Direct Purchase benefits announced!

[RescueRanger]

a timeshare is a timeshare. Purchasers should read and understand the rules before they buy, or at least while they are in the legal timeframe to recind.

Chuck, many of us have said the same thing. It doesn't seem to get through to some of the others. In fact, it is like talking to a brick wall in many cases. They "assumed" things when they purchased that was never in their contract. Now, when they learn that their assumption was wrong, they want to complain about it and blame Disney for their own lack of research. I'm sorry, but when you are getting around $40 per point discount by buying resale (even more in some cases), Disney has to do something. They just can't compete with that. The only logical step is to take perks away from resale to at least give the appearance that you are getting more by buying direct. Once again, alot of people are making the same mistake of "assuming" what is going to happen. They are assuming that this is going to have a huge effect on resale prices. Hey, here's an idea, why don't we wait to see what actually happens to prices before we go getting our panties in knots.

 

[psac]

If thats true then why is it being discussed over and over again on the internet? Even from you. Why has it already been reported on. Pay no attention to the mouse behind the curtain

The Disney Visa card really is a good card, as far as the world of credit cards go.

 

[maminnie]

One question: If DVC had not made this decision, what do you think would have happened to the health of the DVC program and resale prices in the future?

I believe as the economy hopefully rebounds, so would the timeshare resale prices to a reasonable level. Disney/DVC is the one that got out of hand and got greedy trying to get well over $100 per point. Remember they likely own most of the land in the World area for little to nothing. Didn't Walt take care of that years ago?

Personally I am sick and tired of going on these boards and discovering yet again another member enhancement has been announced. At 11:00pm the other night I almost fell off my chair when I read this one. What is going to be the next member enhancement to devalue our membership or make things more difficult?

 

[Chuck S]

I believe as the economy hopefully rebounds, so would the timeshare resale prices to a reasonable level. Disney/DVC is the one that got out of hand and got greedy trying to get well over $100 per point. Remember they likely own most of the land in the World area for little to nothing. Didn't Walt take care of that years ago?

Personally I am sick and tired of going on these boards and discovering yet again another member enhancement has been announced. At 11:00pm the other night I almost fell off my chair when I read this one. What is going to be the next member enhancement to devalue our membership or make things more difficult?

You all keep saying "devalue your membership," how, exactly, does this devule a membership when the true value of ANY timeshare is in the personal use of the program. Now, if you want to compare resale value of other timeshares to there original purchase price as opposed to DVC, I doubt you'd find many that have held up as well. And remember, eventually ALL timeshares have little of no value. What do you think OKW contracts will be worth in 2042/2057?

Resale value is going to fall to $0 eventually, no matter what DVC or Disney does.

 

[Joan of Arc]

Chuck, many of us have said the same thing. It doesn't seem to get through to some of the others. In fact, it is like talking to a brick wall in many cases. They "assumed" things when they purchased that was never in their contract. Now, when they learn that their assumption was wrong, they want to complain about it and blame Disney for their own lack of research. I'm sorry, but when you are getting around $40 per point discount by buying resale (even more in some cases), Disney has to do something. They just can't compete with that. The only logical step is to take perks away from resale to at least give the appearance that you are getting more by buying direct. Once again, alot of people are making the same mistake of "assuming" what is going to happen. They are assuming that this is going to have a huge effect on resale prices. Hey, here's an idea, why don't we wait to see what actually happens to prices before we go getting our panties in knots.

Brick wall here again. What you are saying is exactly what will hurt Disney by this move. People will no longer trust that DVC actually cares about them or their expeirence as a whole. No longer will owners buy with emotion, which is good for owners, but not for DVC. The brand will be diminshed as a whole and that hurts all owners. Believe it or not buying a piece of the magic will not be the same to many folks. This is not their goal. They do not want people to take time and research and understand everything. They want you to buy while there in the WORLD. That is why they tell people that the incentive is only good while they are there. DVC takes full advanatage of the trust they have established. No more trust means a lot less sales.

 

[maminnie]

Chuck, many of us have said the same thing. It doesn't seem to get through to some of the others. In fact, it is like talking to a brick wall in many cases. They "assumed" things when they purchased that was never in their contract. Now, when they learn that their assumption was wrong, they want to complain about it and blame Disney for their own lack of research. I'm sorry, but when you are getting around $40 per point discount by buying resale (even more in some cases), Disney has to do something. They just can't compete with that. The only logical step is to take perks away from resale to at least give the appearance that you are getting more by buying direct. Once again, alot of people are making the same mistake of "assuming" what is going to happen. They are assuming that this is going to have a huge effect on resale prices. Hey, here's an idea, why don't we wait to see what actually happens to prices before we go getting our panties in knots.

My husband what's to know, so the logical step to get new direct customers is to take away benefits from current owner contracts if they should happen to have to sell by devaluing their ownership? That is good business? Does anyone remember the marketing/sales lesson in college about customer goodwill? Wasn't that course called Marketing 101 or was that the Business Ethics course that my husband and I took?

