Thinking of Buying... Questions!

[DrummerAlly]

While we were enjoying our second trip to WDW in 7 months, my husband and I have started thinking about buying into DVC. We've estimated that we would would want roughly 180 points. I think we're leaning towards buying resale because of the difference in cost. If buying directly from Disney, the minimum cost seems to be about $18,000 right now - maybe a little too high.

1) What properties are still available to buy directly from Disney?
2) If we buy resale are we still eligible for some of the DVC perks such as discounts on annual passes and recreation?
3) If we buy through Disney does anyone have any idea what the financing options look like?
4) Any advise that you would give to someone just starting to crunch the numbers?

I tried searching but came up empty handed - I'm sorry if these answers have already been out there.

 

[Yanks07]

My Sister just bought into Saratoga last week through Disney, she said it was the cheapest of whats available for sale. I'm guessin BLT, and Aulani are still avail. If your buying resale, you should be able to find all DVC resorts available. Resales do come with some restrictions though. Good Luck!

 

[wdwmap.com]

1. Animal Kingdom Villas, Bay Lake Tower and Aulani are still available directly from Disney. I'm surprised that they still sold Saratoga.
2. The discounts yes but not renting into the Concierge Collection, the Disney Collection or the Adventurer Collection.
3. Through Disney they only have one option that ranges from 11.75 to 13.0 percent as of last Saturday.
4. Buy resale.

I went and viewed the presentation last weekend at the House of Dreams at Woodfield Mall outside of Chicago and was looking at 100 points to get our feet wet at $122 a point at Bay Lake Tower. I ended up going resale and buying 100 points at Animal Kingdom Villas and saved close to 5,000 over buying at BLT not including the interest I would have had to pay on the more expensive purchase. I'm now sitting and waiting for Disney's ROFR process.

Good Luck, but think carefully before borrowing money to buy points.

 

[tjkraz]

As the other poster stated, resale purchases from this point forward can no longer be used for the Disney Collection, Adventurer Collection or Concierge Collection. Most notably, that means you could never take a Disney Cruise on points. The Disney Collection also includes non-DVC hotels like the Polynesian, Grand Floridian, Disneyland Hotel, plus resorts in Paris, Tokyo, etc.

Of course, trading out to those destinations tends to be a poor value so you aren't losing a whole lot there. Some people do like knowing that they could put their points toward a cruise when/if they tire of the theme parks. Using points does mean that you don't have to come up with thousands of dollars for the cruise. But when you really look at what you're paying for the points plus dues, cruising on points is not a great value.

I really want to emphasize that none of the perks are guaranteed. Right now DVC members do get $100 savings on Annual Passes and many other little discounts. But all of those could end tomorrow. DVC is under no contractual obligation to provide them. Buying into DVC gives you the right to book villa accommodations for several decades to come, but that's about it.

Right now the perks are available to both resale and direct buyers but again, that's another distinction which could change.

Best thing to do is to leave perks out of the debate altogether. Don't buy with the assumption that you'll save $200 per year on your APs for the next 40-50 years. That perk has was just introduced in 2005 (14 years after DVC was founded) so there's really no way of knowing how long it will stick around.

As you are doing your research, be sure to take contract length into account. Ownership at the oldest DVC resorts--which includes the popular Beach Club and Boardwalk--ends on January 31, 2042. If you are in your 30s and view DVC as something you want to enjoy after retirement, buying one of those 2042 resorts would be a poor decision.

Saratoga Springs runs into 2054. Animal Kingdom Villas is 2057, Bay Lake 2060 and Aulani ownership doesn't end until 2061.

Those dates are established when the resort is founded and they apply regardless of when you purchase. People who bought into the BoardWalk when it first opened in 1996 will end up with about 46 years worth of ownership. If you buy BoardWalk points now, you'll only get 30-31 years before the resort goes back to Disney.

 

[Todd L]

We Just went thru the whole scenario. We spoke Directly to Disney and did the Dvc Tour at the local mall. Got all the info and went home to think about it.

I sent an email to the good people over at the Timeshare store and they sent me a List of what they had available.

The price difference is tremendous. We not only saved money But we also bought into The Home Resort we really wanted and got more points too.

We figured we saved in the area of around 6 grand..which to me is alot of money. Some people dont seem to think it is But I do.

