IF I end up buying DVC....should I go thru Disney or resale?

[senorak]

Still debating this topic...but IF I should decide to buy....which way is best? I know the resale rates are a bit lower, but other than that, what are the pros/cons to resale vs. buying thru Disney? Also, how do I decide which should be my "home resort"? Do I base it on which parks I tend to frequent more now (that my children are smaller) or in the future? For example, right now, with 2 under the age of 7, we tend to frequent MK (which would make VWL a good choice); however, my 11yo and in a few years, the other 2 would be leaning more towards BW area....or should I stick with OKW because of size of rooms and lower maintenance fees? Gee...I would just love it if the POLY would have their own villas! Then I wouldn't be debating this at all! LOL

DEB

 

[drusba]

Going Disney or resale depends on a number of factors:

1. At WDW, only VWL is currently available through Disney; thus if you want one of the other WDW resorts you must go resale.

2. If you buy through Disney or resale, there is no difference on how you stand after closing--you are treated same as all DVC members.

3. Disney makes the process very easy and its financing rates are pretty good for timeshares (but higher than home equity loans). But going resale is not difficult as on-line DVC brokers make the process fairly easy. Nevertheless you do need to think through what you are actually buying, how much to offer, who pays dues for year as anything involving money is negotiable with a resale.

4. Pricewise you need to compare Disney and resale very carefully. Just because you may be able to get a resale price that is $10 less than Disney does not mean your overall price is actually less. For example: (a) in a resale the buyer pays closing costs unless negotiated otherwise (about $500); Disney's price includes closing costs; (b) if you must finance a resale and cannot get a home equity loan on existing home or perhaps a loan through a retirement plan, you will need financing through a company that finances timeshares and their rates tend to be about 3% points higher than Disney's. Net effect of those two factors is that a $65 a point resale could actually cost you more than paying $75 a point to Disney.

5. Look carefully at any resale to see what you are actually getting in currently usable points. With Disney you get a use year that begins usually 5 months before you buy and get a full allotment of points immediately and then another allotment comes in 7 months. With many resales, you will see that there are no current points available and seller may have even borrowed the next year's points and used them; that would mean you have nothing to use for a couple of years and the value of that resale is less than one with a full compliment of current points.

6. You should buy where you plan to stay most because you can reserve at home resort 11 months out but only 7 at others. Many have found BWV difficult to get many times of year with only the 7 month reservation window. VWL once it sells out may be similar in difficulty with the 7 month window. Where you want to stay most is really a personal decision. We own at BWV and believe its location and amenties are the best avaialble.

 

[jel0511]

If you plan on paying cash or getting a home equity loan, then I'd definately say a resale may be in your future. What you have to first decide is where you want to stay. We debated this and felt that VWL was for us. We really like staying in the MK area, and just loved the theaming of the VWL. Again, as everyone usually advises, buy where you would like to stay the most. Now, not to scare you, but my guide just told me that they plan on having VWL sold out by Late Oct, so that might add to your decision making process. Unless they start pre-sales on BCV, Disney won't have anything on property to sell for a while. I didn't finance, we did pay cash, but really wanted VWL, so we felt it was worth it. I have to say that the Poly is my favorite non-DVC resort, and I also like the closeness of VWL to the Poly, I can visit at anytime due to it being so close, and my Tonga Toast is only a couple of minutes away!!!!!

 

[PKS44]

I would suggest you look at this website about one couple's experience with resale;

www.dvcfans.com

Also I second drusba's comments-

There are two reasons to go resale-

1)You must have OKW or BWV

2)To get a better price

Be sure you get at least one of those goals especially the second as most resales are little distressed- people don't part easily from their DVC as you could guess from the comments on this board...The sales of OKW are more likely discounted than BWV where the demand for smaller contracts make the supply go very fast and the prices stay higher..Bigger contracts go lower price per point as the market demand is smaller- oh why is that Adam Smith always right?!)

There are two reasons to go with Disney:

Much faster closing (minutes vs 4 -6 weeks)

Getting the exact point total you seek (less options on resale at any moment)

I can't think of any other reason as all the resorts can be found on resale at any given time.