 

[maminnie]

Brick wall here again. What you are saying is exactly what will hurt Disney by this move. People will no longer trust that DVC actually cares about them or their expeirence as a whole. No longer will owners buy with emotion, which is good for owners, but not for DVC. The brand will be diminshed as a whole and that hurts all owners. Believe it or not buying a piece of the magic will not be the same to many folks. This is not their goal. They do not want people to take time and research and understand everything. They want you to buy while there in the WORLD. That is why they tell people that the incentive is only good while they are there. DVC takes full advanatage of the trust they have established. No more trust means a lot less sales.

Well put. Disney has always lured people in because they have enjoyed and trusted them and their products. If they keep doing things to manipulate, it will degrade the trust they have benefitted from. Negative news spreads fast and damage control can be costly......

 

[Maistre Gracey]

You all keep saying "devalue your membership," how, exactly, does this devule a membership...

If I sell a contract today, I can expect to get more money for it than if I sell it in April. In my book, that's a reduction in value.

I don't care about other timeshares. If I did, I would have bought them.
Yes, DVC will eventually be worth zero. That doesn't change the fact that the same contract will be worth less in April than it will be in March.

MG

 

[tjkraz]

Disney/DVC is the one that got out of hand and got greedy trying to get well over $100 per point.

If Disney did lower prices, the resale market would follow. It's simple supply and demand. Lower prices from DVC means more people buy direct. More people buying direct means fewer people buying resale and lower resale prices.

DVC would still be in the same situation it's in today, and your "value" (as you seem to define it) would be even lower.

Remember they likely own most of the land in the World area for little to nothing. Didn't Walt take care of that years ago?

Irrelevant. Corporations exist to maximize the value of their assets. Before building on a piece of land, Disney is going to consider many alternatives. And if we reach a point where leasing the land out for a Super Target has a higher ROI than building a DVC resort, we're gonna get a Super Target.

People will no longer trust that DVC actually cares about them or their expeirence as a whole. No longer will owners buy with emotion, which is good for owners, but not for DVC. The brand will be diminshed as a whole and that hurts all owners. Believe it or not buying a piece of the magic will not be the same to many folks.

Highly doubt this will lead to any mass revolt. Look on the boards and you'll find people who are thrilled to announce their purchase--people who bought days after the change was announced.

Every change yields some dissatisfaction. This one happened to push your buttons. If it prompts you to sell, you will be in the minority.

 

[tjkraz]

If I sell a contract today, I can expect to get more money for it than if I sell it in April. In my book, that's a reduction in value.

I don't care about other timeshares. If I did, I would have bought them.
Yes, DVC will eventually be worth zero. That doesn't change the fact that the same contract will be worth less in April than it will be in March.

MG

Depends. Sounds like the resale brokers are already fielding a lot of offers as a result of this announcement.

If those offers result in them clearing a lot of contracts off the books over the next 2 months, resale supply will drop. It's entirely possible the prices will hold firm or even go up with a dramatically reduced supply in the system.

 

[KAT4DISNEY]

If I sell a contract today, I can expect to get more money for it than if I sell it in April. In my book, that's a reduction in value.

I don't care about other timeshares. If I did, I would have bought them.
Yes, DVC will eventually be worth zero. That doesn't change the fact that the same contract will be worth less in April than it will be in March.

MG

Agreed. The value has changed.

I have yet to see the law that says timeshares must become worthless in resale. It's just that most other developers did this to their owners and now DVC is joining them.

What next - Southwest will start charging for bags? Just because one business does something does not mean that is the only or best way. I bet other developers are doing a happy dance to see this though. The one who was different (and still made LOTS of money BTW!) is heading down the same path.

 

[palaemon]

Chuck, many of us have said the same thing. It doesn't seem to get through to some of the others. In fact, it is like talking to a brick wall in many cases. They "assumed" things when they purchased that was never in their contract. Now, when they learn that their assumption was wrong, they want to complain about it and blame Disney for their own lack of research. I'm sorry, but when you are getting around $40 per point discount by buying resale (even more in some cases), Disney has to do something. They just can't compete with that. The only logical step is to take perks away from resale to at least give the appearance that you are getting more by buying direct. Once again, alot of people are making the same mistake of "assuming" what is going to happen. They are assuming that this is going to have a huge effect on resale prices. Hey, here's an idea, why don't we wait to see what actually happens to prices before we go getting our panties in knots.

How did you pull my exact thoughts right out of my head?

 

[Chuck S]

If I sell a contract today, I can expect to get more money for it than if I sell it in April. In my book, that's a reduction in value.

I don't care about other timeshares. If I did, I would have bought them.
Yes, DVC will eventually be worth zero. That doesn't change the fact that the same contract will be worth less in April than it will be in March.

MG

It is only a reduction in value if you are selling. If you continue to use and enjoy DVC, no impact at all...thus no reduction in value to the overall product or membership itself.

 

[Maistre Gracey]

Depends. Sounds like the resale brokers are already fielding a lot of offers as a result of this announcement.

If those offers result in them clearing a lot of contracts off the books over the next 2 months, resale supply will drop. It's entirely possible the prices will hold firm or even go up with a dramatically reduced supply in the system.

