Is Your DVC Now Worthless?

[zanygames]

The big issue I see is that the second you sign up and buy DVC now with Disney, it is almost instantly worthless.

If you had to sell your DVC for whatever reason, job loss, etc. you just lost some amazing amount of money because now you are reselling it on the resell market and the buyer can not get the benefits the original contract had. Your $130 a point that you paid seconds ago probably just dropped to $50 or less before the ink dried on the paper you just signed.

Basically the $20k I spent on DVC is going to be worth very little if I ever have to sell due to a future hardship or just because my lifestyle and vacation preferences might have changed years down the road.

 

[Brian Noble]

The value of any timeshare is in the *use* of the timeshare, not its resale value. True, a very few do manage to hold their value for a little while, and DVC was one of them. But, there is very little "natural demand" for timeshares---the demand is created by the developer via marketing muscle. Eventually, as the owner base grows, the supply of folks looking to sell outstrips the demand of folks looking to buy, and prices drop. It is inevitable.

If you have not yet bought, you can take advantage of this, and buy resale. If you have bought, then the value of *using* your timeshare hasn't changed one bit. Continue to enjoy it and the vacations it brings. It is true that vacation preferences can change, but the time to weigh that risk is at purchase time, not after.

 

[chalee94]

the pts selling at $50 currently are not being sold direct by disney for $130. you'd lose a lot of value but selling at $80-90 is not quite "worthless."

there is a big drop in timeshare value from the moment of purchase - yes. that's very common. did you do your homework before dropping $20k or not?

the value of any timeshare is in using it. i'm disappointed by disney's decision to compete more actively with DVC owners in selling contracts by stripping resale benefits, but can't say i'm completely shocked. it's a risk you take.

 

[zanygames]

Wow, Some VB resales are selling in the $30 - $39 range per point. Most still in the $40's but that is amazing and soon those people might have to pay the buyer to take the timeshare from them to get out.

 

[Tigger031266]

If you bought and imediately tried to selll your DVC you may take a loss. Its not an investment. It is fortaking vacation.

That said my $73 per point that I paid for BCV is still work that or more now. I have taken dozens of trips and my investment (even though its not one) is worth more. Avg BCV resales are about $80 PP even in a recession. Agian not an investment.

No one knows the future but yuor $130 purchase may sell for $200 in 5 years. It is not an investment, the value is family trips for the next 50 years WHICH I DONT CONSIDER WORTHLESS!!!

 

[joandegennaro]

It's not much different than buying a new car..the second you drive it off th
e lot you lose $$. For us (we bought Direct) it will only take 3 years of trips to make it cost the same as if we had stayed at a moderate for the same lenght of stay. We won't need tickets for 3 years as we were lucky and got 10 PHNE ticket during the promo buy 4 get 3, so our costs would just be accomodations. We would have to eat either way so that is a mute point. The accomdations would equal or closely equal our buy in cost. So for us even if we decide to sell in 10 years at a 50% loss per point from what we bought I think we would still be ahead given that we would have paided for 6 to 7 additional trips at that point, and yes we would have gone every year!

Don't get so hooked up on what you bought in at per point but factor in the cost savings over the lengh of your trips plus what you can sell for and I think in the end you will come out ahead.

JMHO

 

[vicki_c]

Even without the announced changes, your points purchased yesterday at $130 or whatever were still basically worth $80 or so on the resale market. If the changes drop resale prices, it wouldn't be dropping from $130 to $50, more like $80 to $60 (made up numbers obviously). Your points were never worth $130 except for in the DVC sales office when you were signing the contract.

 

[chalee94]

Wow, Some VB resales are selling in the $30 - $39 range per point. Most still in the $40's but that is amazing and soon those people might have to pay the buyer to take the timeshare from them to get out.

true - that is a risk you take with timeshares.

 

[jarestel]

The big issue I see is that the second you sign up and buy DVC now with Disney, it is almost instantly worthless.

This isn't exactly true, but every prospective purchaser really should view it this way. Value comes from using the timeshare for family vacations, good times and pleasant memories. If resale nets a seller anything back from the original purchase price, that's a bonus but certainly should not be an expectation. Timeshare 101.

 

[zanygames]

So the lesson here is before eating the $20,000 ice cream cone in the DVC sales center, think about it hard. If you are in an industry that is not doing well in the 10% unemployment economy we are in and their is the slightest chance you could lose your job maybe DVC is not for you.

You could book a room at Disney and get free dining or get the Villa at 40% off the regular rate today and not drop $20k and worry about points and all this. h

 

[Y-ASK]

Probably good advice. Everyone needs to look at their own situation before they buy a luxuary item like a timeshare. If you go in with your eyes wide open then none of this should be a surprise. There's plenty of history with other Timeshare vendors where it's easy to see the writing on the wall.

Y-ASK

I figure I will get full value out of our DVC in about 10 years. Hopefully there'll be someone there who's willing to pay me a buck so I no longer have to deal with yearly maintenance fees...

 

[joelnkelly]

I agree with others, DVC is not an investment. I bought the ability to book future vacations. We paid for the points in cash up front, so all we pay is the yearly dues. If you bought as an investment you should have researched time shares a little better. There isnt one time share that is an investment, look on ebay, a lot of people are selling them for a $1 to get out of having to pay the dues.

 

[zanygames]

Don't you think that in a few months with the new rules that your DVC will be worth very little?

