Can you sell back to Disney?

[aksmith83]

We purchase 100 points at AKL and are thinking that we would like more. We are considering VGF, but my husband doesn't really seem too interested in having 2 contracts. Does Disney ever buy back contracts, or is that the reason for the resale route?

 

[DizBub]

We purchase 100 points at AKL and are thinking that we would like more. We are considering VGF, but my husband doesn't really seem too interested in having 2 contracts. Does Disney ever buy back contracts, or is that the reason for the resale route?

Unfortunately no, Disney will not buy back contracts. However they will take them back through foreclosure and resell them to new buyers for full price.

Yes, this is why there is a resale market.

 

[Msmithmd]

Actually many have reported Disney directly buying back contracts. Just at a price much lower than where they usually ROFR private contracts.

They won't buy back at a resort currently under new sales, but for classic resorts many owners have reported that DVC itself will indeed give an owner pennies on the dollar to take the ownership back.

If you want a realistic/favorable price for your membership, seek out one of the many reputable resale brokers, and list it.

 

[LisaS]

Does Disney ever buy back contracts, or is that the reason for the resale route?

The only reports I've read about Disney offering to buy back contracts were for BCV. They offered either $50 or $55 per point at a time where BCV contracts could easily be sold for around $90 per point on the resale market.

I've read a report or two where people contacted Disney to ask if they would buy back some resort other than BCV and were told "no".

 

[disneynutz]

In the past Disney also referred sellers to Fidelity who they have/had a business relationship with. I don't know if they still do, I would contact member administration and check with them.

Bill

 

[chalee94]

Does Disney ever buy back contracts, or is that the reason for the resale route?

i'd agree with lisa: with the exception of a handful of BCV stories many years back (where disney lowballed at half-value or so), disney will only take back contracts for free (i.e. foreclosure).

that is why i don't get people who only want to buy DVC direct because the idea of resale makes them nervous. you're going to need to get comfortable with the idea of resale sooner or later...

 

[DreamChasers]

We purchase 100 points at AKL and are thinking that we would like more. We are considering VGF, but my husband doesn't really seem too interested in having 2 contracts. Does Disney ever buy back contracts, or is that the reason for the resale route?

I would try calling your guide and explain the situation to them. I have heard of Disney buying back points in order to sell more points. If you simply want to change your AKL points for VGF points you may find that Disney is willing to give more of a fair price points then they would have otherwise. However, I would go into that discussion knowing what a reasonable resale price would be.

I am curious though why your husband is against having two contracts. There are many advantages to having more than one contract and if they share the same use year there are few disadvantages. Some of the advantages to having multiple contracts include having more than one home resort, so you can have the 11 month booking advantage at more than one resort, if you need to down size in the future you can sell one contract and still hold on to the other contract. Also, smaller contracts tend to sell for more and faster on the resale market. By contrast the only disadvantage to having more than one contract is you have to be aware which points you are using for each reservation, if you are concerned about saving points from a particular contract for future trips. Another problem that I haven’t come across yet would be banking the points would require you to bank the points separately. This would mean you would have to do it once for each contract, but I don’t think that is a big deal.

If VGF is the only place you want to stay then having all of your points there makes sense. Otherwise, you may find it better to have two contracts.

 

[LisaS]

I would try calling your guide and explain the situation to them. I have heard of Disney buying back points in order to sell more points.

Could you elaborate? I have not heard of this before so I'm curious what resorts were involved and what price Disney offered. Thanks!

 

[DreamChasers]

Could you elaborate? I have not heard of this before so I'm curious what resorts were involved and what price Disney offered. Thanks!

I don’t know too much. The information came from the DVC news website. Every month they do a monthly sales update. On occasion they will make a comment that DVD has reacquired a contract in order to sell a bigger one. The ones that come to mind revolved around the fixed week contracts at VGF, but it shows that DVD will purchase DVC contracts to make a bigger sale. As for the prices I have no idea. That is why I suggested to the original poster that they call their guide and that they know what fair market value is.

I found one of the articules here is a link: http://www.dvcnews.com/index.php/dv...9220/2561-monthly-sales-update-for-march-2014

 

[LisaS]

I don’t know too much. The information came from the DVC news website. Every month they do a monthly sales update. On occasion they will make a comment that DVD has reacquired a contract in order to sell a bigger one. The ones that come to mind revolved around the fixed week contracts at VGF, but it shows that DVD will purchase DVC contracts to make a bigger sale. As for the prices I have no idea. That is why I suggested to the original poster that they call their guide and that they know what fair market value is.

I found one of the articules here is a link: http://www.dvcnews.com/index.php/dv...9220/2561-monthly-sales-update-for-march-2014

Very interesting! Thanks for posting the link.

