Why does anyone purchase direct if available resale points are cheaper?

[extremesoccermom]

We purchased both ways for different reasons. We have been wanting to buy into DVC for years (since 1994) but we don't do debt and never could save enough to purchase an initial 160 points outright. I learned about resale here about 6 years ago.
I purchased a 50 point contract at SSR through resale paying cash.

Then we added a 25 point at AKV so that we would have enough for a vacation every 3 years.

When they announced BLT and the free cruise we jumped on it buying 100 points direct but split the contract into 2 - 50 point contract incase we would need to quick sell later.

I was thinking about getting the 100 points at AKV to get the extra 20 until I started to run the figures and realized I could get a 160 point resale for less. We are now looking for a AKV resale.

 

[nolanboys]

Feel fortunate that we didn't take the tour 7 years ago. It interested me, but we were so busy with the parks that we didn't have the time. Ordered the DVD and became more interested, but held off because it's a large amount of money. Started looking into it at home and stumbled across resales. I think many times people just don't know about the resale market. I may still buy direct in the future for a new resort, but so glad we waited and were able to get more points for thousands less than direct.

 

[luv2sleep]

Been reading more and more about resale. Looks like it's the better way to go. I'm holding out for the Grand Californian. I will keep checking the resale sites for them.

This is such a great thread! Thanks for all of the info!

 

[DoryDorito]

I can only speak for myself. We spent a lot of time researching both. Whether you buy resale or direct, let's face it, for most of us it's a lot of money invested.

We just bought 100 points with the "free" 20 points add on at AKV. We don't love the trend of Disney restricting resale contracts. As of now, you cannot use Adventures, concierge or cruises with resale. There is a lot of speculation that you won't be able to use resale points at GFV when they open. Who knows if that's true but based on the way things are going, this wouldn't surprise me. Is it really saving money when you can't use your points freely? For us, the answer was no.

You will find that there is pressure from both sides of whomever is doing sale. Even on DVC boards your going to find people who are going to roll their eyes because you didn't do it their way. Direct was best for my family and who's to say it wouldn't be for someone else?

My advice? Do your research and decide what's best for you.

 

[rusafee1183]

We went direct because we had to use Disney's financing. I would have much preferred to be able to buy re-sale and buy outright to have no debt, but I am impatient. LOL. We have been wanting to buy for years, and after watching the price go up year after year and hearing of all of the potential restrictions with re-sale contracts we just did it. We were offered the 120 for 100 points at AKV and decided that we didn't want to keep waiting and wishing for it.

I do feel a bit guilty about going into debt for this. I know that overall it will end up costing me more money going direct, but we were always using credit cards for a portion of our trips anyway. I figured if someone was going to get interest for my trips it might as well go to be having an ownership instead of going to Discover.

I can't wait to hear Welcome Home for the 1st time. I am so happy right now!

 

[luv2sleep]

Unless I had a ton if points I doubt I'd use them for the Collections. One thing that is concerning though is the possibility of Disney restricting resale points usage to your home resort. Seems like they would do that though only for people purchasing new resale points after X date, etc. but who knows? They can do whatever they want I guess.

 

[luv2sleep]

Also, since I want VGC points and Disney is selling them for $130 per point, resales look a little better. I have my guide on the look out for June VGC points and am watching for a resale. Will see what happens.

 

[montrealdisneylovers]

Unless I had a ton if points I doubt I'd use them for the Collections. One thing that is concerning though is the possibility of Disney restricting resale points usage to your home resort. Seems like they would do that though only for people purchasing new resale points after X date, etc. but who knows? They can do whatever they want I guess.

Resales would probably drop further in value. However, if the price difference between reseale and direct gets too big, I would suspect that more people would buy smaller contracts at different resorts and between banking and borrowing would plan their vacations that way. I know I would!!

 

[Brian Noble]

Why does anyone purchase direct if available resale points are cheaper?

Timeshare is a product that is most often sold, not bought. Most of the people who tour and eventually buy have no a priori understanding of the product.

 

[luv2sleep]

Timeshare is a product that is most often sold, not bought. Most of the people who tour and eventually buy have no a priori understanding of the product.

Disney is very good at presenting their product. I just received their DVC brochure pack and it's amazing. I was temporarily reconsidering buying Aulani but after many calculations, I'm sticking with VGC. I avoided the DVC desk and meetings on my cruise because I knew I'd get sucked in before researching it.

 

[luv2sleep]

Gave my DVC guide my CC today to be put on the waiting list for GCV! Decided to go direct. So excited to take the first step! Thank you for your help!

 

[nunzia]

Gave my DVC guide my CC today to be put on the waiting list for GCV! Decided to go direct. So excited to take the first step! Thank you for your help!

VGC makes sense..IMO to buy direct..resale contracts are pretty few and far between and many more get ROFR'd. I'm on the same list..waiting for a few more March points to add to my other contracts.

 

[luv2sleep]

VGC makes sense..IMO to buy direct..resale contracts are pretty few and far between and many more get ROFR'd. I'm on the same list..waiting for a few more March points to add to my other contracts.

Someone on another thread said he waitress last year for a June UY contract twice. Once he waited a month and the other time 4 months. It will eventually happen I'm sure.

 

[G'sMaman]

Someone on another thread said he waitress last year for a June UY contract twice. Once he waited a month and the other time 4 months. It will eventually happen I'm sure.

