Who has only purchased direct and why?

[luv2sleep]

We're direct buyers - we bought our 2 larger contracts (and neither is very large) when the incentives were fantastic and the point buy-in much lower than today. We just added on at $115/pt with $500 total discount.

I was one of those who didn't know about re-sale and my comfort level still is low for re-sale. I realize that not many people get taken but sending a large amount of cash and not getting any points for month or more just doesn't cut it for me. I don't like the uncertainty, the bartering or the need to constantly pled for my product from the broker and then from DVC. I just want to walk up and buy. For that ease of purchase I am willing to pay more altho I will try for any incentives available to reduce the price.

We wanted a small contract at BCV (55pts) and small contracts are 1: hard to find and 2: command a highter re-sale price. So we went direct, have our UY, the exact number of pts we were looking and an immediate availabllity. We put down 20% and financed the rest and we well pay it off early - just like our others - so we didn't have to deplete our savings even briefly. To us it is worth the 'extra' cost.

I could have written your post. Completely agree.

 

[JimMIA]

I was one of those who didn't know about re-sale and my comfort level still is low for re-sale. I realize that not many people get taken but sending a large amount of cash and not getting any points for month or more just doesn't cut it for me. I don't like the uncertainty, the bartering or the need to constantly pled for my product from the broker and then from DVC. I just want to walk up and buy. For that ease of purchase I am willing to pay more altho I will try for any incentives available to reduce the price.

"Getting taken" should not be a concern as long as you are dealing with a licensed Florida real estate broker like those commonly mentioned here on the DIS. They all operate under exactly the same laws, regulations, and regulatory agency as DVC itself. Florida has one of the most tightly regulated real estate industries in the country.

Buying DVC resale does take longer (6-8 weeks typically), there is some risk that you could go through a month of waiting and get ROFR'd, and some types of contracts are snapped up immediately and are therefore hard to find.

The question is whether that extra time and work is justified by the savings resale offers in most situations. For some it is, for others it is not -- there is no right or wrong answer to that.

 

[NoleFan]

I don't think the resale v direct is a 1 size fits all. Think a lot comes into play for each persons individual situation. Price difference, size of contract (small are harder to find & sell fast), matching UY (ok with different UY or wait to match UY), stripped v loaded resale contracts & points you would get buying direct v resale,waiting list for buying direct, financing (whether wise or not is individual decision), & availability of buying resale (ie new resorts not immediately available resale), & timeline for resale process. So many variables factor into the final decision. Only you know what is best for you.

Resale worked great for us. Waitlists for both resorts if we bought directs, $$ savings were significant, were OK (although anxious) with resale timeframes, lucky to find small contracts @ resorts we wanted, OK with having different UY, bought 1 stripped (had points transferred in), & 1 loaded, had $$ to buy resale, direct not in our budget for the # points we wanted & did not want to finance the purchase. Others may have different preferences so this same scenario may not be a good fit for another person.

 

[bakerworld]

I don't think the resale v direct is a 1 size fits all. Think a lot comes into play for each persons individual situation. Price difference, size of contract (small are harder to find & sell fast), matching UY (ok with different UY or wait to match UY), stripped v loaded resale contracts & points you would get buying direct v resale,waiting list for buying direct, financing (whether wise or not is individual decision), & availability of buying resale (ie new resorts not immediately available resale), & timeline for resale process. So many variables factor into the final decision. Only you know what is best for you.

 

[ELMC]

We're direct buyers - we bought our 2 larger contracts (and neither is very large) when the incentives were fantastic and the point buy-in much lower than today. We just added on at $115/pt with $500 total discount.

I was one of those who didn't know about re-sale and my comfort level still is low for re-sale. I realize that not many people get taken but sending a large amount of cash and not getting any points for month or more just doesn't cut it for me. I don't like the uncertainty, the bartering or the need to constantly pled for my product from the broker and then from DVC. I just want to walk up and buy. For that ease of purchase I am willing to pay more altho I will try for any incentives available to reduce the price.

We wanted a small contract at BCV (55pts) and small contracts are 1: hard to find and 2: command a highter re-sale price. So we went direct, have our UY, the exact number of pts we were looking and an immediate availabllity. We put down 20% and financed the rest and we well pay it off early - just like our others - so we didn't have to deplete our savings even briefly. To us it is worth the 'extra' cost.

I see your point, and totally respect your position on wanting a quick and streamlined deal. That being said, I think that this is a disparaging and somewhat inaccurate characterization of the resale process. It may not be for you, and that's cool, but it's not as bad as you make it out to be here.

 

[disneymath]

I actually debated purchasing for a few years before my initial buy-in. I did a lot of online reading; I was aware of resale as it was actively being promoted as the best financial choice by DIS DVCers even back then. In the end, I purchased direct from Disney for both my initial buy-in at BLT in 2010 and just recently when I added on at BLT in February 2013. Neither purchase was financed.

