DVC Expires in 2041 or 2042?

[jpal]

I think this may be semantics question but here goes. I'm buying a resale and the contract states that the deed expires on 1/31/2042. So doen't that mean that my last use year will really be 2041? Sure the program offically ends in 2042, but I'm not going to pay maintenance in 2042. Or is the contract wrong?

Sorry if this topic has already been discussed.

Thanks

 

[PamOKW]

The program ends on 1/31/2042. We haven't gotten exact details on how that last year will work in terms of what's our last Use Year of points, how much dues, etc., etc. I won't be too concerned until about 2032.

 

[Caskbill]

This was discussed on a thread a few months back. Bottom line is, nobody knows. I'm sure Disney doesn't even know for sure.

There is no January Use year, so everybody's last use year will be 2041. (Use year months are Feb, Mar, Apr, Jun, Aug, Sep, Oct and Dec). Of Course someone with a Feb UY gets their 2041 points 10 months before the Dec UY member. If everyone needs to borrow their 2041 points to use them in calendar year 2041, then there probably won't be enough units to fill demand.

last Dues paid should be for 2041. Paid in Jan 2041. I suppose technically everyone could owe 1-month's dues in 2042 but whether Disney will try to collect that or not is anybody's guess.

We'll just have to wait and see.

 

[PamOKW]

We'll just have to wait and see.

And hopefully all of us will be around to post about it here on the DIS!

 

[JimC]

Caskbill: "There is no January Use year, so everybody's last use year will be 2041. (Use year months are Feb, Mar, Apr, Jun, Aug, Sep, Oct and Dec)."

Does anyone know why they only selected those eight months as use years?

 

[Dean]

There will not be enough units for everyone to get all of their 2041 points. They will have to limit the points the last year or 2 at least. They could do this as a lottery or could prorate in a number of ways. You will pay dues based on the maint schedule and how they prorate the points. My guess is they will prorate 2041 and possible 2040 points as well and that we will pay two calendar years of FULL maint fees based on how many points we get in the deal. The dues shouldn't be much the last year or 2 as there are no need for reserves or major renovations. I bet you see a lot of people defaulting on the dues though as the return vs dues might not be very favorable.

I too would love to hear why they did the use years they have. Why not start 1 Jan instead of Feb? Why not have only 4 or 6 use years if you don't want twelve. Frankly, I suspect they're going to wish they all were 1 Jan or 1 Feb, actually I bet they alread wish this but have no way to correct it.

 

[kem330]

Well this is certainly interesting to speculate about. I just wonder from a legal standpoint how prorating points toward the end fits in with the contract. Did we indeed buy x amount of points for the life of the contract and are we entitled to use them by the end date. Hope Disney has some game plan!

 

[Dean]

Originally posted by kem330
Well this is certainly interesting to speculate about. I just wonder from a legal standpoint how prorating points toward the end fits in with the contract. Did we indeed buy x amount of points for the life of the contract and are we entitled to use them by the end date. Hope Disney has some game plan!

No you bought X percent of a "unit" which is represented by points. I don't know about the legalities but think about it. There's no way everyone could get points and use them ALL at the DVC resorts those last couple of years. Even with borrowing ahead (2040 & 41 used early) and no 2042 points to borrow, there still won't be enough units that last year or 2. That only leaves 3 possiblities that I can think of within the system. Those are proration, a lottery and giving everyone all their points and letting them fight it out. The option of DVC letting people use their points at other places or use the DVC resorts after the expiration date are unrealistic expectations.

 

[lurontravel]

Originally posted by Dean
No you bought X percent of a "unit" which is represented by points. I don't know about the legalities but think about it. There's no way everyone could get points and use them ALL at the DVC resorts those last couple of years. Even with borrowing ahead (2040 & 41 used early) and no 2042 points to borrow, there still won't be enough units that last year or 2. That only leaves 3 possiblities that I can think of within the system. Those are proration, a lottery and giving everyone all their points and letting them fight it out. The option of DVC letting people use their points at other places or use the DVC resorts after the expiration date are unrealistic expectations.

Why do people think that there will not be enough units to go around in 2040-41??? They are only allowed to sell as many points as there are nights/units, right???

I would think that enough people will be borrowing anyway that other then the really peak times people will be able to still basically get what they want, keeping in mind that the waitlist will not come through very often that time period though.

 

[Dean]

Originally posted by lurontravel
Why do people think that there will not be enough units to go around in 2040-41??? They are only allowed to sell as many points as there are nights/units, right???

I would think that enough people will be borrowing anyway that other then the really peak times people will be able to still basically get what they want, keeping in mind that the waitlist will not come through very often that time period though.

Again, they didn't sell points. The points are only used to represent what you own. Do you really think that someone who gets all their points in Dec, 2041 is going to have the full opportunity to use them all? The problem is that the units will only be available for part of a use year for all except Feb use years. Assuming equal points in each use year, there will be no more than half the units needed to service the last years points.

 

[InstImpres]

I anticipate a "magical endings" buy back program. The other thought I had is a special banking policy to allow the points to be spread out for an extra year or 2 and get people to SSR, maybe a selling point for add ons at that time.

Just a thought
Sandy

 

[timC]

The contract provides DVC with a whole lot of latitude in how to terminate this thing.

One thing is for sure, based on the amount of excitement that recently caused by the rumor of a tweak to the PS reservation policy, I can't image the war that'll be raged over this question.

Of course, I'll leave it to DS1&2 to handle this.

 

[JimC]

By then many of us will be too old to care

 

[CarolMN]

Originally posted by JimC
By then many of us will be too old to care

That's my take (even though I find the speculation interesting to read).

I'll be 90 in 2042 if I'm still alive. Even though I'd like to think that I'll still enjoy traveling and actually be able to do it, the odds are not in my favor. Doubt I'll be going much past my mid-70's! Assuming I'm still alive and have at least my mental faculties in good working order, I'll probably give away my membership about that time (2025 or so) just to rid myself of the annual dues obligation. Will likely still be a very good deal for the recipient - a Disney vacation for 15 - 16 years for just dues!