DVC Resale Query

[Rascal1003]

Hi All,
We signed up in September last year, but have decided that it really isn't for us.
Anyone got any advice on cancelling or selling DVC membership?

Many thanks.
Kind regards,
Russ.

 

[sz9144]

well, I have two thoughts:

1) sell through a resale operation such as the one that sponsers the DVC boards

2) rent out the points for a while, just in case you decide later on you would like to use the DVC membership- it will be much more expensive to buy back in later!

 

[Rascal1003]

well, I have two thoughts:

1) sell through a resale operation such as the one that sponsers the DVC boards

2) rent out the points for a while, just in case you decide later on you would like to use the DVC membership- it will be much more expensive to buy back in later!

Well, we did a calculation that the costs involved in DVC membership would be about 50% per year more than if we take a vacation and book accomodation as well. The accomodation cost makes up only a small part of the total vacation cost for us from the UK, so the DVC actually is not very cost effective.

I feel a bit cheated and suckered by it all really. It is probably great for US residents with cheaper air tickets, but I think it sucks for us.....I was rash and foolish signing up, it must have been the rush of blood that followed the wedding !

 

[JimMIA]

well, I have two thoughts:

1) sell through a resale operation such as the one that sponsers the DVC boards

2) rent out the points for a while, just in case you decide later on you would like to use the DVC membership- it will be much more expensive to buy back in later!

I agree with both of these, although I'd consider them in reverse order. I'd rent for now, and sell only as a last resort.

I say that not because I love DVC, but because you are going to take an awful hit re-selling so quickly. You will have some costs associated with selling, primarily the 10-12% real estate commission that is normal for these contracts.

You might find a nice little renting niche being from the UK. We have many UK visitors at WDW, and it seems to me that renting internationally should be pretty cumbersome and risky. However, being there already, you would have none of the currency issues we'd face from here, and also I think a renter would be more comfortable renting from a countryman.

In 3-4 years, resale prices may have climbed enough that you can at least break even...OR, you can take the new baby.

Congratulations and good luck.

 

[Rascal1003]

Thanks Jim.
I am not worried too much about the loss, because we are financing it anyway, so no huge deal for us.
I just rented to a guy from Detroit with no problems, but I am just seeing the DVC membership as a huge burden and highly regret being suckered in by the sweet-talking salesman !

 

[DisneyBill]

Thanks Jim.
I am not worried too much about the loss, because we are financing it anyway, so no huge deal for us.
I just rented to a guy from Detroit with no problems, but I am just seeing the DVC membership as a huge burden and highly regret being suckered in by the sweet-talking salesman !

Easy enough, quit being mad at yourself and call The Timeshare Store.

 

[dizzynee]

Rascal I get the impression you feel the dvc sales person mislead you in some fashion? What if anything did they say that was misleading?

 

[CarolA]

Well, I would just call one of the brokers and list it.

It sounds like it just was not the right decsion for you and the "renting" isn't going to make you happy. (What is it about this board that the solution to everything is "rent"?)

SSR has gone up some in the past year so while you will lose some money on the commission, it will be over and done with.

 

[Chuck S]

I agree, put it on the market with a reputable reseller here in the states, like our sponsor. Renting would be a temporary solution, but would require you to deal with renters and making ressies. Selling would avoid those hassles, even if you accept a "low" bid, and Disney exercises ROFR, it won't matter on your end.

 

[Cruelladeville]

Rink was being humorous, and he was also correct. Any other timeshare would have resulted in the OP having to pay thousands of dollars, regardless whether or not the contract was financed. One of my DD's bought a Sheraton timeshare, and wanted out of the contract a couple of weeks later. Sheraton refused. Her only choice was to refuse to pay the monthly payment, because selling would have resulted in a $10,000 loss. Sheraton eventually reclaimed the contract, but it was a huge mess for a few months.

I understood Rink's post was his brand of humor, but your post was just being mean.

 

[icydog]

I am sending you a PM

 

[MrShiny]

You might want to consider renting, but specifying for transfer only. That way, you don't need to hassle with the actual res process.

Of course if you really don't think you'll be using the points, then sell. You can't cancel after 3 business days in the US.

