Purchasing Use Year Past Banking Deadline

[striker1064]

Thanks for your reply. Yes, I'm aware of the ROFR. That's another reason I'm a bit more leery of a resale contract. Settle on a "too good to be true" cost, and Disney will absolutely swoop in and grab it. And they could take a few months to make up their minds. I've also read that their buybacks of AKL contracts is higher this year than previous years.

Realistically, I think I'd be looking at a minimum of $130 per point at best, assuming I could negotiate down that far. But typically, these all seem to be going in the range of $135-138. Of course, there's no guarantee those would pass ROFR, but seem more likely to do so.

And then there's the waiting game of trying to find a contract that has what I need and also represents a decent savings over direct.

It really depends on what your ~$6k you quoted previously is worth to you. Is it worth it to deal with a bit of delay and hassle? DVC can exercise ROFR, but they can't take them all, and you can keep offering other contracts if they take yours. $6k is enough money for us to wait a few months, but that's a personal decision.

Also, I would not frame your offer to pass ROFR. I think that's a recent thing some resale companies are pushing, and I get it, it means they get paid more commission. I've always made my offers based on some combination of slightly below market price and what I think the contract is worth based on size and how many points are left. If Disney exercises ROFR, fine, I go for another. They can't take them all.

 

[BlackCauldron]

It really depends on what your ~$6k you quoted previously is worth to you. Is it worth it to deal with a bit of delay and hassle? DVC can exercise ROFR, but they can't take them all, and you can keep offering other contracts if they take yours. $6k is enough money for us to wait a few months, but that's a personal decision.

Also, I would not frame your offer to pass ROFR. I think that's a recent thing some resale companies are pushing, and I get it, it means they get paid more commission. I've always made my offers based on some combination of slightly below market price and what I think the contract is worth based on size and how many points are left. If Disney exercises ROFR, fine, I go for another. They can't take them all.

For me, it's really more worth it to get what I need/want. Going direct through Disney, I get that.

Finding it on the resale market - I haven't seen anything yet. I'm unmovable on the April or June use years, so that immediately limits the options. Every 150 contract I have seen in my use years is stripped - some of them severely so - and I don't want anything that doesn't offer me full points until 2023. Some of the higher pointed contracts are fully loaded or not as severely stripped, but then I am paying for a glut of points I don't need (or won't need in the future).

Right now the best option I see on the market is a 160 point contract (with 128 points left in 2021, full points forward) but offered at $24K. Not a huge gap between buying direct.

So it becomes a waiting game - waiting for a contract I can live with, waiting for the negotiations, waiting for ROFR, and after all that possibly still coming up short.

 

[striker1064]

For me, it's really more worth it to get what I need/want. Going direct through Disney, I get that.

Finding it on the resale market - I haven't seen anything yet. I'm unmovable on the April or June use years, so that immediately limits the options. Every 150 contract I have seen in my use years is stripped - some of them severely so - and I don't want anything that doesn't offer me full points until 2023. Some of the higher pointed contracts are fully loaded or not as severely stripped, but then I am paying for a glut of points I don't need (or won't need in the future).

Right now the best option I see on the market is a 160 point contract (with 128 points left in 2021, full points forward) but offered at $24K. Not a huge gap between buying direct.

So it becomes a waiting game - waiting for a contract I can live with, waiting for the negotiations, waiting for ROFR, and after all that possibly still coming up short.

I definitely get the UY. We are Sept or Oct only. They aren't common. Unfortunately, only ~19% of all existing AKV contracts fit your UY criteria. That makes it tougher, but not impossible.

If you can be patient, every year there are more contracts than usual available for sale in December and January when maintenance fees come due and people don't want to pay them. There's usually a small dip in price as well - not significant, but something. It also seems, anecdotally, to me that supply is rising quite a bit but prices are remaining high, so I feel like we'll see a slight drop soon. Hopefully.

 

[SteveAZee]

Thanks for your reply. Yes, I'm aware of the ROFR. That's another reason I'm a bit more leery of a resale contract. Settle on a "too good to be true" cost, and Disney will absolutely swoop in and grab it. And they could take a few months to make up their minds. I've also read that their buybacks of AKL contracts is higher this year than previous years.

Realistically, I think I'd be looking at a minimum of $130 per point at best, assuming I could negotiate down that far. But typically, these all seem to be going in the range of $135-138. Of course, there's no guarantee those would pass ROFR, but seem more likely to do so.

And then there's the waiting game of trying to find a contract that has what I need and also represents a decent savings over direct.

There are one or two places online that track the price that Disney is exercising ROFR, though there's a wide band between 'definitely exercising' to 'definitely not' and there's not a clear rhyme or reason to it.

 

[BlackCauldron]

I definitely get the UY. We are Sept or Oct only. They aren't common. Unfortunately, only ~19% of all existing AKV contracts fit your UY criteria. That makes it tougher, but not impossible.

If you can be patient, every year there are more contracts than usual available for sale in December and January when maintenance fees come due and people don't want to pay them. There's usually a small dip in price as well - not significant, but something. It also seems, anecdotally, to me that supply is rising quite a bit but prices are remaining high, so I feel like we'll see a slight drop soon. Hopefully.

I assume the same doesn't apply to direct pricing? That seems to be on the rise. Currently Disney is offering a $600 credit on 150 points - essentially covering the closing costs. That expires first week of November. Not sure if that means another, better deal may be offered then, or if all deals are just off the table.

