DVC Extras, WHY?

[thelionqueen]

More FP, sounds great, now if only they would hurry up and actually do this.

I agree with this! I'm pretty sure I'm going to be doing a small add-on from Disney once my resale contract is finalized. I think the adding of a MOD DVC resort will also factor into these "tiers" or at least create new ones. Unlike most, I'm actually excited to see what they offer when CBR goes up for sale. Debating a small add-on or waiting to see what CBR brings. Anyone else looking forward to CBR??

 

[ziravan]

I agree with this! I'm pretty sure I'm going to be doing a small add-on from Disney once my resale contract is finalized. I think the adding of a MOD DVC resort will also factor into these "tiers" or at least create new ones. Unlike most, I'm actually excited to see what they offer when CBR goes up for sale. Debating a small add-on or waiting to see what CBR brings. Anyone else looking forward to CBR??

CBR will NOT be a moderate DVC resort. Bank on that. Gondola access to Star Wars Land will pop that into deluxe category.

 

[thelionqueen]

CBR will NOT be a moderate DVC resort. Bank on that. Gondola access to Star Wars Land will pop that into deluxe category.

Even Better!!!

 

[supersnoop]

From what I understand, buying resale vs. buying direct is a DIFFERENT LEVEL of membership to the club, it's not segregation.

Nope. I've said it before and I'll say it again: buying a deeded interest in real property makes you a member. Buying from Disney makes you their customer. Being their customer may provide you with some perks, but it doesn't take away from what it means to be a member.

 

[SL6827]

I'm happy to by resale. Not going to spend thousands to save hundreds, but I am also happy for those who get to use the perks.

 

[amccu18007]

In my eyes, the biggest blow to resale customers would be if they took away the 11 month home resort booking window. Not sure how they could do it but that would be a driving force to steer people away from resale and into buying direct.

 

[KAT4DISNEY]

In my eyes, the biggest blow to resale customers would be if they took away the 11 month home resort booking window. Not sure how they could do it but that would be a driving force to steer people away from resale and into buying direct.

Really no way they can do that.

 

[Matty B13]

In my eyes, the biggest blow to resale customers would be if they took away the 11 month home resort booking window. Not sure how they could do it but that would be a driving force to steer people away from resale and into buying direct.

This would drive the resale value of DVC contracts to practically zero, and DVC doesn't want that.

 

[ziravan]

This would drive the resale value of DVC contracts to practically zero, and DVC doesn't want that.

It would destroy the balance between the 11 month and 7 month window even more than its damaged now.

That would remove one of their chief selling points for direct sells.

Such a move would tank DVC sales globally - direct and resale - and DVD surely doesn't want that.

 

[KAT4DISNEY]

This would drive the resale value of DVC contracts to practically zero, and DVC doesn't want that.

I don't think so.

The thing that Disney can't take away, and the thing that is what actually provides all the value when you get down to it, is a room at good resorts at Disney for less. Over and over they can try and take away from resale and make it less attractive but the thing is they can't remove what it is that makes DVC attractive in the first place.

Way back when before anything was done to differentiate there were quite a few that stated that if DVC did something it would reduce the value. Yet today it's higher than ever because if you are going to WDW and want to stay onsite at a Deluxe and can plan a bit in advance you can't beat the cost vs a CRO room.

The tanker would be the parks closing or CRO rooms dropping significantly in price.

 

[Dean]

In my eyes, the biggest blow to resale customers would be if they took away the 11 month home resort booking window. Not sure how they could do it but that would be a driving force to steer people away from resale and into buying direct.

Legally they couldn't do that but they could come up with a VIP system that gave a wait list or longer reservation option (14 instead of 7 days for ex.) to qualified members.

This would drive the resale value of DVC contracts to practically zero, and DVC doesn't want that.

Doubtful but actually DVD would want to do this if they could still keep selling. They have no desire to keep resale prices high and not responsibility to do so but they do want to be able to sell the most they can. Their ideal situation is you can't sell but don't realize that going in and that everyone buys retail.

 

[wnielsen1]

Doubtful but actually DVD would want to do this if they could still keep selling. They have no desire to keep resale prices high and not responsibility to do so but they do want to be able to sell the most they can. Their ideal situation is you can't sell but don't realize that going in and that everyone buys retail.

I disagree. Resale value is a selling point for direct sales and it is something that the guides bring up themselves.

 

[Matty B13]

Also, why do they try to keep resale prices so high with ROFR?

 

[supersnoop]

Also, why do they try to keep resale prices so high with ROFR?

What makes you think that's their goal? They aren't trying to keep prices up. They just need the inventory to sell.

 

[Dean]

I disagree. Resale value is a selling point for direct sales and it is something that the guides bring up themselves.

In reality the endpoint may be somewhat same but all they really care about is selling retail and if they can do that AND push down resale prices they will because that means they've made it less attractive in other ways. Timeshares who sell for free or pennies on the dollar still are able to sell retail for large $$$. Most people who are buying retail during a sales presentation aren't going in well educated and even if they become educated fast enough afterwards, they often don't cancel even if they should. I'll say again, they could care less about what you can sell for but rather whether a perspective buyer goes retail or not. EVERY SINGLE RESALE BUYER is a potential retail buyer, that they profess they would never buy retail is somewhat irrelevant to that point.

