DVC direct buyers

[zeferjen]

Could you still use the resale points for an RCI exchange?

Am I missing anything else?

Yes, you can use the points for RCI.

I think you are missing that you cannot use the points for disney cruises

 

[bakerworld]

Think the fear of buying resale isn't what they've limited the ownership to currently but what might they do in the future.

 

[luckyman_apd]

Think the fear of buying resale isn't what they've limited the ownership to currently but what might they do in the future.

But once you've bought, they can't change the terms on you just because you bought resale. The terms they change would have to affect everyone. They have already set a precedent with this. Anyone who bought resale prior to March 2011, still has the same privileges as those who bought direct.

 

[Missyrose]

But once you've bought, they can't change the terms on you just because you bought resale. The terms they change would have to affect everyone. They have already set a precedent with this. Anyone who bought resale prior to March 2011, still has the same privileges as those who bought direct.

I just worry that just because they've done this once, doesn't mean they won't change how they do it next time. Not that it stopped me from buying resale -- the cost savings was just too much to pass up.

 

[disneynutz]

But once you've bought, they can't change the terms on you just because you bought resale. The terms they change would have to affect everyone. They have already set a precedent with this. Anyone who bought resale prior to March 2011, still has the same privileges as those who bought direct.

Contractually Disney can do almost what ever they want and precedents don't count.

Many thought that they would never limit resale contracts at all or that they would charge $95 to let you book outside of DVC. We didn't know that they would change the banking rules or allow 5 people in a studio. We also never thought that they would not let members who bought resale go on a members cruise, even if they wanted to pay cash.

As I said, Disney can do almost what ever they want.

Bill

 

[mel&me]

bought direct and would buy direct again.

 

[Dacky619]

We bought direct, but only because we wanted BLT points which only had a small difference in price had we gone resale. We also were able to cancel a trip booked at the Poly/GF and replace that with a DVC stay, so that way we rolled about 3 grand (original room prices) right into the DVC payment. If we bought in now instead of a few years ago, I think we would go with resale. Direct was the right choice for us at the time though.

 

[luckyman_apd]

Contractually Disney can do almost what ever they want and precedents don't count.

Many thought that they would never limit resale contracts at all or that they would charge $95 to let you book outside of DVC. We didn't know that they would change the banking rules or allow 5 people in a studio. We also never thought that they would not let members who bought resale go on a members cruise, even if they wanted to pay cash.

As I said, Disney can do almost what ever they want.

Bill

We've had this conversation before. We can only go by past actions to predict future ones. Disney probably CAN do whatever they want, but that shouldn't mean they will or fear the worst. It would be a legal and PR nightmare, which Disney would rather avoid, again given their past actions. Disney could recover and spin the PR nightmare, but again, it would not benefit them.

The only way that Disney would bother with the resale market again is if it is affecting sales of direct purchases. My theory (which really means nothing) in researching the resale market, is that the resale market wasn't the huge discount that is has become today. Prices have fallen in the past few years (I'm sure the economy has been the major contributor to this), so Disney didn't need to touch it. Last year they implemented the change to resales because I'm sure the price differential had caught their eye. Sure, DVD could keep ROFR to keep the price up, but that costs them money. Easier to just add the restrictions.

HOWEVER, to fear that Disney will change your resale contract you bought today in the future I believe is an irrational fear. If you are buying today, with plans to add on in the future, then if is logical to fear a change in the future. All of these features are perks anyway, so as long as you keep that in mind, you shouldn't fear it at all, because after all they are "perks" and could be taken away even if you buy direct.

Are you referring to the banking changes for Associate members? it's my understanding that was strickly a result of David's rentals. Or are you referring to the 100% at 6 months/50% at 9 months/ and 25% at 10 months old rule? Because again, I think that is not a negative (I'm sure many disagree). I can see how some people would view this, but I think this rule is more of convenience rather than punitive. Many of the rule changes I've seen over the past have not triggered red flags in my mind to prevent me from buying. It's like a post I read about changes to the points chart. When a lot of people complain on the forum about a change, the change was probably needed. We probably aren't going to agree on this, but I don't fear that Disney will take anything away from me now just because it is a resale purchase. If they take it away, it will be for another reason, and it won't just affect me.