It takes more time to go thru resellers because Disney gets involved (and can refuse to sell to you ) The county gets involved (it IS a real estate transaction) and It takes time to get everything together, recorded and entered into Disneys system.

If you buy Directly from Disney You are in the system immediatley upon signing the paperwork(or so their people say)

We stared the process about 8 weeks ago , everything went smoothly and we will be in the Disney system by the 26th of April.

We managed to get in under the old rules so that didnt affect us.

Just some food for thought. Good Luck

 

[Pioneer Hall]

We Just went thru the whole scenario. We spoke Directly to Disney and did the Dvc Tour at the local mall. Got all the info and went home to think about it.

I sent an email to the good people over at the Timeshare store and they sent me a List of what they had available.

The price difference is tremendous. We not only saved money But we also bought into The Home Resort we really wanted and got more points too.

We figured we saved in the area of around 6 grand..which to me is alot of money. Some people dont seem to think it is But I do.

It takes more time to go thru resellers because Disney gets involved (and can refuse to sell to you ) The county gets involved (it IS a real estate transaction) and It takes time to get everything together, recorded and entered into Disneys system.

If you buy Directly from Disney You are in the system immediatley upon signing the paperwork(or so their people say)

We stared the process about 8 weeks ago , everything went smoothly and we will be in the Disney system by the 26th of April.

We managed to get in under the old rules so that didnt affect us.

Just some food for thought. Good Luck

I agree that 6k is a nice bit of money, and that was what I saved by going resale as well. Granted when I did it last year there was no distinction between the two, but I would still go that route if I was purchasing today. To me the perks they took away aren't worth the cost of what you can save with a resale contract.

 

[disneyeater]

I would go resale and I also wouldn't worry too much about the expiration date, although I would take it into account.

2042 is over 30 years from now and you don't know what your travel habbits will look like at that point. Plus if you still love Disney you can buy into the cool new resort they will have opened at that point or pick up a cheap BLT resale.

 

[DrummerAlly]

Thanks for the replies everyone - going resale seems to be the way to go if we decide to do it!

 

[Todd L]

I agree that 6k is a nice bit of money, and that was what I saved by going resale as well. Granted when I did it last year there was no distinction between the two, but I would still go that route if I was purchasing today. To me the perks they took away aren't worth the cost of what you can save with a resale contract.

We were lucky enough to get in under the wire..But I dont think we will ever use the points for anything other than Wdw vacations..we have two planned already in the next year.

I wouldnt let the New rules affect my choice either.

 

[PolyTigger]

What age would anyone say is a good time to buy. If you are in your 50 s would you pass on to your kids and grandkids?

 

[Pioneer Hall]

What age would anyone say is a good time to buy. If you are in your 50 s would you pass on to your kids and grandkids?

I think it all depends on how you plan to use your points. I bought in at what many people would consider too young at 23. However, knowing how I will use my points and that I had all my finances in order to make the purchase (didn't finance and know that for the forseeable I know I can pay my dues). There are plenty of people who purchase in their 50's and plan to use the points in their retirment. Then if the contract outlives them they will it to a child or grandchild. Purchasing is really more about your financial position and use more so than your age.

 

[tjkraz]

What age would anyone say is a good time to buy. If you are in your 50 s would you pass on to your kids and grandkids?

I wouldn't use the kids and grandkids as too much of a motivating factor. To be blunt, they may not be in a position to be able to afford the points after you are gone. To a family who doesn't vacation often--or who prefers more modest vacations--the dues alone will be a good sized expense...not to mention park tickets, airfare, meal money, etc.

Look into resale contracts which are shorter in duration, but also much cheaper. To someone young, paying Disney prices for Bay Lake Tower points is still justifiable given the 50 years of ownership. But you would be much better off paying a fraction of the cost for 30 years' ownership at Old Key West or the Boardwalk.

 

[PolyTigger]

question what are the maint fees approx?

 

[tjkraz]

question what are the maint fees approx?

They vary by resort. You can find one list here:

http://dvcnews.com/index.php/dvc-program/owning-dvc/faqs?task=view&id=51

They do go up by 2-3% per year. If you calculate that out over several decades, the amounts 30-40 years from now may seem quite high. But that's just a function of our inflationary economy. Look at what prices and wages were back in the 70s and 80s. Everything costs much more today...but workers are earning much more. Same will be true in the 2030s and 2040s.

