DVC Resale

[Mickeymac]

Have any of you gone completely grey during the DVC decision making process...

OK, so that's not the real question. We got the package, DH thinks it's way outrageous, but seems to like the concept and wants to know if anyone can recommend a respectable resale agency?

[dcfromva]

Mickeymac,
I will send you a pm.
Regarding the resales: Disney has built into each and every DVC contract a thing called Right of First Refusal. What this means if you make an offer on a contract from a DVC owner and Disney can step in and buy that contract, if the price is right. I have heard through the grapevine that Disney has been exercising their ROFR a lot lately--for all contracts that are less than $70 per point. You pay the closing costs for resales-- I think the closing costs are around 400-600 (I haven't checked recently, though). Disney definately controls the market.
For new sales, there is a program that is called Magical beginnings in which Disney will buy back your points--giving you back $10.00 per point for BCV and WVL (and $15 for HHI and VB ) . I have heard in some cases, they are back dating the contracts into the previous year--making it so that you can get your 2003 points. You pay no closing costs when you go through Disney. Disney does offer financing (though awfully high rates) and they write it up as a mortgage loan.

-DC

[dcfromva]

What to look for in a resale:

1. Desired resort...pick the resort that you most want to stay at...

2. Number of points. Decide how many you need. (Whatever you decide, it probably won't be enough ).

3. Use-Year. (There are some pitfalls here--you usually base it on your previous vacationing habits and when you most likely would use your vacation time).

4. Points for the current year are good, banked points even better.


-DC

[OKWTink]

Until very recently, resales were a very good way to go. Resale, once the deal is completed, is not even recognized by the DVC. That is to say, you are a member, simple as that.

I used to know a couple of reliable resale agencies, but can't recall the exact names right now. The Timeshare Store???

As DC has told you, the closing costs will be paid by you during resale, and you need to be very alert to the points that accompany the purchase, especially if you are buying with the thoughts of using the points in the year you've purchased.

Use year isn't too important until you start to add on. It simply indicates when you will get your new allotment of points. For example, my use year is February. I purchased in October, when to WDW for Christmas that year, and immediately (in February) had points to use for spring break. It really is all a matter of what you get used to.

Esmie made good points in a previous post. I bought in as a northeasterner. Planning was ok, and relatively easy to incorporate into my lifestyle. Moving to the southwest coast of Florida didn't do TOO much to interfere with that, other than I didn't have to pay for plane fare. Now that I live "on top" of WDW I tend to be more like Esmie and want spur of the moment accomodations. I've been pleasantly surprised at times, but usually am disappointed. The DVC works best for those who allow sufficient planning time to get the dates and accomodations they want.

I keep it because I like to be able to stay elsewhere (love Vero Beach) and the resorts. I've not used it outside of FL, but like to think that I will someday. I'd like to use it to stay in London, for example.

It is a very flexible program, and only increases in value. I get queasy when I see how quickly and how much the point cost has increased.

If you don't purchase soon, the points will increase yet again, so do your homework, but try not to get caught in a point increase!

[Alexander]

I received a post card in the mail today about Disney buying back up $1500 of your first year points. Not a bad way to alleviate some of the down payment costs. I would however, want my points NOW!

PS--It does say that the offer expires May 31, 2003. I don't know how set in stone that is however.

[miraclemoments]

Hey Alexander! We must be on the same mailing lists...I got the same postcard this afternoon as well!!

[OKWTink]

The date in May coincides with the time frame that DVC believes the BC villas will be sold out. They will end the offer because they will have no new properties to sell. There may be another new promotion, though once they begin to sell the DI, Saratoga Springs properties. That remains to be seen, of course.

[dcfromva]

3. Use-Year. (There are some pitfalls here--you usually base it on your previous vacationing habits and when you most likely would use your vacation time).

If you never have any changes to your vacation plans, you never have to cancel for any reason and you never plan to invite guests along who may end up cancelling for reasons out of your control and you don't plan to book an exchange within the last 60 days of your use-year, then use-year doesn't matter.

I didn't fully understand all these pitfalls when I bought in and I believe that June might have been a better use-year for our vacationing habits.

With a Feb use year (ours is the same as 'Tinks , I have until the end of July to bank 100% of my current year points, end of OCt to bank 50% of my current year points and end of Nov to bank 25% of my current year points. (The months that we most often have gone to WDW are Aug, Nov, Dec, and Jan ). If you book a vacation in the last month or two of your use-year and cancel within 30 days--you only have a month or two (whatever remains of your use-year) in which to use those points. In the case of banked points--they also must be used up. You can not book into an exchange within the last 60 days of you contract.

I'll give a couple of examples: our vacation over New Year's Eve (2002/2003) We had most of our points on that one ressie. If we had cancelled within 30 days of our arrival date, we would only have had until Jan31st 2003 to use all those points. If we found we had to cancel in the month of November, we could bank 25%of our points, but all the remaining points would have to be used by Jan31st 2003....

Here is another example. Let's say we wanted to have family come along and we book a couple of units (way more space than we would need for just our family). Because it is a big trip, we bank points from the previous year in anticipation of this big trip and we make a ressie using LOTS of points for Christmas though New Years (2002). For whatever reason (make it a good one!), my family tells me in November that they have to cancel out. I would have until Jan31, 2003 to use all the banked points from the previous year and I could only bank 25% of the current year points--and I would have until Jan 31, 2003 to use the remaining 75% of our points.

With a June use year, I would have a little more flexibility--in the first example, with a cancellation within 30 days would mean I couldn't bank those points, but I would at least have until June 2003 to use them. With more than 30 days notice on a cancellation, I could bank 100% of the current use year points (by Nov 30th).

In the second example (where banked points are involved), with more than 30 days notice, I could bank 100% of the current use year points. For the banked points I was using, I would have until May 31st to use them (or rent them). I think I could book an exchange with the banked points, too (as long as I made the ressie before April 30th). This could be really valuable if for some reason we couldn't make it down to WDW--I could book a weekend at the Plaza Hotel in New York and/or a weekend in VT or the Sagamore in upstate New York, et'c, et'c.
(Lot's more flexibility a lot less worry for me).

I don't know if our vacation patterns will change over the years--I have read some comments from other folks who have said that when the children leave home, the time of the year for vacation does has a tendency to change (I am not at that point, yet. ). I expect if we didn't have to consider school, it would make Sept-Feb vacation months even more attractive and thus make an June Use-year a good one for us.

Of course, none of this is a consideration if you don't ever have to cancel or change your reservations.

-DC

[OKWTink]

LOL! DC! You give quite an explanation to the dangers of the "use year!" I've never run into those situations, but you do make some excellent points!

I've never had enough points left at the end of my use year to worry about. (I'm usually borrowing from the next year to round out the last few points in any given year)!

Thanks for the excellent explanation though. Really brings up many important considerations.

[jersey girl]

we had good luck using " a time share" email as jaki@atimeshare.com


also talked to dvc-resales but bought from the above.
Scary but i got them both from a search engine.

Nervous till the deal went thru bought at $68 pt and disney did not choose to prevent our sale. They have 1st rights to any resale.

good luck! we used our DVC again this month and loved every minute