Here’s Why Resale Has Plenty of Room to Rise

[Louis morrell]

I think what the op is saying has a lot of truth if you remove the emotion factor. Here's my analogy.
Someone time ago I had a small sideline business buying and reselling surplus electronic test instruments. Being an electronic tech and general nerd many of the items I purchased were interesting to me. To be clear, I purchased these items for cents on the dollar. When I found myself interested in one of the pieces there was only one question I needed to ask myself. Would I pay as much for this item as I could sell it for? If the answer was no then off to market it went. I truly believe that keeping item would be the equivelent of paying the going rate for it because I have the instrument but not the funds that the sale would have generated. That is equivalent to purchasing the instrument at market price.
On a few occasions emotion won, I really like electronic test instruments. I told you I am a bit of a nerd

 

[DVCanadian]

Honest question:

If you didn’t have your DVC contracts and blue card tomorrow, but were given the exact amount to purchase them direct…would you?

And I fully understand the limitations of my question, it’s not apples to apples…but neither is a painting, used car, or house analogy.

I’m not sure I understand the question.
I can take a free timeshare or not take a free timeshare?
Can I take money and do something else?

If you gave me a free $50,000 timeshare I would take it. I might even sell it after.
If I could take the money and buy something else, I would.
I wouldn’t buy DVC with my money, but I’d buy it with your money

this thread is so fascinating. Some posters can’t accept that for some owners the situation is:
I had a good reason to buy when I did
I have no reason to sell now
I would not buy now because my life has changed since I bought the first time, so I don’t see the value in the current prices…for me.

 

[Ssplashhmtn]

I’m not sure I understand the question.
I can take a free timeshare or not take a free timeshare?
Can I take money and do something else?

If you gave me a free $50,000 timeshare I would take it. I might even sell it after.
If I could take the money and buy something else, I would.
I wouldn’t buy DVC with my money, but I’d buy it with your money

this thread is so fascinating. Some posters can’t accept that for some owners the situation is:
I had a good reason to buy when I did
I have no reason to sell now
I would not buy now because my life has changed since I bought the first time, so I don’t see the value in the current prices…for me.

I think posters accept it, but just don’t follow the logic.

If ”life has changed, since you bought the first time, so you don’t see the value at today’s prices“, and thus (if you didn’t own) you believe you would instead (a) spend that money on something else or (b) invest/save the money….. then why not sell at today‘s prices and indeed (a) spend that money on something else or (b) invest/save that money?

It’s the same quantity of cash, and thus the same trade-off.

 

[Bearval]

I’m not sure I understand the question.
I can take a free timeshare or not take a free timeshare?
Can I take money and do something else?

If you gave me a free $50,000 timeshare I would take it. I might even sell it after.
If I could take the money and buy something else, I would.
I wouldn’t buy DVC with my money, but I’d buy it with your money

this thread is so fascinating. Some posters can’t accept that for some owners the situation is:
I had a good reason to buy when I did
I have no reason to sell now
I would not buy now because my life has changed since I bought the first time, so I don’t see the value in the current prices…for me.

A month before Covid hit I bought a 36 roll package of toilet paper for 28 dollars. At 4 months into the pandemic I could have sold it for 500.00. According to the OP since I didn't sell it means I valued that package of toilet paper at 500.00 which I did not. I did not sell it because I would rather use the product myself .

 

[Drewski77]

A month before Covid hit I bought a 36 roll package of toilet paper for 28 dollars. At 4 months into the pandemic I could have sold it for 500.00. According to the OP since I didn't sell it means I valued that package of toilet paper at 500.00 which I did not. I did not sell it because I would rather use the product myself .

Well, I hate to think what would’ve happened had you not spent that $28 on toilet paper…

 

[Drewski77]

I’m not sure I understand the question.
I can take a free timeshare or not take a free timeshare?
Can I take money and do something else?