 

[Lil' Grumpy]

the fact is, dvc can tell who's direct. and i think it made a
major difference based on our us getting what we expected/
told by our guide.

there are perks to direct that are probably behind the scenes.
we had a few problems, some were out of any person control.
when i first came here, the responses were mostly "tough luck".
then i realized their "backgrounds" so it made me seek inside
support. also i just started learning about the business side
so i could figure out the best "ways" to used our dvc.

to me, our dvc is a tool used for setting up our disney vactions.
the rci trades are not worth it, and should be fixed or dvc
should get out. but before making that request, i need to
gather up the facts. for example, like when dean asked if
any dvc owner been successful booking less than a week,
per rci...and no one responded, was very telling.

if direct owners learn the dynamics, then i don't think it
would be to difficult to figured out their expectations.
we had too because of our circumstances, but i think any
direct owner would have the same option available.

direct vs resales. i could be wrong but the responses are
personal & defensive. to me, that confusing. when we
go on vacation, it 's a family affair. ( now we were concerns
about the "guests" that we were hoping to avoid. but
i think they were some of the employees taking advantage
of the system for some "partying".) but direct vs indirect
isn't a status symbol to me, @ all. i mean....does it matter
if your hammer ( tool) is gold plated or silver? as long as
it drives the nails.

nor do i see dvc changing any major rules between direct
vs resales. however, what dvc has within their power,
is to "add" benefits/perks to their direct sales. when i
start looking/learning what i brought for my wife....the
possibilities are endless. just reading here, & the cruises,
how many get pretty darn excited on disney "handouts",
i am surprise they haven't explore this area before now.

but why would dvc would want to do anything unless
it has a positive effect..on sales. the biggest reason would
to be connected to the groups that can afford direct
dvc, & most likely in their social groups.

so if they don't change their rules/policies..they should could
do some "tweaking" those with direct holdings.

 

[bakerworld]

There does seem to be this defensive attitude from resale buyers which I don't get because cost-wise if anyone should be defensive it should be the direct buyers.

We're direct buyers. It's our comfort level. It made sense at the time due to the offer Disney was pushing trying to get people to buy into Kidani before it was built and we bought direct for BLT because there was no re-sale at the time. However, even our guide indicated that to buy any one of the older resorts would be a resale situation.

 

[montrealdisneylovers]

We bought direct, but only because we wanted BLT points which only had a small difference in price had we gone resale. We also were able to cancel a trip booked at the Poly/GF and replace that with a DVC stay, so that way we rolled about 3 grand (original room prices) right into the DVC payment. If we bought in now instead of a few years ago, I think we would go with resale. Direct was the right choice for us at the time though.

IMHO, this is the key. The bad economy started affecting Disney sales and they are erroneously blaming the resale market and therefore trying to make negative changes to it. I think that if there was a smaller difference between resale and direct, more people would buy direct. It is just a feel good feeling buying direct from Disney. As Disney prices keep going up and resale keeps decreasing (due to less perks) people will eventually catch on and decide that with the money they save, the can pay for the perks they want. The target market they should be going after are families with small children who will come back year after year. This is the same group that is starting with mortgages, student loan repayments etc. There is only so much left for a luxury purchase like DVD.

Disney had a formula that worked pretty well for 20 years and now they are making changes that I feel will only affect them negatively in the long run.

 

[zavandor]

I think that if there was a smaller difference between resale and direct, more people would buy direct.

That's a very interesting point!
I can say that if I knew that the difference between resale and direct was little, I would have probably bought direct while I was in Orlando. No searching for the right contract and UY, no hassle with offers and counter offers, not having to wait...
But at less-than-half than direct (105$ vs 50$), resale was a no brainer for me.

How to keep the resale price higher? They might exercise ROFR more, but it costs money. Leaving the perks also to resale might help?
It's difficult to say, in the last year resale prices have decreased, but it might only be for more contracts going on sale due to state of economy and not at all for the loss of perks.

 

[randy55]

We bought 200 BCV points Direct in 2003 for $74 a point and then we added on another 200 BCV points Direct in 2004 for $74 a point all financed through Disney. It was easy and they made our first reservation which was in a BCV Studio looking out towards Spaceship Earth. We used those points for twice a year trips staying in a One Bedroom Villas for 7 years as our kids grewup starting in Grade School and then the last one was a Junior in High School. Then we sold all our points in 2010 for $80 a point.

My Wife and I started missing BCV so we started thinking of purchasing a small amount of points to use towards a Studio so we could go down for a week every other year and limit our annual maintenance fee bill. Disney Direct wanted $115 per point and wanted us to buy more points than what we really wanted. We found a 75 point Resale contract with 100 (25 banked and 75 current year) points for $80 a point and paid cash. Resale process started in December 2011 and ended in January 2012 and now we have June 2012 and October 2012 visits reserved at BCV. Life is a little better again.