Congratulations on coming to a decision! We were on the waiting list for June GVC points last year as well, but after 4 months of waiting a resale contract that met our needs came up so we took that instead. You can call your guide periodically to see where you are on the list. We were stuck at number 6 for a long time (I think we started at 14), but they seem to be more aggressive about buying back contracts lately so hopefully your wait will be much shorter. Best of luck to you!

 

[princessmurdough]

and apologies, my search fxn isn't working for me!

Who do we think is going to have the first insight on this whole GFV question of will they, or won't they, allow ressies from resale purchasers?

I'm guessing the brilliant minds here, but maybe there are other insiders? I figure what the answer will be from sales...
When this is the case, what if you have, say, a portion of your points direct and then a portion resale when you're looking to reserve at a "restricted" property?
Can you not combine separate ownerships for a single reservation? (Sorry, newbie question, I guess!)

Anyway, secondly, if one was to buy direct, what kind of point expenditures are you looking at for the cruises and other off-site weeks?
Thanks, folks!

 

[CMOORE185]

and apologies, my search fxn isn't working for me!

Who do we think is going to have the first insight on this whole GFV question of will they, or won't they, allow ressies from resale purchasers?

I'm guessing the brilliant minds here, but maybe there are other insiders? I figure what the answer will be from sales...
When this is the case, what if you have, say, a portion of your points direct and then a portion resale when you're looking to reserve at a "restricted" property?
Can you not combine separate ownerships for a single reservation? (Sorry, newbie question, I guess!)

Anyway, secondly, if one was to buy direct, what kind of point expenditures are you looking at for the cruises and other off-site weeks?
Thanks, folks!

Hello neighbor, I grew up in Geneva and now live in Bartlett.

If you own DVC (whether it be direct or resale) you can book any DVC resort that is not your home resort at 7 months, your home resort at 11 months. You can book using two different resort contracts, but if the resort you are booking is one of your home resorts you cannot use the points from the non home resort until you are 7 months out.

The difference between resale and direct is simple. If you buy resale you can only use it for DVC resorts and RCI exchanges. Other than not being able to book things like cruises or disney collection you have the same rights as direct buyers.

Cruising on points can vary greatly depending on the cruise you take and room type. It can also change greatly from year to year. Sometimes using points for a cruise can be a decent deal, but for the most part is not a wise use of your points. Do not buy DVC to cruise the majority of the time, DVC's value comes in using it at DVC resorts, that is why buying resale is not a bad way to go.

 

[standardgirl]

We purchased direct because we had our heart set on a specific UY. In addition, we got the 20 free points promotion which brought the cost down to $112.50 at Aulani and this was lower than the asking prices of the very limited resale out there. And we get 6-month interest free financing on Disney credit card which is nice even though we don't need that. Plus a 2% rebate from the credit card too! Granted that we might be able to negotiate a deal on the resale for cheaper, but it wasn't worth the risk of resale failing through at which time we would miss the DVC 20 point promo as well!

It is also nice to have the Disney Collection option as I know for sure that we'll be at Disney Paris in the next year or so.

We might buy a resale at some later date for a WDW home resort, but for Aulani, buying direct with the promotion worked out very well.

 

[ELMC]

We purchased direct because we had our heart set on a specific UY. In addition, we got the 20 free points promotion which brought the cost down to $112.50 at Aulani and this was lower than the asking prices of the very limited resale out there. And we get 6-month interest free financing on Disney credit card which is nice even though we don't need that. Plus a 2% rebate from the credit card too! Granted that we might be able to negotiate a deal on the resale for cheaper, but it wasn't worth the risk of resale failing through at which time we would miss the DVC 20 point promo as well!

It is also nice to have the Disney Collection option as I know for sure that we'll be at Disney Paris in the next year or so.

We might buy a resale at some later date for a WDW home resort, but for Aulani, buying direct with the promotion worked out very well.

One of the benefits of buying resale is the savings over buying direct. For Aulani, there is little to no resale market, so there is little to no alternative. If you want Aulani, you almost have to buy direct. Plus, at $110 a point (after cc rebate), the price is not that much more than what resales will probably go for when the market does emerge. If Aulani follows the track of BLT and heads to $150+, you will be very happy buying at $110 and may even find that you can get close to your money back should you ever decide to sell. Congrats on your purchase.

 

[G'sMaman]

One of the benefits of buying resale is the savings over buying direct. For Aulani, there is little to no resale market, so there is little to no alternative. If you want Aulani, you almost have to buy direct. Plus, at $110 a point (after cc rebate), the price is not that much more than what resales will probably go for when the market does emerge. If Aulani follows the track of BLT and heads to $150+, you will be very happy buying at $110 and may even find that you can get close to your money back should you ever decide to sell. Congrats on your purchase.

The other consideration regarding buying Aulani resale is that the closing cost is at least $900 regardless of the size of the contract. We looked at contracts being offered by the two big resale companies and they both had similar closing costs. That made buying our add on directly a no brainer for us because we got the bonus points and last years points as well in the use year we wanted. Hopefully, Aulani will retain it's value, but regardless we love the resort so I don't intend to sell for quite a long time.

 

[standardgirl]

The other consideration regarding buying Aulani resale is that the closing cost is at least $900 regardless of the size of the contract. We looked at contracts being offered by the two big resale companies and they both had similar closing costs. That made buying our add on directly a no brainer for us because we got the bonus points and last years points as well in the use year we wanted. Hopefully, Aulani will retain it's value, but regardless we love the resort so I don't intend to sell for quite a long time.

Out of curiosity, do you know or did the resale companies explain to you why the closing costs for Aulani is so high in the resale market? Aulani's closing cost when buying from DVC seems to actually be lower than WDW properties.