 

[striker1064]

I assume the same doesn't apply to direct pricing? That seems to be on the rise. Currently Disney is offering a $600 credit on 150 points - essentially covering the closing costs. That expires first week of November. Not sure if that means another, better deal may be offered then, or if all deals are just off the table.

It varies. DVC never offered incentives on sold-out resorts until last year. Since then, they have varied. The current incentives do not apply to all of the sold-out resorts, and in fact the last round of incentives applied to some resorts that are now no longer discounted. And you are correct, with some very rare exceptions direct pricing only goes up, and often we don't know the price is going up until it goes up. Off the top of my head, only VB and SSR (weirdly) went down in direct price, and only once.

That's a long way of saying, no one knows, probably not even DVC themselves. AKV might remain on discount after November. Or they may not. They change incentives all the time and no one really knows why they discount the things they do.

My advice? Florida timeshare law says you have a 10-day rescission period, no questions asked. If you're still leaning toward direct, buy a day or two before the current incentives expire in November. When the new incentives come out, if they're better, cancel your contract and buy under the new ones. If they're worse, no harm, you already have a better deal.

 

[CaptainAmerica]

Thanks for your reply. Yes, I'm aware of the ROFR. That's another reason I'm a bit more leery of a resale contract. Settle on a "too good to be true" cost, and Disney will absolutely swoop in and grab it. And they could take a few months to make up their minds. I've also read that their buybacks of AKL contracts is higher this year than previous years.

Realistically, I think I'd be looking at a minimum of $130 per point at best, assuming I could negotiate down that far. But typically, these all seem to be going in the range of $135-138. Of course, there's no guarantee those would pass ROFR, but seem more likely to do so.

And then there's the waiting game of trying to find a contract that has what I need and also represents a decent savings over direct.

I'm sorry but this is all horribly misguided. Disney buys back a small fraction of contracts in ROFR... like 10%. And it doesn't take "months" of waiting, it takes about 3 weeks. The maximum amount of time they can take, legally, is 30 days. You're going to spend an extra $10,000 to avoid waiting, at most, 30 days?

Go look at the ROFR thread on DIS. People are clearing ROFT at like $125. I'm waiting at $130 on a tiny contract.

 

[striker1064]

The maximum amount of time they can take, legally, is 30 days.

I agree with all of what you said except for this, this isn't true. They can take up to the closing date to decide on ROFR. The 30 day rule is that they must be allowed at least 30 days to decide on ROFR, meaning the closing date must be set at least 30 days forward from when Disney receives the contract. But most brokers set closing 60-90 days in the future, and Disney technically can take up to closing.

Just look at said ROFR thread on DIS. Lots of people go beyond 30 days. It's not universal. Most contracts will pass or be taken in 3-4 weeks, but there are a few outliers.

 

[BlackCauldron]

I'm sorry but this is all horribly misguided. Disney buys back a small fraction of contracts in ROFR... like 10%. And it doesn't take "months" of waiting, it takes about 3 weeks. The maximum amount of time they can take, legally, is 30 days. You're going to spend an extra $10,000 to avoid waiting, at most, 30 days?

Go look at the ROFR thread on DIS. People are clearing ROFT at like $125. I'm waiting at $130 on a tiny contract.

Based on the current resale contracts I am seeing, it's only, at best, a $6,000 different between resale and direct. That's no small bit of change to be sure. Can I negotiate down? Sure. But that's an unknown, so my cost differentials need to be based on the face value of the listing. But again, finding the use year I need, and in a loaded contract, is proving difficult. I don't want to buy a stripped down contract that doesn't have full points until 2023. I could wait forever for that magical contract to drop, and I check multiple sites daily.

 

[CaptainAmerica]

Based on the current resale contracts I am seeing, it's only, at best, a $6,000 different between resale and direct. That's no small bit of change to be sure. Can I negotiate down? Sure. But that's an unknown, so my cost differentials need to be based on the face value of the listing. But again, finding the use year I need, and in a loaded contract, is proving difficult. I don't want to buy a stripped down contract that doesn't have full points until 2023. I could wait forever for that magical contract to drop, and I check multiple sites daily.

1. You must not be searching all of the sites.

2. No, you don't need to expect to pay list price if they're listing at $140.

There's literally a 160 point AKV June listed at Fidelity right now for $125 pp with 84 current year points available, plus full points in 2022. That's $9,760 below Direct.

I hesitate to even share this contract because I'm tempted to buy it myself.

 

[Club Cooloholic]

Yes, I assumed that if we did go resale, anything the previous member failed to bank would essentially be lost. That also complicates some of the resale contracts. The more I talk it out the more I continue to lean towards buying direct. I also tend to prefer instant gratification, so I like that my points would be immediately available once they have cash in hand.

Do you happen to know offhand if Disney has the power to create a use year with the points they carry? Or are they beholden to the existing use year of any contract they buy back and then re-sell?

If you got the points before they expired though say with 2 months left you can take them and throw them into RCI which then gives you plenty of time to book something. RCI can actually be a good value if you know where to book. There are some really good ski resorts for instance that would cost thousand to book for a week and it's really easy to use. That's what I ended up doing, I bought a contract that had already banked points set to expire about 2 months after our purchase, and booked a ski trip for the follwing year that honestly was amazing.