Paul

 

[PKS44]

I would suggest you look at this website about one couple's experience with resale;

www.dvcfans.com

Also I second drusba's comments-

There are two reasons to go resale-

1)You must have OKW or BWV

2)To get a better price

Be sure you get at least one of those goals especially the second as most resales are a little distressed- people don't part easily from their DVC (as you could guess from the comments on this board)...The sales of OKW are more likely to be discounted than BWV where the demand for smaller contracts make the supply go very fast and the prices stay higher..Bigger contracts go lower price per point as the market demand is smaller- oh why is that Adam Smith always right?!)

There are two reasons to go with Disney:

Much faster closing (minutes vs 4 -6 weeks)

Getting the exact point total you seek (less options on resale at any moment)

I can't think of any other reason as all the resorts can be found on resale at any given time. Forget the financing issues-do not finance luxury purchases of this type...pay cash or don't buy- JMHO

Paul

 

[Mooobooks]

My wife and I bought a resale at OKW just under a year ago. It was a larger contract, 460 points, so we got an excellent price of $53 a point. I believe the current retail price from Disney is $72 or $75 a point. I also believe that the price of resale points seems to have escalated dramatically in the past 12 months, if the prices listed on the Time Share Stores website are any barometer. (We did buy from Time Share Store and had a very pleasant experience.)
We paid almost $20 less per point.
We DID pay closing costs.
We DID have to wait 4 weeks.
Neither seem terribly burdensome.
We paid cash, so there was no financing or interest to worry about.
We chose OKW without having ever seen it for the simple reason that the yearly maintainence fees were much less. We did not choose it because it was the place where we wanted to stay most often. (Many people on this board dislike hearing that, but it is a motivation shared by many.)
Frankly, we stay all over the place at WDW because we have enough points. We're about to go to Wilderness Lodge Villas for a week, and then 5 days in early December at the Animal Kingdom Lodge. Earlier this year I stayed at OKW for a week for the first time. It was quite lovely, with an entirely different feel than the rest of the hotels on property. If we had to stay ONLY there at some point later down the line, we could certainly live happily with it (while non DVC members will be paying $1000 a night for a room in ... 12 to 20 years?).
Aside from not getting the DVC tote that new members get, we have been treated EXACTLY like we purchased direct from Disney (making that DVC tote bag the most expensive 2 feet of canvas on the planet!).
While we have been members for only a year, we have not had any problems making reservations and getting exactly what we want at any Disney hotel, DVC or otherwise, within even four weeks. Did a week at the Yacht Club last December, another week at The Grand Californian last April, and then OKW in July. Another trip next week ... life is wonderful!
I do have ONE question which another DVC'er such as Pam or drusba might be able to answer:
It is my understanding that the only long-term guarantee you have when you join DVC is that you can stay at your HOME resort for 41 years with the overall number of points on the point chart never being raised, only occassionaly redistributed. So, at some point Disney can cancel our swap options with other time shares (Concierge and Adventure Collections). Can they also cancel our ability to stay at non-DVC resorts in WDW? Probably. Can they also cancel our ability to stay at DVC resorts other than our home resort? I would like to know! The answer is probably yes. So, we all might eventually only be allowed to book at our home resort, which might influence YOUR choice of retail or resale, and exactly which DVC resort you chose to buy into.
But DEFINITELY DO IT! What a great way to live!

 

[prplcrzy]

I have bought from both DVC and the Timeshare Store and I have to tell you that both experiences were excellent. The previous posters are right, buy where you want to stay. If you decide to buy a resale, do your homework.

The people at the Timeshare Store can be helpful (Jerry Sydow in particular) but remember they are real estate agents and work for the seller.

Check on the availability of points, good leverage on negotiating price. Also, the dues are negotiable. There is a lot of negotiating that you can do to lower your cost. Also take into consideration the closing costs and how much they are. This affects your purchase price and increases your cost per point.

Financing is important, if you can secure your own you will be much better off and can make a better deal on a resale. If you wish to finance it, it will be much easier to secure financing from Disney, but you will pay for it.

It all depends on your personal opinions, but be extremely familiar with the product before you purchase, you will be much better off.

