Resale vs. Direct purchase first -- for first time owner?

[WhitneyMB]

Question -- my DH and I have been considering buying DVC for the past few years. We want about 175-200 points at AKV. We're getting serious now about the details and have pretty much decided that we're going to end up splitting our purchase between direct and resale, even though resale is clearly the better deal financially. We're really wishing we had bought 25 direct points a few years ago when we first starting looking, and at this point, the direct points are mostly to keep us from getting locked out from being able to book a few days at the new DVC resorts that are getting ready to open--and to keep us from losing any other perks Disney may strip from resale only owners in the future.

Is there a reason to buy direct before resale, or vice versa? Specifically, does the minimum number of points we would need to purchase direct at AKV from Disney decrease from 100 to 75, if we have already purchased resale? Other thoughts about timing?

We'll probably end up purchasing two contracts of 75-100 points about a year apart (spring 2019 & spring 2020), for financial reasons, so we'll be taking the chance on the market going up/down with one of them also. Thank you!

 

[wnielsen1]

You'll probably want the same UY for all of your points and it will be easier to have Disney match your newly purchased resale UY than the other way around. I cannot remember the minimum purchase for new members at AKV, but you could probably buy 75. I think the active resorts (CCV and RIV) have the higher minimum of 100.

 

[Amanda&Mike]

I would buy resale first, it will be easier to match your UY when purchasing direct 2nd. If you buy direct first, the timeline for finding a resale contract with a matching UY could vary.

 

[CookieandOatmeal]

If it makes you feel any better, you wouldn't have been able to buy 25 direct points on its own if you weren't a DVC member already. Anyways, it is suggested that one buy resale first so that it is easier to ask Disney to match your UY when buying direct afterwards. Also, you will be able to buy 75 points direct after you have become an owner so I would subtract 75 points from the total amount of points you want, and buy around that amount in resale.

 

[Matty B13]

You should probably buy resale first, because you need to really think about the UY that you want to buy. You want to pick a UY that falls a month or 2 before your typical travel times. For my family with little kids who can only really go during February and April vacations, we like our February UY. Once you have your resale contract purchased, it will make it much easier to buy a direct contract to match UY's. You will want to have your contracts all having the same UY at the same resort.

Also, remember with the new resale restrictions, that your resale contract will only be good at the L14 resorts and not at any of the new ones coming online in the future starting with Riviera.

 

[wnielsen1]

If you have your heart set on being a direct owner (at least partially), I can think of one compelling reason to buy the direct contract first. That reason is Disney and their penchant for raising prices and changing rules. Many, including myself, advocate buying resale first because of UY matching, but it is not difficult to find your UY in resale as long as you are patient.

 

[Rush]

I’ll echo what wnielsen1 said, it’s probably easier to match UY with the direct, but it’s not impossible the other way around. We found the resale contract we liked, made an accepted offer, and then immediately asked Disney to match the UY for our direct points. It was risky no doubt considering ROFR, but it worked out. We were then immediately able to use the direct points to cover our already booked trip next week. We are roughly 6 weeks in on our resale process and still no points in our account yet, hoping we get them soon enough to book a late summer trip before we’d have to decide to bank or not.

Doing either way has risks, it’s up to you to decide which ones are worth taking for your needs. There are many resale AKV contracts out there, surely one you like would come along to match your needs after buying something direct. Getting through ROFR, now that’s another matter.

 

[WhitneyMB]

Thanks for the responses. We tend to do a couples getaway in January and a family spring break trip in March, so we were looking at December for our UY. Having Disney match up our UY seems like a good reason to buy direct first, but I also see a lot of 100 point Dec UY resale contracts available at AKV on the market.

From what I've read on these boards, it seems like Disney has in the past few months taken a hard line on 100 points being the minimum number of points one can purchase direct if you aren't already a DVC owner/Member. If we buy resale first, will that count as us being an owner/member, so they'd be wiling to then issue us a contract for only 75 points? We'd rather purchase 100 resale and 75 direct--both because it will be cheaper and because there are a lot more 100 point resale contracts available at AKV (than 75 points).

We realize that we would only be able to use the direct points--not the resale points--for the new resorts (Riviera, etc), but we enjoy split stays and wouldn't expect to get a full week at a non-home resort at 7 months out anyway.

can think of one compelling reason to buy the direct contract first. That reason is Disney and their penchant for raising prices and changing rules.

Yes, this is one of the concerns for sure!

 

[CraigInPA]

Once you are a member, you can purchase as few as 25 points direct from DVC. You can become a member by buying a resale contract of ANY size. It does not have to meet DVC's minimum contract size for a new member (75 or 100). There are members whose entire DVC portfolio consists of a single 25 or 50 point resale contract.

