Direct Purchase benefits announced!

[joelnkelly]

Makes me a bit glad we bought directly. I know many people say that staying on sight is the best use of points, but I am of the opinion that these are my points and its up to me to decide what is the best use of them. We plan on using the points to plan many different vacations, while we will spend most of them at a DVC resort, I still like all the options provided to me.

The only thing that is concerning is resale value, this will take a hit if we ever choose to sell our contracts, but that is a long time down the road and many other things might change.

 

[Brian Noble]

Who are they trying to attract from not using resale? Most of us know what are a 'good' use of our points (and the limitations are the typical 'bad' use).

This is typical grist for the timeshare sales mill. Think of it as a special class of FUD---Fear, Uncertainty, and Doubt. When the mark...er...tour guest asks about the resale/developer price spread, this will be brought out with grand flourish to help the mark...er...tour guest see that only Developer Purchase points are *all the way* in the club. It is, effectively, smoke and mirrors.

Any mark...er...sales guest who knows the value of these exchanges is already going to be a tough sale, because they know too much. Most people don't know anything. For them, this doesn't matter either. Instead, this is for the folks who have heard of resale, know it is cheaper, but don't really know the dollars and cents of every little detail.

To paraphrase Pastor Martin Niemoller, First they came for my cruise perks, but I didn't speak up because my family doesn't cruise . . . .

Wow. Godwin's Law, and only at the bottom of page three! That didn't take long at all.

 

[quinnc19]

I can see your reasoning. Mine was I was already close to the max number of points I would want, I would like the option of using my points for DCL, etc., and HH is pretty cost effective anyway (less 50/point). Our differing reactions do illustrate that it will be hard to predict what will happen to the market in the short-term.

Funny, we were on the verge of buying resale, too, but decided on this information to buy fewer points, thinking that we'll probably get a much better deal next year.

 

[corky441]

I'm reminded of what someone on these boards said several years ago when i was first considering a DVC purchase

"Remember, you're not buying an investment - you're buying a place to go on vacation for the next 50 year"
I bought resale - I'm "grandfathered" in, but I'm just wondering how it will affect an add-on purchase? I'm always looking for a good deal on points for my home resort with my use year. Prior to this announcement - there would have been no issue with the additonal points being integrated into my Master contract. Will I now have to have multiple contracts if I buy resale after March 20th???

 

[Mjkre]

So I have a contract to purchase points sitting on my desk awaiting my signature.... and I cannot say I am not hesitating. It does not have any language in about voiding the contract if it doesn't close by March 20. I am honestly not a 100% sure I would buy given the new restrictions. I know we would not necessarily use our points for those other uses. I understand it is not the best use of the points. But I sure don't like the idea that my point usage will be restricted in ways that others can take advantage of. Especially as I focus on that fact that as my kids age, my husband and I may wish to use the points in California or abroad. Simply because we have them to use and are paying the mfs every year whether we do or don't. Costs are all relative when you look at each person's indivdual circumstances and travel needs (ie airfare, etc.) over the life of the points.

Just letting you all know that this "typical" resale purchaser is having some second thoughts. But it is also not making me want to buy direct!

 

[LouisianaDisneyFan]

So I have a contract to purchase points sitting on my desk awaiting my signature.... and I cannot say I am not hesitating. It does not have any language in about voiding the contract if it doesn't close by March 20. I am honestly not a 100% sure I would buy given the new restrictions. I know we would not necessarily use our points for those other uses. I understand it is not the best use of the points. But I sure don't like the idea that my point usage will be restricted in ways that others can take advantage of. Especially as I focus on that fact that as my kids age, my husband and I may wish to use the points in California or abroad. Simply because we have them to use and are paying the mfs every year whether we do or don't. Costs are all relative when you look at each person's indivdual circumstances and travel needs (ie airfare, etc.) over the life of the points.

Just letting you all know that this "typical" resale purchaser is having some second thoughts.

You can still use them at GCV and Aulani, as well as all over the world with RCI. A year ago, I HATED RCI, but RCI has made changes that have positively affected the ease of trading there. Recently, we had to cancel a BLT trip at the last minute... and I was stuck with 176 points in holding that would expire as of May 31. There were no additional Disney travel dates that we could swing before they expired, so I banked the minimum of 160 of those holding points with RCI. I just booked a week-long stay at a great 5-star ski resort for next December with those points. I'm very pleased with my trade and feel the program allowed me great flexibility with my points... even with unexpected cancellations. Sure, I had to pay the RCI booking fee... but that certainly was a lot less painful than losing the points! The new plan would still allow me to have that same flexibility, whether the points were direct or resale.

