150 pt min. retail I think 25 pt min resale

[KANSAS]

How is it still possible, On Dec 1,2003, that people that want to join DVC, ahve to purchase 150 pts, from a DVC Guide.

But, if others want to join DVC-

but can only afford 50 dvc pts,

or only need 50 DVC pts, becaue they are studio people,

or want go get into DVC and then rent from others and have those rented DVC Poitns transferred into their account, where they have more control

They can accomplish one of these goals, with a purchase of only 50 DVC Points, thru the resale market

Did DVC, let this loophole exist, at the beginning of the program and cannot close it??

 

[Dean]

It's just part of the system. No way to prevent this without eliminating add on size contracts in general. They couldn't keep one froms selling what they own. It's not enough of an issue for DVC to worry about, just a small fish in an ocean.

 

[spiceycat]

besides with those few points - most of the other benefits of owning DVC - member getaways - world passport - concierge collection - adventure collection - they can't do.

 

[crisi]

They could excercise ROFR on every one of these contracts, if it were important enough to them to keep members from having less than 150 points.

But I think Disney is well aware of the reality. It probably isn't worth it in terms of time, materials and paperwork for them to sell less than 150 points as an initial purchase - which is one of the reasons that is the minimum - that is the minimum margin they are williing to deal with. However, they well know there are people out there with 150 points shared between three families that they sold to. One of the other "loopholes" around 150 points.

It isn't any skin off their back if you only own 25 points (well, a little - they still need to send you mailings and such - but really, the people owning 600 points that only need one copy of Vacation Magic make up for it) - as long as they didn't have to deal with closing costs, etc.

 

[dcfromva]

Originally posted by KANSAS

Did DVC, let this loophole exist, at the beginning of the program and cannot close it??

I don't think there is a loophole. Disney has full control of these contracts because of the ROFR. Disney could exercise their right and buy back these smaller contracts, if they elected.

Me thinks it probably isn't a big issue or Disney would be doing just that. I think Disney would probably be happy to sell smaller contracts, but I suspect there is some type of regulatory control on them. ie--you advertise this great big beautiful time share, but you sell it in such a small increments that it can't really be used like it is being advertised--perhaps that would be considered deceptive advertising?
(I think the folks who have the smaller contracts and who have shared with us how they are able to get the most useage out of them are pretty clever to make them work as well as they do. )


-DC