Which would you do buying resale or through disney?

[cpcat]

It would be very hard to feel sorry for anyone who based a 50-year committment on their vacation plans for the next 3 months.

Not sure I understand what you are saying here.

What I was saying was that if the cost difference of direct vs. resale is close to what you would pay in accomodations to stay in-resort anyway (while you are waiting on your resale contract to go through ROFR, closing,etc) then the difference in cost actually isn't that much.

For example, the difference in a 400 point 100/pt resale contract for BLT and a 112/pt direct contract for BLT is 4800 dollars. Assuming a cash contract, the closing cost difference is around 400 dollars so the actual difference is more like 4400. A 7 night stay AKV savannah view in July is 5390.00 rack rate and 3720.00 assuming you can rent at 10 dollars/pt.

It's not as much about 50 year commitments as it is about simple mathematics.

 

[akl-fan]

I always book at exactly 11 months and I am always happy staying where I own. Therefore I would by resale and see no differance in these points to my direct ones.

 

[JimMIA]

Not sure I understand what you are saying here.

What I was saying was that if the cost difference of direct vs. resale is close to what you would pay in accomodations to stay in-resort anyway (while you are waiting on your resale contract to go through ROFR, closing,etc) then the difference in cost actually isn't that much.

For example, the difference in a 400 point 100/pt resale contract for BLT and a 112/pt direct contract for BLT is 4800 dollars. Assuming a cash contract, the closing cost difference is around 400 dollars so the actual difference is more like 4400. A 7 night stay AKV savannah view in July is 5390.00 rack rate and 3720.00 assuming you can rent at 10 dollars/pt.

It's not as much about 50 year commitments as it is about simple mathematics.

The outcome of "simple math" depends on the assumptions you make. Unfortunately, your example is riddled with a number of erroneous assumptions.

The biggest mistake is the $100 pp price for BLT resale. If you look at the ROFR thread, you will see only one BLT sale in 2011 near $100 -- it's actually $101. Only ONE contract at that price (and they paid too much!) The vast majority of the reported selling prices which have passed ROFR are between $94-96, with two at $87.50 and $86. So, just on first blush, your $100 pp price is overstated by about $5 per point...which makes a big difference in the "simple math."

Secondly, all of the contracts shown on the ROFR thread are much smaller than your example. The largest is 270 points, and most are between 50-150 points. We all know that large contracts sell for lower prices than small contracts, so I think it's reasonable to assume that a 400-point contract would sell for another $3-4 less...at least. Following that through, a much more realistic price for a 400-point contract would probably be $92-93, but there is a good likelihood that you could get it for MUCH less than that.

Doing more realistic simple math ($112 vs $93), the difference between direct and resale now becomes $7,600. To most folks, that's a sizeable difference.

The third erroneous assumption made here is that the buyer is going to purchase > 200 points at BLT in order to get the maximum incentive. Realistically, most BLT purchasers don't buy large contracts-- so most purchasers aren't paying $112, they're paying $120-130.

Of course, we can all set up whatever examples we want to prove a hypothetical point.

The smart buyer, however, will do their OWN math with real prices on actual contracts that they would realistically buy. That's the only way to know for sure which alternative is the best for your family.

 

[gatch1818]

I've read alot of post reguarding "resale or direct"? I guess I might be one of few, or as I've seen in other threads.. the "fool" who went direct? Its my first time with DVC, Ive done my research, Ive watched the resale boards for awhile. Maybe Ive made a mistake? Im okay with that though. I just sent my paperwork back to disney not soo long ago, these were some of my considerations for going direct.(please feel free to tell me if I was wrong) I had already had plans for two seperate 1 week trips this year, one at the BC and one at the BW. I did pay a $7000 difference going direct! My two trips had a total of $5995 in cost. This is the way I looked at it... I could not find a resale I really liked too much, none with any points banked, and nothing with the UY I was looking for? I was told I would get the "2010 points" with my contract? I was able to get a room for the dates I needed (even though I had to change one of my intended resorts), canceled my reservations without a loss of $. I still have this years points coming later, so the way I looked at it was..... Im only paying $1005 more, but I still have this years points for a later date, and with six grandkids.. They will be used! Im a rookie at all this, so let me know if you think I made a mistake? (just me easy on me )

 

[JimMIA]

I was told I would get the "2010 points" with my contract?