 

[quinnc19]

Good point. I wonder if I should try to get language added in my contract that it needs to close by 3/20? Couldn't hurt.

So I have a contract to purchase points sitting on my desk awaiting my signature.... and I cannot say I am not hesitating. It does not have any language in about voiding the contract if it doesn't close by March 20. I am honestly not a 100% sure I would buy given the new restrictions. I know we would not necessarily use our points for those other uses. I understand it is not the best use of the points. But I sure don't like the idea that my point usage will be restricted in ways that others can take advantage of. Especially as I focus on that fact that as my kids age, my husband and I may wish to use the points in California or abroad. Simply because we have them to use and are paying the mfs every year whether we do or don't. Costs are all relative when you look at each person's indivdual circumstances and travel needs (ie airfare, etc.) over the life of the points.

Just letting you all know that this "typical" resale purchaser is having some second thoughts. But it is also not making me want to buy direct!

 

[Brian Noble]

I know we would not necessarily use our points for those other uses. I understand it is not the best use of the points. But I sure don't like the idea that my point usage will be restricted in ways that others can take advantage of.

This is human nature...and it's what DVC is preying upon in this case. Essentially, eligible purchasers are entitled to use points on things that are poor values, but ineligible purchasers are not. It is true that the eligible purchasers have more options. But, those options are inferior to renting out the use of points to a friend or family member---and that is an option that all purchasers have.

Especially as I focus on that fact that as my kids age, my husband and I may wish to use the points in California or abroad.

The single best use of DVC points is for lodging within the DVC system. For almost *any* other purpose, you are usually better off renting off a reservation at market rates, and using the proceeds to secure the alternative vacation you desire. True, renting is a little more work, but with services like David's, it can be pretty minimal.

 

[saintstickets]

My guess is (and that's all anyone can do at this point) that if this policy change affects any resale contract prices, it will affect the small 50 +/- point or less contracts. As it is now, it is sometimes better to buy direct on a small contract add-on since there will not be a commission paid. An example would be a 25 point OKW add-on purchased directly from Disney is currently at $90/pt or $2,250 and this is for the extended life to 2057. Resale prices for these small contracts are running around $70 for the 2042 end date contracts. When you add on approximately $400 closing costs to the total paid, it increases the price per point to $86/pt through resale. Why save only $4/pt, have to wait for ROFR, do not get the extended contract and then lose the new policy change benefits to boot? It is not worth it to me. The only reason to go through resale in this scenario is if the seller pays all or part of the closing costs, all or part of the MF and it has lots of banked points for use. With the policy change, I wonder if the price difference between small and medium size contracts up for resale will start to shrink?

 

[DVC SSR Owner]

Well, I for one am glad that they grandfathered in existing resales. We want to cruise at least once!

 

[JimMIA]

So I have a contract to purchase points sitting on my desk awaiting my signature.... and I cannot say I am not hesitating. It does not have any language in about voiding the contract if it doesn't close by March 20. I am honestly not a 100% sure I would buy given the new restrictions.

I would call the broker and request that the March 20 deadline be a condition of the contract. If they say no, you have ten days after you sign the contract to rescind, so you just bail out and get your deposit back.

There is no excuse for buying anything less than what you want. The landscape has changed since you made your offer, it is very feasible to meet the March 20 deadline, and if I were in the same situation, I'd insist on that.

And I'm sure the broker and seller will understand.

 

[JimMIA]

Can't help but reflect on the comment by JimMIA, here and on a few other threads - Perks come and go!

This also begins the separation of members with "those points" and the Direct Buy Members. Too bad.

This is just the beginning; once recognized as "those points", slowly things change and we begin to accept it in small bites.

To paraphrase Pastor Martin Niemoller, First they came for my cruise perks, but I didn't speak up because my family doesn't cruise . . . .

I think you misunderstand my point.

DVC is taking away a perk from folks who close on a resale after March 20th. To people buying resale, that's nothing to some and an issue for others.

But my point is that the DIRECT buyers really need to understand that the "big difference" the DVC salesmen will be touting is nothing more than a perk -- a perk that can be taken away from them as well at any time.

 

[quinnc19]

I called my broker and they said no problem to adding that language.

I would call the broker and request that the March 20 deadline be a condition of the contract. If they say no, you have ten days after you sign the contract to rescind, so you just bail out and get your deposit back.

There is no excuse for buying anything less than what you want. The landscape has changed since you made your offer, it is very feasible to meet the March 20 deadline, and if I were in the same situation, I'd insist on that.

And I'm sure the broker and seller will understand.

