View Full Version : Do you think Disney will buy back the contract we sold?
04-15-2004, 10:50 AM
I hope the buyers of our contract get it.
Is there a point at which Disney will scoop it up?
It was 175 pts, April use year, $68 a pt. 2 pts left for 2004, 175 pts coming April 2005.
What do you think?
04-15-2004, 10:55 AM
That depends, if it is at any of the WDW locations, they may want it. If it's VB or HHI, it will most likely go through.
Another factor is if there is anyone on a wait list that put up a CC to grab any points that show up for a sold out resort.
04-15-2004, 10:57 AM
Oops! It's at VWL. Sorry:crazy:
04-15-2004, 11:03 AM
Who's paying closing and 2004 MF's?
From what my guide told me, they loosely base it on the total cost per point plus the guides income/commision (or whatever comp they receive). If they can cover all their expenses and still turn a profit and they have people waitlisted for that use year, they will buy it back.
As I recall your listing was for VWL which is very desirable. Disney will sell at $84 ppt. so not sure how much profit they would need to make to make it worth their effort.
04-15-2004, 11:11 AM
We pay 2004 dues and the buyer is paying closing costs.:D
04-15-2004, 11:27 AM
I think it will pass ROFR
04-15-2004, 11:49 AM
So the buyer is paying $71 ppt?
Your other variable will be the 171 2004 points used but you used them and you paid the MF's.
If DVC used ROFR and then sold these points in 2004 they would have to give their buyer 2004 points or offer MB. So to DVC how much does a spent point cost them to replace? I would say at least the MF. So I would add another $4 to the cost of the points making the ROFR buyers cost closer to $75 ppt.
The higher the buyer's cost, the least likely ROFR. I know at BCV's current resale average of $74 ppt. DVC is not excercising ROFR because after costs they cant make a profit.
This is pure speculation on my part and I am very interested in how they figure this out too.
So can DVC add the sales commission plus the closing cost they cover during the sale of the ROFR points to the $75 cost and still make a profit? Im sure they have that formula built into the total cost ppt.
Say, if they added another $5 ppt for administrative costs onto their ROFR purchase, they would now be at ROFR cost of $80 ppt.
At $4 ppt profit they would clear $700 reselling your points and get a few people off the add on waitlist. If the buyer financed these points they would also make close to 10% in interest fees on the total financed.
Not sure if that is worth it to them or not. That is the question.
04-15-2004, 12:30 PM
that you may have a 2-3 month window were almost all will go thru ROFR, in my opinion.
Has anyone lately been ROFR'd? I haven't heard of any on these boards....
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