 

[mikebarr]

Originally posted by Mooobooks
My wife and I bought a resale at OKW just under a year ago. It was a larger contract, 460 points, so we got an excellent price of $53 a point. We chose OKW without having ever seen it for the simple reason that the yearly maintainence fees were much less. We did not choose it because it was the place where we wanted to stay most often. (Many people on this board dislike hearing that, but it is a motivation shared by many.)
Frankly, we stay all over the place at WDW because we have enough points.

We have similar resale buying experiences. We paid $52 p/pt cash in 1999 at OKW, and I still have never seen it. I would have rather bought at BWV, but resales weren't available and at the time I saved a lot of money. Closing was $500 and it was still a ton cheaper. We only had half of the first year's points available, but it was still cheaper.

Nothing against Disney, but money talks. We saved thousands and have yet to have a problem. We stay at the BWV or the Poly without issue. We are going Saturday and will have a 2 bedroom overlooking the boardwalk (hopefully), just like the past 2 years. We have also gone in May on short notice twice, and got exactly what we wanted.

I know that may change and I really would like to have BWV points. But, if it comes down to it, how bad can OKW be?

 

[Mooobooks]

I've been spoiled by early stays at the Contemporary, and then at the Wilderness Lodge. Always very close to the Magic Kingdom, easy access by boat in 10 minutes (usually). That's why Old Key West feeds a different kind of Disney World experience for me. For many people, retreating to Old Key West, or simply hanging around there all day, is a highly desirable experience because it IS out the way and quiet. Perhaps, after being a DVC member for 10 years, my wife and I (and our soon-to-arrive baby) will yearn for the quiet of OKW, and it may in time become our favorite DVC resort in WDW.
Also, when we're at WDW, we don't want to fuss with a rental car. But at OKW and Animal Kingdom Lodge, it really seems to make things a lot speedier! At our stay at OKW in July, my first time staying anywhere in WDW with a car, I discovered that we could be at Downtown Disney in five to seven minutes! That trip usually takes at least 30 to 60 minutes by bus (and longer back at night). All the parks were also a quick drive away. So, for many who stay at OKW, and like to park their car virtually right outside their door, they get a bonus in quicker trips. Parking at the other resorts involves more of a walk to the car.
There are lots of personalized reasons for making your particular choice, so utilize these boards to ask lots of questions. I did, and these are the nicest people in the world.
Just don't pay retail--there is virtually NO reason.
Think like I did: I was able to buy a contract with over 100 more points than I anticipated because of the difference between the retail and resale prices. That 100 extra points lets us stay at Disney hotels that are NOT DVC resorts, like the Yacht and Beach Club, or the Grand Californian, a lot more often! And, if you want to book a trip at the last minute and the DVC resorts are booked solid, everyone seems to be able to get a room at one of the regular hotels on points! All I can add to that is wwhhooooooopppppiiiieeee!
Oh--our contract came with 460 points banked from 1999, and 230 points from 2000--and it was still only $53 a point!

 

[Doctor P]

As has been pointed out already, the gap between Disney and resale prices has narrowed greatly and may even have gone away in many circumstances. You have been given very good advice, and you should look both places. However, the choice seems to be clear: it depends upon what home resort you want. If you want OKW or BWV, you will need to buy resale. If you want VWL, there is really no reason to not buy directly from Disney IMHO (lower hassles, resales are not discounted that much for VWL right now--especially if you consider the banked/borrowed/first year's points allotment). If you want one of the other resorts, then I think the decision is really one that needs to be made on a case by case basis.

 

[sgtpet]

Or you could wait like I think I am for BCV to go on sale.

I love SAB and I feel that it might be limited to YC,BC and BCV guests in the future. I thought about OKW but I feel that I have a better chance of getting OKW at 7 months.

I am staying away from BWV because the resale is very high now and when BCV opens I have a feeling it will be less desirable than it is now.


I would buy at VWL, but my wife is not into the Lodge concept when compared to the Beach club concept or Boardwalk concept.

Hey what do you want, we're from Jersey!!!

I hope when I purchase I will have the opportunity to visit all the DVC resorts because they all seem wonderful.