I can see paying $20k to buy DVC knowing that if the week after I lose my job and had to sell that I could get $80 a point for the $130 I paid and move on.

But with the new rules I am thinking that my $130 a point would become $30 a point since my contract now only has some of the offerings that it use to have.

 

[CMOORE185]

The big issue I see is that the second you sign up and buy DVC now with Disney, it is almost instantly worthless.

If you had to sell your DVC for whatever reason, job loss, etc. you just lost some amazing amount of money because now you are reselling it on the resell market and the buyer can not get the benefits the original contract had. Your $130 a point that you paid seconds ago probably just dropped to $50 or less before the ink dried on the paper you just signed.

Basically the $20k I spent on DVC is going to be worth very little if I ever have to sell due to a future hardship or just because my lifestyle and vacation preferences might have changed years down the road.

This is why you should think long and hard before buying DVC or any timeshare for that matter. There are alot of stories about people taking years before they decide if DVC is right for them. If you do not think you can weather the storm of a job loss, or you think you will burn out on Disney, you should probably stay away from DVC.

Wow, Some VB resales are selling in the $30 - $39 range per point. Most still in the $40's but that is amazing and soon those people might have to pay the buyer to take the timeshare from them to get out.

Do not forget that when VB was selling it only cost around $60.00 per point.

 

[joelnkelly]

Don't you think that in a few months with the new rules that your DVC will be worth very little?

I can see paying $20k to buy DVC knowing that if the week after I lose my job and had to sell that I could get $80 a point for the $130 I paid and move on.

But with the new rules I am thinking that my $130 a point would become $30 a point since my contract now only has some of the offerings that it use to have.

How is it worth any less to me today than yesterday? I still have the ability to use the points for all the benefits given to me by disney. We took into account all situations with job/income. We can still afford to pay the dues every year and be fine. So I will not need to sell my contract anytime soon. If we cannot use the points in a given year due to something then we can either rent them or bank them, they still hold a good rental value, so that would always cover the cost of the dues and plus some extra.

To me the value isnt in the resale, but the abiltiy to use my points for wonderful vacations.

 

[jlewisinsyr]

Don't you think that in a few months with the new rules that your DVC will be worth very little?

I can see paying $20k to buy DVC knowing that if the week after I lose my job and had to sell that I could get $80 a point for the $130 I paid and move on.

But with the new rules I am thinking that my $130 a point would become $30 a point since my contract now only has some of the offerings that it use to have.

I think you're over estimating the value of the things lost. The true value of DVC is stays at DVC, that ability hasn't been changed, and those researching the resale market are probably more informed then those buying direct and realize the true value is in DVC stays.

My personal opinion is there will be a slight uptick short term, a slight downtick after the effective date and then a levelization bringing things back to the pre-announcement (or relatively close).

 

[Brian Noble]

It's not much different than buying a new car..

Ah, but it is. When you buy a new car, you know* that no one else has driven it. It has that new car smell. It has only a handful of miles on the odometer. Every stain on the upholstery, every ding in the paint, was caused by you and only you, until the day you sell it.

A "new" timeshare isn't new. It's used-used-used. With the exception of the very first guest to stay in a unit the very first night, someone else has already spilled juice on the couch, whether you buy from the developer, or you buy on the secondary market.

(*---okay, maybe someone has, but not much more than a test drive.)

Don't you think that in a few months with the new rules that your DVC will be worth very little?

No, because I think these changes are immaterial. The forbidden options were already foolish choices financially. Not allowing resale buyers to partake in them does such buyers a favor. You are better off renting your points out and using the cash for the non-DVC options you desire.

 

[crisi]

So the lesson here is before eating the $20,000 ice cream cone in the DVC sales center, think about it hard. If you are in an industry that is not doing well in the 10% unemployment economy we are in and their is the slightest chance you could lose your job maybe DVC is not for you.

Yep. But that's always been the case. If gas were to suddenly go to $6 or $7 a gallon and it cost double or triple to fly to Disney, the bottom would drop out. And it isn't just timeshares - how many people are "underwater" on their homes right now?

Spending money for mere wants is inherently risky - even buying a burger off the dollar menu - you might need that dollar tomorrow. Its never a good idea to spend money you can't afford to spend - and the higher the dollar amount, the fewer people can afford to spend it.

 

[disneydenisel]

I absolutely love our DVC because we get to stay onsite and be completely immersed in the "magic" of all things Disney. That is why we bought at DVC, and that is why it is worth more to us than any other timeshares that we own .

Timeshares are definitely ONLY an investment in vacation time. Given that I love planning vacations, timeshares fit me perfectly.

We just had the best family vacation EVER over Thanksgiving at BCV and WDW . That is priceless!

 

[drusba]

There is already a long debate on this in another thread. Views will continue to vary. The reality we face is this: the change DVD made is anti-member, which can decrease market value of resales; it was done intentionally knowing it was anti-member; it did not create some new benefits to which resale purchasers would not be entitled; instead it decided to do away with a benefit for resale purchasers; it carefully chose the Disney Collection because that can most easily be used to mislead new purchasers into believing they are getting some necessary and great value not available in the resale market. In other words, if anyone believed DVD management really cared about members before rather than just increasing sales, well then you "gotta another think coming." The major issue now is the future because you should no longer assume good things are coming down the line and should assume it is going to get worse.