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Old 05-18-2013, 11:07 AM   #29
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Originally Posted by NoleFan View Post

Also, some people can only afford resale- period. It is not a lost sale for Disney as a certain percentage would not have bought direct anyway. By buying resale, that consumer is still bringing $$ into the park via tickets, food, etc. From the short time I have watched the market, the direct prices have increased at a faster rate than resale. Will the resale market catch up so the difference is not as large??
We've seen this point made a number of times, but it's not a valid point. Disney Vacation Development (the DVC arm of the Disney Corporation) is responsible for and judged by the money they make by selling DVC points. What is good for the company is good for the company, but it might have little effect on them. Furthermore, a resale buyer is not an additional customer to Disney World, it is replacing an existing customer. Many times people choose to sell their DVC because they stop going to Disney. In that case someone simply steps in and takes their place, but it is a net zero effect for Disney.

Originally Posted by NoleFan View Post

Someone did post that AKL, SSR, & BLT have the largest foreclosures. I have seen that to be the case according to the OCC website. Perhaps because Disney acquires more points back via foreclosure & does not have the need to ROFR as many? At least for AKL & SSR they are larger resorts with more points available? DVC has inventory of AKL so less ROFR? All contributing to price difference of direct vs. resale? Those resorts have the largest price difference between direct vs. resale.
I think you're missing the connection here. The foreclosure rates on these resorts are the highest because the prices on these resorts are the highest (excluding Aulani because that is a completely different situation). People get to WDW, get smothered in Pixie Dust and go home and realize that they have a $300 a month timeshare payment that they can't really afford. I've said it before, I don't really have a problem if someone chooses to buy direct, as long as it is an informed choice. But many who buy are uninformed (I would actually suggest that most who buy are uninformed) and at these prices, the stakes are significantly higher. What's interesting is that people see these numbers and not only are they not alarmed, but they think that it will not be them that this happens to. But a lot of times that is exactly what happens...to them.

Originally Posted by ercrbc View Post
It should be pointed out that some people can only afford to buy direct. Those without cash in hand can easily sign on the dotted line with Disney and be an owner. Whether or not they can actually afford to keep up with their payments determines whether or not their contract will eventually end up as a foreclosure for Disney to re-acquire and re-sell.
I would suggest that there is a difference between being able to afford monthly finance payments for DVC and being able to afford DVC. Technically speaking, I could make the monthly payments on a new Ferrari. But let's be real, folks, I cannot afford a Ferrari.

The house comparison is a fallacious one for many, many reasons.
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DVC-Resales.com | 1-800-550-6493 (Contact The Timeshare Store) | DVC Resale Listings

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