DVC Income Bracket?

[hhisc16]

After hearing about how many people are visiting the DVC kiosks at WDW, I am curious to think what is the target DVC income bracket they are selling towards.

(Income brackets came from the 2021 single tax brackets.)
(I know other timeshare companies have a target income bracket as well.)

 

[WilsonFlyer]

You need to include "A Pulse."

 

[Marionnette]

You need to include "A Pulse."

 

[WilsonFlyer]

Oh I think there's a target, which is becoming even more obvious with all the price hikes of late. There are actually two distinct parts of this puzzle though, and they must be separated. The first piece is the umbrella that is the Disney corporation. They want 'owners' at a high enough income bracket that will spend money at the parks and resorts indefinitely without even blinking an eye and will do so trip after trip and year after year. Certainly this is the ideal ownership from Disney's perspective and they most certainly have a bracket where they know this trend generally holds true.

The other side is the DVD side. While my post above may have been somewhat tongue in cheek, in other ways it was not. DVD has absolutely zero risk in selling a real estate interest to anyone. They don't even have to pay lawyers when they foreclose, so any dime they make is simply free money. They have a virtually unlimited number of points to sell so that's not an issue, and anything they foreclose on is sold again as "brand new." They finance their own. At ridiculous interest rates. At what, 10-20% 'down?' That's free money baby. There is absolutely no lose anywhere if you're DVD and you have a buyer with a pulse and down payment money. No credit impact? I wouldn't care either!

So it depends on which question you're truly asking.

 

[Sandisw]

I think they target to everyone. I bet They push the monthly option a lot to show how “affordable” it is.

So I chose all of them.

 

[CaptainAmerica]

Those are single tax brackets. Most DVC members are married, in which case the target would most likely be the $81,051 to $172,750 bracket.

 

[ILoveMyDVC]

I think they got carried away when they lowered the minimums and now they have a database that is too big (and I don't mean for computers). But certainly for extra events, specials, freebie gifts, mailings, magnets, etc...

 

[supersnoop]

I don't think tax brackets are they way they'd measure it. I generally see the distribution in fifths. That is, 20% of the population earns less than $30k ("poor"), the next 20% earns less than $54k ("lower middle class"), the next 20% earns less than $87k ("middle class"), with the next just under $143k ("upper middle class"), followed by the "rich" above that level.

I'd say that Disney targets "upper middle class" and above.

 

[WilsonFlyer]

I don't think tax brackets are they way they'd measure it. I generally see the distribution in fifths. That is, 20% of the population earns less than $30k ("poor"), the next 20% earns less than $54k ("lower middle class"), the next 20% earns less than $87k ("middle class"), with the next just under $143k ("upper middle class"), followed by the "rich" above that level.

I'd say that Disney targets "upper middle class" and above.

Let's call that the adjusted boundaries. 10-15 years ago, it was middle income America.

 

[eMoneyBug]

All Disney lovers!

 

[Brian Noble]

what is the target DVC income bracket they are selling towards.

They are marketing to anyone they think might sign a sales agreement. I suspect Disney doesn't much care if the buyer is over-extending themselves or not, though they'd prefer not to foreclose on it before at least some of the loan is paid off. Some other developers---who sell at similar list prices---have minimum income thresholds to qualify for tour incentives, but those thresholds are lower than you might think. $50K household income comes to mind, but I could be wrong about that.

 

[disneydreamer1980]

“All of the above” I’d say. As others say, as long as they get a sale i suspect they’re happy.

 

[corpcomp]

I don't think tax brackets are they way they'd measure it. I generally see the distribution in fifths. That is, 20% of the population earns less than $30k ("poor"), the next 20% earns less than $54k ("lower middle class"), the next 20% earns less than $87k ("middle class"), with the next just under $143k ("upper middle class"), followed by the "rich" above that level.

I'd say that Disney targets "upper middle class" and above.

I just hope most can afford it. On top of the purchase price, the cost of tickets, food, maintenance fees and travel expenses really totals up. What I've never been able to understand is the Golden Oaks Development which starts around $2MM. You don't even get an annual pass for 1 year from what I've been told,

 

[bumbershoot]

They push the monthly option a lot to show how “affordable” it is.

