Direct prices going up. Again.

[DannysMom]

Anyone else get the email that direct prices are going up. Again. Oh and we better add on now, before the increase takes effect.... Ummm, no thanks!

Sent from my iPad using DISBoards App, please excuse any typos or autocorrects!

 

[tripletsmama]

Yep, just read it. After a few add ons, we are happy with our 500 points. It's a perfect amount for us. No add ons in the near future!

 

[fflmaster]

I think mostly this is just a final attempt to get AKL and Auluni points sold before GFV start to sell.

The only way I would add on more points would be if they started the always rumored tiering benefits and a few point add on would get me to a tier that was worth it.

 

[DannysMom]

I also think they are jacking up the prices before GF goes on sale, so the price jump isn't quite so big.

Sent from my iPad using DISBoards App, please excuse any typos or autocorrects!

 

[corpcomp]

Just hope it will drive up the resale prices. Would like to regain some of the value.

 

[rmcildw2m]

I agree , direct is not for me either way to much.

 

[CMOORE185]

Hmm....$145 per point. Wasn't BLT around $160 over a year ago? Maybe GFV's will only start a about $160 per point, and with the usual discount you may be able to get GFV's for between $140 and $150 per point. Not much of a deal considering I paid $65 per point for my first contract, but well below the $180 to $200 per point people were speculating.

 

[JJSWDW]

It's funny how they go up as resale prices go down. Even with the restrictions it makes buying resale more attractive. Obviously the only bad news is if you need to unload your contracts.

 

[Brian Noble]

Just hope it will drive up the resale prices.

It's funny how they go up as resale prices go down. Even with the restrictions it makes buying resale more attractive.

It is worth remembering that the vast majority of DVC sales go to people who are on vacation, and had no expectation that they'd be buying a timeshare when they got to Orlando. It is an impulse, aspirational purchase, not a planned, dispassionate one. The fact that resale exists isn't an issue. To the extent new buyers even hear about it, most of them will not want to come to the realization that the new purchase that made them so very happy was a bad idea.

Timeshare has been sold this way for decades---in most cases with much larger spreads between developer and secondary-market prices. Wyndham is the largest timeshare system in the US, they continue to sell at a healthy clip, and the resale value of many of their deeds is ZERO DOLLARS. In some cases, less. It doesn't matter.

 

[OrangeCountyCommuter]

It's funny how they go up as resale prices go down. Even with the restrictions it makes buying resale more attractive. Obviously the only bad news is if you need to unload your contracts.

We bought timeshares...

this is what tends to happen. There is not generally a relationship between the two prices and Disney's restrictions have pointed out why.

 

[Jonell]

I can't believe AKV will be selling at $145 when we purchased it in 2009 for less than $100 per point. NO THANK YOU!! I am perfectly happy with my 260 points. There is no way I would add on at these prices.

 

[blondietink]

Well, we are perfectly happy with our 175 points bought direct in 2005. Perhaps would like more someday, but unless they restrict new resales to using the resort they buy at only, then we're out. Just MHO.

 

[csharpwv]

OK, they have to have something up their sleeves.

To keep driving prices up, when the economy still doesn't dictate the raising of prices - they have to be ramping up to a MAJOR price increase, or structure change to the program.

The DVC product is valuable, however - it isn't THAT valuable. If they reach $200 a point - a 160 point membership goes up to $32,000. In what galaxy is that a reasonable purchase for the average family?!

For a family that stays at a deluxe resort every year is going to spend more or less than $5,000. It would take 6-8 years from a break even scenario - and that's if they pay cash for their membership!

If you calculate the going interest rate for a $32,000 loan with the 'preferred' DVC interest rate of 11.75% - a family would pay NEARLY $70,000 for their DVC ownership of 160 points.

For the average family, DVC will be so far out of reach that they are going to have to get FAR more aggressive in marketing and making the sale.

Is this the beginning of tiered benefits?
Why should someone who bought 80 points via resale before the changes have the same exact benefits as someone who buys 300 points at the Grand Floridian?

It just doesn't make sense - at least in my opinion!

All I have to say, is they had better thing long and hard before they make the DVC have's and have not's! LOL It could be a huge divide in this one big happy family!

