Purchasers of Resales may have limited benefits?

[ChrisMouse]

I hope this isn't the case.

I'm one of the people (criticized here to some degree, I guess) who bought in a small resale contract to "get into the system".

Our plan is to add on each year in small increments (50-75 points each) at multiple resorts, just to have the booking advantage at different resorts, so that through banking/borrowing within each contract our yearly trips can be at different places (including, hopefully, a DVC in California). We didn't want 160 points in any one lump.

Ironically, we plan to do our add-ons through Disney, now that we have our first contract. So if they penalize us for that original contract after we make multiple add-ons at various other resorts through Disney I will be very disappointed.

I did not realize that this "strategy" for enjoying DVC is so frowned upon by people on this board, or by DVC

 

[mopee]

Why do people just buy small contracts, I can see it to add points but do they also buy just a few points rather than the normal, 150/160 or greater??

If so what is the point?

Oh I see, Chris you can add on as you can and have "reservation" ablities at mulitple resorts.

 

[ChrisMouse]

That's why we are doing it this way...

Thanks to banking and borrowing, it will make it possible for us to have a summer trip at OKW, and then as we add on our other planned small contracts, we can do a Christmas trip at VWL one year, a spring Disneyland trip another year (if our fingers are crossed tightly enough about DVC at Disneyland...) etc.

To us, it just makes more sense since we think several of the DVC resorts are so neat & unique, we will have more possibilities this way. We also don't have a need for the large "lump" of points for a Grand Villa, for example, because we don't travel often with family or friends. That, of course, may change as our kids grow, and we just add a big lump at one of our locations in order to make a bigger family/friend trip possible.

Anyway, that's what we were thinking in deciding to go this route.

 

[rinkwide]

...They should set the quantity at 150 points...

I think they should set it at 510 (but lower it for military, teachers and clergy).

 

[Amy5000]

Why do people just buy small contracts, I can see it to add points but do they also buy just a few points rather than the normal, 150/160 or greater??

If so what is the point?

We only bought 100 pts. We only saved maybe $1000 by buying resale and would have bought from Disney if they were willing to sell only 100 pts. Our reasons for purchasing a smaller contract...How shall I put this...it was $$$. We do not have unlimited resources. Our purchase price for a fully loaded contract was roughly $8650 plus 2007 MF. Buying 160 pts from Disney would have run over $15K (plus some 2007 MF). There after, our annual MF will be lower. Also, we are not committed to going to Disney every year. We figured we'd borrow and/or rent to go maybe 2 out of 3 years or possibly 3 out of 4 years. We plan to stay with the kids in a studio.

It worked for us.

 

[littlestar]

I think they should set it at 510 (but lower it for military, teachers and clergy).

I busted out laughing when I read this. You are bad -

 

[Doctor P]

Disney has an incentive to try to depress the resale market. Remember with ROFR, they can resell the points they buy back from a depressed resale market and then put all the perks back on those points. Do I think they will do that? No. Would they have an incentive to do it? Certainly.

 

[castleri]

The original minimum purchase was 230 points. It then dropped to 210, later to 190, and eventually a low of 150 before going up to 160.

I believe having a minimum number of points to enjoy the 'perks' is a reasonable restriction. Someone who buys a 25 point contract resale 'just to get into the system' is actually costing the rest of us money. The $100 or so they pay in dues each year does not seem to be enough to even cover the cost of maintaining that account. And obviously buying 25 points in order to get a $100 discount on AP's for a family of 4 would be a high incentive to buy. The primary reason to purchase SHOULD be to stay at DVC resorts, not a minimum just to 'get into the system'.

They should set the quantity at 150 points since that was the minimum purchase at one time.

.02

This would be the way I think would be reasonable and if someone buys a 50 point contract and then adds on to the point of reaching 150 points at some time then they get all the perks(like the DVC AP discount) not just some of them. There needs to be a resale market for the smaller contracts that may have been add ons on and then someone decided they really didn't need or couldn't afford those extra points but Disney could say they do not meet the criteria of a master contract with all its benefits until there are a total of 150 owned by that owner/owners. I imagine it is the cost of maintaining those small contracts that is the issue.

 

[dianeschlicht]

The original minimum purchase was 230 points. It then dropped to 210, later to 190, and eventually a low of 150 before going up to 160.

I believe having a minimum number of points to enjoy the 'perks' is a reasonable restriction. Someone who buys a 25 point contract resale 'just to get into the system' is actually costing the rest of us money. The $100 or so they pay in dues each year does not seem to be enough to even cover the cost of maintaining that account. And obviously buying 25 points in order to get a $100 discount on AP's for a family of 4 would be a high incentive to buy. The primary reason to purchase SHOULD be to stay at DVC resorts, not a minimum just to 'get into the system'.

They should set the quantity at 150 points since that was the minimum purchase at one time.

