Any rumors or educated guesses on when/if they'll do away with the 50% max borrowing rule?

wnielsen1

Needs non-expiring passes
Joined
Jun 30, 2007
Disney definitely has an incentive to make point usage as inflexible as possible. The more inflexible it is, the more breakage occurs, the more profit for Disney.
The more flexible it is, the easier it is to sell new contracts. Everything needs balance.
 

Liquidice

DIS Veteran
Joined
Mar 10, 2019
I would be very surprised if they would be able to do this legally. The POS guarantees us the right to bank and borrow. How much is up to DVCMC to decide the limits based on balancing the system.

Now, can I see them deciding to keep it at 50% for a long time? Yes, but the way I read things, the decision does have to be based on something, and not just because.
Could they allow 50% for free and then an up-charge for the remaining 50% though? I figured legally they have to allow some amount of borrow/bank based on the POS, but I thought perhaps they could set a number and then charge for the right to bank/borrow the remaining 50%.
 

Sandisw

DVC Forums
Moderator
Joined
Nov 15, 2008
Could they allow 50% for free and then an up-charge for the remaining 50% though? I figured legally they have to allow some amount of borrow/bank based on the POS, but I thought perhaps they could set a number and then charge for the right to bank/borrow the remaining 50%.
Nothing suggests they can limit for profit. It suggests that it has to be based on the system of supply and demand, and it needing to be adjusted because of that.

I just don’t see how they can. They already have the ability to sell OTU points. Now, if they wanted to up the number from 24 to a higher amount, they can do that. But, I think keeping it indefinitely would be difficult to justify long term…beyond 2023…unless we continue to have disruptions and they continue to make exceptions for those.
 

Sandisw

DVC Forums
Moderator
Joined
Nov 15, 2008
Disney definitely has an incentive to make point usage as inflexible as possible. The more inflexible it is, the more breakage occurs, the more profit for Disney.
Borrowing isn’t going to create breakage because it’s not adding more points….simply moving them around on their use.
 

Stargazer65

DIS Veteran
Joined
Aug 13, 2020
A bus driver said that it will go away when they start selling VGF2, but the first year 100% borrowing is limited to VGF2 contracts only. Everyone else will have to wait another year. So that means 10/1/2022 for other than VGF2 contracts.
 

AnnaKristoff2013

Mouseketeer
Joined
Apr 20, 2021
Borrowing isn’t going to create breakage because it’s not adding more points….simply moving them around on their use.
I don’t think borrowing creates breakage. I think lack of borrowing could create breakage. The less flexibility members have in the aggregate the harder it gets for them to book exactly what they want, when they want, leading to more breakage.
 

ILoveMyDVC

DIS Veteran
Joined
Aug 24, 2000
They'll figure out a way to make it an up charge. Need to borrow more than 50% of your points, you need to pay a fee to do so - maybe they charge per point to do so. Need to borrow an extra 50 points, it will cost you $2 per point or $100. The first 50% are free, the second 50% is an up-charge. Same for banking points...

But as an exclusive, if you purchase a 50 point add-on contract at Aulani, you will receive Borrow+ for free for a limited number of years.

Think about how the press release would read ... "We've heard your feedback, we have re-imagined how the DVC banking and borrowing system works! We will now charge a fee per point to bank or borrow more than 50% of your points. This will help to alleviate pressure on the overall DVC system and make everyone's booking experience more enjoyable. We look forward to you using the new DVC Point+ system!".

Maybe they will introduce an app at the same time that tells you to book your resort stay at a time with the least demand too. Want to book in December? We recommend you book in September instead!
Don't be foolish - have you seen Disney's IT? An App bwhahahaha :rotfl:
 

Sandisw

DVC Forums
Moderator
Joined
Nov 15, 2008
I don’t think borrowing creates breakage. I think lack of borrowing could create breakage. The less flexibility members have in the aggregate the harder it gets for them to book exactly what they want, when they want, leading to more breakage.
But it still doesn’t create it by not allowing owners to borrow, if they can’t use it in one UY, those points are there in the next UY.

Someone then leaves a night in which someone else who has extra banked points can use,

I think the point is that banking and borrowing simply readjust where points are so if there are extra rooms this year, there will be less next year because people still have points to use then,

Yes, an individual may be impacted, but the system overall still has the same points over those few years.
 

jkips

Mouseketeer
DVC Gold
Joined
Sep 15, 2019
One of the main selling points around the DVC program is the flexibility and that the points hold their value so well. Before buying in I did a lot of research re DVC vs HGV and VAC points and it really is no comparison in terms of being able to buy in and expecting to get value back if/when you are ready to sell your points back out. A lot of that resale value is driven through the flexibility,

I fully understand why they moved from 100 to 50 percent given the situation but it’s not in the DVC club members best interest nor Disney’s to keep it that way forever. I will be very surprised if it doesn’t go back to what it was pre-COVID at some point in the next 2 years.
 

Sandisw

DVC Forums
Moderator
Joined
Nov 15, 2008
One of the main selling points around the DVC program is the flexibility and that the points hold their value so well. Before buying in I did a lot of research re DVC vs HGV and VAC points and it really is no comparison in terms of being able to buy in and expecting to get value back if/when you are ready to sell your points back out. A lot of that resale value is driven through the flexibility,

I fully understand why they moved from 100 to 50 percent given the situation but it’s not in the DVC club members best interest nor Disney’s to keep it that way forever. I will be very surprised if it doesn’t go back to what it was pre-COVID at some point in the next 2 years.
I agree because if they did then at some point with 100% banking in place we would end up with the imbalance just in a different way.
 

Solo2987

Earning My Ears
Joined
Sep 15, 2021
Having just been affected by this (guess I didn't read the restrictions lifting closely enough), I agree that it is very frustrating. Now that I have been reading up on it, I believe international owners are getting their points extended again, so this could stay around for a while, in part to give them some availability.

That being said, I'm a newb here, so I don't know if there are many international owners.
 

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