 

[thptrek]

There may be legal limitations to what they can or cannot do regarding discriminatory practices between common owners. I don't know but a real estate lawyer can chime in.

At some point it may be that you can only use your points at your home resort since that is where you bought at. In that case I would expect that some sort of exchange market may spring up or reservation swapping. I bought at the resort I would be happy to be restricted to.

 

[drusba]

According to email price will rise March 20. This is a precursor to GFV and I am guessing it goes on sale March 20 and likely at $170 if BLT is currently $165.

 

[bwvBound]

The DVC product is valuable, however - it isn't THAT valuable. If they reach $200 a point - a 160 point membership goes up to $32,000. In what galaxy is that a reasonable purchase for the average family?!

What is the going price of the average family's car these days? I'm not suggesting the car and DVC are equally important to the average family but certainly wonder if $32k is no longer considered a fearful number?

When I was in my 20's, I wouldn't spend more than $6k for a car. The threshold had been seared into my brain by my parents. I bought a series of rather tired vehicles until 2007 when I scared myself silly spending $18k on a 2yo crossover with only 15k miles. At about the same time, my husband took a huge leap to buy the first "brand new" vehicle either of us had every owned. Last year, he did it again ... and it didn't even phase me.

Maybe, just maybe, $32k isn't so big an obstacle except to those of us who joined sufficiently long ago to look back and recall our own thresholds.

 

[luckyman_apd]

What is the going price of the average family's car these days? I'm not suggesting the car and DVC are equally important to the average family but certainly wonder if $32k is no longer considered a fearful number?

When I was in my 20's, I wouldn't spend more than $6k for a car. The threshold had been seared into my brain by my parents. I bought a series of rather tired vehicles until 2007 when I scared myself silly spending $18k on a 2yo crossover with only 15k miles. At about the same time, my husband took a huge leap to buy the first "brand new" vehicle either of us had every owned. Last year, he did it again ... and it didn't even phase me.

Maybe, just maybe, $32k isn't so big an obstacle except to those of us who joined sufficiently long ago to look back and recall our own thresholds.

I like the car analogy as my father used to freak when I spent $25 on a pair of jeans. But I don't compare it to DVC when less than 2 years ago we could have bought SSR for under $100 direct and AKV was around 115 to $120 depending on the size of their chase. $145? Insane. We bought resale BLT and have no regrets. I could never afford today's prices.

 

[ELMC]

It is worth remembering that the vast majority of DVC sales go to people who are on vacation, and had no expectation that they'd be buying a timeshare when they got to Orlando.

It's Orlando. Everybody's expectation should be that they are going to be buying a timeshare while they're there. Doesn't mean they should.

 

[ELMC]

The DVC product is valuable, however - it isn't THAT valuable. If they reach $200 a point - a 160 point membership goes up to $32,000. In what galaxy is that a reasonable purchase for the average family?!

For a family that stays at a deluxe resort every year is going to spend more or less than $5,000. It would take 6-8 years from a break even scenario - and that's if they pay cash for their membership!

I completely agree with your point and I would take it a step further and suggest that your math is overly optimistic. It doesn't take into account maintenance fees and the 160 points in your example won't get them anything close to what $5,000 will get at a Deluxe resort. At $200 a point, the break even point vs. renting points is roughly 30 years when you account for maintenance fees. If you financed that purchase, it would be a money loser for the life of the contract.

As long as people keep buying, Disney doesn't really need to inactive any major changes to the program. But if people stop buying in favor of resales at too great a rate, that's when some major classification changes will likely occur.

 

[CMOORE185]

I paid $65 per point direct and was worried it might not be worth it. When it got to $100 per point I said I am really questioning if this timeshare is worth it. Now at $145 and rising I really do not think it has enough value to buy, especially if you do not keep it for the life of the contract because the price on the resale market will continue to decline. When I bought there was not much difference between resale and direct but luckily my guide said, don't expect that to last, so I went in with eyes wide open. I love my DVC and continue to use it, in fact I am always in borrow mode, but if someone asked me today if it was worth it at $145 per point I would say no.