Yep. That's how I got in. And it was, in fact, affordable. Even when I added up the interest we paid (we had the loan for approx 6? years) it was worth it. It was easier for us to do it that way than to not go and save up. Instead, we got to go and still have DVC.

Those are single tax brackets. Most DVC members are married, in which case the target would most likely be the $81,051 to $172,750 bracket.

Being married doesn't mean both spouses work.

They are marketing to anyone they think might sign a sales agreement.

Yep.

On top of the purchase price, the cost of tickets, food, maintenance fees and travel expenses really totals up.

Owning doesn't mean you have to go to the parks. Other than two free DVC parties, I haven't been inside a WDW park since 2015, I believe, and I've gone every year since that time. I think this rundisney Princess visit is going to change that, but my cousin and I have had terrific trips without parks.

 

[CaptainAmerica]

Being married doesn't mean both spouses work.

No kidding. The MFJ tax brackets are what they are regardless of whether both spouses work. My wife doesn't work. What's your point?

 

[Maistre Gracey]

Yeah… I don’t think they give a rats rear end who they sell to. I do not think they have morals as far as selling to people they know cannot afford it. It would be nice to believe they do, and perhaps at one point in history they did.

That said, much of Disney standards & philosophy have changed since the earlier years. The newer crowd may never know what they are missing.

 

[crisi]

They are marketing to anyone they think might sign a sales agreement. I suspect Disney doesn't much care if the buyer is over-extending themselves or not, though they'd prefer not to foreclose on it before at least some of the loan is paid off. Some other developers---who sell at similar list prices---have minimum income thresholds to qualify for tour incentives, but those thresholds are lower than you might think. $50K household income comes to mind, but I could be wrong about that.

Moreover, its probably built right into their modeling. "We will foreclose on X amount of contracts in Y number of years, reclaiming Z points which we will be able to resell at current prices. L number of contracts will turn over in resale over M years resulting in an $N reduction in our expenses on blue card member perks."

Disney from a financial perspective would like nothing better for you to put down $5k on a direct contract, pay your loan on it for a year, never take a trip with it, and foreclose and resell those points. That's free money. And since the American way is to blame a persons misfortunes on themselves, Disney has no fear this will blow back on them.

 

[corpcomp]

In the original purchase, DVC talked me into buying at least a week's worth and never asked about income. Paid cash for 210 points (big mistake - never buy big contracts IMHO but I did not know about resales at that point and the smallest contract available - 160 points - would not cover a week in a 1 BR at BCV). Rest were all smaller 30 point contracts.

But fast forward and my wife just quit her job as a NYC nurse after 30 yrs. Too much pressure and too much exposure to COVID (she along with most other nurses already had it). Will take a big negative hit in income. Still considering adding on because I'm a masochist.

It's been two weeks, she read a lot of books and said she was bored. I just smiled at her and nodded. This will be interesting.

 

[JZCubed]

After hearing about how many people are visiting the DVC kiosks at WDW, I am curious to think what is the target DVC income bracket they are selling towards.

(Income brackets came from the 2021 single tax brackets.)
(I know other timeshare companies have a target income bracket as well.)

Traveled in August.

Post-travel survey from Disney included a question about ‘annual vacation budget’…..above $10,000 or above $20,000.

Fwiw, Disney enjoys financing DVC purchases. My recollection is finance costs took away much of the savings from having DVC, so we purchased outright, but I never anticipated the appreciation in price-per-point.

 

[corpcomp]

Traveled in August.

Post-travel survey from Disney included a question about ‘annual vacation budget’…..above $10,000 or above $20,000.

Fwiw, Disney enjoys financing DVC purchases. My recollection is finance costs took away much of the savings from having DVC, so we purchased outright, but I never anticipated the appreciation in price-per-point.

No choice for below $10,000? For the three of us I cannot imagine spending $10,000 in one week at Disney. Even when I did not own DVC.
Now the only major costs are the maintenance fees and air travel. Our Disney Visa generates usually 800 points per year so that covers all food and purchases across two trips.