I believe we made the right purchase decision both times, you just need to look at your options and do what you feel best suits you at that moment in time.

 

[montrealdisneylovers]

We bought 200 BCV points Direct in 2003 for $74 a point and then we added on another 200 BCV points Direct in 2004 for $74 a point all financed through Disney. It was easy and they made our first reservation which was in a BCV Studio looking out towards Spaceship Earth. We used those points for twice a year trips staying in a One Bedroom Villas for 7 years as our kids grewup starting in Grade School and then the last one was a Junior in High School. Then we sold all our points in 2010 for $80 a point.My Wife and I started missing BCV so we started thinking of purchasing a small amount of points to use towards a Studio so we could go down for a week every other year and limit our annual maintenance fee bill. Disney Direct wanted $115 per point and wanted us to buy more points than what we really wanted. We found a 75 point Resale contract with 100 (25 banked and 75 current year) points for $80 a point and paid cash. Resale process started in December 2011 and ended in January 2012 and now we have June 2012 and October 2012 visits reserved at BCV. Life is a little better again.

I believe we made the right purchase decision both times, you just need to look at your options and do what you feel best suits you at that moment in time.

Now that was a good deal. I know that DVD is not an investment and one should not expect to sell after 6 or 7 years at breakeven or even better a slight profit. However, those who buy direct will automatically take a loss in the event they would have to sell.

In the world of facebook and twitter, it will be interesting to see how this all plays out in a few years.

Once again I say, the best thing Disney can do is try to keep resale and direct prices closer together.

 

[Mtnman44]

I'm responding to the original post. I haven't read all of the responses.

We bought direct several years ago. At the time, the price difference from what we paid vs retail was about $6 per point.

Now, depending on the resort, you could pay anywhere from $30 to about $70per point more for Direct vs. the going resale market value.

The "benefits" of buying direct are trivial and mostly geared toward marketing to new buyers. If you really want DVC to trade out or go cruising, then this whole conversation is not needed as you aren't making decisions based on financial valuations. Example: If DVC were selling new cars, what would you pay for one? If you wanted one, my guess is that you would pay very close to what you thought was the lowest price you could get it from another dealer for. Would you pay an extra $10k for the car if DVC promised you free parking at WDW as long as you drove the car there? Some probably would, most would balk at that. Yet, some have decided that DVC allowing you to give them $95 and spend much, much more in comparable value of DVC points to stay at the Poly or take a cruise is some kind of wonderful benefit worth paying thousands of extra dollars for when they buy their DVC contract.

Given the price disparity currently, there is no way I would buy DVC direct unless it was for a small add on contract for which I would be paying a premium in exchange for saving me the time and trouble of finding and purchasing on the resale market.

 

[Tamar]

We have 2 contracts bought direct, and 2 bought resale. When we bought there wasn't much difference in price, given that there weren't closing costs for direct buys, you got a full allotment of points, and could get exactly what you wanted. Now that there's a bigger discrepancy in the price, I suspect we would buy resale; but it depends on what we wanted. If I decide I want 30 pts at AKV so I can book concierge there for a few nights every other year, that'll be a direct purchase.

 

[Engelhouse]

We bought direct from Disney because we were only buying 100 points and we only go to Disneyland. We purchased at the Grand Californian, I didn't want to have to stay somewhere else after spend all of this money. And really we only paid a little bit more for piece of mind. Plus we financed through Disney for one year loan and the interest was only around 4%. It was so easy to and no waiting. We just joined in Jan and will have our first trip in August.

 

[zavandor]

If I decide I want 30 pts at AKV so I can book concierge there for a few nights every other year, that'll be a direct purchase.

Please correct me if I am wrong, but I think that you can add on a small contract only to your home resort. If you buy a different resort you must buy the minimum allotment if you buy direct, i.e. 160 points.

 

[disneynutz]

Please correct me if I am wrong, but I think that you can add on a small contract only to your home resort. If you buy a different resort you must buy the minimum allotment if you buy direct, i.e. 160 points.

DVD tends to change the minimum direct buy size based on how their sales are going. I expect with inventory getting reduced we will see some changes coming. They can't have their employees sitting around waiting for the next new resort to be built.

Bill

 

[AnnaS]

We bought direct from Disney because we were only buying 100 points and we only go to Disneyland. We purchased at the Grand Californian, I didn't want to have to stay somewhere else after spend all of this money. And really we only paid a little bit more for piece of mind. Plus we financed through Disney for one year loan and the interest was only around 4%. It was so easy to and no waiting. We just joined in Jan and will have our first trip in August.

Welcome to Dis and Congratulations.