Do you think Disney will buy back the contract we sold?

Discussion in 'Purchasing DVC' started by floridafam, Apr 15, 2004.

  1. floridafam

    floridafam DIS Veteran

    Joined:
    Mar 26, 2003
    Messages:
    8,205
    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?
     
  2. Avatar

    DIS Sponsor The Official Ticket Center is Orlando’s #1 discount attraction ticket agency, selling millions of Walt Disney tickets around the world.



    to hide this adverts.
  3. BillPA

    BillPA DIS Veteran

    Joined:
    Sep 7, 1999
    Messages:
    1,843
    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.
     
  4. floridafam

    floridafam DIS Veteran

    Joined:
    Mar 26, 2003
    Messages:
    8,205
    Oops! It's at VWL. Sorry:crazy:
     
  5. LIFERBABE

    LIFERBABE DVC MEMBER @ BCV BWV OKW SSR BLT AKV

    Joined:
    May 28, 2002
    Messages:
    6,865
    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.
     
  6. floridafam

    floridafam DIS Veteran

    Joined:
    Mar 26, 2003
    Messages:
    8,205
    We pay 2004 dues and the buyer is paying closing costs.:D
     
  7. jaysue

    jaysue DIS Veteran

    Joined:
    Nov 24, 2002
    Messages:
    4,593
    I think it will pass ROFR

    thanks
    jaysue
     
  8. LIFERBABE

    LIFERBABE DVC MEMBER @ BCV BWV OKW SSR BLT AKV

    Joined:
    May 28, 2002
    Messages:
    6,865
    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.
     
  9. goldilocks_63

    goldilocks_63 <font color=green>OKW+BCV+SSR+AKV<br><font color=c

    Joined:
    May 12, 2003
    Messages:
    1,478
    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....


    Goldi
     

Share This Page