2042 expiration - defaults?

[Mimi151]

Say it’s 2038… 2039… I can’t imagine 2042 resorts will have any resale value. For people who don’t have intentions of staying with a DVC past 2042, do you think people will just start defaulting in dues and let Disney take the contract back instead of paying the $4-5k annual dues it will be by then? Assuming 5% increase per year, dues will be approx double what they are now.

 

[zavandor]

Hopefully salaries will be double as well. And probably also hotel rack rates will be double, if not more. So there should still be value in using points in the last few years. Unless people get tired of using the points: given closing costs, it might not be worth selling a small contract, maybe a few of those might be defaulted, but I cannot see happening to too many.

 

[thanxfornoticin]

Agreed - we plan on using our 2042 points to the fullest extent of the contract!! We made a commitment in the contract to honor the membership into 2042. So far, Disney has honored their part, so we'll honor ours. Plus, to be honest, we also have 2057 contracts we don't want to have issues with after that!!

 

[Sandisw]

I’m sure some will. But my guess is more will just use or give it away.

 

[tx911]

Plus would still be able to rent points or reservations to cover dues.

 

[CarolynFH]

Plus would still be able to rent points or reservations to cover dues.

Renting is my plan, if we can’t travel by then.

Hopefully salaries will be double as well.

We’re retired and on government pensions, so no salary increases there. Many original owners of 2042 resorts might be in similar circumstances. So again, hopefully we’ll be able to cover dues by renting any points we can’t use.

 

[MICKIMINI]

I think the big issue will be everyone owning 2042 will be trying to get reservations at "the end" and it will be competitive at 11 months out and near impossible to switch at 7 months.

You won't be able go past January 2042 if I remember correctly, so those with late in the year UY's will have to use or lose. It will probably be best to borrow 2041 into 2040 and use them up if that is the case. Someone please correct me if I am wrong!

 

[Mimi151]

I think the big issue will be everyone owning 2042 will be trying to get reservations at "the end" and it will be competitive at 11 months out and near impossible to switch at 7 months.

You won't be able go past January 2042 if I remember correctly, so those with late in the year UY's will have to use or lose. It will probably be best to borrow 2041 into 2040 and use them up if that is the case. Someone please f

 

[Mimi151]

In January 2042 will dues need to be paid at these resorts? Or is the last dues payment Jan 2041 for The 2042 resorts? I assumed it was 2042 and there would be 2042 points provided (example if Dec use year, you’d still get them in Dec 2042.). Am I thinking a year longer than I should be??

 

[CarolynFH]

In January 2042 will dues need to be paid at these resorts? Or is the last dues payment Jan 2041 for The 2042 resorts? I assumed it was 2042 and there would be 2042 points provided (example if Dec use year, you’d still get them in Dec 2042.). Am I thinking a year longer than I should be??

At most, owners of 2042 resorts will be on the hook for only 1/12 of the costs of operating their resort in 2042, since dues are assessed based on calendar year. They won’t be responsible for contributing to any capital reserves, either. So I wouldn’t be surprised if DVC rolled the January 2042 member fees into the 2041 assessment.

I think the big issue will be everyone owning 2042 will be trying to get reservations at "the end" and it will be competitive at 11 months out and near impossible to switch at 7 months.

You won't be able go past January 2042 if I remember correctly, so those with late in the year UY's will have to use or lose. It will probably be best to borrow 2041 into 2040 and use them up if that is the case. Someone please correct me if I am wrong!

I expect DVC will modify the banking, borrowing and possibly the non-owner booking rules the last few years in order to allow owners the maximum amount of time to use their points. I’m sure they recognize that December UY owners, for instance, are likely to want to borrow their 2041 points. OTOH I’m hoping I’ll still be alive so that I can use all my September 2041 points for a BW view villa in January 2042, with the last night being January 31, 2042!

 

[Sandisw]

In January 2042 will dues need to be paid at these resorts? Or is the last dues payment Jan 2041 for The 2042 resorts? I assumed it was 2042 and there would be 2042 points provided (example if Dec use year, you’d still get them in Dec 2042.). Am I thinking a year longer than I should be??

The resorts cease to exist January 31st, 2042 so the last set of points anyone will get will be 2041.

No one knows yet how they are going to handle things those last few years in terms of dues, etc.

