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unbelievable!! Can't afford this! Please help

Discussion in 'Purchasing DVC' started by vinmar4, Dec 5, 2012.

  1. DizBub

    DizBub Totally Addicted


    We have 470 points, 310 at BLT bought direct and 160 at BCV bought resale. We will be hit with about $2300 in dues this year so I understand what you are going through.

    Hopefully things will go well for you renting your points for now and you can continue to enjoy your membership.

    Best of luck!!
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  3. robinb

    robinb DIS Veteran

    I think that's the best choice for you.
  4. vinmar4

    vinmar4 Member

    I really want to thank the people that took the time to answer my post.
    We are going to look into learning how to rent as it seems like a good option and we may also just sell one of our contracts so the anual dues will decrease and also our monthly payment if needed. We may also just transfer one of my contracts to my sister if we can so she can use the points but we will have to find out how that goes and if it's even possible. So many things to think about but we may just do it after Christmas because I don't need the extra stress now with the holidays, but we received a lot of good ideas!
    thanks again you guys!
    as you can tell, I'm feeling a little better ;)
  5. staceymay00

    staceymay00 Mouseketeer

    I am no expert, but I don't think AKV resale prices will increase. We bought a resale contract a few years ago and while I don't check resale prices weekly, I do take a look from time to time. I'm pretty sure resale prices at all the WDW properties have fallen since we bought, even as direct prices for the same resort go up. The issue I see with AKV is that it is a large resort and many others are now in the same position as the OP, or they simply realize they don't want to continue vacationing at WDW any longer even though cost is not an issue. I can see resale prices getting a bump at a small resort (with few resale contracts available) when direct prices go up, but that is not the norm.

    Sent from my iPad using DISBoards
  6. vinmar4

    vinmar4 Member

    Thank you!
  7. vinmar4

    vinmar4 Member

    Is it really complicated to rent?
    and how long does it usually take to rent them?
  8. Dean

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

    I'm sure Jim didn't mean to be harsh, just honest

    OP, Actually it is pretty far off base as I'm sure you're figuring out by now. I see several incorrect assumptions, these include that resale prices track retail and that market forces are broad enough to give a true value on the open market. Regardless, the market is as you see it, maybe a little over half of what you paid. Plus, if all of your contracts were financed, they likely were financed as a unit meaning it's unlikely you could sell one or two without paying off the remaining ones.

    Your situation is one of a number of reasons why I try to press those looking to buy to make sure they understand the risks and negatives, to never finance and to not overbuy the number of points they truly need or the higher cost resort. I can't tell you what to do but for most people in this situation I think the first question is whether they can afford DVC (or even Disney) at all. Truthfully if $1800 a year gets one into trouble, the answer is likely no. For most the best decision is likely to sell all, pay the upside down amount and start saving for when they really can afford it so it'll be a blessing and not a curse. Let us know how it works out and what you end up finding out along the way, esp how it works with trying to sell part with a loan in place.
  9. JimMIA

    JimMIA A little Miami humor...

    Sure, but you're going to have to drill down a bit.

    Here's a link to the ROFR thread, Section V, which shows actual reported transactions (not asking prices) which either passed ROFR or which Disney took via ROFR. Section V only covers 2012 transactions, so you'll have to do some homework to get the full picture.

    If you follow that back to about Section II, you will probably find the early resales of AKV in the $90 range. As the current report will show you, AKV is selling, and clearing ROFR, now in the low $60's.
  10. JimMIA

    JimMIA A little Miami humor...

    Dean, CaptDadSparrow is not the person in the trick bag here -- vinmar4 is. CaptDad is just in the process of buying in, as I understand it.
  11. shalom

    shalom Mouseketeer

    Remember that TimeShares are a long-term commitment with costs (MFs) that go up every year. The first few years of any point system, most owners are new and happy owners; the longer that point system lasts, the more people who will be living in a very different economic system from what they had when they first signed up, the more people who will have decided the TS isn't for them, the more people whose health or family situation makes it harder to make use of the TS, and the more people who want the most popular/hardest to get into resorts. So the longer the TS has been around, the higher the percentage of owners wanting to sell.

    Plus Timeshares depend on their sales department much more heavily than most other purchases. Nobody needs to own DVC, and most people who buy DVC, buy because a sales presentation convinced them it was a good deal. DVC salespeople are a not so high pressure as your average TS salesperson, but they still count heavily on appealing to the buyer's emotions. Very, very few people buy DVC for purely rational reasons, because the purely rational approach would be to get bigger, nicer accommodations offsite, and then trade into DVC when possible. You buy DVC because you enjoy the magic and want to be part of it, and an amazing percentage of people buy DVC without doing much research at all.