Dues represent the operating costs for the resort. It's similar to buying a house--you pay up front for the property but then you still have utilities, property taxes, lawn care, repairs, etc. It's that upkeep which is funded by the dues.

Legally Disney cannot profit off of the dues. They cannot raise the dues costs to any level of their choosing. The dues amounts represent what Disney is actually paying in wages & benefits for resort employees, utilities, fuel and maintenance for theme park transportation, property taxes charged by the county and so on. Disney does receive a management fee. That's pretty typical for the timeshare industry. It's basically their incentive to actually operate the timeshare program. About 8-10% of the dues go to the management fee. The rest is all funding the operations of the property owned by DVC members.

 

[awilliams4]

1) What properties are still available to buy directly from Disney?
2) If we buy resale are we still eligible for some of the DVC perks such as discounts on annual passes and recreation?
3) If we buy through Disney does anyone have any idea what the financing options look like?
4) Any advise that you would give to someone just starting to crunch the numbers?

I see these have been answered a few times but I believe my answers may be different.

1. All properties are still for sale. Some are officially sold out, some are not (BLT, SSR, AKV, Aulani) The ones that are sold out may still be purchased, you may have to be put on a waiting list but you may still purchase them.
2. Resales still rate the perks you are mentioning. But there is now a tiered system. So I wouldn't be suprised if the defination of what resales may rate as far as perks in the future may change.
3. I believe low credit will get you around 16% or so while better credit may knock it down closer to 12% or so.
4. Just a point that may have already been mentioned, generally, the maintenance fees you will pay over the length of the contract will morph the initial capital costs of the points so if cash is a concern, put equal weight into your decision on both the cost of the maintenance fees and the initial purchase cost.

 

[DVCOwner]

I wouldn't use the kids and grandkids as too much of a motivating factor.

My kids are already fighting over who will contoll my DVC points when I pass away. I am only 56 and still kicking. I am going to fool them all and live till the points expire.

 

[NutsForFlorida]

When we were in Disney at the end of April, we talked to a DVC person at DTD. Then he set up a walk thorugh the next day at Saratoga. So, we did that. Went through the whole sales pitch. We're thinking of signing up to be DVC members. But, now I'm reading on this forum about resales and that they are cheaper.

1. What is a resale and where can I look into those?
2. Are the resales run the same way with the points and things like that?
3. Or is it better to go through the DVC person we talked to?
4. What are the negatives of DVC?
5. Will the resales sell to people with bad credit? DVC won't.
6. We're thinking of buying 120 points at the Saratoga. The DVC person said it'll be about $12,000.00. How much would resale be for the same points?
7. What are all of the Disney resorts can we buy into? The DVC person only gave us 4 options for our Home resort.

If we do this, I want to do it the right way. I'm totally new to this idea of DVC. So, any information would be helpful. Thanks!

 

[awilliams4]

1. What is a resale and where can I look into those?

I would do a search on DVC Resale. You should see about 5 or so that have plenty of listings.

2. Are the resales run the same way with the points and things like that?

Yes, almost. Resales are no longer allowed to trade into resorts that don't have a DVC Wing attached like the Polynesian, Grand Flordian and the Moderate resorts at WDW. In my opinion, this is no big deal today but the differenciatation between direct and resale may increase in the future.

3. Or is it better to go through the DVC person we talked to?

For Bay Lake Tower, I would say probably. For Saratoga Springs, that is a bit tougher to go direct since the resales are much cheaper. I would do some more research before buying Saratoga Springs. One big advantage to owning SSR is the Tree Houses. But if you have no intention on staying at the Tree House Villas, SSR is almost always the last resort that gets filled up because it is so large so the Home Resort advantage as far as getting 1st dibs on accomodations isn't really that much of an advantage at SSR.

4. What are the negatives of DVC?

It is expensive. It is not a good tool to trade out of DVC. Your money will go farther by using your points to rent out to someone or stay at a DVC resort. Trading out, while allowed, is a bit hit or miss as far as getting your monies worth.

5. Will the resales sell to people with bad credit? DVC won't.

I believe that depends on the resell agent. I am not aware of any that offer credit but there may be some out there.

