DVC begins charging closing costs for add-ons

[Jaaron2]

Anyone else see this?

http://www.dvcnews.com/index.php/dv...dvc-begins-charging-closing-costs-for-add-ons

 

[JimC]

That will make it less likely that a large purchase will be divided into a number of smaller contracts. It also brings DVC closer to the industry norm.

 

[Caren]

Glad we're done adding on for a while.

 

[wdrl]

That will make it less likely that a large purchase will be divided into a number of smaller contracts. It also brings DVC closer to the industry norm.

Perhaps these changes will not be much of a deterrent to buyers who want divide a large purchase into smaller deeds. Here is something I posted on another thread a few days ago:

When I was speaking to a Guide, the issue of closing costs came up. It looks like buyers who want to break large contracts into smaller deeds won't have to pay significantly higher closing costs. For example, if you buy a 320-point contract, the closing costs are about $402.80. If the buyer breaks the contract into two 160-point contracts, the total closing costs go up only $3 to $405.80. For four 80-point contracts, the total closing costs would go up an additional $40 or so.​

Paying an extra $3 to break a 320-point deed into two 160-point deeds seems fairly insignificant when the total transaction costs will be in the tens of thousands.

 

[jesschris]

Not happy to see that change. Was thinking about buying a small addon direct from Disney.

 

[fflmaster]

I wish I would have thought about breaking up my contract. 285 points on one contract.

Still upset we never thought about this when we bought back in 2002.

 

[DVCAustralia]

This is just another price rise brought to you by Disney, however this time it was not announced and will not be included in the point cost.
There are alot of 'accepted industry practices' in timeshare that Disney do not do, to use that as an excuse is rubbish.

 

[gkrykewy]

Even for cash buyers. This stinks, and actually makes resale more attactive than it would otherwise be for a small contract. Weird choice.

 

[mdsd8700]

This stinks, and actually makes resale more attactive than it would otherwise be for a small contract. Weird choice.

We have been members only since last June but I agree it seems strange if Disney is trying to get more people to buy direct. As mentioned though it is a pretty standard thing to do industry wide so Disney ultimately wants to make money. At least breaking it into smaller contracts won't really cost that much more. I am glad we did an add on this past February and not only broke it into smaller contracts but didn't pay closer costs.

 

[n2mm]

I wish I would have thought about breaking up my contract. 285 points on one contract.

Still upset we never thought about this when we bought back in 2002.

I feel your pain. I also didn't think to do this when I bought my first contract for SSR in 2005 = 450 points on one contract. Oh well, I didn't buy to sell, so figured it will just stay in the family until Disney wants it back. I got better when I bought my next 5 add-ons!!

With this new news about closing, I'm pretty certain now that resale would be the only way I'll add on in the future. Not like I need any points for outside the DVC/WDW resorts. I got plenty of direct buy points already to use outside of WDW/DVC if I need to.

 

[DeeCee735]

Glad we're done adding on for a while.

My thoughts exactly!

 

[curan69]

I don't get it. Do one thing to drive people towards Direct (the new rules) then do another thing that drives them back towards resale.

I have 100 SSR points that are resale. I was thinking of adding on 50 or so and WAS considering going direct so that the new points would not have the restrictions. Now that I will have to pay closing costs no matter what, I will go resale even with the restrictions. Is that what Disney wants??

 

[Sammie]

That will make it less likely that a large purchase will be divided into a number of smaller contracts. It also brings DVC closer to the industry norm.

Step by step.

There are alot of accepted industry practices' in timeshare that Disney do not do, to use that as an excuse is rubbish.

Yet, with Jim Lewis leading the way there will be more. When he became Chairman of American Resort Development Association I knew things would start changing. Not saying all the changes will be bad, just saying I think DVC will gradually become closer and closer to the industry norm.

I don't get it. Do one thing to drive people towards Direct (the new rules) then do another thing that drives them back towards resale.

I think it is just a first step. If DVC puts more limits on resale this move will have no affect on driving people toward resale.

I have said all along, the changes to resale were just the first of more to come.

 

[disneynutz]

I don't get it. Do one thing to drive people towards Direct (the new rules) then do another thing that drives them back towards resale.

I have 100 SSR points that are resale. I was thinking of adding on 50 or so and WAS considering going direct so that the new points would not have the restrictions. Now that I will have to pay closing costs no matter what, I will go resale even with the restrictions. Is that what Disney wants??

Disney knows that because of the resale rule change, direct sales and add-ons will increase. Because of the increase, charging closing costs is a instant money maker without doing any extra work. All part of their master plan.

I already saw a post where the DVC owner is selling their contract to change home resorts and they intend to buy direct because they want to keep their ability to use their points on the DCL.

Bill

 

[SpaceshipEarth]

Its true. I just purchased 100 add-on points at AKV and was charged $160 in closing costs. I was able to get in under the last incentive and paid the equivalent of $95/point, so I can't complaint too much.

 

[JimC]

...When he became Chairman of American Resort Development Association I knew things would start changing.

Not saying all the changes will be bad, just saying I think DVC will gradually become closer and closer to the industry norm....

I have said all along, the changes to resale were just the first of more to come.

I agree with you on all three points. This is a really difficult market segment and may remain such for quite some time.

 

[DisDad07]

I am just glad I added on before they move this move. I too am done adding on for awhile. ( I think )

 

[sgtpet]

Another lessening of member benefits. Whether it was contractual or not, the point is we continue to lose opportunities that we once had. Sounds like America doesn't it?

 

[bookwormde]

I guess they have figured out that most that understand the resale market will buy that way anyway so why not grab a few more $$ from those who do not, although I would nto be surprised if they have "no closing on add on" specials when they need to make sales numbers for a quarter.

And yes DVC is rapidly becomming just another timeshare company, except hat they are on the disney property and have bus service (and still have some very nice CMs)

bookwormde

 

[nunzia]

This really doesn't bother me that much..I guess I expect these kind of charges on transactions. Yes, it was nice to not have closing costs on add ons..they always had them on the first contract, right? $160 dollars on 100 points doesn't seem that bad for a one time fee. When I bought my first contract resale it was for 25 points and had a much higher closing cost, plus other fees..I bet closing costs direct are cheaper than closing costs resale..(yes, but a higher price per point). I have 4 small contracts and the reasons I bought taht way far outweigh any addtional upfront fees.
Now..if they want to save money they could quit publishing Disney Files and that wouldn't bother me