Why buy new DVC if you can buy resale?

[Bibbidi]

I understand that if you really want AKL villas to be your home resort that you would need to buy new for DVC there. However, why wouldn't someone just buy points on resale, especially since they are so much cheaper? I know that it probably isn't always easy to book at the 7 month window for your non-home resort, but I am just trying to rationalize the extra expense of buying into the AKL villas.

 

[Chuck S]

Those are the good reasons to buy through Disney, if you want to primarily stay at AKL and can book 7 to 11 months out. Also your AKV contract will expire in 2057 and the older resorts will expire in 2042 (SSR in 2054).

Plus, you won't have to wait to go through ROFR an you have the option of those extra "developer points."

If however, you want to stay primarily at BCV or BWV, or just want a resort without a preference of where you stay, I would buy through resale.

 

[mprewitt]

The reasons to buy points from DVC instead of resale include:

• Faster than resale (you will be in the system and have your points and be able to make reservations much faster than resale)
• No worries about the purchase if Disney executes ROFR, since that only applies to resale purchases
• You can finance through DVC, and Disney doesn’t report the loan to credit reporting agencies
• The full set of points you buy will be available immediately, versus a resale contract which may be “stripped” of points.
• Developer points incentive, if available

 

[wdw1972]

Just my opinion - take it for what it's worth (which may be nothing <g>).

If you're buying dvc wanting to stay primarily at AKV, you'd be nuts to buy anywhere BUT AKV. If you're wanting to buy dvc to rotate staying at all (or most) of the different resorts for different trips, then it probably makes more sense to buy a cheaper SSR resale. The difference in SSR expiring in 2054 vs AKV expiring in 2057 is not a material difference in my opinion. Depending on your age, the difference of AKV/SSR 2057/2054 vs the other dvc expiring in 2042 might or might not be important.

Usually it's not hard to get what you want at 7 months, even if you have to go on the waitlist at first. However, there are exceptions - and if any of these scenarios are really important to you, you might not want to take the risk.

BWV standard view - especially during peak seasons plus Oct, Nov, Dec due to Epcot area events. Same is true of any BWV grand villas.

BCV is tough during Oct, Nov, Dec - as well as peak holidays (Easter, Christmas-New Years)

VWL is tough during peak holidays - it's a tiny resort

HHI is tough during June-July, especially for anything other than a 2br.

Vero beach cottages are tough....and the entire resort books early for Feb-April.

OKW & SSR are easiest to get at 7 months - almost a sure thing.

AKV - we have no experience yet, but concierge rooms and standard/value will likely disappear at 11 months due to a very limited supply to meet the demand.

Hope this helps.

 

[Maistre Gracey]

When purchasing through Disney you can get the exact number of points and use year you want. When buying resale you can only buy what's listed.

I also like the ease of just picking up the phone and telling my guide what I want. It's just so easy.

MG

 

[Bibbidi]

Wow, thanks for all the insight. I hadn't thought about the financing through DVC or the "developer points". What are those incentive points? No one has ever mentioned them to me before. I was thinking of buying HHI points in a small contract, but I am probably better off getting a small contract at SSR just because it lasts longer. We are younger (early 30s) so Lord willing we have a good bit of time left for Disney trips. Thanks for all feedback!

 

[pilferk]

The reasons to buy points from DVC instead of resale include:

• Faster than resale (you will be in the system and have your points and be able to make reservations much faster than resale)
• No worries about the purchase if Disney executes ROFR, since that only applies to resale purchases
• You can finance through DVC, and Disney doesn’t report the loan to credit reporting agencies
• The full set of points you buy will be available immediately, versus a resale contract which may be “stripped” of points.
• Developer points incentive, if available

I also think closing costs via most of the timeshare resales outlets are more expensive (not a LOT more, but more).

For add ons..you pay NO closing costs to Disney.

 

[mathgeek]

But closing costs are negotiable in resales...we bought both of our contracts resale and didn't pay closing for either one. We also got the resorts we wanted with the exact point values and use years that we wanted too.

 

[Deb & Bill]

Disney will only sell you the same use year and your initial contract gets amended (.0, .1, .2, etc). If you buy resale, each contract is a master contract and you might not get the same use year. You'd have to use up your once a year transfer to move points between contracts to get full nights with remaining points in that contract.

 

[pilferk]

But closing costs are negotiable in resales...we bought both of our contracts resale and didn't pay closing for either one. We also got the resorts we wanted with the exact point values and use years that we wanted too.

To be clear: I'm not implying one way is better than the other...likely we would have looked a LOT closer at resale if we hadn't wanted AKV.

But the OP asked about the why's and I see closing costs mentioned quite a bit. Seems others have not been so lucky (or skillful) at negotiating away those closing costs. So it's something "different" that many people consider and hadn't been mentioned.

 

[Maistre Gracey]

But closing costs are negotiable in resales...we bought both of our contracts resale and didn't pay closing for either one. We also got the resorts we wanted with the exact point values and use years that we wanted too.

You are very lucky. If somebody specifically wants 168 points at BWV with a September use year, that will be tough to stumble accross.

Also, be careful; If you are too good of a negotiater, you can negotiate yourself right out of the contract via ROFR.

Glad to see it worked for you, and you got what you wanted...

MG

 

[Par8hed]

Add me to the list of happy resale customers. Saved a tidy sum and got exactly what I wanted with VERY minimal hassle.

 

[Bibbidi]

But closing costs are negotiable in resales...we bought both of our contracts resale and didn't pay closing for either one. We also got the resorts we wanted with the exact point values and use years that we wanted too.

Am I allowed to ask on these boards who you went through for the resales? I think that is the best option for our family because we only really want between 50-100 points.

 

[mprewitt]

Resale does have it's pros and cons too:

• You may not get the exact number of points you want
• You can purchase less than 160 points for your initial buy-in to DVC (Disney won’t let you buy less than 160 points).
• It will take much longer to get into the DVC system and have your points (resales typically take 6-8 weeks)
• Disney may exercise ROFR and you may loose the resale and have to start all over (When buying resale, one of the potential pitfalls to try to avoid is making an offer that will cause Disney to exercise it’s Right of First Refusal)
• Resale is typically less expensive then buying from DVC
• You can’t finance through DVC, although most resale brokers will recommend a finance company
• A resale contract may be “stripped” of points where the user has used many of the current year’s points, and may have borrowed some or all of next year’s points. Be wary of “stripped” contracts on the resale market.

 

[mathgeek]

Am I allowed to ask on these boards who you went through for the resales? I think that is the best option for our family because we only really want between 50-100 points.

I don't know if I'm allowed to say, but see the sponsor at the top of this board.


And even though we were very successful in getting what we wanted through resale, I agree that you need to take all of the pros and cons into consideration. You really need to do your homework before deciding to buy resale. For us it was the right decision, but for someone else it may not be.