One of the top questions asked by many when beginning their DVC research is whether it’s best to buy direct or resale. This is a bit of a loaded question since the answer solely depends on you and your needs and wants. There are benefits and drawbacks to both options. Many of us even own what we call a blended membership of both resale and direct contracts. Below, we have highlighted some of the pros and cons of purchasing resale and direct to help you make an informed decision on which option is right for you.
DVC Resale Pros
Costs savings
The largest benefit to purchasing resale over direct is the costs savings. While the numbers can vary depending on market trends and direct incentives, there are some significant differences in the price per point of resale versus direct for many resorts. Aulani direct is currently listed for $225 per point right now while the average resale price in May 2024 was $96 per point. Vero Beach sells for $150 per point direct and May’s average resale prices were $55 per point. Copper Creek sells for $250 per point direct and May’s average price on the resale market was $133. As you can see, there can be a huge costs savings of purchasing resale over direct. Some resale sellers are also willing to negotiate lower prices and/or covering fees like closing costs or annual dues.
Faster Equity when Reselling
Because of that costs savings, if you would end up in a position of needing to sell, you gain equity in your contract much quicker if you paid a lot less for it.
Resort Choice
While Disney will technically sell you any resort direct (provided your guide is willing to), you may be put on a waitlist depending on the resort and use year or your guide may try to steer you towards an actively selling resort. Many new buyers who don’t know to ask, don’t even know they have the ability to purchase older, sold out resorts. There are also restrictions with how many points (minimum) a new member can purchase. With resale, you will find a larger variety of options in front of you that make it a little easier to choose from a variety of resorts, point combinations, and use years.
DVC Resale Cons
Booking Restrictions
With the inclusion of Riviera in 2019 came booking restrictions for resale owners purchasing after January 19th of that year. This meant for any new condo associations opened (Riviera, Disneyland Hotel, and Fort Wilderness), owners of those contracts through the resale market are restricted to using their points only at those resorts. The other original 15 resorts would still be allowed to use their points at those 15 resorts if purchased through resale after the January date. However, they would not be eligible to use their points at the new resorts. There are also restrictions on resale points that do not allow them use on things like cruises, Disney Collection, Concierge Collection, etc.
Perks Restrictions
When buying resale only, members do miss out on the “Membership Extras”. These perks can vary from year to year, but typically include the ability to purchase a certain annual pass, discounts at some stores and restaurants, eligibility to book certain member events, etc.
ROFR process
When purchasing resale, Disney has the first right to buy the property. Because of this, every resale contract goes through what we call the ROFR process (Right of First Refusal) where Disney is offered the chance to assume the position as buyer under the terms agreed on between the current buyer and seller. When Disney chooses to exercise ROFR on a contract, they become the buyer and the previous buyer starts over. In most cases, Disney waives ROFR and the buyer is able to purchase, however, the ROFR process adds extra wait time to the buying process.
DVC Direct Pros
Speed
When purchasing direct, there is no ROFR process and since Disney is the seller, there is no waiting for an outside party to execute documents. The process and receipt of points is much faster because of this.
Direct Perks
When you buy the minimum amount of points required by Disney for the Membership Extras, you become eligible for the perks we mentioned above. While these perks and the minimum buy in can always change, there is certainly value to many in recieving these benefits.
Unrestricted Points
Points purchased directly through Disney are able to be used not only at one’s home resort at the 11 month window, but also any of the DVC resorts at the 7 month window (pending availability). Direct points can also be used for the Disney exchange programs such as for cruises. However, it’s best to weight the pros and cons of this program before deciding to use it.
DVC Direct Cons
Costs
The largest drawback of direct purchases is the price tag. These points can sometimes be more than double the price per point of it’s resale counterparts.
Same restrictions when selling direct or resale
While direct points come without restrictions, if an owner of direct points were to decide to sell their contract, it is now deemed a resale contract. The buyer of this contract will be subject to all the restrictions of buying resale. This can affect the value of this sale.
Less Equity when reselling
Since resale contracts sell of less, an owner of a direct who decides to sell will have less equity and value in their property than an owner reselling something they purchased for a cheaper price through resale.
Certain Resorts Pushed
When you purchase directly through Disney, you are often steered towards the actively selling properties by their sales guides. Some newer to DVC might not realize there are other resorts available to purchase. Also because of waitlist, new buyers may not have the option to purchase certain resorts.
There are many drawbacks and benefits to both buying options. The decision to buy direct or resale (or both) is a personal one that only you can decide. The most important question to answer is what you value most our of your membership. Let us know your thoughts in the comments below! Also, stay tuned to DVC Fan and the DVC Fan Facebook Group for more information!
