DVC end 2042-When do I get my last points?

[Dean]

With SSR membership lasting the extra twelve years, all services of DVC should continue after 1/31/2042, right? Just because our contracts at the other resorts end, doesn't that just mean we don't get any points after 2041?
I mean, the resorts aren't going to crumble to the ground on 1/31/2042.
Everyone should get their last allotment of points, and then should be able to use them as normal, since all the resorts will still be there. Then when you use up all your points, you'll be done. It may be simple, but doesn't it make sense?

If you're saying that SSR members will be able to use the other resorts or other resort members will be able to use SSR; that's a big NO. Come 31 Jan, 2042 or whatever date if they extend it; it will be like they don't exist to DVC members. You may or may not be able to get in with cash.

I don't see them offering extensions, too many variables and hoops to jump through.

 

[wanna-b-Tink]

lol - I like this speculation even more than the "is the pool at SSR going to be too small" one.

I don't even have a clue, but I am sure they will figure out something between now and then.

 

[d-r]

I think that in the last couple of years a lot of people will probably "let their points go" back to disney. The reason I say that is because dues will be pretty high by then, and if people only have a year or two left a lot of folks may figure that the trip isn't worth the dues and will just not pay the dues and let them go. Especially when you consider that a lot of those people will be the children of the people that bought them.

 

[lenshanem]

Oh, bugger. I have a December use year. Now I don't feel so bad about being half a year's points behind!

 

[SpoonfulofSugar]

Oh well, so much for a simple solution !!!!

Thirty seven years is over double my age so I guess there is a long time to figure it out

 

[nuts]

Folks, we MUST start a letter writting campaign NOW! We MUST make DVC understand our concerns about what will happen in 37/48 years! Heck, we might even be able to open an age discrimination suit. I am assuming we will be all old and near death by then (I personally plan to live forever, and so far my plan is working).

 

[Dean]

Oh well, so much for a simple solution !!!!

Thirty seven years is over double my age so I guess there is a long time to figure it out

Actually all of the options I can think of are pretty simple. DVC already has experience with both special season lists and lotteries. To me the most reasonable approach is to just give everyone their 2040 points but none in 2041 and limit banking the last 3-4 years and borrowing the last two or so. This will give everyone a full year to use any remaining points and would even give some flexibility for banking. It will however not give as many an option of being there at or near the end. Pay fees on the points you get and not any additional so the last fees would be in 2040 and 2041 through Jan and be prorated based on when your use year started.

I'd love to see a system for an extension but I've come to the conclusion that there are just too many complications to make it workable. I even suspect DVC would love to offer it. The problem is they need a high participation to do so. Thus anything that has costs would have to be very inexpensive and even then I bet it'd be hard to get a lot of members to do it. How inexpensive, we're talking less than $10 pp with no other fees if done in the next few years. And I put the needed participation at 80% or so. Even then DVC would do well if they could work it out and if they don't offer a workable extension OR have additional resorts (one larger or two small minimum) the maint fees will be dramatically high for those last 12 years due in part to the accumulated bureaucracy. It's hard to downsize.

 

[JimC]

Actually all of the options I can think of are pretty simple. DVC already has experience with both special season lists and lotteries. To me the most reasonable approach is to just give everyone their 2040 points but none in 2041 and limit banking the last 3-4 years and borrowing the last two or so. This will give everyone a full year to use any remaining points and would even give some flexibility for banking. It will however not give as many an option of being there at or near the end. Pay fees on the points you get and not any additional so the last fees would be in 2040 and 2041 through Jan and be prorated based on when your use year started.

I'd love to see a system for an extension but I've come to the conclusion that there are just too many complications to make it workable. I even suspect DVC would love to offer it. The problem is they need a high participation to do so. Thus anything that has costs would have to be very inexpensive and even then I bet it'd be hard to get a lot of members to do it. How inexpensive, we're talking less than $10 pp with no other fees if done in the next few years. And I put the needed participation at 80% or so. Even then DVC would do well if they could work it out and if they don't offer a workable extension OR have additional resorts (one larger or two small minimum) the maint fees will be dramatically high for those last 12 years due in part to the accumulated bureaucracy. It's hard to downsize.

Dean,

I don't see how DVC can not give members their points in 2041. They may alter banking and borrowing and change home resort advantage, but I don't see anywhere where they have a right to not provide the allotment called for in our contracts simply because it is 2041 and the contracts expire in 2042. Maybe I am misreading something.

