DEAL OR NO DEAL: DVC Contract Extensions

[BobH]

I'll answer my own question that I just posted. #1 the value of an OKW contract will decline due to the lower number of years left. #2 Disney would rather not be affected by this decline in value so they set up a mandatory assessment system that will devalue existing contracts but will allow them to sell 50 year contracts at higher cost. That way we "loyal" owners get to sell at a lower price why Disney gets to keep making their own magical memories..... come on there must be a few lawyers or real estate people out there that have an opinion on this. I always intended to keep my membership but the heavy handed and quick way this is being handled by February 2008 leaves me greatly disillusioned with DVC.

 

[OneMoreTry]

I would extend for $5 per point. $1500 for some disney blue sky would be OK.

My contract is good for 35 years. that's good enough for me.

My CRV will last to 2057.

 

[Laurabearz]

Not going to do it.

 

[Granny]

I'll answer my own question that I just posted. #1 the value of an OKW contract will decline due to the lower number of years left. #2 Disney would rather not be affected by this decline in value so they set up a mandatory assessment system that will devalue existing contracts but will allow them to sell 50 year contracts at higher cost. That way we "loyal" owners get to sell at a lower price why Disney gets to keep making their own magical memories..... come on there must be a few lawyers or real estate people out there that have an opinion on this. I always intended to keep my membership but the heavy handed and quick way this is being handled by February 2008 leaves me greatly disillusioned with DVC.

I'm not a lawyer or a real estate person, but you asked for opinions so here goes.

I just can't get worked up about this because I didn't buy DVC as an "investment" that needs protecting. For me, DVC is a way to stay at WDW affordably in the type of accommodations I could never afford paying cash each year. Any perks are pure bonus and I don't feel like Disney owes me anything other than well kept accommodations and continued upkeep and investment in their parks and the rest of WDW.

So I'm not disillusioned, because I'm not concerned about the resale value of my ownership interest. Maybe someday that opinion will change but for now it doesn't bother me.

 

[doubletrouble_vb]

I voted other and special financing. Other because I'm selling...but if I wasn't selling I wouldn't mind paying a higher maintenance fee to bolster some value in the contract. Sort of an automatic mortgage of a dollar or two extra on the mf payment.

IMHO Disney doesn't care if owners buy into the program. All it means is that some of "DVC I" will move into the "DVC 3" category if it is ROFR'd. So if you don't upgrade and resell your buyer wont be getting as long of a deal as if they bought the same unit directly from Disney. Whether or not that matters to the buyer would depend on how long they anticipated keeping it. Right now DVC I is probably still longer than most people would want to hold it but in about 5 years it will become a factor for the twenty something set.

I figure they are starting with OKW because it's a sizeable chunk of "DVC I" with some of the longest term owners. By the time they get through the paper work done they'll have gotten the system down pat for the other 60% of owners.

 

[cavecricket]

I would do it because we bought at 25 yrs old. We plan to relocate for retirement in Kissimmee some day so making the "trip" will not be an issue. We plan to raise our children "Disney Style" so hopefully they will enjoy the DVC as much as we do and will want to take over the contract when we go to the Magic Kingdom in the sky ... wonder what Walt has going on up there... hmmm lol

=P

 

[dianeschlicht]

I'll answer my own question that I just posted. #1 the value of an OKW contract will decline due to the lower number of years left. #2 Disney would rather not be affected by this decline in value so they set up a mandatory assessment system that will devalue existing contracts but will allow them to sell 50 year contracts at higher cost. That way we "loyal" owners get to sell at a lower price why Disney gets to keep making their own magical memories..... come on there must be a few lawyers or real estate people out there that have an opinion on this. I always intended to keep my membership but the heavy handed and quick way this is being handled by February 2008 leaves me greatly disillusioned with DVC.

I'm a bit in your court as well. Do you really think the price of OKW will stay static on the resale market after the 15 years are added? Do you think the extra years will increase the resale prices on OKW? THat is the question that haunts us. Since I will be 110 (not going to happen) when the extension ends, I have no real interest in paying extra to extend those 15 years, but I MIGHT if it meant I could get more on the resale market. If that happened, I'd likely sell one OKW contract and buy more points. I just can't see paying $10,000 and getting NOTHING in return for it. That is basically what I would be doing if I paid the extension unless it made a difference in the resale value.

