Couple Resale Questions

[Lambekel]

Hello all,

I've been lurking for a couple of months now while deciding whether or not to purchase. I purchased 270 points direct, with not regrets at all, but do have two questions that I haven't seen addressed on these boards, or anywhere else. They are born out of curiosity mainly:

1) Why on earth doesn't Disney drive up the price of resales by using their ROFR and refuse everything under $100 or so? Wouldn't it be easy to do? It would also justify their prices and make owning that much more special?

2) Where on earth do the resellers get their inventory. I see these contracts with practically all of the years left on them. Do people buy direct and change their minds 6 months later and then sell? That's kinda crazy if you ask me - a lot of money lost. Or is there something I'm missing?

 

[ELMC]

Hello all,

I've been lurking for a couple of months now while deciding whether or not to purchase. I purchased 270 points direct, with not regrets at all, but do have two questions that I haven't seen addressed on these boards, or anywhere else. They are born out of curiosity mainly:

1) Why on earth doesn't Disney drive up the price of resales by using their ROFR and refuse everything under $100 or so? Wouldn't it be easy to do? It would also justify their prices and make owning that much more special?

What would be their incentive for doing so? Disney doesn't need to justify their prices, because regardless of what contracts go for on the resale market, there is a large population of buyers willing to pay direct prices.

2) Where on earth do the resellers get their inventory. I see these contracts with practically all of the years left on them. Do people buy direct and change their minds 6 months later and then sell? That's kinda crazy if you ask me - a lot of money lost. Or is there something I'm missing?

Nope, you're not missing anything. It's called buyer's remorse. Or it's called oops, I can't afford this. A lot of DVC purchases are super impulse purchases that people make based on magic and pixie dust. When they get back to the real world, a lot of times they realize that it was a mistake and the quickest way to get out of that mistake is to sell the contract.

 

[Lambekel]

I'm betting they'd get more sales from those on the fence trying decide between the two. More of those on the fence now are more apt to go resale if they can save as much as 50%. I think a lot more would go direct if the price wasn't so astronomically different.

Hello all,

I've been lurking for a couple of months now while deciding whether or not to purchase. I purchased 270 points direct, with not regrets at all, but do have two questions that I haven't seen addressed on these boards, or anywhere else. They are born out of curiosity mainly:

1) Why on earth doesn't Disney drive up the price of resales by using their ROFR and refuse everything under $100 or so? Wouldn't it be easy to do? It would also justify their prices and make owning that much more special?

2) Where on earth do the resellers get their inventory. I see these contracts with practically all of the years left on them. Do people buy direct and change their minds 6 months later and then sell? That's kinda crazy if you ask me - a lot of money lost. Or is there something I'm missing?

What would be their incentive for doing so? Disney doesn't need to justify their prices, because regardless of what contracts go for on the resale market, there is a large population of buyers willing to pay direct prices.



Nope, you're not missing anything. It's called buyer's remorse. Or it's called oops, I can't afford this. A lot of DVC purchases are super impulse purchases that people make based on magic and pixie dust. When they get back to the real world, a lot of times they realize that it was a mistake and the quickest way to get out of that mistake is to sell the contract.

 

[disneynutz]

Hello all,

I've been lurking for a couple of months now while deciding whether or not to purchase. I purchased 270 points direct, with not regrets at all, but do have two questions that I haven't seen addressed on these boards, or anywhere else. They are born out of curiosity mainly:

1) Why on earth doesn't Disney drive up the price of resales by using their ROFR and refuse everything under $100 or so? Wouldn't it be easy to do? It would also justify their prices and make owning that much more special?

2) Where on earth do the resellers get their inventory. I see these contracts with practically all of the years left on them. Do people buy direct and change their minds 6 months later and then sell? That's kinda crazy if you ask me - a lot of money lost. Or is there something I'm missing?

1 Disney doesn't need to make owning a DVC contract special, they are in it to make money as all businesses are.

2 Many people buy not knowing what they bought, they don't understand the restrictions, banking, borrowing, fees, the fact that they have to use the points or lose them, and I would guess that most think that they can vacation all over the world.

