June 2008 - May 2009. Technically you should only pay 7/12th of the fees for that contract (Jun-Dec) as you will be paying Disney all 2009 fees, which cover the fees for the months of your 2008 UY which occur in calendar year 2009.

If the contract is stripped, or loaded, then the maintenance fees paid must be calculated carefully.

If you purchase a Dec UY resale, which has no 2007 points and all 2008 points, and you reimburse the seller for the calendar year 2008 dues, then effectively you have paid about $4.00 more per point than you should have.

 

[WolfpackFan]

My first "guide" told me that I would never save money by buying resale. He said I would be making a huge mistake if I did buy resale and that I would also be making a huge mistake if I didn't buy on the spot from him. But then again this is the same guide that couldn't be bothered to be there a year later, when I had an appt. with him to actually make our purchase. Thank goodness this guide is no longer with DVC.

 

[milenkod]

My first "guide" told me that I would never save money by buying resale. He said I would be making a huge mistake if I did buy resale and that I would also be making a huge mistake if I didn't buy on the spot from him. But then again this is the same guide that couldn't be bothered to be there a year later, when I had an appt. with him to actually make our purchase. Thank goodness this guide is no longer with DVC.

I was basically told the same that I would be making a big mistake.
I did some research here before my DVC presentation and they asked about why I shouldn't buy resale? He told me in the long run I'd be sorry and that directly through Disney is the better overall value. After evaluating it, he did throw in some small perks, nothing that couldn't be picked-up by using our Disney Rewards Visa card. The only real perk was the 200 developer points that I wouldn't be able to use as I used up all my annual vacation time with my employer, a beach bag...and two premium annual passes to WDW or Disneyland....again which I would only be able to use once based on our vacation characteristics. I'm still yet to buy into a DVC membership. When I do it will be a resale.

 

[swhall]

We purchased resale; loaded contract; 160 06 points,160 07 points and all 08 points intact. Seller paid closing costs, maint fees and adm fees.
You do need to be patient as it takes several weeks for the entire process.
It is nerve wracking if you have an upcoming trip planned within the 7 month window!

Good Luck with your decision

PS..I asked my guide why I would purchase resale vs Disney other than loyalty to the guide who had been in contact with us on/off for 5 years, he didn't have a good answer other than loyalty ....he is grumpy with us now!

 

[mmcguire]

Nothing bad about resale in my opinion. We had a great experience (see our blog below). A good reseller will advise you on a good price to avoid ROFR. You'll probably have a MUCH shorter wait for sold out resorts through resale than going through DVC.

Closing does take a little while, but the savings are well worth it. Once you're closed, you have the same status as anyone else who bought DVC through Disney -- no difference at all.

 

[twinklebug]

Wow - so many great reviews for buying resale. I'm a do-it-yourself type gal, so I don't have an issue with more footwork. The waiting to be put into the system would be the hardest part as all my funds would be gone & I'd want to see something for it - fast. Not necessarily to book, but just to know I'm in there.

I will look into the closing cost -to- price per point relation & am glad it was pointed out that Disney pro-rates fees according to the time of the year bought in verses what sellers feel the fees go for. (What Disney does makes total sense imho - you don't put off maintaining your home for a year just because you didn't live in it do you?)

So much research done - so much more to go...

Thanks everyone!

 

[Mamiamjo]

I've bought two contracts resale. One from TTS and one from International GMAC. I had no problems with either one. I received a full (not stripped) contract in both cases. I did have to pay closing costs but in my latest purchase, the seller paid current year MFs.
Even with the closing costs, I saved money versus what Disney is charging.
I wouldn't hesitate to buy resale again.

 

[bbowers]

Bought both of ours resale. First one had enough banked points to cover our upcoming trip and we rented out the rest, so price was even lower (or so I tell myself). Second was stripped but super cheap.

Absolutely NO regrets whatsoever - could never bring myself to pay the full price thru Disney.