Disadvantages of Buying DVC Resale

Disadvantages of Purchasing DVC Resale

Purchasing Disney Vacation Club (DVC) resale can save thousands of dollars compared to buying direct from Disney. But every decision comes with tradeoffs, and it's important to understand what you're giving up when you choose the resale route. We've helped hundreds of families through this process over the years, and while most find the savings worthwhile, the limitations are real.

These restrictions aren't dealbreakers for most buyers, but they can matter depending on how you vacation. Here's what changes when you purchase resale instead of direct.

Loss of Disney Member Extras

When you purchase direct from Disney, you get access to "Member Extras" like discounts on dining, merchandise, and special events. Resale buyers don't receive these perks. The discounts are typically 10% on merchandise and select dining, plus occasional access to member-only events or early park hours.

These extras sound appealing, but the math usually doesn't work in their favor. The savings from purchasing resale often exceed what you'd save through member discounts over the life of your contract. Most families we work with find they prefer the upfront savings of resale over the ongoing perks of direct purchase.

If member extras are important to you, factor their estimated value into your decision. But don't let them drive your choice if the numbers don't make sense.

Booking Restrictions at Select Newer Resorts

Disney has implemented what they call "Resale Restrictions" on contracts at certain newer resorts. If you purchase a resale contract at Disney's Riviera Resort, for example, you can only use those points to book at Riviera Resort. You can't use them at other DVC properties.

This doesn't apply to all resorts. Older resorts like Old Key West, Saratoga Springs, Beach Club Villas, and Boardwalk Villas purchased resale still give you full network access. You can use those points to book at any DVC resort during the seven-month booking window.

The restricted resorts currently include Riviera Resort and any future resorts Disney builds. If booking flexibility across multiple resorts matters to you, stick with resale contracts at the older, unrestricted properties.

No Points Usage for Cruises or Adventures by Disney

Resale owners can't use their points for Disney Cruise Line vacations or Adventures by Disney trips. Only direct purchasers have access to these options.

But here's something most people don't realize: even direct owners rarely use their points this way. The point requirements are steep, and you typically get better value paying cash or renting points from other members. A seven-night cruise that costs 400-500 DVC points might only cost $3,000-4,000 in cash, while those same points could book $6,000-8,000 worth of resort stays.

This restriction sounds more limiting than it actually is in practice. Most DVC members, whether they purchased direct or resale, use their points for resort accommodations.

Extended Closing Timeline

Purchasing resale takes longer than purchasing direct from Disney. The process typically runs 6-8 weeks from accepted offer to closing, compared to same-day closing when you purchase at a Disney sales center.

The timeline includes several steps: contract review, Disney's Right of First Refusal period (usually 2-3 weeks), title work, and coordination with the closing company. Each step serves a purpose, ensuring you're getting clear title and that all paperwork is properly executed.

The wait can feel long when you're excited about your first DVC trip, but the process protects your investment. Plan accordingly if you have specific travel dates in mind.

No Disney Financing Options

Disney offers financing to direct purchasers but not to resale buyers. If you need financing, you'll need to arrange it independently through a bank, credit union, or specialized lender.

This isn't necessarily a disadvantage. Disney's financing terms aren't always competitive, and many buyers find better rates through their own lenders. We work with several financing companies that specialize in DVC purchases and can often beat Disney's rates.

If you're planning to finance your purchase, get pre-approved before you start shopping. This gives you a clear budget and can speed up the closing process once you find the right contract.

Disney's Right of First Refusal (ROFR)

Every DVC resale contract goes through Disney's Right of First Refusal process. This means Disney can choose to purchase the contract themselves at the agreed-upon price instead of allowing the sale to proceed to you.

Disney exercises ROFR selectively, usually on contracts they consider underpriced for the current market. If Disney takes your contract, you get your earnest money back and need to find another contract. It's disappointing but not financially damaging.

ROFR rates vary by resort and market conditions. Currently, Disney exercises ROFR on roughly 20-30% of contracts, though this fluctuates. Your agent can give you current ROFR trends for the resort you're considering.

The uncertainty is real, but most contracts do make it through ROFR successfully. Price your offer reasonably for current market conditions, and you improve your chances.

Annual Dues Continue to Increase

Whether you purchase direct or resale, you'll pay annual dues that increase most years. These increases affect all owners equally, but they're worth understanding as part of your long-term costs.

Annual dues typically increase 3-5% per year, though some years see larger jumps due to major resort improvements or unexpected expenses. A resort with $8 per point in annual dues today might charge $12-15 per point in ten years.

Factor these increases into your budget planning. The good news is that your vacation value usually grows faster than the dues, especially as hotel rates continue rising.

Contract Expiration Dates Matter

Every DVC contract has an expiration date when your ownership ends and the property reverts to Disney. These dates range from 2042 for the oldest resorts to 2077 for the newest.

Contracts with fewer years remaining typically cost less per point, but you're purchasing fewer years of use. A Saratoga Springs contract expiring in 2054 might cost $120 per point, while a Polynesian Village contract expiring in 2066 might cost $160 per point.

Consider how long you plan to use DVC and whether you want to pass ownership to your children. A 20-year contract might work perfectly for some families, while others prefer the security of 40+ years remaining.

Resale Restrictions May Expand

Disney has added resale restrictions to newer resorts and could expand these limitations in the future. While existing contracts are grandfathered, future changes could affect the resale value and flexibility of certain properties.

This uncertainty is part of purchasing any timeshare product. Disney's decisions about resale restrictions depend on their broader business strategy and aren't predictable.

Focus on contracts that meet your current needs and offer good value today. Don't purchase based on speculation about future changes.

Why Most Families Still Choose Resale

Despite these limitations, the majority of DVC purchases happen on the resale market. The savings are substantial, often $50-100 per point compared to Disney's current retail prices.

For a 150-point contract, that's $7,500-15,000 in immediate savings. Most families find these savings more valuable than the perks and flexibility they give up.

Resale also gives you access to sold-out resorts that Disney no longer sells direct. Want to own at Beach Club Villas or Boardwalk Villas? Resale is your only option.

The key is choosing the right contract for your family's vacation style. If you always stay at the same resort, booking restrictions don't matter. If Disney's member extras aren't important to you, their absence won't affect your enjoyment.

Consider your priorities, run the numbers, and decide what makes sense for your situation. We're here to help you understand the options and find the contract that fits your needs.

Most DVC members we work with are thrilled with their resale purchase years later. The limitations are real, but they're usually outweighed by the value and flexibility that DVC ownership provides.