Does Lack of ROFR Degrade Your DVC Ownership?

[Sandisw]

Disney can acquire points when ever the need them......
The have no need to hold inventory when they can just acquire it....
I promise you, if I called my guide and requested a contract he didn't have, Disney would ROFR it.... there is no downside for them....

Disney's "problem" filling hotels has less to do with Disney losing it's way over the last few years, and more to do with the fact people in this county can't afford food right now....

I also don't concede that all Disney resort are being offered at a 30 percent discount. I looked into a stay at GF recently, and the price hadn't gone up since last year, but it hadn't really gone down either.

I forget the exact numbers, but I made another post about it, still realizing a substantial savings over publish pricing using my points,

I'm 18 years into my SSR contracts and 15 years into my BLT contract.... They are both paid for / paid for themselves, a few times over........ HOW DO YOU DEGRADE FREE?

The average American has to choose between putting gas in their car, or food on the table.... A 10,000 dollar Disney vacation does not fit into the metric.

However, the finance companies are still lending money to purchase DVC. Resale and direct..... So the bank thinks the value is still there....

I have "recouped" all of my cost at my contract at SSR and BLT, with only my RIV resort still being paid for.
Even If I were to purchase SSR today at $110 per point I could recoup my investment in 12 years....leaving me 18 years to use it for free....

I'm actually surprised someone isn't purchasing SSR, BLT, CCV, BR, etc on speculation...... Rent the points for a year or two then sell...

There is no doubt ROFR will come back when it has value to Disney....

The fact that Disney is not exercising their rights in the contract have little to no bearing on what the market will bear....

Right now, our economy is putting downward pressure on the value of luxury items... When the economy changes, when gas isn't climbing daily, when people aren't worried about putting food on the table..... You will see the price of DVC return

I am going to disagree that DVD will ROFR because they have a buyer waiting, They had waitlists for years for VGC and not once did they ROFR.

They have a lot of points and options for the direct buyer right now and for the few sales they might loose if they can’t sell them a specific sold out resort, they make up with the others,

 

[tom1944]

From post 59-The average American has to choose between putting gas in their car, or food on the table.... A 10,000 dollar Disney vacation does not fit into the metric.

I never thought this product was being sold to the average American. The people I know who owned it were overwhelmingly more financially secure than average.

Heck when I was probably slightly higher than average, I looked at and still decided it was beyond the financial commitment I was willing to make.

 

[Robbie Cottam]

I am going to disagree that DVD will ROFR because they have a buyer waiting, They had waitlists for years for VGC and not once did they ROFR.

They have a lot of points and options for the direct buyer right now and for the few sales they might loose if they can’t sell them a specific sold out resort, they make up with the others,

I had them do it before?

Maybe yes, maybe no..... At 275 a point I'm not willing to find out ....

 

[Robbie Cottam]

From post 59-The average American has to choose between putting gas in their car, or food on the table.... A 10,000 dollar Disney vacation does not fit into the metric.

I never thought this product was being sold to the average American. The people I know who owned it were overwhelmingly more financially secure than average.

Heck when I was probably slightly higher than average, I looked at and still decided it was beyond the financial commitment I was willing to make.

No one ever wants to think of themself as average.....however, Average US Salary (2022) The national average salary is $60,575.....

So an average family would have an income of $121,000 per year.... That is someone Disney would market too.....

When I bought my first contract my family income was less than 80k...

However that remark was directed at the comment about Disney discounting rooms to the point that DVC is not longer a cost savings.....

However,

 

[AstroBlasters]

I wonder if ROFR will kick in when market gets flooded with Pete's upcoming fire sale points divestitures. I can't see him being able to pay the dues on the many (tens of thousands?) points he claimed to have, many of which were purchased at the height of the market, let alone being able to pay off the huge loans he took out to buy them.

There was that 1000 point off market AUL contract for $63pp from the board sponsor a couple of months ago… I wonder….

 

[take36]

No one ever wants to think of themself as average.....however, Average US Salary (2022) The national average salary is $60,575.....

So an average family would have an income of $121,000 per year.... That is someone Disney would market too.....

When I bought my first contract my family income was less than 80k...

However that remark was directed at the comment about Disney discounting rooms to the point that DVC is not longer a cost savings.....

So true. I bought in at around 100/point "back in my day" now its up to 225 direct and most resale is higher then 100/point. People's wages have not doubled in 10 years. Use to have more perks and availability was much easier. It was a true saving for those have enough for an initial payment to enjoy fantastic savings later.

Nowadays the initial "investment" is much higher and the savings are less, with less perks, and less availability. DVD is going towards DVC as a luxury versus a cost savings vehicle and emphasizing the "club" more then a cost saving timeshare, hence creating de facto "2 classes" of membership. Direct isn't "worth it" from a monetary standpoint but luxuries never are.

I am young enough where the expiration of resorts will affect me big time as it is when I plan to take the grand kids, I hope availability does not plummet even further (the new resorts will help of course). I am also old enough where I need to consider passing this on to my kids if they want them or getting rid of it as I get older if it no longer reflects a good value as not to saddle my kids with a timeshare that they might hold on for sentimental reasons but take the hit financially.

Love the lounges as it really makes DVC feel more like a club, hate that our resale only "neighbors" can't enjoy them as I like to think of all DVC members as "equal," we all bought the same deed.

 

[AstroBlasters]

No one ever wants to think of themself as average.....however, Average US Salary (2022) The national average salary is $60,575.....

So an average family would have an income of $121,000 per year.... That is someone Disney would market too.....

When I bought my first contract my family income was less than 80k...

However that remark was directed at the comment about Disney discounting rooms to the point that DVC is not longer a cost savings.....