When first buying in, I seriously considered the resale route, even checked out the Timeshare Store listings frequently. In the end, I was not comfortable going that route. At that time, there was not a huge disparity between direct and resale pricing, but resale did offer savings. I think a lot of it was due to being unfamiliar with both making such a large purchase (my “first car” is my 2010 BLT) and with making such a large investment in a foreign product (I’m Canadian). Direct with Disney seemed like the most straightforward route with the least potential for unforeseen issues, so that’s what I did.

I will say DIS DVCers have your best interests at heart even if you opt to go direct. Thanks to a tip from one of the regulars here on the boards, I was able to reduce my initial buy-in per point cost by $2 per point just by asking. (This is not how things normally work, but I purchased in September, which is the end of Disney’s fiscal year. At the time, guides were allowed to throw in this extra incentive if the purchaser asked about it since it would help boost their sales stats for that year.) Looking back, the only, relatively minor, thing I would have done differently was split my initial 220 points into multiple small contracts. Thanks to the DIS, I knew I could do it, but again, I just wanted everything to be as straightforward as possible.

Fast forward to this spring. I’ve already had to borrow points and purchase one-time-use points. (220 points does not go too far when you’re looking for accommodations for 8!) We love BLT, so it seemed logical to add on the points there. I regularly check out the TSS listings, but my UY doesn’t seem to come up much. So I looked at the direct pricing options and learned that BLT was essentially sold out. I won’t lie, the price difference between direct and resale gave me serious pause, but truth be told, I’m still a bit wary about the resale process and wanted the points for an upcoming trip, so I opted to go direct again. This time I split my points into two 60 points contracts. Since I’m only in my 30s and plan on using my DVC for many years and vacations to come, it’s nice to know that my points hold no restrictions - who knows what may happen in the future.

FOR ME, direct was the best choice to make when I wanted to buy. And I think that stands for something. These boards are a great place to go to for research, to ask questions, and even solicit opinions, but in the end, each individual purchaser needs to do what’s best for his or her situation. Not everyone will agree with those choices, but if you are comfortable that you have made an informed decision, then that’s all that really matters.

 

[DougEMG]

Like the majority of DVC owners, I first became aware of DVC while on vacation at the parks. With most of our trips being in moderates with free dining I didn't see the value in buying DVC. It was only after joining here that I learned a lot more about how DVC worked and about the resale market. With resale prices the numbers for me finally worked out that owning DVC was a better deal (eventually) than staying in a moderate with free diing, so I ended up buying. All of my points are resale points, some are from before the restrictions and some from after the restrictions came in place.

Buying resale is all about saving money over buying direct, but it takes more time and effort to buy resale and your resale contract will have restrictions on it. Everyone is going to end up valuing those restrictions and their time differently and there is nothing wrong with that. But I think everyone should take the time to inform themselves of what their options are so they can make an informed decision and be happy with their purchase.

And if I ever win the lottery I'm buying at Golden Oaks, costs be damned!

 

[boiseflyfisher]

We purchased VGC direct. We had done our homework and were quite aware of resale, but at the time(like now)there were very few resale contracts on the market. At the time of our purchase, there were some pretty nice incentives including a cruise. We chose to take the price discount as we also knew that the lower price was more than enough to cover the price of the "free" cruise. I have no regrets at all buying direct.

Now that resale prices have risen well over our buy in price, we are even happier, but I know that that can change overnight. We had the money, we knew where we wanted to stay and when we wanted to stay, we knew that the resort was small and that it would be one of the more difficult to get into, so we bought.

Things have changed a bit for us now with a relocation to Florida. We aren't at all picky about our WDW resorts and can drive there in a couple of hours. We considered selling our contracts, but now we are able to rent out our VGC points for a good price and can turn around and buy last minute, distressed points or a cheaper transfer points. That works for us, too, as the point requirements on some of the resorts are a lot less than what we need for VGC stays. We can do more frequent short getaway trips.

 

[luv2sleep]

Like the majority of DVC owners, I first became aware of DVC while on vacation at the parks. With most of our trips being in moderates with free dining I didn't see the value in buying DVC. It was only after joining here that I learned a lot more about how DVC worked and about the resale market. With resale prices the numbers for me finally worked out that owning DVC was a better deal (eventually) than staying in a moderate with free diing, so I ended up buying. All of my points are resale points, some are from before the restrictions and some from after the restrictions came in place.

Buying resale is all about saving money over buying direct, but it takes more time and effort to buy resale and your resale contract will have restrictions on it. Everyone is going to end up valuing those restrictions and their time differently and there is nothing wrong with that. But I think everyone should take the time to inform themselves of what their options are so they can make an informed decision and be happy with their purchase.