 

[Genie+]

For BW and BC I don’t see salvage value hitting $0 in the last few years. To avoid broker commissions and closing fees I think transfers will increase on short life contracts. The low point charts, location and reasonable dues limits the risk of becoming no longer cost effective vs other options. Unlikely these end up an albatross at the end. OKW ‘42 seems riskier here, mostly because of the dues. The large pool of points and location doesn’t help. Larger supply and less demand could hurt it if the dues continue to outpace other resorts.

 

[juliebee]

there is a related thread called "the race to worthless" in the Purchasing DVC forum

 

[eticketplease]

The resorts cease to exist January 31st, 2042 so the last set of points anyone will get will be 2041.

No one knows yet how they are going to handle things those last few years in terms of dues, etc.

I think that confuses a lot of people on why they are called 2042 resorts especially when people are trying to figure how much time is left on the contract when making offers on resale.

Yes you can technically use them in 2042 but only for 31 days and the points like you pointed out are last given in 2041.
That means those with a December use year have 2 months to use it unless being borrowed into 2040.

Of course the same could be said about all of the rest of the resorts being called the year based on the 1/31 date ie 54 instead of 53, 57 instead of 56 and so on.

 

[DisTravels]

At most, owners of 2042 resorts will be on the hook for only 1/12 of the costs of operating their resort in 2042, since dues are assessed based on calendar year. They won’t be responsible for contributing to any capital reserves, either. So I wouldn’t be surprised if DVC rolled the January 2042 member fees into the 2041 assessment.

If you pay 1/12th of the maintenance fees, then would you get 1/12th of your allotment of points?

 

[Mai Ku Tiki]

At most, owners of 2042 resorts will be on the hook for only 1/12 of the costs of operating their resort in 2042, since dues are assessed based on calendar year. They won’t be responsible for contributing to any capital reserves, either. So I wouldn’t be surprised if DVC rolled the January 2042 member fees into the 2041 assessment.

I expect DVC will modify the banking, borrowing and possibly the non-owner booking rules the last few years in order to allow owners the maximum amount of time to use their points. I’m sure they recognize that December UY owners, for instance, are likely to want to borrow their 2041 points. OTOH I’m hoping I’ll still be alive so that I can use all my September 2041 points for a BW view villa in January 2042, with the last night being January 31, 2042!

I'm hoping they throw in free scooter rentals on request for 2041 bookings!

 

[CarolynFH]

If you pay 1/12th of the maintenance fees, then would you get 1/12th of your allotment of points?

No, because 1) maintenance fees are assessed and payable based on estimated expenses for the calendar year without regard to UY and 2) everyone’s last year of points will be 2041. February UY will be the only one that gets a full 12 months for their 2041 UY (2/1/2041-1/31/2042), which is why I think there will be modifications of banking/borrowing/non-owner booking periods during the last years of the 2042 contracts.

 

[Sandisw]

I think that confuses a lot of people on why they are called 2042 resorts especially when people are trying to figure how much time is left on the contract when making offers on resale.

Yes you can technically use them in 2042 but only for 31 days and the points like you pointed out are last given in 2041.
That means those with a December use year have 2 months to use it unless being borrowed into 2040.

Of course the same could be said about all of the rest of the resorts being called the year based on the 1/31 date ie 54 instead of 53, 57 instead of 56 and so on.

I think one of the things they could do is make all 2041 points Feb UY points so everyone has the same amount of time to use.

Id be surprised if we don’t see adjustments to banking and borrowing and a larger home resort booking period.

 

[TheDailyMoo]

The resorts cease to exist January 31st, 2042

Is January 31st the last reservation you can make or is it January 30th?

And technically when you wake up the following morning are you still staying on DVC points...are you a hotel guest? Does the expiration happen at checkout 11 am? I guess no one is getting a late check out that day.

 

[CarolynFH]

Is January 31st the last reservation you can make or is it January 30th?

And technically when you wake up the following morning are you still staying on DVC points...are you a hotel guest? Does the expiration happen at checkout 11 am? I guess no one is getting a late check out that day.

I expect that the last night we can stay on points will be January 31. When we wake up we should be just as much a guest as the guests waking up to check out of VGF on February 1. The difference will be that we won’t own any part of BWV that morning; it will have new owners (Disney, or who knows).