Buy from Disney or resale???

[miTnosnhoJ]

For those who responded to my other thread thank you again and for those who did not thank you as well for all the great info, its taking so me time to get used to all the abbreviations and short hands you all use . . is there an index somewhere for that lol.

Here is a list of common abbreviations. It is not complete but it is a start.
https://www.disboards.com/threads/a-list-of-common-abbreviations.1660743/

 

[mustinjourney]

This is a comment about exceptions:

A 30-something friend who grew up going to WDW just told me that her 23 yo sister just bought her own contract at Poly, direct. 50 points, and she definitely wanted Poly to stay at Poly. Paid cash as she'd saved it all, has a good job, no bf, kids or fiance on the horizon, and her parents own at BWV. She has the flexibility and ability to plan 7+ mo out and go at off times, and will only need studios for the next several years. So buying direct makes sense for her.



I had to laugh when I got to that part... We get to $750 easily! The last time we got TiW, we did multiple character meals and signature restaurants, and we were always there at the same time as friends (sometimes planned, sometimes not). On our first trip out of 3 with TiW, we did a dinner at Akershus for 5 adults and 3 kids, add in the adult beverages and we were more than halfway there on one dinner alone. On our 2nd trip we did an adults only dinner for 6 at Cali Grill and ... you can do the math. DDP never made sense for us, because we usually average 1.5-2 TS meals a day, don't eat 3 meals a day, and don't do much CS or snacks. But it's definitely important to know your own travel preferences. We tend to do at least one TS meal a day, often character meals or signatures, and those are an integral part of our vacations.

have you considered the deluxe dining plan? It might work for you -- especially if you're doing signatures and character meals already. I think I remember you saying you have kids -- and since their credits can be used for adults, it is really a good option if you have some friends not in your room join you for dinner.

 

[kboo]

have you considered the deluxe dining plan? It might work for you -- especially if you're doing signatures and character meals already. I think I remember you saying you have kids -- and since their credits can be used for adults, it is really a good option if you have some friends not in your room join you for dinner.

It might have worked if we were vacationing with friends who weren't in our room, but overall the deluxe plan is WAY too much for us - we generally never have snacks, let alone 2 per person per day - (it's more like 4 snacks total over a 7 day period), and we have 1-2 TS meals a day. We are not big drinkers (and don't drink soda at all), so the beverage at dinner and refillable mug are also not a good value for us. Now if we could get 2 DDx plans for 4 people... actually even that would be too much...

 

[Nevaland]

Hi All - 1st post\response in the DVC thread!

So we are in the process of adding on direct. We looked at it differently that made sense for our situation. We realize everyone puts different values on the importance of their points, and we believe their way defiantly makes sense for them for different reasons. We are only offering our reasoning for adding on direct.

So we looked at this way. We looked at some resale options at SSR simiply because its considered the most economical. Then we considered direct at CCV. We actually have it figured out that buying direct was cheaper all things considered. Here is our math and please point out if we are wrong.

Let say we add resale at SSR $90\pp. And assume there is 37years left of points factoring in points available this use year. That is a total of 3700 points. The total cost to add on those points are $9000.00.

Now lets consider CCV at current promotion of $167.20\pp (purchase 95 @$176 and receive 5 points free) for a total cost of $16,720. But now you have an additional 13 years of points. Total of 5000 points of the 50 years. There is an inherent value to that, whether you plan on using them or passing them along to heirs. we personally valued them at the current rental rate of $13.00. Thats kind of what their worth on the open market year to year. So over the lifetime of the contracts you have a difference of 1300 points....at $13.00 per point that comes to a total of $16,900.

So if we take the the resale SSV of $9000, less the direct CCV of $16,720, and factor in the 13 additional years at a value of $16,900, we have a calculated savings of $9180 over the life of the contract.

We apologize in advance if someone has already gone thru this exercise but this is the conclusion we arrived at. We could be missing something and I sure we are so please let us know what we missed. This is just our opinion only that works for our family. Also a bib big thumbs up for the TIW card. Pays for itself for our family of 6.

 

[Dean]

Hi All - 1st post\response in the DVC thread!