First of all, none of us can tell you that you did the "wrong" thing for your family. Only you can make that determination, because only you know what your financial situation is, and what is important to your family. So, unless you think you did the wrong thing, don't worry about that question.

However...the "I GET 2010 points with my contract" thing is a huge fallacy that DVC timeshare salesmen use to sell their product. It's a typical slick timeshare sales trick that portrays nothing as something of value.

OF COURSE you get 2010 points -- you are BUYING them! Nobody is giving you anything. You are purchasing in your 2010 Use Year, so OF COURSE you get the points you are buying.

If that "gift" was a key to your decision, and you are still within your 10-day recision period, you might want to rethink. If not, enjoy your DVC!

 

[gatch1818]

I know it wasnt a "gift". Thanks

 

[mjc2003]

I've read alot of post reguarding "resale or direct"? I guess I might be one of few, or as I've seen in other threads.. the "fool" who went direct? Its my first time with DVC, Ive done my research, Ive watched the resale boards for awhile. Maybe Ive made a mistake? Im okay with that though. I just sent my paperwork back to disney not soo long ago, these were some of my considerations for going direct.(please feel free to tell me if I was wrong) I had already had plans for two seperate 1 week trips this year, one at the BC and one at the BW. I did pay a $7000 difference going direct! My two trips had a total of $5995 in cost. This is the way I looked at it... I could not find a resale I really liked too much, none with any points banked, and nothing with the UY I was looking for? I was told I would get the "2010 points" with my contract? I was able to get a room for the dates I needed (even though I had to change one of my intended resorts), canceled my reservations without a loss of $. I still have this years points coming later, so the way I looked at it was..... Im only paying $1005 more, but I still have this years points for a later date, and with six grandkids.. They will be used! Im a rookie at all this, so let me know if you think I made a mistake? (just me easy on me )

It sounds as if your use year is fall, or late summer, from your quote: "I still have this years points coming later". So, yes, you were entitled to the 2010 points. However, if you were able to parlay the contract you bought into 2 trips that eliminate the need for you to spend that $6000 on your 2 cash reservations, then you probably made the right decision b/c now you have a fully functional contract. I would say you did not make a mistake. Of course if you had found a resale contract with points banked and in your desired use year, I would say that you would have had to give it some consideration. But, if you had specific needs and were able to "save" that $6k right now, then it's almost a wash and you can use the points anyway you see fit.

I think this was the point that cpcat was making earlier. If you are making a trip this year and have cash designated for that trip, that cash should be factored into the equation.

 

[cpcat]

The outcome of "simple math" depends on the assumptions you make. Unfortunately, your example is riddled with a number of erroneous assumptions.

The biggest mistake is the $100 pp price for BLT resale. If you look at the ROFR thread, you will see only one BLT sale in 2011 near $100 -- it's actually $101. Only ONE contract at that price (and they paid too much!) The vast majority of the reported selling prices which have passed ROFR are between $94-96, with two at $87.50 and $86. So, just on first blush, your $100 pp price is overstated by about $5 per point...which makes a big difference in the "simple math."

Secondly, all of the contracts shown on the ROFR thread are much smaller than your example. The largest is 270 points, and most are between 50-150 points. We all know that large contracts sell for lower prices than small contracts, so I think it's reasonable to assume that a 400-point contract would sell for another $3-4 less...at least. Following that through, a much more realistic price for a 400-point contract would probably be $92-93, but there is a good likelihood that you could get it for MUCH less than that.