    All those people who buy into DVC without doing research are not part of the market for resales, so there's only a very small overlap. The usual market for Timeshare Resales, which is to say, people who already own and understand Timeshares, is a totally different market, and most of them think it makes more sense to trade into DVC anyhow. People buying on the resale market also do more research into which resort trades best, which MFs are higher, are more interested in minimizing costs, etc. than people buying direct from Disney.

    Disney is selling DVC to a different market than people who are trying to resell their points are. There's also the fact that Disney can wait out tough economic times; many owners who are putting their points on the market need to sell those points, meaning they're much more willing to negotiate and much more likely to drop their price. Two different types of sellers, selling in two different markets, means two different sets of prices that are not very tightly connected.
  12. JimMIA

    JimMIA A little Miami humor...

    OUCH! I didn't even think of this possibility. Hopefully this is not the case, because it would severely limit OP's options.
  13. DougEMG

    DougEMG Mouseketeer

    I understand that Disney will taken back or foreclose on contracts where you don't pay the maintenance fees. Do they do the same thing if you have a loan with them? What would happen if they walked away, anyone know? Would this be cheaper than the amount they would be under if they sold all their points.

    I have no idea.
  14. Dean

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

    thanks, I did get them confused.
  15. DizBub

    DizBub Totally Addicted

    You could contact David's Vacation Club Rentals. He can rent your points for you. Not sure what his process is but I think that he charges $13 per point to the people renting from him and gives the owners $10 per point.
  16. vinmar4

    vinmar4 Member

    I will admit that I made the mistake of getting a loan in the first place and maybe even getting too many points, we can afford to pay the loans or " Disney" but my surprise was to see that every year the increase in the anual fees are almost 200.00. We love DVC but maybe we are rethinking if we want to spend all that money for those loans or just sell even with the upside down amt and rent when we want to go until we buy resale.
    I will post how things go
  17. disneynutz

    disneynutz <br><img src="http://www.wdwinfo.com/dis-sponsor/i

    Each contract is separate and they each have their own loan. Paying off one doesn't affect the others.

    Defaulting puts you on the DVD black list and any future direct purchase would be on a cash bases only and they would require monthly dues payments.

    :earsboy: Bill
  18. LisaS

    LisaS DIS Veteran

    I suspect a lot of people don't think about how much the dues will cost them over the lifetime of the contract. They focus on the cost of the contract because that's the big number but the dues will go up every year and over time the running total will far exceed what you paid for your contract.

    When we were considering buying in to DVC I put together a spreadsheet to estimate the dues each year. I used 3.5% as the average annual increase. I paid just under $15,000 for my BWV contract but I estimate I will pay over $50,000 in dues if I hold on to it until it expires on Jan 31, 2041. :eek: In the last year, assuming an average annual increase of 3.5%, dues will be over $15 per point! But who knows what a hotel room will cost by that time.
  19. bumbershoot

    bumbershoot DIS Veteran

    I was just in pain thinking of you paying nearly 6K to get OUT of something. When that "something" could be SO valuable to your family.

    Sounds like we bought at the same time as you, we bought at Bay Lake and I think that that time they were around the same cost, and yet we only got 160. How much would we LOVE to have 320 to play with, you have NO idea.....

    We financed as well, so I know half of your pain, LOL. My long-talked about plan to pay it off quicker hasn't materialized, so comparing what we've paid to what we have left to pay is hard...but at the same time, oh the JOY we have gotten from that money.

    I would just hate to see you make a decision based on dues, then buy back in later only to face the same, or higher, dues. Even when financing, dues are still the higher total price over the years that one owns DVC.
  20. zavandor

    zavandor Mouseketeer

    I support this idea too.
    You could rent all your points and get 3200$. You could even try to rent those yourself, with a bit of effort you could get something more, but many report that with David you can rent your points easily (I've not done this myself).
    So you could skip this year vacation at Disney, pay the MF and have some money to repay the loan. Or you could rent half the point, pay the MF and have a shorted vacation.

    Selling your contract it's a big loss now, I would keep that option only as last resort.
  21. Daddio

    Daddio David's Vacation Club Rentals Approved Advertiser

    I'd be happy to assist you with the rental of your points. Animal Kingdom Villas are in extremely high demand right now. Full details of my program are available at http://www.dvcrequest.com/associate/

    I wish you the best with your situation.

    ~ David

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