 

[BobH]

Granny you are correct not to get worked up over this. I have no intention of selling out early so I should probably adopt the same attitude. I just felt that Disney could have used a little more "class" and floated a plan to offer membership extensions in a manner that did not force assessments on people over a short period of time. It seems to me that they have simply made the statement that "this is what we intend to do befoe Feb 2008" - "take it or leave it".

 

[tfc3rid]

I have 2 contracts that end in 2042 (400 points combined) and 1 contract ending in 2054 (150 points)... I wouldn't pay extra for the 15 years... I've already technically got 'some' points into the 2050's, when I will be in my 70's...

 

[flipflop]

Tough call - we'll be 67 in 2042. I can see us using it past 67 (God willing) but I don't see myself riding Everest in my 80's.

 

[Granny]

Granny you are correct not to get worked up over this. I have no intention of selling out early so I should probably adopt the same attitude. I just felt that Disney could have used a little more "class" and floated a plan to offer membership extensions in a manner that did not force assessments on people over a short period of time. It seems to me that they have simply made the statement that "this is what we intend to do befoe Feb 2008" - "take it or leave it".

I agree that what is reported seems pretty heavy-handed on Disney's part. I do believe they thought this through and probably decided to go this route rather than a flowery marketing approach. And I'm sure they have their rationale for putting together this entire "offer".

I guess to me, the bottom line is that even if they extend this to the resorts I own (VWL & BWV), I would just pass since I don't care about resale and I'm prepared for my ownership to expire in 2042 anyway. I can definitely see why others would care quite a bit about this...just offering up my perspective only.

 

[dianeschlicht]

Tough call - we'll be 67 in 2042. I can see us using it past 67 (God willing) but I don't see myself riding Everest in my 80's.

I should HOPE you will! I'm past 60 NOW, and I intend to be using mine for at least 20 years more!

 

[CarolA]

I'm not a lawyer or a real estate person, but you asked for opinions so here goes.

I just can't get worked up about this because I didn't buy DVC as an "investment" that needs protecting. For me, DVC is a way to stay at WDW affordably in the type of accommodations I could never afford paying cash each year. Any perks are pure bonus and I don't feel like Disney owes me anything other than well kept accommodations and continued upkeep and investment in their parks and the rest of WDW.

So I'm not disillusioned, because I'm not concerned about the resale value of my ownership interest. Maybe someday that opinion will change but for now it doesn't bother me.

AMEN!!!!!!

 

[flipflop]

I should HOPE you will! I'm past 60 NOW, and I intend to be using mine for at least 20 years more!

My grandmother still boogey boards at the age of 75; I'm all for using DVC for as long as I can.

 

[justloveit]

We will be over 100! No extension for us!

 

[keys2kingdom]

DEAL: I'll pay if this offer applies to BCV at $15 per point.

 

[Florida Princess]

I'll be 92 in 2042 and DH will be 88 so it will be a no go extension for us.
I accepted the fact that our OKW DVC ended in 2042 when we purchased and we laughed at what our ages would be at the conclusion of our contract.

P.S.
I need someone to volunteer to push our wheelchairs if we visited beyond 2042 unless our long term health care insurance will allow us to hire someone !

 

[beacher]

Agree with earlier poster; for the cost to extend at $25 or $15 on our current 600 points I'd rather buy more points and enjoy longer stays or treating larger family groups now rather than benefits 35 years away - frankly if I hear rumors that this will be offered to BWV/BVC I may hurry to get another add-on before it hits just in case it does increase the resale value!

Of course, anything to justify another add-on....

 

[vascubaguy]

I said "Other" because it would depend. If I could extend it for a reasonable cost to make it then viable to sell on resale and turn a profit, I might would extend. Otherwise, I'd let it go... but who knows... maybe by then 80 will be the new 50...

 

[rsinj]

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