 

[agie65]

I don’t know too much. The information came from the DVC news website. Every month they do a monthly sales update. On occasion they will make a comment that DVD has reacquired a contract in order to sell a bigger one. The ones that come to mind revolved around the fixed week contracts at VGF, but it shows that DVD will purchase DVC contracts to make a bigger sale. As for the prices I have no idea. That is why I suggested to the original poster that they call their guide and that they know what fair market value is.

I found one of the articules here is a link: http://www.dvcnews.com/index.php/dv...9220/2561-monthly-sales-update-for-march-2014

I recently bought VGF direct and did contacted my guide and asked if I can do that and he said no. May be isolated cases where they have allowed buyback for larger sale.

 

[RobDoc]

I don’t know too much. The information came from the DVC news website. Every month they do a monthly sales update. On occasion they will make a comment that DVD has reacquired a contract in order to sell a bigger one. The ones that come to mind revolved around the fixed week contracts at VGF, but it shows that DVD will purchase DVC contracts to make a bigger sale. As for the prices I have no idea. That is why I suggested to the original poster that they call their guide and that they know what fair market value is.

I found one of the articules here is a link: http://www.dvcnews.com/index.php/dv...9220/2561-monthly-sales-update-for-march-2014

This report indicates that DVD has "reacquired" three fixed week contracts and allowed those VGF owners to upgrade their purchase to another, more expensive fixed week - which would seem to be a win-win situation for both parties.

Reports from a number of years ago suggested that DVD would consider re-acquiring BCV contracts at $55, when they were commonly being sold via resale $30-40 higher. No other resorts have been reported be re-acquired by DVD until apparently they are allowing upgrades of fixed weeks at VGF.

It certainly can't hurt to ask your guide, but most have been referred to Fidelity when asking about selling their DVC contracts for many years now.

 

[wdrl]

Let me elaborate on the deed buybacks mentioned in the previous threads. Since 2010 I've tracked deeds reacquired by Disney Vacation Development. The overwhelming majority of reacquired deeds have been due to foreclosures, and a much smaller number have been when DVD exercises its Right of First Refusal on resale transactions. Rarely -- perhaps a handful of times a year -- DVD buys back a deed at the full purchase price.

I haven't looked at every deed bought back at full price but for those that I have, they were bought back within a few weeks of the original purchase date. All buyers have the right to back out of the purchase within 10 days for any reason, in which case the transaction is never consummated and there is no deed to record. I suspect most of the deeds that are bought back at full price are because the buyers established good cause for missing that 10-day grace period.

DVD has bought back four VGF deeds at full price. Three of the deeds involved Fixed Week deeds in which the buyers purchased a different week or larger accommodation. The fourth deed also involved a Fixed Week but I not able to determine if the buyer purchased another deed.

Bottom line: In my opinion, there are extremely limited situations where DVD will agree to buy back a deed. As mentioned by a prior poster, foreclosures seem to be the reason for the vast majority of reacquired deeds.

 

[lovin'fl]

I once asked my guide if DVD would buy back my 200 OKW so we could buy a larger contract at another resort. I was told no. I thought they might since my OKW was not extended and I know they like to buy back those to sell them as extended contracts...but nope, no go.

 

[Breyean]

We had bought Aulani as founding members back in 2011. Must have been right before the situation broke with Hawaii pulling the plug on Aulani sales while the dues amounts were straightened out.

When it was resolved, we got a letter from Disney explaining how the new dues would affect us, and how the subsidy would work. The letter also said if we had a problem with the terms, we could sell the contract back to Disney.

I called and spoke with someone at some legal department at Disney as the letter recommended. I explained we had used some of the points already on a completed vacation, plus we had gotten a cash incentive in the form of a debit card when we bought, but we wanted to sell the contract back. I asked what we had to do to make the contract whole so we could do so.

The woman chuckled and said consider the vacation a freebie on Disney, and keep the cash. They took back the contract, the points disappeared from our account, and we got a check. The check was for even more than we had paid!

So, we got a free vacation (wish I had used more of those points!), cash in the incentive which we kept, plus a few hundred dollars more than our original purchase price plus closing (which back then was very very small).

Turned out great as we used that refunded money to buy two contracts from Disney directly for VGC which has worked out great for us.

I wonder how many others did this. Obviously Disney benefited from getting back points which they would have had to subsidize for a long time, but I wonder how much was driven by the terms Hawaii dictated to them over how to handle the situation.

 

[chalee94]

I wonder how much was driven by the terms Hawaii dictated to them over how to handle the situation.

yeah, i think that hawaii situation crossed over into fraud and got a number of DVC execs terminated. i would not expect disney to handle things like that in general...