Disadvantages of Buying DVC Resale

Disadvantages of Buying DVC Resale

Buying Disney Vacation Club (DVC) resale is a popular money-saving strategy, yet it's crucial to understand its potential drawbacks. Being aware of the disadvantages helps set realistic expectations and assists in finding the right contract for you. At DVC Sales, we aim to be transparent about both the benefits and the challenges, ensuring every buyer makes the best decision for their family.

No Member Extras from Disney

Purchasing resale means missing out on Disney's "Membership Extras," like dining and merchandise discounts or exclusive event access. These perks are reserved for direct purchasers who meet Disney's minimum point requirements. Many buyers find that the cost savings outweigh these extras, especially when trips focus primarily on resort stays. Learn more about DVC policies at Disney’s official FAQ.

Booking Restrictions at Newer Resorts

Resale contracts at newer resorts like Disney’s Riviera Resort limit bookings to the home resort only, unlike older resorts such as Old Key West or Beach Club Villas, which remain fully accessible across the network. This restriction is important for those who value flexibility in their vacation planning. Always verify the current booking rules before making a decision, as they can significantly impact your vacation experience.

Can’t Use Points for Cruises or Adventures by Disney

Resale buyers cannot use their points for Disney Cruise Line or Adventures by Disney experiences. However, these options often represent poor value, with even direct owners seldom using their points this way. Renting points or paying cash typically offers better value for cruising. This limitation is less impactful for those who primarily use their points for resort stays.

Longer Closing Process

The resale purchase process, which includes offer submission, Right of First Refusal, paperwork, and title company coordination, takes approximately 6 to 8 weeks. Though longer than buying directly from Disney, these steps ensure security and legal ownership. Understanding this timeline helps set expectations and allows for better planning of your first DVC trip.

No Disney Financing

Disney does not offer financing on resale contracts. Buyers must pay in full or work with an independent lender. Learn about third-party options through DVC Sales financing. Many find that non-Disney financing rates are more competitive and flexible, offering a viable alternative for those who need financing options.

Why Resale Is Still a Smart Choice

Despite these limitations, resale offers significant savings and access to top Disney Vacation Club resorts, flexible points, and full ownership. Most buyers find the long-term benefits and cost savings make resale the best value option. To compare contract prices, visit DVC Sales listings or review the official DVC points charts.

Understanding the Right of First Refusal (ROFR)

One critical aspect of the DVC resale process is Disney's Right of First Refusal (ROFR). This means Disney has the option to purchase the contract back at the agreed-upon price before it can be sold to a new buyer. This process helps maintain the value of DVC contracts but can add uncertainty to the resale process. Buyers should be prepared for the possibility that Disney may exercise this right, which would require them to start the process again with a different contract.

Annual Dues Considerations

When purchasing a DVC resale contract, it's important to consider the annual dues associated with the resort. These dues vary by resort and are subject to periodic increases. Understanding the historical trends of these increases can help buyers budget for the long-term costs of ownership. While resale contracts often come at a lower initial purchase price, the ongoing dues are a significant part of the overall cost of ownership.

Expiration Dates and Their Impact

Each DVC contract comes with an expiration date, which varies depending on the resort. Contracts can expire as early as 2042 or as late as 2077. This expiration date affects the length of time you can enjoy the benefits of ownership. When considering a resale purchase, it's crucial to weigh the remaining years on a contract against the purchase price to ensure it aligns with your vacation goals and financial plans.

In conclusion, while buying DVC resale has its disadvantages, understanding these factors can help you make an informed decision. By carefully considering the limitations and benefits, you can determine if a resale purchase aligns with your vacation lifestyle and financial objectives.