What's the likelihood of Disney treating resale and original buyers differently?

[DVCowner2009]

We are interested in purchasing a resale DVC membership, but have been told by others, second-hand, that Disney is considering treating members who purchased on the resale market differently than those who purchase direct through Disney (i.e. shorter windows, lower discounts, etc.). Has anyone heard anything like this?

Thanks for any insights (and reassurances).

[BBG-BLT]

As it is a real estate interest you are buying and there are by-laws that all have to go by they cannot treat anyone differently.

[bakenatj]

I find that hard to believe. Don't believe everything you hear. That would reduce the value DVC because your resale value would go way down. Doesn't make business since, and Disney is normally good with those.

[disneynutz]

Hasn't happened yet and it seems unlikely that it would.

That being said, Disney can pretty much do what ever they want, when they want.

[DVCowner2009]

Thanks for the replies, everyone. I appreciate the quick replies.

Originally Posted by disneynutz

Hasn't happened yet and it seems unlikely that it would.

That being said, Disney can pretty much do what ever they want, when they want.

Yes, this is my primary concern. I'm taking some solace in the fact that Disney would be hard-pressed (and likely legally prohibited from) retroactively changing how existing contracts are treated. Of course, nothing is stopping them from prospectively treating people differently on contracts purchased direct from DVC going forward. (i.e. "Starting now, when you buy direct from Disney, you get 20% off this (instead of 10%), or 10 months to bank (instead of 8), etc. I think Disney would have a marketing/PR and legal problem if they try to differentiate folks who hold existing contracts. I'll just cross my fingers, buy resale, and not worry too much about it.

Thanks again.

[littlestar]

Really, there's only one discount that amounts to anything and that's the Annual Pass discount. And they already offer an annual pass discount to the whole state of Florida for being a Florida resident. I doubt they would start nitpicking DVC members and labeling them worthy members or unworthy members.

[drusba]

It does not seem likely that resale purchasers would be treated differently in any way particularly when you consider (a) the resale market also gives DVD something it wants, the ability to purchase points through ROFR when it desires and then resell them at Disney's higher prices; in other words, why do something harmful to a market that DVD also considers beneficial, and (b) many who purchase resale do add-ons through Disney and thus how would they be able to treat those differently since they are also purchasers from DVD, and, once again, the resale market benefits DVD in that regard by bringing in people who will eventually add-on.

[DVCowner2009]

Originally Posted by littlestar

Really, there's only one discount that amounts to anything and that's the Annual Pass discount. And they already offer an annual pass discount to the whole state of Florida for being a Florida resident. I doubt they would start nitpicking DVC members and labeling them worthy members or unworthy members.

Good point. Not to mention the administrative and infrastructural changes that would have to be made to have two classes of citizens in their system.

Ok, y'all have made me feel a little more at ease...

[DVCowner2009]

Originally Posted by drusba

It does not seem likely that resale purchasers would be treated differently in any way particularly when you consider (a) the resale market also gives DVD something it wants, the ability to purchase points through ROFR when it desires and then resell tham at Disney's higher prices; in other words, why do something harmful to a market that DVD also considers beneficial, and (b) many who purchase resale do add-ons through Disney and thus how would they be able to treat those differently since they are also purchasers from DVD, and, once again, the resale market benefits DVD in that regard by bringing in people who will eventually add-on.

True. I didn't think of the ROFR angle. That's another good point. Also, I think a two-tiered system would chill new sales because I think some people buy from Disney knowing the DVC interest is fully marketable. If Disney chilled that market by telling new purchasers that their resale buyers (10 years from now) will end up receiving less than what the original purchaser had, that would chill the original market and drive down prices across the board.

[Chuck S]

Perks (discounts, etc.) could be changed for resale vs direct, as perks are not contractually guaranteed in any way, but it is unlikely, IMO. Though there are timeshares that do treat resale vs direct differently.

Booking windows can be changed for all owners to a one month priority over the 4 month priority we now enjoy...but they would pretty much need to treat resale vs. direct equally for those windows...and again, I think it is pretty unlikely we'll see any change there. Everyone is used to it, and it doesn't seem to be causing any specific booking problems.

[bookwormde]

While time shares can have differnet classes of ownership this must be set up before the units are declared so for existing properties FL state regulation prohibit it. Now someone would have to go to the trouble fo enfoceing it either by filing a compalint with the FL timesahre regulatory agency or taking the offender to court. DVC is smart enough not to try to do something that blatent, they do not want to join the other timeshare companies in court.

bookwormde

[Jason@dvcstore]

Originally Posted by DVCowner2009

We are interested in purchasing a resale DVC membership, but have been told by others, second-hand, that Disney is considering treating members who purchased on the resale market differently than those who purchase direct through Disney (i.e. shorter windows, lower discounts, etc.). Has anyone heard anything like this?

Thanks for any insights (and reassurances).

In my opinion the chances are 0% that this would happen. If it happened then Disney would have to change the way in which they sell it. They would have to disclose (or I hope they would disclose) to the new buyer they if they ever went to sell the property then be advised the new buyer wouldn't receive this, that, etc. It might even have to be disclosed that the property will most likely sell for much less since the new owner won't get the same benefits.

In my opinion, most DVC sellers are selling because something has happened and they can no longer afford that monthly payment, need cash ASAP or have changed their vacation habits. I don't understand why Disney would want to hurt these sellers.

My guess is that is a rumor they are trying to spread to potential DVC buyers and not a rumor they are trying to spread to current DVC owners who might want to sell.

Jason

[bumbershoot]

Originally Posted by DVCowner2009

(i.e. "Starting now, when you buy direct from Disney, you get 20% off this (instead of 10%), or 10 months to bank (instead of 8), etc.

...imagining how quickly the MS reps would rebel against that further complication...




I think that disney well knows of this "add-on-itis", and they know that once they get their claws into people, even by a 25 point add-on, that they stand a solid chance at making more, more, more, and yes, more money from those people, and not just in the maintenance fees. Why randomly offend someone who will probably start spending even more money soon?

[gpz]

Once the deal is closed, every point owned is equal in the eyes of Disney. They now have 15+years of history regarding DVC resales without a hint of treating those owners any differently. There is no chance something like that will ever happen.

gpz

[DVCowner2009]

My guess is that is a rumor they are trying to spread to potential DVC buyers and not a rumor they are trying to spread to current DVC owners who might want to sell.

It takes a lot for me to de-lurk and register on a forum and post. You put your finger on what I think was really getting to me. I think Disney's in a tough spot with the resales. They're trying to sell a product direct at 125% of the market's actual pricing.