So we are in the process of adding on direct. We looked at it differently that made sense for our situation. We realize everyone puts different values on the importance of their points, and we believe their way defiantly makes sense for them for different reasons. We are only offering our reasoning for adding on direct.

So we looked at this way. We looked at some resale options at SSR simiply because its considered the most economical. Then we considered direct at CCV. We actually have it figured out that buying direct was cheaper all things considered. Here is our math and please point out if we are wrong.

Let say we add resale at SSR $90\pp. And assume there is 37years left of points factoring in points available this use year. That is a total of 3700 points. The total cost to add on those points are $9000.00.

Now lets consider CCV at current promotion of $167.20\pp (purchase 95 @$176 and receive 5 points free) for a total cost of $16,720. But now you have an additional 13 years of points. Total of 5000 points of the 50 years. There is an inherent value to that, whether you plan on using them or passing them along to heirs. we personally valued them at the current rental rate of $13.00. Thats kind of what their worth on the open market year to year. So over the lifetime of the contracts you have a difference of 1300 points....at $13.00 per point that comes to a total of $16,900.

So if we take the the resale SSV of $9000, less the direct CCV of $16,720, and factor in the 13 additional years at a value of $16,900, we have a calculated savings of $9180 over the life of the contract.

We apologize in advance if someone has already gone thru this exercise but this is the conclusion we arrived at. We could be missing something and I sure we are so please let us know what we missed. This is just our opinion only that works for our family. Also a bib big thumbs up for the TIW card. Pays for itself for our family of 6.

The years on the back end have a reduced value compared to the ones up front so it's not a linear value for the additional years. Plus one has to consider the lost TVM/opportunity costs to get the full picture.

 

[Nevaland]

The years on the back end have a reduced value compared to the ones up front so it's not a linear value for the additional years. Plus one has to consider the lost TVM/opportunity costs to get the full picture.

Ahh, I see my mistake. Direct for SSR is $145/pp. that's where the savings is. Sorry!!

 

[ELMC]

Yes, your math on this is very flawed. As Dean alluded to, even if a point is worth $13 in 37 years, today's value of $13 is about a buck fifty. In my opinion if you are doing a strict financial comparison for two choices you should look at three data points. Cost in year one, cost over the first three years, and cost over the first 10 years. Anything beyond that is too difficult to predict/quantify/account for, etc.

The fact of the matter is that in your case there just isn't a savings in buying direct over resale. If you come to the conclusion that you actually saved money by buying direct then you should really look at your methodology because something is definitely not right. If you want to "win" the conversation, all you need to say is that you want to have the 11 month booking window at CCV because that is the resort you most want to stay at. Nobody can poke holes in that and you don't need to justify that position to anyone, except maybe your spouse.

 

[kboo]

Random thought question ... as resale prices rise and inventory seems scarce, is there a delta in price (especially with 50-100 point contracts) that makes buying direct more attractive? For example, a $20 pp difference on a 50 point contract seems hardly worth the longer waiting time on a resale Poly contract. (Of course, that $20pp difference I just pulled out of thin air.)

 

[ELMC]

Random thought question ... as resale prices rise and inventory seems scarce, is there a delta in price (especially with 50-100 point contracts) that makes buying direct more attractive? For example, a $20 pp difference on a 50 point contract seems hardly worth the longer waiting time on a resale Poly contract. (Of course, that $20pp difference I just pulled out of thin air.)

Absolutely. But there's a difference between saving money and choosing a more attractive buying process. That's why I frequently suggest that people should be bold and unashamed in stating the real reasons behind their direct purchase rather than try to justify it with fuzzy math. It elevates the discourse and reduces the potential of misinforming potential buyers who only happen upon that one post or thread.

To your point, as it stands now with the prices they are currently at, Poly resales are straddling the line you illustrated very closely.

 

[Dean]

Random thought question ... as resale prices rise and inventory seems scarce, is there a delta in price (especially with 50-100 point contracts) that makes buying direct more attractive? For example, a $20 pp difference on a 50 point contract seems hardly worth the longer waiting time on a resale Poly contract. (Of course, that $20pp difference I just pulled out of thin air.)