 

[melanieewr]

Mooobooks;

Which resaler did you buy through? Also, did you advise them of what you were willing to pay and wait till they came through? How long ago did you purchase...I have read that the upward trend in prices has been pretty recent. I am very interested and have started researching resalers but I really want the best price like everyone else and I am willing to wait...maybe BCV will cause less interest in BWV which is what I want.

Thanks,
Melanie

 

[PKS44]

As a recent purchaser at BWV maybe I am biased but I don't think BCV will decrease the desire for BWV it will likely increase it slightly...why?
Because the points to stay at BCV will be a little higher than BWV -like VWL, they will be the same as preferred views at BWV... that is the standard view points at BWV will be the best bargain in that area and the hardest to get for nonowners...just a guess...

Paul

 

[Mooobooks]

Melanie,
I bought from the Time Share Store, which seems to be the place most people on these boards recommend. I purchased just under a year ago, last October. I think Shontell was my agent, but can't really recall.
I have been shocked at prices on resales have escalated since then!
I called an told them that I wanted to pay $50 a point and they told me what contracts were available. There happened to be one that had a year and a half of points with it, and the buyer was willing to sell for $53 (that was already the start of the upward trend).
It took a little time to convince my wife, but once that was done we bought quickly.
Couldn't be happier!

 

[sgtpet]

Boardwalk is great but I think you will be wrong PKS44.

 

[prplcrzy]

Anyone interested in a resale should take heed of this next word-

Negotiate.

Find more than one contract that you are interested in and make offers. See how long the contract has been on the market and calculate how much you are willing to pay, based on available points, dues etc. Detach the emotion from the purchase, not what you are purchasing. They are all essentially the same thing except where you will own and when the points are available.

If you already own, decide whether you want to keep the same use year and look only at those, you may pay more but you will be happier with what you buy.

If you can afford it, buy a larger contract. The people who currently own them probably know it is harder to get rid of a larger contract and will be more willing to negotiate. This will provide you with a better price per point, but you will have more points and they will be more expensive to maintain annually with dues.

Pay attenetion to which resort you buy, this will affect your purchase price. If you don't care you will pay less, if you do concentrate on only those you want, you may pay more but again you will be happier with what you bought.

Good luck to those who buy on the open market, I had a great experience and you can too. I bought a resale last month for $58/pt. just be smart and you will get what you want for probably close to what you want to pay.

 

[PKS44]

The other thing about BWV prices is that they probably will not go down in the near future...Right now those prices are a little lower than VWL ($75) for smaller point packages...the bigger the points the less market, the lower the price....if BCV sells at $80 or $77 or whatever is above the current $75, the BWV will probably command something a little lower than that which will be more than they get now...I don't know why they would go down in value...just for SAB access from a rumor that it will be off limits to others? I dunno, I doubt that a pool is as important as location...like all real estate, the top three factors determining price are location, location, and location...BWV and BCV will have the same location, BWV will have the lower point costs and the demand to get rooms there will be increased...again, even if BCV demand is high that can only benefit BWV as the next best thing location-wise and pulling its price up towards BCV. JMHO

Paul

 

[deerh]

PKS44 The other thing about BWV prices is that they probably will not go down in the near future...

I totally agree PKS! I think the location at BWV cannot be beat! It and when BCV is built are the only properties you can walk to 2 parks! (Althought the walk to MGM from BCV may be a good one!)
I feel that is the draw, as well as activity on the boardwalk, the restraraunts, the dance club, all within walking distance. Then again, some people like the quiet life-WLV, OKW, and that is fine as well. To each his own! That's what makes DVC great, something for everyone!
deerh

 

[sgtpet]

I already stated my comments are speculation. I was cursed for speculating on the negative impact of DC points. It ended being worse than anticipated when they came out.

I think BWV is fantastic and if I could have bought for 65 pp I would in a heartbeat.

But I feel that the demand for BCV will lower the resale value of an older DVC and a less desirable pool. Note my original speculation that SAB would be limited to only YC/BC/BCV guests.

 

[Richyams]

I have to disagree. While some people believe that Disney will just raise the price and keep the point schedule the same, I don't believe that.

I think that they will raise the points required for a night. I think that will positively impact the price of BWV resales....along with other on site DVC properties.