If you gave me a free $50,000 timeshare I would take it. I might even sell it after.
If I could take the money and buy something else, I would.
I wouldn’t buy DVC with my money, but I’d buy it with your money

this thread is so fascinating. Some posters can’t accept that for some owners the situation is:
I had a good reason to buy when I did
I have no reason to sell now
I would not buy now because my life has changed since I bought the first time, so I don’t see the value in the current prices…for me.

Don’t really think the question is hard to understand, pretty simple actually.

Perhaps you just jumped into the thread, and the person I asked the question of answered, so all good there.

 

[sethschroeder]

A month before Covid hit I bought a 36 roll package of toilet paper for 28 dollars. At 4 months into the pandemic I could have sold it for 500.00. According to the OP since I didn't sell it means I valued that package of toilet paper at 500.00 which I did not. I did not sell it because I would rather use the product myself .

Not selling it means you valued its use as worth more to you than $500 and whatever risk/hassel selling involved.

Now a good example is by selling for $500 at the time you might have thought you were risking your life in the action of selling. Thus $500 is not enough for most people to put their life on the line.

 

[lovethesun12]

Not selling it means you valued its use as worth more to you than $500 and whatever risk/hassel selling involved.

Now a good example is by selling for $500 at the time you might have thought you were risking your life in the action of selling. Thus $500 is not enough for most people to put their life on the line.

Last year I decide to purchase two poly 100pt contracts and decided on max price I could pay. I purchased one (as a set of two 50pts), but chickened out of the other because I was worried about the covid situation. I decided to buy the second one when I felt more comfortable with it and that time is now.

So right now, I'm trying to purchase a second, but the price has increased very fast (about $5000 more for the cheapest list price now than what I paid last October based on current pricing).

So I'm not buying even though I want it, and contracts are available, because the price is too high when I run the numbers against a cash stay (not able to negotiate to the price I want even though I think that price would pass ROFR easily). But there is zero chance of me selling my 100pt contract because it is way too valuable to me and my vacation happiness. How is this possible based on this logic? Based on the original post I should be selling my contract because to me its value is too high since I won't pay the current price. Or I should be buying a new one, since that is the value I place on DVC. Instead I've been stuck in DVC decision limbo for the last 4 months. My first contract currently costs me $705 annually in dues. A new contract will cost me thousands over my vacation budget + dues, and even though I could it isn't worth it right now to put extra money into it for me. There is a difference.

 

[Bearval]

I agree there is a big difference when you are comparing a consumable product such as DVC and an investment product such as Disney stock. The argument for if you don't sell means you value the product at todays price only holds true for the investment, if you think Disney stock will continue to rise you wont sell and you may buy more, if you think it is overvalued you sell. For the consumable product you bought it to use at a time you thought the price you paid was a good value and you will only sell when you no longer have a desire or need to use the product or you have a need to use the proceeds of the sale for something else.

 

[DVCanadian]

Perhaps you just jumped into the thread, and the person I asked the question of answered, so all good there.

LOL nope the opposite, I’ve been reading this thread for far too long.

 

[Drewski77]

LOL nope the opposite, I’ve been reading this thread for far too long.

Then not sure why the question was so confusing to you, but after an 11 page thread not a whole lot more that can clear it up for you.

 

[Drewski77]

I agree there is a big difference when you are comparing a consumable product such as DVC and an investment product such as Disney stock. The argument for if you don't sell means you value the product at todays price only holds true for the investment, if you think Disney stock will continue to rise you wont sell and you may buy more, if you think it is overvalued you sell. For the consumable product you bought it to use at a time you thought the price you paid was a good value and you will only sell when you no longer have a desire or need to use the product or you have a need to use the proceeds of the sale for something else.

However, there are other ways to book at the same DVC resorts without owning a DVC contract.

Therefore, if I thought DVC was overvalued (I don’t) I would sell and book a room at the resort for many years with my proceeds that would also be invested.

This is the entire concept of DVC: Save on future vacations at the same resorts.