Yes there is a point where it makes sense to buy retail over resale though likely not in the 50-100 pt range where there is a real savings resale. The first question is whether buying at all makes sense. After that it's Home Resort, UY and number of points. Those questions have historically and currently answered the question of whether it's reasonable to buy or not and whether resale or retail is the way to go. IMO, one of the biggest mistakes new buyers/potential buyers make is buying too quickly, often trying to justify a given purchase as a discount to get the next trip out of the points. The reality is that it almost never does and the negatives essentially always outweigh the positives. Another mistake is buying for the cash exchange perks because there has never been a time in the history of DVC where that made sense. I'd also point out that often the purchase itself doesn't make sense at retail prices even if it does at resale prices. But where it does it depends on the savings and availability involved. SSR is a good example where a spread of $50-60 a point makes it unreasonable for retail for anything over say 25 points, certainly by the time you get to 50 it's likely not reasonable. Compare that to VGC or VGF where the spread is a LOT less and availability a major issue. Now it might be that buying at all doesn't make sense for a given person for the higher ends options but those are the choices at hand and the info one has to look at.

 

[kboo]

Absolutely. But there's a difference between saving money and choosing a more attractive buying process. That's why I frequently suggest that people should be bold and unashamed in stating the real reasons behind their direct purchase rather than try to justify it with fuzzy math. It elevates the discourse and reduces the potential of misinforming potential buyers who only happen upon that one post or thread.

To your point, as it stands now with the prices they are currently at, Poly resales are straddling the line you illustrated very closely.

Yes there is a point where it makes sense to buy retail over resale though likely not in the 50-100 pt range where there is a real savings resale. The first question is whether buying at all makes sense. After that it's Home Resort, UY and number of points. Those questions have historically and currently answered the question of whether it's reasonable to buy or not and whether resale or retail is the way to go. IMO, one of the biggest mistakes new buyers/potential buyers make is buying too quickly, often trying to justify a given purchase as a discount to get the next trip out of the points. The reality is that it almost never does and the negatives essentially always outweigh the positives. Another mistake is buying for the cash exchange perks because there has never been a time in the history of DVC where that made sense. I'd also point out that often the purchase itself doesn't make sense at retail prices even if it does at resale prices. But where it does it depends on the savings and availability involved. SSR is a good example where a spread of $50-60 a point makes it unreasonable for retail for anything over say 25 points, certainly by the time you get to 50 it's likely not reasonable. Compare that to VGC or VGF where the spread is a LOT less and availability a major issue. Now it might be that buying at all doesn't make sense for a given person for the higher ends options but those are the choices at hand and the info one has to look at.

I agree with both of these. We are staying in a VGF studio next week on points rented from another DIS member - originally was part of a plan to see whether we would go for VGF as a home resort. So maybe we bought too soon... that said, I could see us liking either Poly or VGF enough to consider adding a contract there (if so, this would be driven by DH), though I would still like to wait for a good resale contract at BCV/BWV.

 

[disneynutz]

Select the best UY for your vacation patterns.
Buy where you love to stay.
Book at 11 months.
Buy resale if you can.
If you buy additional contracts, keep the same UY and names on deeds.
If you intend to buy a small direct contract for the perks, buy now before the minimum increases.
DVD/DVC marketing can change the perks at any time.
Perks and policies tend to change when management changes.
Expect to spend more on Disney vacations after you buy DVC.

Bill

 

[mustinjourney]

Random thought question ... as resale prices rise and inventory seems scarce, is there a delta in price (especially with 50-100 point contracts) that makes buying direct more attractive? For example, a $20 pp difference on a 50 point contract seems hardly worth the longer waiting time on a resale Poly contract. (Of course, that $20pp difference I just pulled out of thin air.)

The other issue that some people don't consider is the vast difference in closing costs in direct vs. resale. With resale, you're going to be paying $500+ for closing costs. Even with a 50 point contract, that is $10 per point. Closing costs on direct run about $4 per point -- so the closing costs close the gap at least $6 a point for these smaller contracts.