However,

Your assumption assumes the average household has two adults that both earn the average income level.

In fact the average household income is around $102k and Median household income is around $70k. $121k would put a family in the top 30% of household income.

https://dqydj.com/household-income-percentile-calculator/

 

[Robbie Cottam]

Your assumption assumes the average household has two adults that both earn the average income level.

In fact the average household income is around $102k and Median household income is around $70k. $121k would put a family in the top 30% of household income.

https://dqydj.com/household-income-percentile-calculator/

If anything you argument makes my original point more valid.....
Thank you

 

[Sandisw]

I had them do it before?

Maybe yes, maybe no..... At 275 a point I'm not willing to find out ....

You know for sure that they used ROFR to get it for you?

And, at the time had they completely suspended RoFR like now?

That was the point…DVD is not going to ROfR a contract for one buyer…when they are not doing it.

 

[Robbie Cottam]

You know for sure that they used ROFR to get it for you?

And, at the time had they completely suspended RoFR like now?

That was the point…DVD is not going to ROfR a contract for one buyer…when they are not doing it.

They didn't have it.
They tried to sell me some else,
They tried to discount something else, to get me to buy it instead....

I told them I would wait, to call me when they had what I wanted....
three weeks later they had what I wanted.....

Did anyone every come out and tell me we took this by ROFR...... NO, you got me I can't prove it so I don't know
But you decide how they got those points.

 

[Robbie Cottam]

You know for sure that they used ROFR to get it for you?

And, at the time had they completely suspended RoFR like now?

That was the point…DVD is not going to ROfR a contract for one buyer…when they are not doing it.

Has Disney come out and publicly suspended ROFR?
According to https://www.dvcresalemarket.com/blog/dvc-right-of-first-refusal-report-rofr-july-23/. Disney has taken 4 contract by way of ROFR......

Four random contract......seems more likely they were for a direct resale than inventory

and I apologies in advance if I can not post that link

 

[Cyberc1978]

Has Disney come out and publicly suspended ROFR?
According to https://www.dvcresalemarket.com/blog/dvc-right-of-first-refusal-report-rofr-july-23/. Disney has taken 4 contract by way of ROFR......

Four random contract......seems more likely they were for a direct resale than inventory

and I apologies in advance if I can not post that link

Those 4 taken contracts was Year-to-Date and they were taken in January I think, so nothing else has been taken since.

 

[Robbie Cottam]

Those 4 taken contracts was Year-to-Date and they were taken in January I think, so nothing else has been taken since.

OK, I have no reason to doubt that
However, it doesn't change my position

But I will ask again, and I'll admit, I don't really know the answer to this because it doesn't change my plans or position either way, BUT, has Disney publicly suspended ROFR.....

Do contract still have to be presented?

I know Disney has not excised their rights, but that is a far cry from suspending them.

 

[Cyberc1978]

OK, I have no reason to doubt that
However, it doesn't change my position

But I will ask again, and I'll admit, I don't really know the answer to this because it doesn't change my plans or position either way, BUT, has Disney publicly suspended ROFR.....

Do contract still have to be presented?

I know Disney has not excised their rights, but that is a far cry from suspending them.

To the best of my knowledge they haven’t publicly suspended ROFR but I won’t expect them to do so.

All contracts still needs to be presented to Disney for ROFR, no automatic ROFR.

Assumption is that since they haven’t exercised since around January then they have suspended ROFR.

 

[Roughians_satchel]

Has anyone thought this might have something to do with Iger and they whole parent company having to cut expenses everywhere? To ROFR takes cash on DVDs part - and they may have had direction from up the chain that they need to make cuts and focus the spend on new builds.

 

[Robbie Cottam]

To the best of my knowledge they haven’t publicly suspended ROFR but I won’t expect them to do so.

All contracts still needs to be presented to Disney for ROFR, no automatic ROFR.

Assumption is that since they haven’t exercised since around January then they have suspended ROFR.

*** U ME right?
I wouldn't assume any thing with Disney......
They have a plan,
They have guidelines,
And I'm sure they have a trigger point....

 

[AstroBlasters]

If anything you argument makes my original point more valid.....
Thank you

I completely agree! Sorry, I should have provided more context but I was being told to run to the grocery store to pick up some things for breakfast as I was typing.

 

[Sandisw]

They didn't have it.
They tried to sell me some else,
They tried to discount something else, to get me to buy it instead....

I told them I would wait, to call me when they had what I wanted....
three weeks later they had what I wanted.....

Did anyone every come out and tell me we took this by ROFR...... NO, you got me I can't prove it so I don't know
But you decide how they got those points.

Well, having had one bought back that way, and gone through the process they don’t close ut until the date of the contract. They wait until the very end to take it back.

So, my guess is that they did have it or it was already in process of being bought, or foreclosure. Lots of ways to have had the points

I am not saying that they don’t do it for those reasons but right now, I don’t think they would because they obviously have decided to abandon it.

It was in response to you saying if you call them wanting something they will RoFR it and we know that is not true because people wanted VGC for years and they didn’t get them the points.

 

[Robbie Cottam]

Well, having had one bought back that way, and gone through the process they don’t close ut until the date of the contract. They wait until the very end to take it back.

So, my guess is that they did have it or it was already in process of being bought, or foreclosure. Lots of ways to have had the points

Ok,

 

[tom1944]

No one ever wants to think of themself as average.....however, Average US Salary (2022) The national average salary is $60,575.....

So an average family would have an income of $121,000 per year.... That is someone Disney would market too.....

When I bought my first contract my family income was less than 80k...

However that remark was directed at the comment about Disney discounting rooms to the point that DVC is not longer a cost savings.....

However,

I think the average family income is around $74,000.