Math on DVC Resales

[DisneyFans4Life]

I'll be honest, there is a level of ease. I've been looking for a year to get a small contract for a specific resort (not even in my current use year the last several months). A year. A small contract to add on just didn't exist at the resort that I could get my hands on. I sucked it up and got it direct. It took a week. The points were loaded to my account in hours.

Also the closing costs were $500 less with Disney than resale. So there are reasons to buy direct.



If you bought resale then direct, you wouldn't be stuck with two use years as long as that is what you asked for. They easily add new points even at a new resort onto the same use year.

I would just have to be patient or hope to find a direct contract at the same resort that I bought resale. For me, I'll take the ease of buying all direct. I also plan on buying outright and not financing.

 

[correcaminos]

I would just have to be patient or hope to find a direct contract at the same resort that I bought resale. For me, I'll take the ease of buying all direct. I also plan on buying outright and not financing.

What I am saying is if you buy direct, finding the same resort and/or UY isn't hard. Some resorts like VGF might be more sold out than others, but they often take wait lists for resorts. I was on one for a very sold out resort and it took a week.

It's not hard if you buy resale first and then ask for direct. It's much harder to find in resale things to match your current one (with the exception of maybe SSR - much more out there since there are so many more points out there).

Financing has little to do with buying direct so no matter what that's not an issue - only adds to the closing fees.

 

[Lensman]

If you bought resale then direct, you wouldn't be stuck with two use years as long as that is what you asked for. They easily add new points even at a new resort onto the same use year.

I would just have to be patient or hope to find a direct contract at the same resort that I bought resale. For me, I'll take the ease of buying all direct. I also plan on buying outright and not financing.

The order of what @helenabear suggested is important. Find a resale contract for the resort that you want with an acceptable use year, then after that, get the direct add-on. They will normally be able to immediately sell you an add-on for whatever use year that you want based on the points they have in inventory.

I'm not entirely clear on why DVC is able to do this. I don't think they can change use years of points, can they? So they must just have points of different use years in inventory. Are they able to join and split contracts in the same use year so they can grant new contracts of any size as long as they have enough points?

 

[correcaminos]

The order of what @helenabear suggested. Find a resale contract for the resort that you want with an acceptable use year, then after that, get the direct add-on. They will normally be able to immediately sell you an add-on for whatever use year that you want based on the points they have in inventory.

I'm not entirely clear on why DVC is able to do this. I don't think they can change use years of points, can they? So they must just have points of different use years in inventory. Are they able to join and split contracts in the same use year so they can grant new contracts of any size as long as they have enough points?

I'm not sure how it all works either. I think there is some inventory at times, based on what I've heard some say about purchasing. For others there are lists to get on. I know I had a week wait for a lower sold UY but only a small amount of points. Still I was put on the list and a week later got the call they were available. If the resort isn't sold out it's even easier.

I was under the impression that if there are some wanting points they just take back what they want in ROFR. If someone only wants 50 points out of a 100 point buy back, they can split that. I don't think they can change UY though as you think. I am not 100% sure on that as I have not point blank asked. I just made a guess based on what some said to me when adding on.

 

[nickys]

I'm not sure how it all works either. I think there is some inventory at times, based on what I've heard some say about purchasing. For others there are lists to get on. I know I had a week wait for a lower sold UY but only a small amount of points. Still I was put on the list and a week later got the call they were available. If the resort isn't sold out it's even easier.

I was under the impression that if there are some wanting points they just take back what they want in ROFR. If someone only wants 50 points out of a 100 point buy back, they can split that. I don't think they can change UY though as you think. I am not 100% sure on that as I have not point blank asked. I just made a guess based on what some said to me when adding on.

I agree. I don’t think they can change the use year of points, but they can split up a contract into smaller units.

 

[Phonedave]

I've always hated that stance. It arrogantly ignores the fact that resort prices and expiration dates are NOT the same.
There is a framework in place that allows members to stay in any DVC resort based on availability.
Plus, someone with an expensive home base doesn't get compensated for staying at a cheaper resort.

As have I. It is not as simple as "buy where you want to stay". As you have said, there are a lot more factors that go into it.

Sure, if you a dead set on staying at Boardwalk in a studio during F&W, then yes, you need to buy at BWV. But in other situations, you may be just fine buying elsewhere.