That's possible for the short term, though maybe not. Similar to "Cash for Clunkers", it just may accelerate sales and then leave a void for a few months. Reduced supply, yes, but also reduced demand.
Once things stabilize, the value will decline. It has to. It's will be a lessor product.

MG

 

[nyck]

Brick wall here again. What you are saying is exactly what will hurt Disney by this move. People will no longer trust that DVC actually cares about them or their expeirence as a whole. No longer will owners buy with emotion, which is good for owners, but not for DVC. The brand will be diminshed as a whole and that hurts all owners. Believe it or not buying a piece of the magic will not be the same to many folks. This is not their goal. They do not want people to take time and research and understand everything. They want you to buy while there in the WORLD. That is why they tell people that the incentive is only good while they are there. DVC takes full advanatage of the trust they have established. No more trust means a lot less sales.

That is where you are wrong. New members will still buy on emotion because many people who are buying from Disney direct are not going to know that there is a difference, because they are getting exactly what we have. People will think twice about adding on resale because of the limitations. And you underestimate the power of international buyers, who are not going to want a "limited" membership and have better spending power than US consumers.

And if you thought DVC cared about it's owners then that was a trick that worked on you. The entire brand of Disney is an emotional illusion of the perfect place in the world and they have perfected that for years. That perfection comes at a price, that goes up every year. If you thought that this DVC snowglobe wasn't going to eventually crack then you must have been ignoring the warnings. Nothing in life stays the same and a timeshare's perks constantly change. I bought DVC for the location, not because I trusted the Disney name or think that I am "special". DVC is no different than Marriott or the other's, it is simply location.

 

[nyck]

My husband what's to know, so the logical step to get new direct customers is to take away benefits from current owner contracts if they should happen to have to sell by devaluing their ownership? That is good business? Does anyone remember the marketing/sales lesson in college about customer goodwill? Wasn't that course called Marketing 101 or was that the Business Ethics course that my husband and I took?

I am so sorry but I had to laugh at this. Business and Ethics in the same sentence. A business only cares about what it can legally get away with, what creates a profit, and what makes the stakeholders happy. It could care less about the consumer itself, only the consumer's money. Ethics has nothing to do with it. And the ones that do can about consumers seem to go broke unfortunately. In this day in age, it is survival of the fittest.

 

[Joan of Arc]

If Disney did lower prices, the resale market would follow. It's simple supply and demand. Lower prices from DVC means more people buy direct. More people buying direct means fewer people buying resale and lower resale prices.

DVC would still be in the same situation it's in today, and your "value" (as you seem to define it) would be even lower.



Irrelevant. Corporations exist to maximize the value of their assets. Before building on a piece of land, Disney is going to consider many alternatives. And if we reach a point where leasing the land out for a Super Target has a higher ROI than building a DVC resort, we're gonna get a Super Target.



Highly doubt this will lead to any mass revolt. Look on the boards and you'll find people who are thrilled to announce their purchase--people who bought days after the change was announced.

Every change yields some dissatisfaction. This one happened to push your buttons. If it prompts you to sell, you will be in the minority.

It doesnt push my buttons, it hits me in the head with a resounding thud. I am not selling, but my point is that I am not buying anymore. Who knows what is next. Might get even more enhancements that give me a headache, as I try and figure out how the enhancement has enhanced my ownership. As was stated earlier "Damage control is costly" I dont want it to be at my expense.

 

[RobDoc]

If I sell a contract today, I can expect to get more money for it than if I sell it in April. In my book, that's a reduction in value.

... and if you had sold a contract last July you could get more than if you sold it today.
If you had sold a contract 2 years ago, you could get more than last July. With a RTU timeshare there is a point when the "value" will decline all the way to zero.

The only change made thus far by Disney is to minimize their use of ROFR . IMO that is the single biggest factor in the decline in resale "values" over the past couple of years.

We'll really need to see what effect, if any, the announced change will have in the long run will have on resale "values" and whether Disney will become more aggressive regarding ROFR. IMO, the policy change regarding resales will have minimal effect over time and if ROFR again becomes an active component we will even see resale prices increase again or at least slow the rate of decline we've seen in the past couple of years. As the January 31, 2042 date looms closer, resale "value" have to eventually approach zero for any resorts with that end date.

YMMV!

 

[lugnut33]

The government is allowed to raise taxes on its citizens as it see fit, does that mean everyone should just roll over and take it? Should we all be happy about it? Does everyone think it's the right thing to do?

Maybe the people who are not real happy about this move believe it's not in their best interest. Or maybe they believe that it's the wrong move by a company they believe in.

 

[nyck]

The government is allowed to raise taxes on its citizens as it see fit, does that mean everyone should just roll over and take it? Should we all be happy about it? Does everyone think it's the right thing to do?

Maybe the people who are not real happy about this move believe it's not in their best interest. Or maybe they believe that it's the wrong move by a company they believe in.

I do agree, but some of the reasons people say they are not happy do not make rational sense. And yes people do not want tax increases, but most of they time they do get approved by the senate and yes, we roll over, complain, and take it. Then life goes on. The same will happen with this