And if I ever win the lottery I'm buying at Golden Oaks, costs be damned!

Oh that looks awesome!

 

[z28wiz]

And if I ever win the lottery I'm buying at Golden Oaks, costs be damned!

SAME HERE!!!

 

[Minniesgal]

SAME HERE!!!

Me too

 

[jaulty]

We purchased BLT direct in 2010 and haven't been disappointed or felt like we overspent. Ours was a planned purchase so we did not finance. The process was easy and stress free. I would do it again.

 

[davedmaine]

You guys are pretty funny. So, in your world, the market never determines the "value" of an item, only you do. So, given this, the only time you could ever "save" money is when you personally decide you would spend more, but do not.

I think that is a fair summary of your points. You can only "save" money you would be willing to spend in the first place. Everything else is a fantasy.

Ok, how about the person that says "I am willing to spend this amount on vacations but I want the nicest vacations for that amount?"

How do they ever calculate a value given they already said they are only willing to spend XX amount on vacations? In your world, they could never save a dollar because they are spending what they stated was their full budget already on vacations. That means they were not willing to spend more, and therefore, cannot save money.

Lets say that same person got a lousy room, off site, next to the highway for that amount. Another person got to stay at a flagship resort on premise for the same cost. In your world, they both saved nothing because they both spent their limit. In my world, given the market value of those results, the second person got a lot more value for their dollar. How much more value? Well, I would look at the delta between what they paid and what others were willing to pay for the same experience. That delta, to me, represents value.

In your world, you could never calculate that value. I think that is silly for someone trying to construct the value of a timeshare contract. For most people, staying at a nicer place for less money is the core of the value. They are spending their entire vacation budget, but they are getting more for it. I can measure that value by comparing the spread between what they paid for that experience and what others paid.

Now you sound like my mother-in-law. She'll buy a marked down sweater at Macy's, from $100 to $25, and run around telling everyone she saved $75. Not really: 1) She spent $25; she didn't save anything and 2) is was never that price to begin with. Honestly, DVC and cash reservations are not apples to apples anymore. There are so many discounts for cash reservations that you just can't compare the two.

 

[Andrew015]

Ok, this one does not make much sense to me. Who purchases DVC and expects the entire purchase to be made up in the first reservation?

Actually, I might be one of the few that actually came pretty close to recouping my initial re-sale investment on the first reservation. 150 points @ VWL for $50/point = $7500.

This trip occurred back in May and was a larger family get-together, thus requiring me to borrow 2014 points. For the first seven nights, I needed two studios at VWL.

Rack rate: $420/night x 2 Studios x 7 nights = $5,880
Actual rate: $368/night x 2 Studios x 7 nights =$5,152

We then stayed 3 nights in a One Bedroom Villa @ BLT, Lake View.

Rack rate: $620/night x 3 nights = $1,860
Actual rate: $540/night x 3 nights = $1,620

So as compared to my $7,500 initial investment, I would have spent $7,740 @ Rack Rate (I wouldn’t have actually paid rack rate), or $6,772 at the average May rates. Not too shabby, and I can guarantee you that wouldn’t come close to happening when buying direct from Disney at current prices.

Note, this doesn't include my closing costs (split 50/50), but it also doesn't include some discounts received as a result of being a DVC member, so I'm going to call that a wash.

 

[dmunsil]

DVC and cash reservations are not apples to apples anymore. There are so many discounts for cash reservations that you just can't compare the two.

Well, you can, but it's very difficult. There are times of year when you can't get any discount of any kind. And you really can't count on getting a discount at any time. You can never tell perfectly when they'll offer discounts and by how much. Even when they offer discounts, they don't necessarily offer them for every room every night.

And you can't get discounts very early; they always wait until they see what the demand is for a period before releasing discounts. If they just need to sell a few extra rooms, they might send out PIN-protected mailings to specific lists. They might offer discounts to specific groups that you might not be a member of (AP holders, Florida residents, military, specific clubs and organizations).

Disney is pretty unusual in the travel industry in that they get actual rack rate for a pretty significant number of rooms. Not by any means all of them, but way more than other companies. The hotel business is notorious for publishing rack rates that bear no real relationship to what they actually charge. But Disney really does sell rooms at rack rate. A lot of rooms.

If you are plugged in to the discount info, subscribe to the MouseSavers newsletter, and will mostly be going during off-peak times, you can often save 20-30% off rack rates, though not necessarily all the time. If you will mostly be going during school holidays or during special events like Food & Wine, or you feel better locking in rooms early, you may not be able to get any discount, or might have to settle for 10% or less, though occasionally you'll get more.

