Contract extensions only for DVC direct sales through Disney?

[Beachgirl0623]

Hello,
Just did a DVC tour and the saleswoman for DVC told me that only DVC bought directly from Disney will be eligible to extend at the end of the contract and that resales will not.
Is this true?
Does anyone know if such a differentiation was made between OKW members when they received their offer to extend?
Thanks so much!
Amanda

 

[mj2vacation]

The only extension was at OKW. It was offered to all members at the time, however, that was also before the started differentiating direct vs resale.

There is nothing in the paperwork that would guarantee any member an extension.

 

[pangyal]

Wow, reading this and your other post makes me think your salesperson really did a number on you.

Extensions have not even seen the glimmer of discussion at this point for any resorts other than OKW. They can do whatever they wish with the properties when the land leases are up, including razing the buildings and starting fresh, or simply starting anew and selling points for each resort at the current market rate of what will be well over $250/pt. if the current inflation rate holds. Neither of these options could logically differentiate between resale and direct, and they are the ones that would make DVD the most money, so...

 

[_auroraborealis_]

Why would DVD not offer everyone holding a contract the extension? Most contracts change hands over their life span. They'd basically be blowing up 50-75% of their warm market by not offering them an extension.

It'd not only be stupid, it'd be stupid in a fiscally irresponsible way. Whatever else, they have to know that latter.

 

[miTnosnhoJ]

Hello,
Just did a DVC tour and the saleswoman for DVC told me that only DVC bought directly from Disney will be eligible to extend at the end of the contract and that resales will not.
Is this true?
Does anyone know if such a differentiation was made between OKW members when they received their offer to extend?
Thanks so much!
Amanda

I would ask if you could speak to the Guide's supervisor so you could get that in writing.

 

[ziravan]

Based on how they're doing VWL2 (selling new points at the halfway mark), my guess is that when VWL1 runs out in 26 yrs, they'll renovate and sell new.

VWL2's business model seems to indicate that they won't offer extensions at all, but resell the points in 2042.

Sure, they'll sell former resale owners new points in 2042.

 

[CarolMN]

The OKW extension was not considered successful. Not enough members accepted their offer - which almost everyone thought was priced too high. The resale market agreed with them. Never has the price difference between the 2042 contracts and the 2057 contracts even approached the extension price.

 

[Deb & Bill]

The OKW extension was not considered successful. Not enough members accepted their offer - which almost everyone thought was priced too high. The resale market agreed with them. Never has the price difference between the 2042 contracts and the 2057 contracts even approached the extension price.

Agree. And now DVC has a problem on their hands with some owners at OKW owning part of one building until 2042 and others at the same building owning until 2057. They cannot take future funds for renovation past 2042 from owners who only own until 2042. I'll probably be dead by 2042, so I won't need to worry about it, but it should be fun to watch the stuff hit the fan.

 

[ziravan]

Rumor has it that DVC was going to move over to BCV after VWL and based on how they're doing VWL, that would make sense.

1. Take several of the 2042 resorts and create new points halfway through the 50 Yr RTU and then you can alternate selling new every 25 yrs.

2. Build a new resort here and there.

3. Restructure a few resorts (OKW and its staggered RTU for example), both AKV and SSR seem somewhat resistant to adding on at halfway mark because they're so big already.

Eventually, DVC could create a model where they have 18 or so resorts that they're selling over 1.5 yrs every 25 yrs:

Perpetual points to sell.

That seems to me to be the model VWL2 represents and in that case, they won't be offering extensions to anyone. When your points expire, they'll be reselling them brand new.

 

[disneynutz]

Disney will do what makes Disney the most money, period.

Bill

 

[Dean]

As I read the POS I don't believe they could make this an issue for qualified vs non qualified contracts for current resorts.