Also, why do they try to keep resale prices so high with ROFR?

As noted, it's all about selling retail, even the option to pick up cheaper contracts is a secondary issue that they'd be fine skipping over if they could satisfy the rest of the sales goals.

 

[ScubaCat]

What makes you think that's their goal? They aren't trying to keep prices up. They just need the inventory to sell.

I doubt that's the case. I think keeping the price up is the main goal. It'd be hard to sell CCV direct at $171 (or whatever the current price is) if BRV resale went for $30.

I don't think DVD really wants to mess with selling older properties... The real money is in "live" properties (ones they are actively selling). Flipping ROFR and foreclosed contracts is just part of management overhead that more or less pays for itself with the profits.

 

[_auroraborealis_]

I doubt that's the case. I think keeping the price up is the main goal. It'd be hard to sell CCV direct at $171 (or whatever the current price is) if BRV resale went for $30.

I do wonder where the line is for the drinkers of Kool-Aid out there. I have definitely seen people advocating direct buy even for resorts like SSR and AKV where there is a huge markup between resale and direct, because "member benefits!" "Disney financing," "Disney will take everything away from resale, just you wait!" and also "resale is a scam and you'll get ripped off!" And I'm not talking 25/50 point add-ons, I'm talking about people looking at 200+ point contracts, where the pricing is not even CLOSE to a rounding error.

Disney have done a stellar job of putting lipstick on a timeshare.

 

[tjkraz]

This would drive the resale value of DVC contracts to practically zero, and DVC doesn't want that.

Resale value would fall but not to "practically zero." Even with some modification to the current booking windows, all owners are guaranteed at least 1 month resort priority. Such a change would reduce the ability of resale owners to book peak periods, but they'd still get SOME priority at their Home and the current 7 months access at all other properties. With WDW deluxe hotel rooms going for $400-500 per night, there would still be healthy demand for resale points even under those conditions.

I doubt that's the case. I think keeping the price up is the main goal. It'd be hard to sell CCV direct at $171 (or whatever the current price is) if BRV resale went for $30.

But organic demand is much higher than $30. DVC uses ROFR pretty sparingly. Some would argue that it's just enough to keep resale buyers in check. But resale prices also benefit from the comparison to direct. When Disney is charging $170+, a resale price of $100+ sounds pretty good.

During the recession DVC pretty much abandoned ROFR. Prices did fall, but that was more a function of increased supply and reduced demand.

Without ROFR, the water would find its own level. And as long as DVC is a far cheaper way to vacation than paying WDW hotel prices, there will be buyers.

 

[Dean]

I doubt that's the case. I think keeping the price up is the main goal. It'd be hard to sell CCV direct at $171 (or whatever the current price is) if BRV resale went for $30.

I don't think DVD really wants to mess with selling older properties... The real money is in "live" properties (ones they are actively selling). Flipping ROFR and foreclosed contracts is just part of management overhead that more or less pays for itself with the profits.

It was interesting to see the tide turn in attitude a few years ago on this board. It was like a jilter lover where quite a number went from love to hate. But interestingly they started complaining and talking bad about DVD/DVC but most still continued being an owner or even adding on. In many ways we passed the line of reasonableness in terms of product vs cost vs hassle some time ago but yet people keep buying and resale is double what it was at the low point.

 

[Littlelulu01]

I understand where you're coming from with the resorts no longer actively marketed and Aulani that's been for sale several years now but if looking at direct purchase during the initial offerings for every resort including Aulani, the direct purchase comes out ahead of resale every time-even during economic downturns.

Examples of direct sales pricing. This doesn't take into account any purchase incentives, which most resorts offered except GFV.
2007: AKV and ssr @ $104
2009: vgc @ $112
2009: BLt at $120
2010: Aulani @ 114
2013: VGF @ 145
2015: pvb @$165 (I'm pretty sure it was initially offered at a nice discount for current members)

So to take the worst seller, Aulani and analyze because the other resorts are a much better scenario: Had you purchased Aulani initially at $114 in 2010 you'd have at least 7 years use of points so far. Currently the subsidized mf's are $5.28. Had you purchased the worst value dvc, Aulani when it was first offered, and resell it today you will still get almost all of initial investment back and will have used those points for the past 7 years. All the other resorts have a much better outcome. I remember reading a ton about the outrageous $145 pp for GFV and that people would just wait a few years and pick up for a fraction of the cost resale. Yes you can pick up a resale contract gfv for less than $145, not much less though but the person who purchased direct in 2013 has been using the points for 5 years now and has direct benefits. They fared better than the resale purchaser.

The resorts now selling resale like AKV at about $85 are a much better deal than direct at $165 but had you initially purchased at $104 back in 2007 it was a much better deal than resale now.