Tell Me Why I Should Buy a Direct Add On

[hayesdvc]

I currently have two resale contracts (Aug UY) I purchased prior to April 2016. I have never bought direct before. I am wanting to add 25-50 BWV points. The cost currently would be $160 per point (direct prices going up another $5/point this month) plus a lesser amount for closing as compared to resale.

I will need to purchase a resale contract having its 2016 to get the same amount of initial points as buying direct. I would expect to pay a minimum of $100 per point and another $500 for closing for this resale contract.

Buying direct would match up to my current UY and resale I will have to stalk to find "the contract"

Since I most likely would not be able to purchase a 25 point contract resale, I would compare the purchase of 50 points.

Direct - $8300
Resale - $5500

Difference of around $2800

Why should I buy direct ?

 

[miTnosnhoJ]

Since you are grandfathered in a a pre-April 2016 owner, you should have the Blue membership card and access to all the perks. So the only thing you gain by buying direct is ease of the transaction. If you buy direct, you can book a vacation with your new points before you even close. With resale, you need to allow time to find a suitable contract, and then go through the process. If you are in a hurry, you can get it done in 3-4 months, but you lose some of your negotiating power. If you don't need the points for 6 months or more, you can gain some time to really shop and negotiate. So to me, the biggest factor is time and convenience. That is what you are getting with direct.

 

[ktmo]

I think the big thing is finding a contract that matches UY and resort. I have been looking for a small contract that matches my UY. It has been over a month and I haven't found anything. I am about to talk myself into a 100 point contract just to get something. But it is more than I want to spend right now.

 

[Dean]

I currently have two resale contracts (Aug UY) I purchased prior to April 2016. I have never bought direct before. I am wanting to add 25-50 BWV points. The cost currently would be $160 per point (direct prices going up another $5/point this month) plus a lesser amount for closing as compared to resale.

I will need to purchase a resale contract having its 2016 to get the same amount of initial points as buying direct. I would expect to pay a minimum of $100 per point and another $500 for closing for this resale contract.

Buying direct would match up to my current UY and resale I will have to stalk to find "the contract"

Since I most likely would not be able to purchase a 25 point contract resale, I would compare the purchase of 50 points.

Direct - $8300
Resale - $5500

Difference of around $2800

Why should I buy direct ?

For anyone that qualifies for the perks, the only reason to buy retail is if you need a limited number of points or you want to own something not available resale at a significant discount. However, for those that don't have qualified points, I feel they should seriously consider it but only at the 25 point level. I think the reasonableness goes away at around 50 points. Currently one can always buy the 25 points and almost always eventually for a given UY & home resort.

 

[supersnoop]

Why should I buy direct ?

Because a small BWV contract in the right use year for you is unlikely to be listed in the next 24 months.

 

[MrInfinity]

I'm not convinced you'll find a small, rare 50 or 25 BWV @ $100pp -- and you want it loaded at that price. If I had one and was going to list it, I'd probably start around $120-$130 and get lots of offers since there are none of these out there.

 

[supersnoop]

I'm not convinced you'll find a small, rare 50 or 25 BWV @ $100pp -- and you want it loaded at that price. If I had one and was going to list it, I'd probably start around $120-$130 and get lots of offers since there are none of these out there.

Finding it is the hard part. Price is going to vary widely, and you get the best deal by jumping on a good contract. I picked up a 25 point BWV with current year points for $80/point a year ago. I had my deposit paid within 2 hours of the contract being listed for sale.

 

[kniquy]

I would just add a direct 25 point contract ($4000 + Closing)-- with your Aug UY you will get your 2016 points with prorated MF (I'm guessing they add that into the closing) -- so Bank those and you will have 50 by august. Keep an eye out for another smaller resale and add on when you find exactly what you want and expect to jump on it and pay asking price for the listing.

Are BWV points still available direct? I know there are a few resorts with no waiting list. You might want to factor some wait time into getting those points even direct. I would think that with the number of contracts that Disney takes that they will you should be able to get a 25 pt quicker than some one looking for a larger direct. Not sure how they fulfill those direct contracts on sold out resorts.

 

[Dean]

I'm not convinced you'll find a small, rare 50 or 25 BWV @ $100pp -- and you want it loaded at that price. If I had one and was going to list it, I'd probably start around $120-$130 and get lots of offers since there are none of these out there.

And if they could it likely wouldn't be reasonable resale. 25 points only is likely best by far for retail unless it's not available retail and one just happens to find it resale.

 

[disneynutz]

Why not buy a larger contract with the correct UY resale and rent out any unused points?