My view is that member defaults could increase in the last few years unless members have kids/grand kids who want to take the contracts over. The contracts will have little resale value and the older owners may not want or be able to travel.

Agree with you that extension program has its own set of issues -- possibly more than it is worth.

Probably the best member situation was a member in 1992 who bought OKW then with a plan for 10 to 25 years of use and then a sale of their contract. The net sale price is likely to recover their investment and opportunity costs leaving the use of great villas for maintenance fees only. And they got free passes for 7 years!

 

[JimC]

...Our maintenance fees currently include a Capital Reserve which covers periodic expenses beyond routine maintenance/housekeeping/front desk/landscaping/etc. Capital Reserve funds are used to replace carpeting, appliances, furniture and that sort of expense. During the last couple of years, hopefully this aspect of the annual fees will be excluded and that fund will have been reduced to zero by 1/31/2042....

Doc,

Can they do that under the contract and Florida timeshare law? I thought they would continue to assess the reserves as required and would benefit from the reserve account balance when ownership reverts back to Disney.

 

[Dean]

Dean,

I don't see how DVC can not give members their points in 2041. They may alter banking and borrowing and change home resort advantage, but I don't see anywhere where they have a right to not provide the allotment called for in our contracts simply because it is 2041 and the contracts expire in 2042. Maybe I am misreading something.

My view is that member defaults could increase in the last few years unless members have kids/grand kids who want to take the contracts over. The contracts will have little resale value and the older owners may not want or be able to travel.

Agree with you that extension program has its own set of issues -- possibly more than it is worth.

Probably the best member situation was a member in 1992 who bought OKW then with a plan for 10 to 25 years of use and then a sale of their contract. The net sale price is likely to recover their investment and opportunity costs leaving the use of great villas for maintenance fees only. And they got free passes for 7 years!

Jim I don't see how they can. There will not be enough units to accommodate all of the points for the 2041 use year, only about enough for half AT THE MOST. That assumes no banking or borrowing. Of course any who borrowed or decided not to use them could alter that to a degree. But it is a given fact that no all members can get and use their 2041 points by 31 Jan, 2042. Just think about a Dec use year.

As far the fees, they should reduce somewhat the last few years and should end up a zero sum, likely with a rebate at the end.

 

[RobDoc]

Doc,

Can they do that under the contract and Florida timeshare law? I thought they would continue to assess the reserves as required and would benefit from the reserve account balance when ownership reverts back to Disney.

My understanding is that the Capital Reserve fund is only for reasonable anticipated needs. By the last few years, there should be no further anticipation. I don't know what FL law states, but would assume that the law would favor the owner/members and not favor Disney with any fund surplus in 2042. If there is a surplus, I'd expect it to be returned to owners of record during the last year. (I'd really expect the fund to be exhausted by DVC in any needed refurbishment during those last years and that the reserve would NOT be a portion of the fees in 2041.) With a RTU timeshare, the reserve has a different basis at the end than a traditional timeshare with no end date.

Stay Tuned!

 

[JimC]

Jim I don't see how they can. There will not be enough units to accommodate all of the points for the 2041 use year, only about enough for half AT THE MOST. That assumes no banking or borrowing. Of course any who borrowed or decided not to use them could alter that to a degree. But it is a given fact that no all members can get and use their 2041 points by 31 Jan, 2042. Just think about a Dec use year.

As far the fees, they should reduce somewhat the last few years and should end up a zero sum, likely with a rebate at the end.

Thanks Dean. I have a Dec use year for OKW and have already planned to be fully borrowed before the last few years of the contract so that I am already using points each year that will come at year end.

 

[JimC]

My understanding is that the Capital Reserve fund is only for reasonable anticipated needs. By the last few years, there should be no further anticipation. I don't know what FL law states, but would assume that the law would favor the owner/members and not favor Disney with any fund surplus in 2042. If there is a surplus, I'd expect it to be returned to owners of record during the last year. (I'd really expect the fund to be exhausted by DVC in any needed refurbishment during those last years and that the reserve would NOT be a portion of the fees in 2041.) With a RTU timeshare, the reserve has a different basis at the end than a traditional timeshare with no end date.

Stay Tuned!

Thanks Doc. That would be great news.

 

[Dean]

Thanks Dean. I have a Dec use year for OKW and have already planned to be fully borrowed before the last few years of the contract so that I am already using points each year that will come at year end.

Don't we all. I plan to sell most before then but will likely keep some till the end or pass to kids.