Doing more realistic simple math ($112 vs $93), the difference between direct and resale now becomes $7,600. To most folks, that's a sizeable difference.

The third erroneous assumption made here is that the buyer is going to purchase > 200 points at BLT in order to get the maximum incentive. Realistically, most BLT purchasers don't buy large contracts-- so most purchasers aren't paying $112, they're paying $120-130.

Of course, we can all set up whatever examples we want to prove a hypothetical point.

The smart buyer, however, will do their OWN math with real prices on actual contracts that they would realistically buy. That's the only way to know for sure which alternative is the best for your family.

It's not hypothetical for me.

I wouldn't want a single 400 point contract even if I could find one. I think it would be wiser to have 4-100 point contracts as they could be more easily sold, plus as you mentioned the smaller contracts sell for a little more. If you buy direct, you can split them without any additional cost. If you buy multiple contracts resale, the closing costs will then be disproportionately higher---not to mention the extra time and effort required in finding and negotiating multiple contracts, matching use years, etc.

The 18 dollar incentive point for BLT right now is 320 points if I'm not mistaken, not 200.

I'd go with your 95.00/pt assumption, but even then the difference at the 320 point mark is only 5440 which is comparable to a 2 BR 7 night rack rate.

What's nice about DVC is that we can even have this discussion. For most other time shares, it's really not even debatable.

 

[JimMIA]

I wouldn't want a single 400 point contract even if I could find one.

Yep, that is the other problem with that example -- there probably aren't any 400 point BLT contracts in existence!

I think it would be wiser to have 4-100 point contracts as they could be more easily sold, plus as you mentioned the smaller contracts sell for a little more. If you buy direct, you can split them without any additional cost.

I don't follow direct promotions, so I don't know if that's correct or not. IF it's correct, that would take a little bit of the cost off buying direct.

The 18 dollar incentive point for BLT right now is 320 points if I'm not mistaken, not 200.

Like I said, I don't follow the incentives. I was just accepting the other posters assumption on that.

I'd go with your 95.00/pt assumption, but even then the difference at the 320 point mark is only 5440 which is comparable to a 2 BR 7 night rack rate.

Yeah...and it's a LOT less than an around-the-world cruise! You can choose whatever comparison you want, $5,400 is a good bit of money to most DVC prospects.

What's nice about DVC is that we can even have this discussion. For most other time shares, it's really not even debatable.

You're right about that, although someone who is really knowledgeable (like Dean) could probably find a direct-purchase value or two. But generally, it's a no-brainer.

 

[cpcat]

Yeah...and it's a LOT less than an around-the-world cruise! You can choose whatever comparison you want, $5,400 is a good bit of money to most DVC prospects.

I assume you are joking here. You'd be hard-pressed to take a family of four on a 7 day carribbean cruise for less than 5 grand assuming you have a balcony. I wouldn't cruise without a balcony.

To clarify, the original assumption I was making (am making actually) is that I want to stay at a DVC property in the next 3 mos. If I do that, I either rent for cash now and spend 4-6 mos buying resale or I buy direct.

If I don't care to wait, then resale certainly makes sense. Shoot, if I wanted to wait like two years, I could buy a stripped resale contract and save even more.

 

[JimMIA]

I assume you are joking here.

No...I was saying that $5,400 was a lot less than the cost of a round-the-world cruise. As for the Caribbean cruise, I live in Miami and can beat that price any day of the week.

 

[JimMIA]

ITo clarify, the original assumption I was making (am making actually) is that I want to stay at a DVC property in the next 3 mos. If I do that, I either rent for cash now and spend 4-6 mos buying resale or I buy direct.

And seriously...you'd be WAY ahead to rent a reservation from one of our reliable and trustworthy DISers and then take your time with the actual purchase.

But if you want it NOW...go ahead.

