# Resale vs Buying From Disney



## 2Blessed (Aug 11, 2013)

I know that the general consensus is to purchase resale. During our 12 years of time sharing, we have always purchased resale, except our initial purchase in Orlando. No regrets there, it got us into the world of time sharing. We are thinking of buying DVC. We like Saratoga and Old Key West. I have looked at several resale websites, but most have contracts with a 2014 or 2015 use year. Not sure I want to wait this long for my points, especially if I am purchasing in 2013. So, please remind me again, what is the advantage in this case of buying through DVC? Thanks.


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## presley (Aug 11, 2013)

The difference in cost is significant.  A few years ago the prices between direct and resale were not too different.  Now, you can save thousands of dollars buying resale.  

2014 points can be borrowed and used in 2013.  Buying resale will take about 8 weeks to close and then you would most likely need to book your reservation several months in advance.  In other words, you probably wouldn't be borrowing your 2014 to use right away.  It would just take that long to close and then to have a reservation.  

If you buy direct, you will have your points probably within a week.  That doesn't mean that you will able to secure a reservation this year, though, unless you are very flexible with your dates.


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## bnoble (Aug 11, 2013)

Even with the recent firming of resale prices, you can expect to save significantly---as in, as much as 50%---over developer pricing.  OKW and SSR are currently selling for $130 per point, it would not be hard to get something in the $70s or possibly even a bit lower.  Even if you had to rent from another owner for your first trip (going rate about $11-$12pp), you are still saving *substantially* by purchasing resale.


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## timeos2 (Aug 11, 2013)

presley said:


> The difference in cost is significant.  A few years ago the prices between direct and resale were not too different.  Now, you can save thousands of dollars buying resale.
> 
> 2014 points can be borrowed and used in 2013.  Buying resale will take about 8 weeks to close and then you would most likely need to book your reservation several months in advance.  In other words, you probably wouldn't be borrowing your 2014 to use right away.  It would just take that long to close and then to have a reservation.
> 
> If you buy direct, you will have your points probably within a week.  That doesn't mean that you will able to secure a reservation this year, though, unless you are very flexible with your dates.



You'd be paying a significant premium in real dollars on the one time chance that you'd be able to get something in 2013. You'd have almost the same chance to get it in the resale process or, at worst, could rent that one use for less than what you'd be paying retail vs resale. 

It doesn't seem to make much sense. Don't be so excited that you overpay for a long term ownership based on a one time only, very short term desire to get going in 2013.  Slow down just a bit and I think you'll see that resale is again the better way to go.


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## PearlCity (Aug 11, 2013)

Loaded contracts with 2013 points are out there you need to just keep searching and looking on the websites that sell them- they go fast. But most of 2013 is gone anyway why pay more just for 2013 points? You can rent for the short term.and still come out ahead financially!


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## Deb & Bill (Aug 11, 2013)

PearlCity said:


> Loaded contracts with 2013 points are out there you need to just keep searching and looking on the websites that sell them- they go fast. But most of 2013 is gone anyway why pay more just for 2013 points? You can rent for the short term.and still come out ahead financially!



Nah, 2013 points are good until sometime in 2014 depending on your UY.  So 2013 points is very good.  2012 points are even better for a Dec contract because you can still use them until Nov 30, 2013 (or get the owner to bank them before you close on the contract).


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## stoler527 (Aug 11, 2013)

*2013ppints*

We have a December use year. We don't get our 2013 points until December 1, 2013. They are in the 2013 use year until November 30, 2014. 

I know it seems odd that our 2013 points are only good for one month in 2013 and 11 months in 2014, but that is the way it works.

July 31 2013 was the deadline for banking 2012 December use year points. If they are not banked, they will be lost if not used by November 30, 2013.


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## PearlCity (Aug 12, 2013)

Deb & Bill said:


> Nah, 2013 points are good until sometime in 2014 depending on your UY.  So 2013 points is very good.  2012 points are even better for a Dec contract because you can still use them until Nov 30, 2013 (or get the owner to bank them before you close on the contract).



I realize that I.guess the point I was trying to make was for the amount saved from resale one could rent in the short term and still come out ahead vice buying direct


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## timeos2 (Aug 12, 2013)

PearlCity said:


> I realize that I.guess the point I was trying to make was for the amount saved from resale one could rent in the short term and still come out ahead vice buying direct



Exactly. And the rental amount is likely to be less than the difference in retail vs resale. Better in both ways.


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## simpsontruckdriver (Aug 12, 2013)

I had that same question a few months ago, when we went to a low-pressure sales presentation at DVC. I asked here about it, another person said I needed to get the "Pixie Dust" out! Heheh. They may be "low pressure sales", but the benefits of buying Direct are pretty good. But, paying resale's 50% off Direct prices is worth it.

The best way: rent a week at a certain resort while you're waiting for your points to be transferred. True, you can't go on a Disney Cruise with your points, but converting your points to $$$, and paying the transfer fee, it doesn't make financial sense. Still, if you choose to buy Direct, you have one thing going for you: approximate 50% equity. If you buy Direct, you can sell it for 50% (most resorts lose 90% or more after the Recission Period). *OR*, if you buy Resale at around 50% of Retail, you may not lose that value!