.02

I agree, this is a reasonable solution for some of the weighty perks like the AP discount, but I don't see ANY of the other perks as being all that important. A few bucks off at restaurants etc, isn't going to make a lot of difference to most folks. Let's just hope they don't decide to take away the AP discount instead!!! That has been my fear with the 25 point members. I have always thought it might spur DVC to take away the AP discount all together, and that would really hurt all the members. On the flip side...I think the AP discount is helping Disney as well. It keeps those of us who have owned a long time coming back for more all the time. Of course, some of us would be doing that anyway, because we enjoy the parks so much, but I'm quite sure there are others who quit going to the parks (thus quit spending as much at Disney) and have been lured back by the significant AP discount. In reality, it is the ONLY perk that I think is worth mentioning.

(Sorry for the incredibly long run on sentence)

 

[sjdisneywedding]

Disney has an incentive to try to depress the resale market. Remember with ROFR, they can resell the points they buy back from a depressed resale market and then put all the perks back on those points. Do I think they will do that? No. Would they have an incentive to do it? Certainly.

hugh? depress the resales?

I highly doubt DVC or Disney wants to eliminate or reduce the resale market. For what? to buy them back through ROFR and to resell it themselves for little profit. This isnt a typical timeshare-everytime a resale goes through thats a new family coming down every year replacing another family that stopped coming and is now spending tons of money on everything else Disney

they want the resales-they want people to keep coming and coming-the newer the better. Disney would probably be none the happier if every ten years EVERY contract resold bringing with it big ole fat unsuspecting wallets whose sole purpose was to buy the next generation of kids all the newest merchandise

I cant even see the minimum point requirement. maybe 50-60 points since you can squeak out a good 5 day vacation during cetain times of the year with as little as that many points

 

[bababear_50]

Not sure I'm understanding what the difference of maintaining a small contract or a large contract --aren't you paying fees based on the size of the contract you have?. Most people I know with small contracts can't go every year so the "perks such as AP's aren't even a real Perk for them and they have no interest in them,myself included. I believe people who begin by buying small contracts are smart owners

--they have done their homework and know

1. about the 11 ,7 booking window

2..ability of reselling a small contract vs large contract

3.how to use the banking and borrowing system

4. don't get in over your head financially (buy small and build )as you can .

5. keep year MF low enough to not effect your daily life .

6.try out the system and see for yourself if it a match for you and your family.

7. difficulty of booking into certain resorts

8. life changes

JMHO --Mel

 

[sjdisneywedding]

The original minimum purchase was 230 points. It then dropped to 210, later to 190, and eventually a low of 150 before going up to 160.

I believe having a minimum number of points to enjoy the 'perks' is a reasonable restriction. Someone who buys a 25 point contract resale 'just to get into the system' is actually costing the rest of us money. The $100 or so they pay in dues each year does not seem to be enough to even cover the cost of maintaining that account. And obviously buying 25 points in order to get a $100 discount on AP's for a family of 4 would be a high incentive to buy. The primary reason to purchase SHOULD be to stay at DVC resorts, not a minimum just to 'get into the system'.

They should set the quantity at 150 points since that was the minimum purchase at one time.

.02

I have to disagree, the perks are what really help to bring the people back every year. The perks basically pay for themselves in all other costs associated with going to Disney.

The AP perk doesnt have an effect on someone with 25 points really anyway since they are only using points to go every 2 or 3 years. Why would they buy AP's if they are going every 2 or 3 years
If they do use the AP perk then chances are they are taking an additional cash stay that year which again will cover the perks cost.

I would think Disney would love for a member with 25 points to be buying AP's

 

[Anthony1971]

hugh? depress the resales?

I highly doubt DVC or Disney wants to eliminate or reduce the resale market. For what? to buy them back through ROFR and to resell it themselves for little profit. This isnt a typical timeshare-everytime a resale goes through thats a new family coming down every year replacing another family that stopped coming and is now spending tons of money on everything else Disney

they want the resales-they want people to keep coming and coming-the newer the better. Disney would probably be none the happier if every ten years EVERY contract resold bringing with it big ole fat unsuspecting wallets whose sole purpose was to buy the next generation of kids all the newest merchandise

I cant even see the minimum point requirement. maybe 50-60 points since you can squeak out a good 5 day vacation during cetain times of the year with as little as that many points

DVC and Disney parks are two seperate coporations (although all owned by Dinsey) They all neeed to report profit and loss so DVC does not care if people go the parks. Further this is a resale so that means somone owns the points and is using them before you buy them so weather you or the original owner spends $ at Disney, Disney would be indifferent. If DVC can make money that it is otherwise loosing than they may take action which in this case they are. As far as the members paying or not paying for small contract beneifts I do not think Disney would care But MF does cover a lot and I can see how the owners of larger contracts will be paying for some of the services provided to owners of smaller contracts. The best comparison is the prson who wants to eat a table service restuarant but does not have enough money to leave a tip. He gets the same service I get but I pay more $ and in return receive worse service as the server is now upset over someone not following the rules. Simply put the min. is a rule and those buying under that are using a loop hole.
I do not mean this postt in a nasty way but also you not seeing the min req. and maybe it should be 50-60 points to squeak out a 5 weekday vacation defeats the whole purpose of a timeshare where you are suppose to spend a week... So you are basically saying I will pay for the cheaper weekdays and somone else can use thier points for the expensive weekends....by which we are paying the dues for that much less the intial buy in.