 

[Belle & Ariel]

I have been asking alot of questions about buying into the DVC the one thing I think I haven't asked is with the changes that Disney has made would anyone still buy reslae or would they still go through Disney?

I would most definitely go resale.

We only use our points at the world. Point cost for cruises are way too high compared to cash cost--we do not sail Disney but other lines.
We use VRBO when going to places you would trade in RCI for and get much better deals.

So the changes to resale do not affect us at all and we love the savings.

 

[Belle & Ariel]

I assume you are joking here. You'd be hard-pressed to take a family of four on a 7 day carribbean cruise for less than 5 grand assuming you have a balcony. I wouldn't cruise without a balcony.

To clarify, the original assumption I was making (am making actually) is that I want to stay at a DVC property in the next 3 mos. If I do that, I either rent for cash now and spend 4-6 mos buying resale or I buy direct.

If I don't care to wait, then resale certainly makes sense. Shoot, if I wanted to wait like two years, I could buy a stripped resale contract and save even more.

We cruise on Holland America and Celebrity often. A week in the Caribbean with a balcony is almost always under $3000 for our family of four. You can price Eurodam and Niuew Amsterdam next December and January for about $2400 with 4 in a verandah cabin.

 

[Brian Noble]

Assuming the numbers worked out, I would buy resale without thinking twice about it. In my view, when Disney placed the "restrictions" on resale contracts, they did those resale buyers a favor. Those use cases for points are almost always bad deals vs. just renting out a reservation and using the proceeds to purchase the cruise, tour, or hotel stay you wanted in the first place.

As for whether the numbers work out: I think in almost all cases, they do favor resale. The question is just by how much. For example, if you absolutely must own at BLT, it might be worth buying directly. It will be a little more expensive, but it will be a lot easier, and you can get exactly the use year and point level you want rather than waiting for the right resale to come around, or (worse) settling for a not-quite-right contract. At some point, you have to ask if the hassle is worth it for a 15% difference in purchase price.

But, even at BLT, you are paying 15%---and everywhere else you'll be paying more. The "incentives" make up some of the ground, but only if you would take that trip either way, and they only approach break-even if you value them at or near rack rate---which is a price no sane person would ever pay In Real Life. To put it another way, Disney isn't going to give you something worth *more* than you are paying them, because that's not the way Mickey works. But, he's happy to let you think it is.

 

[Terri2007]

I know many can write what they believe and it is probably relatively meaningless, but none the less...

I do not put a lot of worry into further limitations on resale. While Disney doesn't exist to keep current members happy, there are some limitations that I think do and will always impact decision making. It is one thing to cause stirs about Valet parking and park tickets/dining. It is another level of change to alter where you can use your points within the global Disney system. (It wouldn't surprise me about losses/changes with-in Disney concierge collection with outside resorts and I would never count on these year to year.)

I would expect that any future changes to resales purchases will be handled exactly the way the March change was: with pre-notification - giving the public a period of time to get in and grandfathering - not having changes impact current resale members. While contracts spell out the specific guarantees (your home resort and 1 month booking advantage), "good faith" will also be an integral part of this equation. We bought resale and if BLT continues to fall due to the changes, we will do so again.

 

[DenLo]

I use my points for a DVC resort reservation. So the changes have not affected my point of view.

I would buy which ever gives me the best price, either resale or direct. Now since I'm a member I don't want a large number of points and I want a specific use year. In the past I have found that it was difficult to get the number of points and UY I wanted on the resale market and with promotions I found I was only paying out a $150 more. So I would still make that comparison. See which is best. I would expect resale to cost significantly less.

 

[rmcildw2m]

I would still buy resale , the limits on resale verse direct doesn't matter to me because I only plan on going to the parks with any points that i buy .

 

[BlackRock]

It depends on how much you want to spend; resales can be a great deal

Black Rock

 

[ABE4DISNEY]

I am all about the price--resales are the way to go! IMHO.