100 pt Direct Blue Card Minimum September 17,2019

[skippytx]

Quite a scheme if you think about it. Worst case, foreclose and you get the points back to sell.

Which is why the 3rd party DVC financing companies don't even bother with a credit check, or report the loan info to the credit bureaus. There's almost no risk if you have the 10 or 20% down. They make money off the interest, or worst case they break even/make a little when they foreclose on the points.

 

[Yinn]

I don't believe this at all - that Disney is going to start buying back everything. If that were to happen, the prices will go up even further on resale - sure that would reduce resale, but now Disney would have all this excess inventory of old resorts that they would have to sell. Disney uses ROFR to keep the prices above some expected level, but they are NOT in the business of reselling old resorts.

I don’t see why not if there’s a demand for them. Currently, they can turn around a BCV for about $70-90/point without building a thing. Compared to $175 (after incentives) on Riviera, associated marketing and build out costs. And by eliminating those lower cost, it drives direct sales to Riviera.

As it is it looks like they’re buying back roughly 20% of resales based on some reseller company reports.

Back in topic. Any news of changing resale terms along with the membership change?

 

[APiratesLifeForMe2]

Well it forced our hand! Just called to purchase our 75 points this morning. Not sad about it either! Told hubby it’s his birthday present.

 

[CraigInPA]

I think we're in our own echo chamber here on disboards. We're all savvy owners, understand (and often purchased via) resale, and do the math to determine what each of our break even point may be for a direct-for-blue-card-purchase. However, we are a tiny minority of DVC owners.

The typical DVC purchaser hops into a van, gets driven to the sample center, wanders around, and has ice cream. They expect to get some fastpasses at the end of the tour. They have never heard of resale. If they are impressed by the DVC presentation, they then discuss the actual purchase. That's where the guide says "I can sell you a 75 point contract at AKV if you really want it, but you'd get *member benefits* if you bought 100 points. At 100 points, you'd get another 2 nights a year, and it's only $9 more a month on your finance plan!

 

[LuigiSpice]

Nearly $5200 in interest if paid off in 5 years. $8,000 for 15% interest. At those rates, if you’re financing through Disney at those rates you really shouldn’t buy.

This is why we have decided to grab 75 at Saratoga or Key West, because we are lucky enough to be able to swing that without financing right now. I'd love more points, but that will have to come from resale at some point.

 

[Yinn]

This is why we have decided to grab 75 at Saratoga or Key West, because we are lucky enough to be able to swing that without financing right now. I'd love more points, but that will have to come from resale at some point.

That’s definitely the prudent thing to do. Home resort be damned, go for what fits without financing for now.

I think we're in our own echo chamber here on disboards. We're all savvy owners, understand (and often purchased via) resale, and do the math to determine what each of our break even point may be for a direct-for-blue-card-purchase. However, we are a tiny minority of DVC owners.

The typical DVC purchaser hops into a van, gets driven to the sample center, wanders around, and has ice cream. They expect to get some fastpasses at the end of the tour. They have never heard of resale. If they are impressed by the DVC presentation, they then discuss the actual purchase. That's where the guide says "I can sell you a 75 point contract at AKV if you really want it, but you'd get *member benefits* if you bought 100 points. At 100 points, you'd get another 2 nights a year, and it's only $9 more a month on your finance plan!

...you got ice cream?!?

 

[skier_pete]

That’s definitely the prudent thing to do. Home resort be damned, go for what fits without financing for now.



...you got ice cream?!?

You didn't get ice cream??

 

[Yinn]

You didn't get ice cream??

I feel ripped off now. Going to put off my purchase for another tour.

 

[LuigiSpice]

I feel ripped off now. Going to put off my purchase for another tour.

I didn't either as we did our tour at WL.

 

[ELMC]

I don't believe this at all - that Disney is going to start buying back everything. If that were to happen, the prices will go up even further on resale - sure that would reduce resale, but now Disney would have all this excess inventory of old resorts that they would have to sell. Disney uses ROFR to keep the prices above some expected level, but they are NOT in the business of reselling old resorts.

Agreed. This does make me think, however. If they happen to use up all of the good locations for DVC resorts, it might be a viable model to be in the business of selling the old resorts waiting for the 2042 expirations to happen. They would have to get them at the correct price, of course, which could be a possibility if they keep on suppressing the resale market and increasing retail prices. They could call it their DVC Classic phase.

Now that I think about it, I wonder if this isn't actually their plan.

I think we're in our own echo chamber here on disboards. We're all savvy owners, understand (and often purchased via) resale, and do the math to determine what each of our break even point may be for a direct-for-blue-card-purchase. However, we are a tiny minority of DVC owners.

The typical DVC purchaser hops into a van, gets driven to the sample center, wanders around, and has ice cream. They expect to get some fastpasses at the end of the tour. They have never heard of resale. If they are impressed by the DVC presentation, they then discuss the actual purchase. That's where the guide says "I can sell you a 75 point contract at AKV if you really want it, but you'd get *member benefits* if you bought 100 points. At 100 points, you'd get another 2 nights a year, and it's only $9 more a month on your finance plan!