 

[HansGruber]

Also, if you buy a smallish contract, buying resale is often not worthwhile, because a) the price per point is often higher for smaller contracts and b) closing costs bring the resale cost much closer to the direct purchase price.

This is completely dependent on resort.
If the resale price and direct price are comparable, then I would agree with these statements.
However, there is a large percentage of resorts where the resale and direct prices are nowhere near each other (AK, HH, OKW, SS, VB, WL).

You can't keep making general statements based on the pricing of a single resort (in this case, I'm guessing BCV).

In general, smaller contracts do demand a premium; I agree with this 100%.

 

[DisneyFans4Life]

You can't buy 50 years resale correct?

 

[HansGruber]

I'll be honest, there is a level of ease. I've been looking for a year to get a small contract for a specific resort (not even in my current use year the last several months). A year. A small contract to add on just didn't exist at the resort that I could get my hands on. I sucked it up and got it direct. It took a week. The points were loaded to my account in hours.

Also the closing costs were $500 less with Disney than resale. So there are reasons to buy direct.

Fair enough.
But what was the difference in price per point between buying direct vs. resale?

For 95% (just a guess) of the world's population, money is a factor. For me, it's hard to gloss over this fact.
To each his/her own, I'm not trying to preach. Money is a fact of life.

 

[Phonedave]

(side point....)
These reasons, IMO, are terrifying and are more indicative of how poor consumer intelligence can be overall.
It's a 50 year contract, folks; take your time and get the best deal. Why rush into it?
Financing? For vacations?

Scary stuff.

As @helenabear said, finding a small contract on the resale market that matches what you want can be very difficult.

It is one thing if you are new to DVC. Then you buy a large contact on the resale market where you want, and then if you want the blue card and it's perks, you can add on via DVC and they will match your use year.

It is a totally different subject if you are trying to add on to an existing contract. I recently added on to my existing SSR contract. We waited, and stalked the various boards for about 7 months until a 50 point contract that matched our use year came up. It came on the market at 8:00 AM. I called the broker at 10:00 AM and she said to put in your "last, best, final offer" because she had 5 bids on it already, and she was going to stop taking bids at Noon. The contract was on the market for just 4 hours,. They are not easy to find, that is why many people just give up and go direct.


-dave

 

[DisneyFans4Life]

As @helenabear said, finding a small contract on the resale market that matches what you want can be very difficult.

It is one thing if you are new to DVC. Then you buy a large contact on the resale market where you want, and then if you want the blue card and it's perks, you can add on via DVC and they will match your use year.

It is a totally different subject if you are trying to add on to an existing contract. I recently added on to my existing SSR contract. We waited, and stalked the various boards for about 7 months until a 50 point contract that matched our use year came up. It came on the market at 8:00 AM. I called the broker at 10:00 AM and she said to put in your "last, best, final offer" because she had 5 bids on it already, and she was going to stop taking bids at Noon. The contract was on the market for just 4 hours,. They are not easy to find, that is why many people just give up and go direct.


-dave

I think that and the fact that you probably can't get a 50 year contract resale. I did a quick search and everything I found was less than 50 years.

 

[HansGruber]

You can't buy 50 years resale correct?

I don't think so.

The only way you could pull this off is by finding someone who just purchased a 50 year contract directly from Disney and decided to resell it. Buyer's remorse, of sorts.

 

[nickys]

This is completely dependent on resort.
If the resale price and direct price are comparable, then I would agree with these statements.
However, there is a large percentage of resorts where the resale and direct prices are nowhere near each other (AK, HH, OKW, SS, VB, WL).

You can't keep making general statements based on the pricing of a single resort (in this case, I'm guessing BCV).

In general, smaller contracts do demand a premium; I agree with this 100%.

If you’re only wanting a 25 or 50 point add-on, it doesn’t matter what resort you’re looking for. The combination of a higher cost per point and the closing costs make the difference not that much. Certainly not worthwhile to many people. The hassle of finding the same use year, the right number of points and competing against everyone else all means it’s just easier to through DVC direct.

YMMV, of course. But I am no more guilty of making general statements than you are!

 

[nickys]

You can't buy 50 years resale correct?

I don't think so.

