Any ceiling on point sales?

[invalid_character]

Given that the DVC properties are inelastic, i.e. there are only a fixed number and they are already booked 100% of the time, any add'l point sales will only serve to lengthen the reservation time of the current owners. Of course more units are being built, but these will likely also be 100% subscribed immediately, so no relief here. (worse - they will likely be more expensive, so existing owners will have to shell out cash to get space there, in additino to using points).
My worry is that Disney will hit hard times at some point and could "flood" the market with points to generate quick cash. This may sound like a windfall to the buyers, but will be ruinous to everyone, as it will put huge pressure on booking existing space years in advance. So....is DVC offering purchasers any guarantee that there will be a fixed "cap" on the room-to-point ratio that will never be exceeded?

 

[Caskbill]

Yes, there is absolutely a 'cap'. OKW and BWV have already been sold out. If you want points there, you have to buy someone else's.

The total number of points for a resort is fixed. Disney cannot sell more just to generate more cash. Likewise, they cannot require the use of more points for the units to raise the cost that way. They can only reallocate the total point structure. In order to raise the number of points used for one unit, they would have to lower the number of points somewhere else.

In other words, if you would multiply the total number of units by the point costs for that unit for each day in the year, you get a total of xxx points. That number can never change. Period. It's well spelled out in the contracts.

Caskbill

 

[PamOKW]

The only way they have more new points to sell is if they build more units. That's what happened at OKW when they added the new buildings where the sales office had been located.

 

[drusba]

Timeshare laws prohibit the oversale of units. The number of points that can be sold at a particular resort equals the number of points that it would take to occuppy all the units for 51 weeks in a year. In other words if every owner made a ressie and no ressies overlapped, the units would be filled for 51 weeks of the year and all points by owners at the resort would be used up.

Also, it is a misconception that the units are booked 100% of the time. There are a number of times of year when rooms are fairly easy to get. Moreover, weekends are very seldom booked 100%. The likely cause of little availability for any particular time is the point system itself and the weekend/weekday difference in points needed. What happens is that: (a) many try to minimize use of points on weekends and the result is too much demand for weekdays; and (b) you can have excess demand for particular times of year when points needed are lower (like Oct through Dec, excluding holidays). Though we have gone at various times of year, we have found it fairly easy to book rooms 7 months or less out during summertime, a high "Disney" demand time but apparently a fairly low "DVC" demand time

 

[invalid_character]

Thanks to all for the very good responses to this newbie Q. Makes me feel much more comfortable.

 

[CarolAnnC]

Hi Invalid and welcome to the DIS! I have provided a link here to our Frequently Asked DVC Questions for Newcomers. I would also like to remind you to stop by one of our Sunday evening DVC Chats. They are held at 9 pm est in the Main Lobby of chat, where you were last night. Hope this helps a bit....

click here for FAQ's

<font size=4><font color=purple><font face=BrushArt>Carol</font></font></font>

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