Bill

 

[k3chantal]

Hello all,

I've been lurking for a couple of months now while deciding whether or not to purchase. I purchased 270 points direct, with not regrets at all, but do have two questions that I haven't seen addressed on these boards, or anywhere else. They are born out of curiosity mainly:

1) Why on earth doesn't Disney drive up the price of resales by using their ROFR and refuse everything under $100 or so? Wouldn't it be easy to do? It would also justify their prices and make owning that much more special?

2) Where on earth do the resellers get their inventory. I see these contracts with practically all of the years left on them. Do people buy direct and change their minds 6 months later and then sell? That's kinda crazy if you ask me - a lot of money lost. Or is there something I'm missing?

This is just my take on things:
Your first question: I think Disney is 'banking' that there is a certain percentage of the population that have no idea that you can buy resale so they don't need to 'justify their prices.

Your second question:
I am amazed that they have inventory too! Just shows you how many people buy items without thinking about the repercussions.

I bought 280 points direct and though I don't have any regrets, I have also wondered about these ideas too. Especially since my husband and I sat on the idea for an entire year, made sure we paid outright, and then decided to purchase.

 

[chalee94]

1) Why on earth doesn't Disney drive up the price of resales by using their ROFR and refuse everything under $100 or so? Wouldn't it be easy to do? It would also justify their prices and make owning that much more special?

it would take a ton of cash, for one. disney corp as a whole might have enough cash to do it but their timeshare subsidiary does not.

also, paying cash for a ton of resales means building up inventory. inventory that DVC is responsible for paying the maintenance fees for if they can't find a buyer. having more inventory than you can sell in a timely manner is bad business.

a number of DISers have posted that they are only interested in buying direct...they know resale is cheaper but you'd be buying a "used" contract from some suspicious random person instead of dealing with mickey...and you would be "limited" in how you use the contract and wouldn't have access to cruises and trades for hotels like the poly or hotel del coronado (nevermind that they haven't looked at point charts to see how bad the point costs for these options are...they wouldn't feel like "full members"). some are determined to get their pts right now and don't want to wait, even if it means paying thousands more.

so why take the risk of being stuck with extra inventory? (what if there's another economic downturn?)

there's also the theoretical notion that price controls simply don't work. some people have the money and will buy DVC whatever the price. some will buy a resale at $60 per pt but would just continue as a cash customer if they were limited to direct pricing at $120+ per pt.

2) Where on earth do the resellers get their inventory. I see these contracts with practically all of the years left on them. Do people buy direct and change their minds 6 months later and then sell? That's kinda crazy if you ask me - a lot of money lost. Or is there something I'm missing?

some are disappointed by how it works, they assumed they could get BCV during food and wine on 2 months notice. some lose jobs or get divorced or their kids get into an expensive private college. it varies.

 

[Lambekel]

Good point. Hadn't thought of Disney having to purchase them. That makes sense.

it would take a ton of cash, for one. disney corp as a whole might have enough cash to do it but their timeshare subsidiary does not.

also, paying cash for a ton of resales means building up inventory. inventory that DVC is responsible for paying the maintenance fees for if they can't find a buyer. having more inventory than you can sell in a timely manner is bad business.

a number of DISers have posted that they are only interested in buying direct...they know resale is cheaper but you'd be buying a "used" contract from some suspicious random person instead of dealing with mickey...and you would be "limited" in how you use the contract and wouldn't have access to cruises and trades for hotels like the poly or hotel del coronado (nevermind that they haven't looked at point charts to see how bad the point costs for these options are...they wouldn't feel like "full members"). some are determined to get their pts right now and don't want to wait, even if it means paying thousands more.

so why take the risk of being stuck with extra inventory? (what if there's another economic downturn?)

there's also the theoretical notion that price controls simply don't work. some people have the money and will buy DVC whatever the price. some will buy a resale at $60 per pt but would just continue as a cash customer if they were limited to direct pricing at $120+ per pt.



some are disappointed by how it works, they assumed they could get BCV during food and wine on 2 months notice. some lose jobs or get divorced or their kids get into an expensive private college. it varies.