Instead of DVC Being A Timeshare

Discussion in 'DVC-Mousecellaneous' started by lugnut33, Nov 16, 2011.

  1. lugnut33

    lugnut33 DIS Veteran

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    Why don't they just market it as a prepaid vacation for the next 50 years? Why does it even need to be a timeshare?

    Just make it so people cannot sell their interest in DVC. They have it until they die, or for the next 50 years, whatever comes first.

    That way there would be no resale market at all because you don't own anything. The only thing you are getting is a bed, and it's not transferrable.
     
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  3. DVC SSR Owner

    DVC SSR Owner DIS Veteran

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    1 word. ..marketing. Lots of people can't image the next 10 years let alone 50. DVC can market this flexibility of selling it down the road if your lifestyle changes. I have heard that they used to market it as an investment that appreciated, but that doesn't fly anymore!
     
  4. disneynutz

    disneynutz DIS Veteran DIS Lifetime Sponsor

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    DVC isn't a timeshare, it's a club. :goodvibes

    :earsboy: Bill
     
  5. BirdsOfPreyDave

    BirdsOfPreyDave Disney Lover, DVC Member, SSR Fanatic DIS Lifetime Sponsor

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    I'm not a lawyer, but I have a feeling they'd find themselves on the wrong side of the law if they didn't treat it like a timeshare. Real estate in general and timeshares specifically are very highly regulated. There are many points-based timeshares that work the same way as DVC. It would be difficult for them to claim DVC was something other than a timeshare. It if walks like a duck, and quacks like a duck...

    Not selling it as real estate interest would also have a big effect on their financial risk. There'd be no concept of maintenance fees for a pre-paid vacation, so they'd have to make an assumption now on how much it's going to cost for the full $50 years. As a timeshare, they can adjust for fluctuations in operating costs through adjustments to the maintenance fees. They'd also be exposed for catastrophic losses if it were sold as a long-term hotel reservation. For example, if a hurricane takes the roof off the resort, as a timeshare, they'd be able to collect a special assessment (or at a minimum increase maintenance fees) to cover repairs. It becomes the collective owners' responsibility to repair the resort, and our loss if the resort is totally destroyed. If it were simply a pre-paid vacation, it would be their responsibility to either provide a comparable room at another resort or a refund.
     
  6. Dean

    Dean DIS Veteran<br><a href="http://www.wdwinfo.com/dis

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    Legally they can't, it has to be sold under the timeshare laws, at least in all states I know of including FL. Regardless, whatever you call it or market it, it's still a timeshare.
     
  7. JimMIA

    JimMIA A little Miami humor...

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    :rotfl2::rotfl2:[

    Okay, Bill -- NOT nice to mislead newbies.

    News Flash: DVC IS a timeshare, folks.
     
  8. Deb & Bill

    Deb & Bill DVC-Trivia Contest, Apr-2006: Honorable Mention

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    Jim, he just forgot the "But" at the beginning of his statement.
     
  9. disneynutz

    disneynutz DIS Veteran DIS Lifetime Sponsor

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    I'm just repeating what our first Guide told us. :thumbsup2

    :earsboy: Bill
     
  10. Dean

    Dean DIS Veteran<br><a href="http://www.wdwinfo.com/dis

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    If they actually said that it's not a timeshare, rather than just calling it a vacation club, they would have been in violation of FL law as I understand it.
     
  11. tjkraz

    tjkraz <img src="http://www.wdwinfo.com/images/silver.jpg

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    So I guess Guides stretching the truth isn't such a new phenomenon after all. They were misleading members even back in the good 'ole days of colored bath towels and well-cleaned rooms. :goodvibes
     
  12. CMOORE185

    CMOORE185 HH 240 Points, SSR 260 Points

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    Our original guide was very honest. He said do not buy this if you think it is a financial investment. He said do not expect to make money when reselling. He said this when things were going well in the resale market too. One of the main reasons I bought was because of this guide. Because of his sales technique it didn't have the feel of a timeshare. I do not think if I sat down today with a guide I would buy.
     

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