6. We're thinking of buying 120 points at the Saratoga. The DVC person said it'll be about $12,000.00. How much would resale be for the same points?

I would guess $7,800 at around $65 per point. Plus you may have to pay closing costs (maybe $400 or so) plus the contract you buy may be stripped (i.e., the seller used up all the available points, including next years points)

To us the biggest advantage to buying direct is:

a. Getting the Use Year we want.
b. Getting to use our Credit Card so we get Credit Card points.
c. Getting to break down the contract into smaller contracts. I.e., instead of buying one big 300 point contract, get 2 150 point contracts instead.
d. Getting last years points. Each time we have bought a contract direct (8 times now) we get this years and last years points. So when we bought a 50 point add on at Bay Lake Tower in June 2010, we got 100 points. 50 for 2009 and 50 for 2010. From there on out, for that specific contract, we get 50 points each year but getting double for free (i guess nothing is free) sure is nice out of the gate.

7. What are all of the Disney resorts can we buy into? The DVC person only gave us 4 options for our Home resort.

All resorts may be purchased. The 4 that your Guide mentioned are just the ones that aren't sold out. If you want a different one, you just get put on a wait list.

 

[NutsForFlorida]

1. What is a resale and where can I look into those?

I would do a search on DVC Resale. You should see about 5 or so that have plenty of listings.

2. Are the resales run the same way with the points and things like that?

Yes, almost. Resales are no longer allowed to trade into resorts that don't have a DVC Wing attached like the Polynesian, Grand Flordian and the Moderate resorts at WDW. In my opinion, this is no big deal today but the differenciatation between direct and resale may increase in the future.

3. Or is it better to go through the DVC person we talked to?

For Bay Lake Tower, I would say probably. For Saratoga Springs, that is a bit tougher to go direct since the resales are much cheaper. I would do some more research before buying Saratoga Springs. One big advantage to owning SSR is the Tree Houses. But if you have no intention on staying at the Tree House Villas, SSR is almost always the last resort that gets filled up because it is so large so the Home Resort advantage as far as getting 1st dibs on accomodations isn't really that much of an advantage at SSR.

4. What are the negatives of DVC?

It is expensive. It is not a good tool to trade out of DVC. Your money will go farther by using your points to rent out to someone or stay at a DVC resort. Trading out, while allowed, is a bit hit or miss as far as getting your monies worth.

5. Will the resales sell to people with bad credit? DVC won't.

I believe that depends on the resell agent. I am not aware of any that offer credit but there may be some out there.

6. We're thinking of buying 120 points at the Saratoga. The DVC person said it'll be about $12,000.00. How much would resale be for the same points?

I would guess $7,800 at around $65 per point. Plus you may have to pay closing costs (maybe $400 or so) plus the contract you buy may be stripped (i.e., the seller used up all the available points, including next years points)

To us the biggest advantage to buying direct is:

a. Getting the Use Year we want.
b. Getting to use our Credit Card so we get Credit Card points.
c. Getting to break down the contract into smaller contracts. I.e., instead of buying one big 300 point contract, get 2 150 point contracts instead.
d. Getting last years points. Each time we have bought a contract direct (8 times now) we get this years and last years points. So when we bought a 50 point add on at Bay Lake Tower in June 2010, we got 100 points. 50 for 2009 and 50 for 2010. From there on out, for that specific contract, we get 50 points each year but getting double for free (i guess nothing is free) sure is nice out of the gate.

7. What are all of the Disney resorts can we buy into? The DVC person only gave us 4 options for our Home resort.

All resorts may be purchased. The 4 that your Guide mentioned are just the ones that aren't sold out. If you want a different one, you just get put on a wait list.

Ok, so resales are just people selling their points. I got that now. I'll have to do more research on this like you mentioned. If we buy resale and not direct, can we add on points later like you do?

 

[awilliams4]

Ok, so resales are just people selling their points. I got that now. I'll have to do more research on this like you mentioned. If we buy resale and not direct, can we add on points later like you do?

Yes, you may buy direct if your 1st purchase is resell.

We purchased our 1st via resale, 200 Point Beach Club Villa contract. Love the points, hate the expiration date (2042) Pay attention to that as well during your research as they do vary by resort/contract.