Contract Extensions

[roydavid7771]

Hey all,


Forgive my ignorance, but my wife and I are recent DVC purchasers, buying 160 points at BCV directly from Disney (don't ask how much, we had been talking about this for a while and we just loved the convenience of closing right there). We chose BCV simply because we love that resort more than all others. We knew going in that our contract term is much shorter than other resorts (2042), but would anyone attempt a guess as to when, if at all, would Disney offer to extend the terms of these contracts? 2042 is just fine for us, but it never hurts to know that our kids and grandkids would be able to enjoy WDW even longer. Thanks in advance!

 

[chalee94]

OKW is the only resort that has been offered an extension so far (from 2042 to 2057).

the OKW extension was offered at $25 per pt, with discounts that reduced the price to $15 or $20 for periods of time.

the extension was generally regarded as unsuccessful at best. most OKW owners preferred to add-on pts for use now rather than pay (a high price) for points that start coming in 30+ years. DVC also offered the extension in a complicated way: OKW owners had to opt-out or else pay or have their point usage restricted...OKW owners received a small credit to their maintenance fees for the hassle (including a required notary). some owners were angry about this...and a few have still not responded and pondered taking legal action if DVC doesn't just give them the extra 15 years...

and OKW is a simpler case than BCV. OKW is a standalone resort. if BCV wanted to extend the lease, disney's hotel division would have to sign off on it since that would limit BC/YC from changing themes or planning major renovations.

which is a long way of saying, don't bet on extensions coming any time soon.

 

[Sandisw]

I have to agree that I don't think contract extensions are going to be anything Disney is going to worry about.

Given that they continue to build (rumored GF) and that they have several resorts that have later expiration dates, they may find it makes little sense to extend, but let things expire and then re-do and remarket.

But, then again, nothing Disney or DVC does can ever be figured out perfectly so its all just speculation on our part!

Congratulations and Welcome to the Club!!!

 

[roydavid7771]

Thanks for the responses. To sum up, would you feel it's wiser to add on points, perhaps at another resort, rather than get the extenion? Again, forgive my ignorance, I'm still very new to all of this!

 

[Dean]

Thanks for the responses. To sum up, would you feel it's wiser to add on points, perhaps at another resort, rather than get the extenion? Again, forgive my ignorance, I'm still very new to all of this!

Since only one of those choices is on the table, I don't think we can answer that. IF you need more points now, buy more now and worry about the extension later. If you can make do with what you have, do so and reserve your options going forward.

 

[roydavid7771]

Since only one of those choices is on the table, I don't think we can answer that. IF you need more points now, buy more now and worry about the extension later. If you can make do with what you have, do so and reserve your options going forward.

Thanks, Dean. I know I may not be making much sense. I think we're just so happy knowing that we can be going to WDW every year, I just want to make surer we have something to give our kids and grandkids. Thanks again.

 

[Dean]

Thanks, Dean. I know I may not be making much sense. I think we're just so happy knowing that we can be going to WDW every year, I just want to make surer we have something to give our kids and grandkids. Thanks again.

You don't know what their interests, DVC or Disney will be like then. For that matter, you don't know what you're will be in 10-15 years. Many have found themselves cooling on Disney after a while. The only hard information we have is the OKW extension. For $15 PP for points that couldn't be used for 35 years, it was an extremely poor investment. IMO, they had to get the price down to around $5 PP, a MAX of $8 a point to make it even worth considering from a financial standpoint. Buying a timeshare for something much into the future is like buying a car for retirement 10 years before you retire. IF you need more points now and want something that expires later, consider a smaller points package at a home resort that retires later. SSR will be the best value but expires in 2054, AKV & extended OKW are 2057 and BLT is 2060 as examples.

 

[CarolMN]

Thanks, Dean. I know I may not be making much sense. I think we're just so happy knowing that we can be going to WDW every year, I just want to make surer we have something to give our kids and grandkids. Thanks again.

Keep in mind that your gift comes with a fairly large financial obligation.

Will they want to go to one of the DVC resorts every year?

Will they be able to afford to do so?

Will they be able to handle the annual fees given everything else younger people have to pay for?

Will they feel obligated to keep it because it came from you even if something else would suit their vacation needs better?

Just some things to think about.

 

[disneynutz]

They may not offer an extension, it all depends on how the profit pencils out. They may tear down the resort and build a new modern one with current design and mechanicals just like they plan to do with the Poly.

Bill

 

[snoope]

Also consider this...

When your BCV expires, there maybe plenty of BLT, AKV, or even GFV (hehe) contracts that will only have about 10-15 years left on them. I predict there will be some contracts on the resale market that will be very affordable to purchase as there value will be very diminished at that point.