 

[dianeschlicht]

The AP perk doesnt have an effect on someone with 25 points really anyway since they are only using points to go every 2 or 3 years. Why would they buy AP's if they are going every 2 or 3 years
If they do use the AP perk then chances are they are taking an additional cash stay that year which again will cover the perks cost.

That's not an assumption any of us can make. Perhaps they already live near enough to drive to WDW often. I've heard folks mention tactics similar to that.

 

[Chester's Mum]

Why do people just buy small contracts....what is the point?

I am buying a small contract for the following reasons:

1. I don't have $16,000 to put up front for future vacations, and financing it just doesn't meet the mark for me (particularly at 10.95%). I like to know that I've paid for this luxury vacation that I'm taking

2. I don't go to disney every year any more, usually once in 2 years. I plan on using bank and borrow.

3. I may not be able to always afford that vacation, and smaller contracts sell faster if I need to sell.

4. I'll probably buy more points as I can afford them.

As for my services being paid for by owners of larger contracts, I don't believe this is so. If I go for 10 days every 2 years and you go for 3 weeks every year, you are getting 3 weeks of services, I am getting 1.

Likewise for perks, I don't value the ability to pack up my kids, my towels and possibly my lunch to swim in a pool at a resort I'm not staying at, I don't spend enough time there to use the AP discount, and the dde discount only brings disney table service restaurants into the realm of reality for dining. I think ddp is a much better option which is available to me as a cash paying guest.

JMHO

 

[Anthony1971]

As for my services being paid for by owners of larger contracts, I don't believe this is so. If I go for 10 days every 2 years and you go for 3 weeks every year, you are getting 3 weeks of services, I am getting 1.

But DVC still needs to employee enough pople to service all contracts which if everyone owned 50 points compared to 150 that would be 3 times the amount of salaries in this aspect alone.

 

[Chester's Mum]

But DVC still needs to employee enough people to service all contracts which if everyone owned 50 points compared to 150 that would be 3 times the amount of salaries in this aspect alone.

I don't see the logic in your statement. Everyone doesn't own 50 point contracts, lots of people need more points than I do, and in these days most of the nitty gritty account administration is done by computers. I for one work in a company where increased # of clients doesn't necessarily mean increased number of employees (doing more with less here).

As long as a resort is booked, the maintenance costs don't increase just because one guest stays 1 week and another stays 2 weeks. The 2 week guest still gets housekeeping services after 1 week is finished. The room gets cleaned after the 1 week guest leaves. The roof doesn't need repaired more often because some people stay for 1 week etc...

 

[Anthony1971]

I don't see the logic in your statement. Everyone doesn't own 50 point contracts, lots of people need more points than I do, and in these days most of the nitty gritty account administration is done by computers. I for one work in a company where increased # of clients doesn't necessarily mean increased number of employees (doing more with less here).

As long as a resort is booked, the maintenance costs don't increase just because one guest stays 1 week and another stays 2 weeks. The 2 week guest still gets housekeeping services after 1 week is finished. The room gets cleaned after the 1 week guest leaves. The roof doesn't need repaired more often because some people stay for 1 week etc...

You will have more people calling to make reservations, questions, billing and collection of dues, points books etc. DVC does not have an online system that you can make reservations with a computer can not open envelopes and process paymnets. the price of printing and mailing.... So they will need more live people to take care of these tasks and more $ than expected to print and mail as they base this on at worst min points/number of points sold.

 

[Doctor P]

hugh? depress the resales?

I highly doubt DVC or Disney wants to eliminate or reduce the resale market. For what? to buy them back through ROFR and to resell it themselves for little profit. This isnt a typical timeshare-everytime a resale goes through thats a new family coming down every year replacing another family that stopped coming and is now spending tons of money on everything else Disney

they want the resales-they want people to keep coming and coming-the newer the better. Disney would probably be none the happier if every ten years EVERY contract resold bringing with it big ole fat unsuspecting wallets whose sole purpose was to buy the next generation of kids all the newest merchandise

I cant even see the minimum point requirement. maybe 50-60 points since you can squeak out a good 5 day vacation during cetain times of the year with as little as that many points

We'll have to agree to disagree. You also forget that a fairly large portion of resales are NOT new buyers. I actually wouldn't be surprised if the resale market is 70% or more add on purchases.

 

[Doctor P]

I have to disagree, the perks are what really help to bring the people back every year. The perks basically pay for themselves in all other costs associated with going to Disney.

The AP perk doesnt have an effect on someone with 25 points really anyway since they are only using points to go every 2 or 3 years. Why would they buy AP's if they are going every 2 or 3 years
If they do use the AP perk then chances are they are taking an additional cash stay that year which again will cover the perks cost.

I would think Disney would love for a member with 25 points to be buying AP's

You have a family of 6. You are regularly buying annual passes. You get 25 points at $2000 total and pay $125 per year in maintenance fees. You save $600 per year on your annual passes. That means that in about four years you have paid for your points and are "making" $475 on your membership even if you don't use it for a single night. Your assumption that they only go every 2 or 3 years just simply may not be right for someone who is trying to game the system.