The only way you could pull this off is by finding someone who just purchased a 50 year contract directly from Disney and decided to resell it. Buyer's remorse, of sorts.

Indeed.

But you won’t get 50 Years from DVC either, except for the latest resort in the same year it starts being sold.

If you buy a 25 point contract for AKL direct, you get the same end-date as every other AKL owner. Even now, if you buy CCV from DVC, you will only get 49 years, since it went on sale last year and therefore the end date is 2067.

 

[Sirwalterraleigh]

I suspect that was during the recession, when people just weren’t buying without significant incentives.

Any reports I’ve seen of people “getting bonus points” turned out to be current use year points, as @helenabear said.

Minimum buy in now is 100 points, although I have seen reports of 75 being offered as a last attempt to get a sale.

I believe 75 is firm as a minimum.

Done completely to circumvent the benefits block they put in 2 years ago...

They yank discounts to stop resale’s...

Resale’s Buy 25 points to circumvent get around that block

DVC increases to 75 to counter the maneuver.

This is like Sun tzu...see what a world the internet has created?

 

[Lensman]

You can't buy 50 years resale correct?

You mean a Copper Creek contract (expires 2068)? I don't see any right now. But there are definitely PVB (2066) and VGF (2064) contracts available resale right now.

 

[DisneyFans4Life]

You mean a Copper Creek contract (expires 2068)? I don't see any right now. But there are definitely PVB (2066) and VGF (2064) contracts available resale right now.

I actually found a 2068 Copper Creek resale contract online for $153/point. Not too shabby.

 

[HansGruber]

If you’re only wanting a 25 or 50 point add-on, it doesn’t matter what resort you’re looking for. The combination of a higher cost per point and the closing costs make the difference not that much. Certainly not worthwhile to many people. The hassle of finding the same use year, the right number of points and competing against everyone else all means it’s just easier to through DVC direct.

YMMV, of course. But I am no more guilty of making general statements than you are!

I'm not generalizing anything. A quick search online and I found (unsure if I'm allowed to link to the listings):

HH - 50 points @ $82/point
SS - 50 points @ $118/point
VB - 50 points @ $76/point
VB - 50 points @ $85/point
BW - 50 points @ $155/point

None of these are remotely close to the $182/point currently charged by Disney.
Even if I gave you the benefit of the doubt with BW, that's still a $1,350 difference between the resale and direct pricing (per point).
Four figures is worthwhile to me.
(The difference for VB is $5,300!)

If you have other figures, I'm definitely ready to take a look.

 

[Lensman]

I'm not generalizing anything. A quick search online and I found (unsure if I'm allowed to link to the listings):

HH - 50 points @ $82/point
SS - 50 points @ $118/point
VB - 50 points @ $76/point
VB - 50 points @ $85/point
BW - 50 points @ $155/point

None of these are remotely close to the $182/point currently charged by Disney.
Even if I gave you the benefit of the doubt with BW, that's still a $1,350 difference between the resale and direct pricing (per point).
Four figures is worthwhile to me.
(The difference for VB is $5,300!)

If you have other figures, I'm definitely ready to take a look.

I think BWV is the one to look at. HHI and VBR are in a different class, as is SSR to a certain extent. BTW, where are you seeing $182 a point? I think Boardwalk direct is $171 a point after the January 2018 price increases, or $16 a point more than the contract above. For a 50 point contract that is $800 more but with $500 less in closing costs so a net $300 more. For the smallest 25-point addon, buying direct is actually $100 cheaper.

I don't think @nickys is saying anything across the board, just saying that buying direct is sometimes worth looking at for small addons.

 

[HansGruber]

I don't think @nickys is saying anything across the board, just saying that buying direct is sometimes worth looking at for small addons.

That's EXACTLY what @nickys is saying:

If you’re only wanting a 25 or 50 point add-on, it doesn’t matter what resort you’re looking for. The combination of a higher cost per point and the closing costs make the difference not that much. Certainly not worthwhile to many people.

BTW, where are you seeing $182 a point?

I am under the assumption that direct prices are all the same regardless of resort. I can publicly see $182/point offered by Disney for CCV.
However, if I'm mistaken, I don't know how anyone can prove what the price-per-point is for each resort when purchasing directly from Disney.
Also, where are you getting the closing costs from? How is that calculated?