There is so much good in this post that we should all read it a couple of times.

I'd like to share that I was thinking the same thing about the upsell. I don't think they need to change the minimums, as they have seen what that does (anyone remember 160?). But it's a great sales tactic to sell people on the small 75 minimum and then upsell them to the 100 for the blue card. And the way @CraigInPA stated it is exactly the way it is going to happen. I am one of the super analytical people here on the boards, and even I would get the extra 25 points for only $9 more a month! I mean, when you put it that way it's only $9 a month!

 

[kboo]

That’s definitely the prudent thing to do. Home resort be damned, go for what fits without financing for now.



...you got ice cream?!?

You didn't get ice cream??

I feel ripped off now. Going to put off my purchase for another tour.

We got fastpasses too. And we were owners already when we opted for the "full treatment."

They were the most expensive fastpasses ever!

 

[Jack_Sparrow_NJ]

We got fastpasses too. And we were owners already when we opted for the "full treatment."

They were the most expensive fastpasses ever!

I should have taken the tour. I like ice cream.
I have a $10,000 backpack though.

 

[kboo]

I should have taken the tour. I like ice cream.
I have a $10,000 backpack though.

My backpack cost a lot more. You got a deal.

 

[APiratesLifeForMe2]

This is why we have decided to grab 75 at Saratoga or Key West, because we are lucky enough to be able to swing that without financing right now. I'd love more points, but that will have to come from resale at some point.

Heads up, Old Key West (as of my guide this morning) is waitlist only right now. So if you want only 75 before the 17th, your down to Saratoga which is what we just got this morning!!

 

[LuigiSpice]

Heads up, Old Key West (as of my guide this morning) is waitlist only right now. So if you want only 75 before the 17th, your down to Saratoga which is what we just got this morning!!

My guide said the same thing when I talked to her last. I'm good either way, but I could foresee wanting the reasonably priced grand villas at some point which I hear are hard to get outside 11 months. Is that the case?

 

[KAT4DISNEY]

My guide said the same thing when I talked to her last. I'm good either way, but I could foresee wanting the reasonably priced grand villas at some point which I hear are hard to get outside 11 months. Is that the case?

It depends on the time of the year. You can see the OKW GV's have availability for times during the summer and the spring. Fall Frenzy etc really is a frenzy on most everything. SSR GV's are frequently available too - there's a lot of them and they are on the lower scale of point requirements although nothing beats the OKW point requirements. If you're looking for 3 bedrooms and don't require all the beds we've found the THV to be very nice!

 

[KAT4DISNEY]

This occurred to me very early on. They know that when they jumped from 25 to 75 points they saw a big sales bump for the month. The timing of this is such that they want to see another sales bump before the end of the fiscal year. This is yet another indication that DRR (Riviera) is underperforming. I wonder if this will work as well as the 25 to 75 did. I'm sure some people will jump on it though. I don't see how this benefits Disney in long term - as others have said, the more they raise it, the fewer people will bother with the blue card purchase - they'll actually sell less in the long run.

Yeah, my first thought was a little doubt that they would do this after having increased so recently so then I started thinking why? End of fiscal year was thought #2. They had quite the bump after the last one and in reading posts here from those who were planning but not quite ready I believe they'll get their little bump again to get them into the next year. The question is what's next though when they need their next increase in profits?

 

[LuigiSpice]

It depends on the time of the year. You can see the OKW GV's have availability for times during the summer and the spring. Fall Frenzy etc really is a frenzy on most everything. SSR GV's are frequently available too - there's a lot of them and they are on the lower scale of point requirements although nothing beats the OKW point requirements. If you're looking for 3 bedrooms and don't require all the beds we've found the THV to be very nice!

Sorry, THV?

 

[HickoryDickory]

Sorry, THV?

THV = Tree House Villas (at Saratoga Springs)

 

[Lumpy1106]

That’s a big cost difference though. 25 points was what? Less than $5000 for everyone on the sidelines to jump in - which included resale only buyers and $175 in annual dues about. 75 points is $14,000 and $525 of annual dues (est)

That’s a heavy chunk of change difference. The only way I see this working is if they monopolize the resale market. Another words, if they ROFR as much as possible, then you won’t have a choice but to buy direct. Which if these posts are correct, might be what they’re trying to do. I’ve read in here 2019 has been really heavy on buybacks.

I really think this will ultimately hurt their sales. Speaking from my experience, I bought just enough, OK, maybe not quite enough points. Forcasting my planned trips, I'll probably start borrowing points in 2-3 years, and will need to look into maybe staying non-DVC for a night on trips 4-5 years from now. That is, if I stay in 1 br's 4-5 years from now. It's too far down the road to decide and I really don't need to.

HOWEVER...
If I could buy a small direct contract and get benefits in the process, I probably would. I don't consider 100 points to be a small contract though, and, I think more importantly, it's pretty easy to find 100 pt resale contracts.

Definitely see Yinn's point - I could see Disney really ramping up buybacks of 100 point contracts if they haven't already.