 

[cedricandsophie]

We have 1400 points. Half are direct and the rest resale. We never use them for anything but resorts so the concerns about using points for cruises, etc doesn't affect us. We bought where we liked and never bought less than 150 on resale. Makes sense to us. We have four member numbers and four different use years. All are easy to track on the DVC website and I often transfer points from one account to another to get enough for a specific stay. Our cheapest points were less than $60 for vero beach.

 

[Dean]

The other issue that some people don't consider is the vast difference in closing costs in direct vs. resale. With resale, you're going to be paying $500+ for closing costs. Even with a 50 point contract, that is $10 per point. Closing costs on direct run about $4 per point -- so the closing costs close the gap at least $6 a point for these smaller contracts.

The overpayment of dues and/or loss of points in a stripped contract will be more but it is additive. One just needs to understand all the inherent costs both in terms of $$$ and lost usage including rental options.

 

[MaryLovesPoohBear]

When I bought my first contract, the promises seemed almost too good to be true, so I really wanted Disney standing behind them. It was a lot of money for us and I wanted everything to go right. (It did)

For our second contract, I bought resale. I had a good understanding of the system and what I was getting, and I felt confident that I knew what I was doing.

Now, I look at buying direct vs resale as a trade off between time and money.

Buying direct costs more money, but you have your points available immediately, and you get some perks. The only perk which I use regularly is the ability to buy a discounted annual pass, and some shopping and restaurant discounts.

Buying resale takes time. You do not get your points immediately. It might take 3 months or more from when you start until you can start making reservations. But by doing it this way, you save money. It could be 30%, 40% or even more.

Great way to explain it.

 

[Briana Venturo]

Yes there is a point where it makes sense to buy retail over resale though likely not in the 50-100 pt range where there is a real savings resale. The first question is whether buying at all makes sense. After that it's Home Resort, UY and number of points. Those questions have historically and currently answered the question of whether it's reasonable to buy or not and whether resale or retail is the way to go. IMO, one of the biggest mistakes new buyers/potential buyers make is buying too quickly, often trying to justify a given purchase as a discount to get the next trip out of the points. The reality is that it almost never does and the negatives essentially always outweigh the positives. Another mistake is buying for the cash exchange perks because there has never been a time in the history of DVC where that made sense. I'd also point out that often the purchase itself doesn't make sense at retail prices even if it does at resale prices. But where it does it depends on the savings and availability involved. SSR is a good example where a spread of $50-60 a point makes it unreasonable for retail for anything over say 25 points, certainly by the time you get to 50 it's likely not reasonable. Compare that to VGC or VGF where the spread is a LOT less and availability a major issue. Now it might be that buying at all doesn't make sense for a given person for the higher ends options but those are the choices at hand and the info one has to look at.

Dean, i am tryng to figure out if buying at all makes sense.. How would i go about figuring that out, i was looking at resale at BR, and spending about 86pp, do you have a spreadsheet or formula you use? Thanks!!!

 

[Dean]

Dean, i am tryng to figure out if buying at all makes sense.. How would i go about figuring that out, i was looking at resale at BR, and spending about 86pp, do you have a spreadsheet or formula you use? Thanks!!!

To determine if buying in make sense at all it's really fairly simple. First you determine if you're going to go routinely and stay only at DVC resorts. Second you decide if it's financially feasible/reasonable and to me that pay cash. Then there's only two metrics that are reasonable to compare cost wise and that is what one would have spent not owning and the cash rental price for private rentals.

 

[Briana Venturo]

To determine if buying in make sense at all it's really fairly simple. First you determine if you're going to go routinely and stay only at DVC resorts. Second you decide if it's financially feasible/reasonable and to me that pay cash. Then there's only two metrics that are reasonable to compare cost wise and that is what one would have spent not owning and the cash rental price for private rentals.

thanks Dean. Can you tell me how i start a thread here?? i cant figure it out

 

[Dean]

thanks Dean. Can you tell me how i start a thread here?? i cant figure it out

You go to the appropriate board on the view where you see multiple threads and over to the right is a link to "Post New Thread". There may be a minimum number of posts before you can start a new thread, I'm not sure.