Pros and cons of buying resale points... need help!
Hi, My DH and I are doing research about purchasing with DVC. We attended a presentation about buying new (for property in Florida) and we're also checking about buying resale points. We know that buying resale means that we lose some benefits, namely the option to book at Disney hotels.
Are there other considerations we should know about for buying resale? The cost is much less than buying new so we're really leaning toward it. We'd like to buy in California as that's the location we're closest to.
Any info you contribute will be appreciated. If you have info about buying at the California DVC, please share that too. Thanks!
02-08-2012 06:16 PM
Read Everything-Assume Nothing
There is an older, closed thread that provides some insight to the current restrictions placed on resale points here.
With that in mind, I think the following sums it up well: (Especially if you want to ignore the lively discussion on what this may mean for current members and the like.)
To be honest, what it comes down to is this... if you are mainly wanting to buy in so that you can stay at a DVC resort, then chances are, the restrictions are not really going to impact you. Besides, you will get the most value out of your DVC points by staying at a DVC resort.
Under the new policy, Members who purchase from anyone other than Disney Vacation Development, Inc., on or after March 21, 2011, will not be eligible to use those Vacation Points to make reservations within the Concierge Collection, the Disney Collection or the Adventurer Collection. Those Vacation Points will instead be valid only for reservations at Disney Vacation Club resorts, as well as for RCI exchanges, Club Cordial and Club Intrawest.
There has been very few comments from people about how the resale restrictions impacted them for quite some time now. Its just that if you are buying on the resale market, you just need to know that your restriction is to stick with DVC resorts while getting the option to trade with certain outside entities. Know that - plan for that - and you could get a sweet deal on points.
Its just that if you have a desire to stay at the Grand Californian Villas at DLR, you should buy points there as your home resort. Its much easier to get a villa at WDW at 7 months out than trying to get a room at GCV at 7 months out.
I hope that helps.
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Ditto this part especially. Looking back, I wish we would have bought resale at GCV, or maybe even direct from Disney for GCV. We may add on a 100 pts at some point in the future. If you are primarily a CA visitor though, you may really want to buy direct so you can stay at the DL hotels if/when GCV is not available, IMO. It isn't the best use of points, but at least you are using them to stay somewhere!
Originally Posted by GusMan
Why do people go on The Amazing Race without bothering to learn how to drive a stick shift?
I HIGHLY recommend buying resale for multiple reasons
1) The prices are currently at an all time low, although I did read (in another forum) that they are just starting to rise again. Listed prices may be, but the low mark for getting through ROFR has never been as low as it now is.
Why pay $150 per point when the same points can be bought for $90 a point (BLT). There have been recent sales of SSR that have gone through at just under $40, although I do not currently see any listed that low. These people likely made offers on ones listed higher.
2) Better choice of resorts. You can buy into the older DVC resorts, which expire sooner. While this may not seem like a benefit initially, think about opportunity cost on your money. This being a benefit also assumes you are getting a lower price due to the earlier expiration of the contract. Resale listings exist for several more resorts that DVC can sell you a direct contract for. This includes resorts with all of the available contract end dates.
3) The benefit which has been recently removed from resale contracts is not really of much value.
If you start comparing the value of DVC points when used to trade out of DVC, compared to even the low end of the DVC rental market, you will find that trading out is not a good use of points.
You are much better off renting out your DVC points and using the cash for any non DVC vacations.
This seems to be the one with the fewest resale listings (and it is very expensive from DVC direct, and has a waiting list).
Originally Posted by Goofy4Goofy
I did see 3 resale listings, ranging from $88 to $100 per point, listed with Fidelity, on Thursday.
I have been toying with buying one of these myself, but am waiting to see what direction the new DVC leadership takes things. I have seen a trend recently which has me hesitant to invest anymore with them than I already have.
Originally Posted by palmickey
The trend of DVD (Disney Development Group) attempting to de-value resale points, for the sole sake of increasing sales of direct points.
Originally Posted by stan2u
While the changes so far are trivial, the trend has me concerned.
It has me thinking of all of the power they have, and the things they can choose to do that would increase their own profit in ways that actually take away value from current owners.
The large number of resale contracts being sold for some newer resorts might be a concern.
I expected to see many for the older resorts, but not for the newer resorts. This either indicates unhappy buyers, or buyers who had some circumstance happen that made DVC no longer affordable for them.
However, on the positive side:
The rental market for points is really good. It was reported that demand was higher than supply this year (by someone who runs a point rental business where he manages points for several owners, offering renters more security and services than they might get renting direct from owners). It was a trustworthy source.
So this is a plus. It means that if I can not use my points I can at least rent them out.
Based on what I paid I can rent them out for at least my cost, even if I wait until about 4 months before the points expire.
So far nothing of much value has been taken away from resale contracts. It is more a perceived value.
Back to the possible negative:
If you read the contract you will notice that there are several benefits that can be revoked at any time, and rules that can change.
I knew of all of these when I bought. They were all acceptable to me.
But one thing I did not consider was their ability to make the changes to only a subset of owners, and not all owners.
Booking windows is one of the things they can modify. If it is modified across the whole club, it might make me plan ahead more, but does not put me at any more of a disadvantage than I now have for booking other than my home resort.
However, I can not be certain they will not make the change for only a subset of members, in such a way that it makes my contract significantly less valuable as a resale (which they can then ROFR, and resell as direct with all of the original privileges).
While people do believe they are in it for the long haul, when they buy, it is important to consider the potential value if one finds they must sell (or just want to sell).
Based on the number of resales that have occurred over time, and the number currently for sale, it is obvious that many buy and then later need to (or want to) sell.
Back to the semi-positive:
If you buy a resale contract, that is on the low end of the pricing, you will probably get a lot of value out of that contract before you have a need (or want) to sell it. If you can find one for about $40 per point (or more if it is loaded with points from a UY or two), I would guess that the value will not go down much.
Although DVD might have started a trend that is a bit discomforting, DVC resorts are still among the best places to stay when visiting WDW.
CL--DLR Trip Planning and DVC
MousePad Community Leader
Really, the only thing you can count on in ANY contract is that you can book at your home resort. DVD has the ability to restrict most anything from what I have read. Whether they would do that is another question. In any event, if you are buying DVC because you are committed to using your points for vacations at Disney resorts, then the current re-sale restrictions are not that big a deal. I agree with the others--however--that if you plan to stay at GCV on a regular basis you are better off having that as your home resort. Even as an owner, it is sometimes difficult to get a villa 8, 9 or 10 months out for prime periods.
If I go down, I'm going down fat and full.
AND what can be restricted can be restricted for only a subset of owners.
Originally Posted by Toocherie
One thing they can not take away is the booking of the home resort, with at least 1 month advantage over dvc owners who own at other resorts.
It is silly to buy GCV for any use other than staying at GCV (with all the cheaper points available at other resorts).
So of course buy that one re-sale if you can.
Because there is no viable 2nd choice option for DL, if you want to stay there buy there.
I am considering buying some points there myself.
I wonder if DVC still has the bug (or flaw) where if points were transferred, they picked up the resort they were being transferred into instead of the resort transferred from (as they should).
I know this was a flaw several years ago. I am guessing they have fixed it by now.