 

[WhitneyMB]

Once you are a member, you can purchase as few as 25 points direct from DVC. You can become a member by buying a resale contract of ANY size. It does not have to meet DVC's minimum contract size for a new member (75 or 100). There are members whose entire DVC portfolio consists of a single 25 or 50 point resale contract.

Thanks. This is one aspect I was unclear about, and it does add another reason to buy resale first, even if we're buying them about a year apart. Now if I could just get over my worry about Disney constantly changing the rules/prices/etc before we have a chance to buy (direct).

 

[Rush]

Once you are a member, you can purchase as few as 25 points direct from DVC. You can become a member by buying a resale contract of ANY size. It does not have to meet DVC's minimum contract size for a new member (75 or 100). There are members whose entire DVC portfolio consists of a single 25 or 50 point resale contract.

Yes, but it’s worth noting, you must have 75 direct points to receive full member benefits.

 

[CraigInPA]

Yes, but it’s worth noting, you must have 75 direct points to receive full member benefits.

That is correct. At this time, you need 75 for direct purchaser benefits. Members in the past needed either no direct points, or as few as 25 direct points for direct purchaser benefits. These members (including myself) were grandfathered and receive direct purchaser benefits, even though they do not meet the current 75 point minimum.

 

[Rush]

That is correct. At this time, you need 75 for direct purchaser benefits. Members in the past needed either no direct points, or as few as 25 direct points for direct purchaser benefits. These members (including myself) were grandfathered and receive direct purchaser benefits, even though they do not meet the current 75 point minimum.

Yes, probably a more correct way of saying it, as of today, to receive full member benefits as a new member you must purchase a minimum of 75 direct points. Standby for the next change of rules from Disney... (That in and of itself is another pro in the buy direct sooner than later, if the benefits are important to you). We could wake up tomorrow with a change to 100 points minimum required. Let’s hope not!

Although, many will say the benefits can come (not often, but do, think Moonlight magic) and go (more common, think dropping them for resale members after 2016), but I think it’s more likely they keep raising the point total needed so as not to upset the current members, but limit the new ones to people buying mostly, if not all, direct.

 

[zapple]

I bought 75 points direct last month as my first purchase so that I could get the benefits right away and I'm buying the rest resale.

 

[Disneykate605]

If it was me making this decision I would buy the 75 direct points first because I would be nervous Disney would raise the prices and/or the minimum need. I do think you will be able to find the resale contract you want when the time comes if you are patient.

 

[WhitneyMB]

I bought 75 points direct last month as my first purchase so that I could get the benefits right away and I'm buying the rest resale.

What property was this for? I heard the only places they were still letting first time buyers get less than 100 was OKW, SS and HH.

 

[zapple]

Boardwalk.

 

[RamblinWreck]

My perspective is that the new resale restrictions actually hurt the value of buying points direct far more than they hurt the value of buying resale points. I wouldn't recommend that anyone buy direct unless they think they'll be buying Annual Passes and memory maker packages every single year, or there's some other reason that the direct perks work out that much better for them.

The vast majority of people who buy DVC contracts don't hold them to expiration. Now if you buy direct, some parts of what you're buying you can never resell (perks, access to Riviera and other new resorts, etc). This is only magnified for those who buy Riviera. What you will likely end up reselling is significantly less valuable than what you're buying.

If you buy resale, the contract you buy is the same contract you'll resell if and when you likely do.

Most people who are under the influence of pixie dust probably won't see it that way though.

 

[ray3127]

You've received some great info so far (as always). I will simply add a wrinkle into your timing of purchases.

If you want a Dec UY and purchase your direct points by November 30, 2019, you will receive the full allotment of 2018's points as well. If you purchase on/after December 1, 2019, then you will start with only the 2019 points.

As for dues, you only pay pro-rated on 2019's (so a purchase around May 1 would be 8 months of dues), but you still get the full 2018 points ("dues free").

Not a massive difference, but an 'extra' year's worth of points upfront is nice. Just one more piece to the puzzle

 

[Bruin_mouse]

If you have your heart set on being a direct owner (at least partially), I can think of one compelling reason to buy the direct contract first. That reason is Disney and their penchant for raising prices and changing rules. Many, including myself, advocate buying resale first because of UY matching, but it is not difficult to find your UY in resale as long as you are patient.

This times a million. I got into my first contract in January 2018 and right off the bat they raised the minimum direct points for perks to 75. Since then there's been dramatic price increases (both direct and resale), the big restrictions on resale, and a dramatic uptick in ROFR activity. I'm glad I didn't hesitate and just bought, it would have been brutal if I had waited.