Even if you think you will almost always be able to snag 20-30% discounts, if you plan to stay in Studios DVC will still be a big financial win. In 1-bedrooms and other villas, it's still a win, just not as big.

 

[Daisyduck49]

We bought direct every time for 5 different resorts & do not regret it. I like having the points added right away & with some got last years points also. Some had incentives & some did not. I like knowing I can use my points for anything with no restrictions. With that said ... We are a very happy DVC family!!

 

[Andrew015]

In my opinion, the vast majority of people who purchase DVC directly from Disney have no idea that a resale market even exists. For those that do, and for the even smaller percentage that are really well informed on the topic, I believe the choice really becomes a "no-brainer" due to the substantial cost-savings of buying resale vs direct.

Unless you HAVE to own at a specific resort (say VGF for instance), you have to finance and have difficulty obtaining private financing as a result of poor credit, lack of equity, etc., OR you have a tremendous amount of disposable income and money really isn't an object to you, I see no other reason why any informed buyer would purchase direct if any of the above does not apply to you.

The main arguements against resale seem to be 1.) I want my points immediately. So you're telling me that you'll gladly spend 50-100% more on a luxury investment, just to vacation 6-8 weeks sooner? To put a number on that, we're talking about an EXTRA $15,000 on a 200 point BLT contract ($160/pt current direct pricing as opposed to $85/pt resale). That, in my opinion, is a pretty weak arguement, your vacation can't be THAT urgent... or 2.) I'm not comfortable dealing with a broker, I'd rather deal with Disney. As Jim already mentioned above, the preferred, authorized brokers that 90% of us re-saler's use all play by the exact same rules that Disney does. Your transactions are secure, and money is guranteed back in the event of a deal falling through (aka ROFR).

Some like the "perks" offered by DVC direct, but in my opinion, those "perks" are really just marketing tools. The value (or lack-there-of) of these perks has already been pretty well covered in this thread, and if you still view them as perks, then you haven't really done your homework and crunched the true cost (thus, an un-informed buyer).

Yes, resale might require a little more work and some additional patience, but for those of us who aren't made of money, it really is a no-brainer (to me, at least).

 

[Andrew015]

I'm just going to throw one more post out there, and I promise, I'm done

The whole “Direct vs Resale” thing really shouldn’t have become the “Great Divide” that it is on this forum today. To my knowledge, we still live in a free country (to what extent, I’ll gladly save for an entirely separate thread). And as such, we have choices… three to be exact:

1.) Buy DVC Direct from Disney
2.) Buy DVC through re-sale channels
3.) Don’t buy DVC at all (aka – pay cash)


We all come from different circumstances and walks of life, so the choice that is right for me may very well fit you differently. Option #2 fits me best. Why? Because I had the time and patience to pursue option #2, and I wanted the best bang for my buck. I did my research and confirmed that this was, in fact, the best fit for me. I pulled the trigger and I am happy with the outcome. As posted above, I’ve basically recouped my initial investment in my very first reservation. And I have 28 more years of ownership with nothing but maintenance fees to worry about.

Are you independently wealthy with little time to even read this thread? If so, I’m going to say that Option #1 fits you best. Knock yourself out. Do you typically stay in Value or Moderate resorts and often enjoy free dining? If so, DVC is probably not for you (you’ll get better value with Option #3).

However, I can’t help but feel that most people who post on the DVC forums fall into category #2. Not all, just most. Why do I say this? Because I know that most of us aren’t independently wealthy with money to throw away (think bell curve here). Also, I know that if you’ve come to find this forum, you probably know enough about DVC to conclude that ownership could be a good fit for you. If you are a good fit for DVC (you vacation there at least once every other year or more in deluxe accommodations), welcome home.

Without question, re-sale wins the financial argument every time. And for most of us, this is the #1 most important variable when considering this purchase. For those that are fortunate enough to find that convenience or additional perks are more important, then buying direct is probably going to float your boat best. But regardless of your decision and your circumstances, if you can live with your decsision personally and financially speaking, AND your enjoyment of said purchase outweighs the cost of ownership, then you made a good purchase. If the ROI (return on investment) for your choice was the best of the three options above, then you made a GREAT purchase.

 

[DVC Mike]

I have purchased 30 DVC contracts so far - 28 direct and just 2 resale.

I knew about the resale market and purchased direct anyway because I wanted to add smaller contract sizes and didn't want the hassle of buying resale.

For me, the speed and convenience of buying direct was worth the extra cost.

Clearly, not everyone feels the way I do.

My last add-on was at VGF.

 

[luv2sleep]

When I first bought I purchased direct from Disney. I know everyone is different but I didn't like the restrictions on resale contracts. May not be rational or cost effective to some but it was one of the main reasons.