TS


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## 2Blessed (Aug 12, 2013)

I do agree, that it is cheaper and better to purchase a resale contract. My point is, that I have looked around some of the recommended resale sights, and most of the sellers have used the 2013 points and borrowed some or all of the 2014 points. So again, if I purchase one of these contracts, I will only have a few points in 2014 and full points in 2015. I will continue to look around.  I am not in a big hurry, but did notice this during my search. Thanks for the comments.


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## timeos2 (Aug 12, 2013)

2Blessed said:


> I do agree, that it is cheaper and better to purchase a resale contract. My point is, that I have looked around some of the recommended resale sights, and most of the sellers have used the 2013 points and borrowed some or all of the 2014 points. So again, if I purchase one of these contracts, I will only have a few points in 2014 and full points in 2015. I will continue to look around.  I am not in a big hurry, but did notice this during my search. Thanks for the comments.



Then discount the purchase price to make up for those used points. You can easily replace them with rentals and still come out with the nice savings over retail. Doesn't matter what use year it is.


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## 2Blessed (Aug 12, 2013)

Any special rules that I should know about choosing use year? I think I read on this site, or one of the resale sites, that you should choose use year based on when you are most likely to use your points. Yeah or nay? I guess December is pushing it. We live in Florida, so June or July is when we would probably use our points. We could also use them other times of the year as well.


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## capjak (Aug 12, 2013)

2Blessed said:


> Any special rules that I should know about choosing use year? I think I read on this site, or one of the resale sites, that you should choose use year based on when you are most likely to use your points. Yeah or nay? I guess December is pushing it. We live in Florida, so June or July is when we would probably use our points. We could also use them other times of the year as well.



Use year really is insignificant, unless you have to cancel a vacation within 60 days of your reservation (i.e. banking deadlines).

Also most people can not predict their vacation habits for the next 30 years.

However, if you know you will vacation appx the same time each year than yes you would be better off in case you need to do a last minute cancellation to get a use year close to the time you vacation.  For June/July, the best use years would be June, April, March, Feb, Dec.


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## Myxdvz (Aug 12, 2013)

2Blessed said:


> Any special rules that I should know about choosing use year? I think I read on this site, or one of the resale sites, that you should choose use year based on when you are most likely to use your points. Yeah or nay? I guess December is pushing it. We live in Florida, so June or July is when we would probably use our points. We could also use them other times of the year as well.



UY may not be that important, but there are some that's better for your travel needs and some that are bad for your travel needs. Sooner or later, you're going to have to cancel - so, if you normally vacation in June or July -- then the best UY for you is June.  But any UY thru December/January is good too.  The worst UY for you is any UY between Feb - May.

The reason for this is if you have to cancel, you need to make sure that you are still within you "banking" window -- in case you need to bank.  Otherwise, you might risk losing your points.

So, if you don't have an existing contract - you could be flexible and just choose between what's available in the resale market as long as they're not in the "bad UYs".  If you travel all year round (June and March), then it really doesn't matter  

If you have an existing contract - then just know that getting another UY mean that it's a different Member ID.  I think it has to be deeded the exact same way and have the same UYs for it to be the same member ID.  (I could be wrong).


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## ptlohmysoul (Aug 12, 2013)

2Blessed said:


> Any special rules that I should know about choosing use year? I think I read on this site, or one of the resale sites, that you should choose use year based on when you are most likely to use your points. Yeah or nay? I guess December is pushing it. We live in Florida, so June or July is when we would probably use our points. We could also use them other times of the year as well.



The best use year, if you plan to go around the same time each year, is right before you would go.  For example, if you would regularly go in June and July, but might go in May into June (the first partial week in June), then your UY would best be May or before.  The worst UY would be June or August.  If you would never go until first full week of June, then June would be a good use year.  UY has nothing to do with when you can make reservations, only when you have to use your points.


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## hypnotiq (Aug 12, 2013)

Ive noticed more and more contracts that have been going on the market (at least for VGC) are stripped for 2013/2014.


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## stoler527 (Aug 13, 2013)

*Market demand*

Having banked or current year points make a sales contract more appealing. If buyers are willing to pay the same money for a stripped contract, then the sellers will strip the contracts.

It is the law of supply and demand. I would keep looking for a contract with current points. The Fall could be a slower season with better contracts available.

If you want to buy now, it makes sense to offer less for a stripped sale.


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## bnoble (Aug 13, 2013)

My sense is that the market tends to over-value stripped contracts, and under-value loaded ones---the difference isn't anywhere near the rental value of those points.


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## SuzanneSLO (Aug 20, 2013)

In the past, one of the selling points for buying DVC direct was that you could close quickly.  This is not currently the case for many of the "sold-out" resorts.

In March, we went on a waitlist to buy points direct at GCV.  The waitlist has yet to come through but we have now closed on a resale contract at GCV with 2012 points banked.  -- Suzanne


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