Bill

 

[hayesdvc]

Why not buy a larger contract with the correct UY resale and rent out any unused points?

Bill

Great Thought !

 

[icydog]

Why not buy a larger contract with the correct UY resale and rent out any unused points?

Bill

It used to be easy to do that. Now, since the market is controlled by one big wholesaler, it's very difficult to rent your points. That wholesaler doesn't pay maintenance fees and his business model is ingenious for him. He gets the owners to do all the work, in reserving, ordering the Dining Plan, and ordering Magical Express, and then takes $2 per point for steering the guest to you. Ingenious for him, not so good for you!

 

[Dean]

It used to be easy to do that. Now, since the market is controlled by one big wholesaler, it's very difficult to rent your points. That wholesaler doesn't pay maintenance fees and his business model is ingenious for him. He gets the owners to do all the work, in reserving, ordering the Dining Plan, and ordering Magical Express, and then takes $2 per point for steering the guest to you. Ingenious for him, not so good for you!

I've never had any problem even during 2 economic downturns and before the internet was truly up and running.

 

[icydog]

I've never had any problem even during 2 economic downturns and before the internet was truly up and running.

I've been using Redweek.com for eons. It was terrific for years, but not so much anymore. I'm fielding a lot of questions regarding availability. They like that I can check without charging them--then they take that information and rent from someone else. I'm tired of doing the leg work and someone else getting the business. I'm going to have to charge for checking availability like the big guys. I have no choice.

 

[mort1331]

It used to be easy to do that. Now, since the market is controlled by one big wholesaler, it's very difficult to rent your points. That wholesaler doesn't pay maintenance fees and his business model is ingenious for him. He gets the owners to do all the work, in reserving, ordering the Dining Plan, and ordering Magical Express, and then takes $2 per point for steering the guest to you. Ingenious for him, not so good for you!

Last I saw there were many business that help rent out your points. The one that advertises here is Daves, but there are many others. Plus the big one is renting yourself, which there is a great board here. I have never had an issue renting out our extra points either way. Not sure why you would think anyway else. It is well documented on this site and others the ease of renting out.
To the OP I would not be worried about the ability to rent out extra. Do what is right for your family.

 

[Dean]

I've been using Redweek.com for eons. It was terrific for years, but not so much anymore. I'm fielding a lot of questions regarding availability. They like that I can check without charging them--then they take that information and rent from someone else. I'm tired of doing the leg work and someone else getting the business. I'm going to have to charge for checking availability like the big guys. I have no choice.

I use redweeks mostly but I'd say most of my rentals the last few years have been to those I've rented to previously. Otherwise I secure a reservation and offer it, I don't do a lot of checking availability, I don't wring my hands with a lot of effort for those who are likely just fishing, I don't negotiate the prices, and for most situations, I don't change the dates or reduce the length of the reservation with limited exceptions. I haven't had any issues.

 

[Dean]

Let me add, even though I've gotten there by default, I don't recommend buying to rent. There just isn't enough money in it to be worthwhile.

 

[mort1331]

Let me add, even though I've gotten there by default, I don't recommend buying to rent. There just isn't enough money in it to be worthwhile.

I would add that would depend on what you were able to purchase for. And the spread for DVC between MF and rental fees has increased very nice over the last few years when it was stuck at $10. So like any real estate it depends on the timing. Generally not a good investment for rental though.

 

[Dean]

I would add that would depend on what you were able to purchase for. And the spread for DVC between MF and rental fees has increased very nice over the last few years when it was stuck at $10. So like any real estate it depends on the timing. Generally not a good investment for rental though.

IMO there is no situation where it makes sense to buy with the main intent being to rent, just too many long term variables and too much risk. Even if one bought say SSR at $40 pp a few years ago, you'd still want to evaluate any return based on the current sales price.

 

[ELMC]

Why not buy a larger contract with the correct UY resale and rent out any unused points?

Bill

Along the lines of this thinking, you could always purchase a contract that has the total number of points you are looking for and then sell your contract. So, for example, if you have 160 points, then you can look to purchase a 200 or 210 point contract and then sell off your 160. Without getting into too much detail, the economics could be quite favorable based on how many points the contract has, what kind of price you can negotiate, etc., but you would definitely want to crunch the numbers based on specific contract details.

Two variables that I can think of off the top of my head that could negatively impact this strategy are potential tax implications from the sale of your original contract (consult your accountant) and the fact that this move could put pressure on cash flow depending on your situation (which is none of my business). But the end result would be your having the desired number of points and UY without having to pay a premium for a direct add-on or waiting for the white whale that is a 50 point BWV contract with the proper use year. Good luck finding what you want!