 

[BWV Dreamin]

No matter how anyone paints this picture, the changes have devalued our contracts, whether one owns all direct, all resales, or a combination of these points. What loss occurs from these changes remains to be seen.

 

[mphillips76]

I think you misunderstand my point.

DVC is taking away a perk from folks who close on a resale after March 20th. To people buying resale, that's nothing to some and an issue for others.

But my point is that the DIRECT buyers really need to understand that the "big difference" the DVC salesmen will be touting is nothing more than a perk -- a perk that can be taken away from them as well at any time.

Agreed! And if you go to the Disney Vacation Club website it really makes it sound like it is part of ownership, it is not listed as one of the "perks". I am guessing they will need to rewrite the language on their site to reflect this.

 

[NewDCLGuy]

I don't think it will have a dramatic impact on resale values or the attitudes of buyers. But it's a policy change which costs DVC virtually nothing to implement. Even if it drives up sales 3-4%, it will have done its job.

I don't see how this helps Disney's sales. The number of sales Disney is losing to resale is base on how many people have to put their contract up for sale. This change isn't going to stop people from having to sell.

By making resales less attractive, the people who have to sell will have to lower their price a bit to compensate. But they are still going to sell, just at a lower price.

And that will be the most significant result of this change. Resale values will go down. Every single owner should be upset by this (unless they somehow know for 100% certain you will never sell.)

By entering into this agreement, the DVCMC - in my opinion - has violated it's legally mandated fiduciary duty to owners. I realize many people here don't think DVCMC has a fiduciary obligation... there's no need to rehash that debate now. But many of us to believe they have to follow what the law says and will challenge Disney. This won't cost Disney nothing. They will have to defend their actions. And who knows, they might even lose.

OK - to rehash a bit, it's clear Disney is ready for challenges. Note their language that changes only affect DVD programs. That's may very well cover them. But DVCMC is still a party to the transaction. We'll see where challenges go. Sorry for the sidetrack

Meanwhile, Disney's main product - new DVC sales - has just been hurt. While not every new buyer considers resale value. Many do. And it's now going to be tougher to sell to those people because what they are buying is now worth less.

Horrible change that it going to hurt every owner who ever has to sell.

 

[LIFERBABE]

As a large point owner, initially I was concerned, but after some thought, I am no more concerned about resale value than I was prior to this announcement.

I did not purchase DCL trades, or ABD perks. These are perks for us all, not guaranteed. DVD is choosing not to offer these perks to future resale purchasers.
As direct purchasers, they are not promising we will keep these perks either. It's all spelled out in the POS. I know what I purchased, and it's not wise to place a value on perks. If you do, then you have alot to lose and dont really understand what you purchased.

Do I want to own a portion of a stripped down villa with no perks or reciprocal agreements? That is the question you should ask yourself before purchasing because that is what we purchased and that is what is being valued.

If they sold the perk, they would have to guarantee it, and they cant so they wont.

 

[Dizny Dad]

I think you misunderstand my point.

DVC is taking away a perk from folks who close on a resale after March 20th. To people buying resale, that's nothing to some and an issue for others.

But my point is that the DIRECT buyers really need to understand that the "big difference" the DVC salesmen will be touting is nothing more than a perk -- a perk that can be taken away from them as well at any time.

Didn't miss the point; I was just carrying on with another thought - now that perks have been taken away the first time, it is so easy to nibble away at them in the future.

 

[disneynutz]

As a large point owner, initially I was concerned, but after some thought, I am no more concerned about resale value than I was prior to this announcement.

I did not purchase DCL trades, or ABD perks. These are perks for us all, not guaranteed. DVD is choosing not to offer these perks to future resale purchasers.
As direct purchasers, they are not promising we will keep these perks either. It's all spelled out in the POS. I know what I purchased, and it's not wise to place a value on perks. If you do, then you have alot to lose and dont really understand what you purchased.

Do I want to own a portion of a stripped down villa with no perks or reciprocal agreements? That is the question you should ask yourself before purchasing because that is what we purchased and that is what is being valued.

If they sold the perk, they would have to guarantee it, and they cant so they wont.

Good point. In addition, your concern should be the fact that this change is just additional evidence that Disney will do what's good for Disney, even at the expense of it's DVC Members.

People can say that they don't care about the new policy, or the last few that were changed, but it isn't going to stop. What about the next change?

Disney is one step ahead of it's Members and always will be. I for one don't refer new Members anymore, and I am sure that others feel the same way. This current change may sour some of the referrals, but Disney's next move will be to provide additional rewards for referrals.

Bill

 

[DVC SSR Owner]

If this is jim's view of a tiered benefit, he needs to be replaced!