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.