I'd first plan out tentaive vacations for the next say 10 years. Not what you'll definitely do, but what you might. Then see which of those DVC could cover (through DVC, Disney Collection, Conceirge, II trades). If it doesn't save you anything, then sell.

Keep in mind, the prices have been going up, so the longer you wait, the more you might make (up to a point of course - the contracts do end in 2054!). Balance that with the cost of dues and interest (not sure if you get the tax benefits of interest we do in the states).

 

[MrShiny]

Well, we did a calculation that the costs involved in DVC membership would be about 50% per year more than if we take a vacation and book accomodation as well.

Is that spreading the cost over all 50 years? That's hard to believe, unless you get some great rates on accommadations bundled in with those pricey transatlantic flights!

 

[bradpga]

Rent your points and make a profit!!!!!!!!!! If you have 150 points- that is worth $1500 a year. Take out the $600 dues and you put $900 in pocket. In 13 years it's paid for itself and then you are left with 35 years of gravy!!!! Not to mention, in 10-12 years reservations will cost much more driving the rental points upwards of $15 per point, resulting in $3,000 per year in your pocket!!!

 

[D'Family]

Another option, look into your local real estate market for TimeShare trades. There might be someone in your area wanting to trade out a timeshare that would work for you.

 

[Boas]

seems to be an emotional headache for you.

sell it through a good re-sale (e.g. Timeshare Store) and minimize your headaches....

this is an easy fix w/ a relatively small financial cost (net of sale)... don't let this be a big regret in life, remember the great vacation and move on.

cheers

 

[CALNEVA DISNEYFANS]

Put an add on TUG (timeshare user group) and sell yourself. Use First American Title in Orlando to process sale. I have a sample contract of sale that you could use. What are you selling and how much?

 

[Pootle]

Well, we did a calculation that the costs involved in DVC membership would be about 50% per year more than if we take a vacation and book accomodation as well. The accomodation cost makes up only a small part of the total vacation cost for us from the UK, so the DVC actually is not very cost effective.

I feel a bit cheated and suckered by it all really. It is probably great for US residents with cheaper air tickets, but I think it sucks for us.....I was rash and foolish signing up, it must have been the rush of blood that followed the wedding !

One happy UK DVC member of over 10 years' standing here ....... I can quite see how it may not work out for individual circumstances, but when you say ' ... I think it sucks for us ....' I hope you don't mean Brits generally because it's definitely not true in our case.

In the early days (late eighties) we were happy with cheap and cheerful packages offsite - after all you don't spend much time in the room right? Now older and more financially secure, I want the nice accommodations that DVC provides. A package from the UK staying onsite, or in any really top quality accommodation offsite is NOT a cheap option.

Maybe you are thinking about renting a villa in future - with so many Brits having bought in Orlando there's certainly enough competition to keep prices down outside of peak times, but even then, unless you were travelling with other family members, I doubt this would qualify as a cheap option.

Seems you have been given good advice here already, so I also wish you good luck with whatever you decide to do.

 

[Steamboat Bill]

I am just seeing the DVC membership as a huge burden and highly regret being suckered in by the sweet-talking salesman !

Wow...I have been a member here for many years, and this is the first time I can recall anyone acusing DVC of suckering in a sale by using a sweet-talking salesman.

I have been on many timeshare tours by other companies and DVC is the MOST ethical and low key sales force by far. Just for fun, try visiting the Westgate...now there you will find a real hard-sell.

 

[Halo]

Well, we did a calculation that the costs involved in DVC membership would be about 50% per year more than if we take a vacation and book accomodation as well. The accomodation cost makes up only a small part of the total vacation cost for us from the UK, so the DVC actually is not very cost effective.

I feel a bit cheated and suckered by it all really. It is probably great for US residents with cheaper air tickets, but I think it sucks for us.....I was rash and foolish signing up, it must have been the rush of blood that followed the wedding !

I think your maths is wrong or your logic is flawed Rascal.

IMHO the true cost to you of your DVC purchase (excluding any financing costs) is:-
A. The Purchase Premium - ie the diff between what you paid and what you can sell it for. What you can sell it for is what the asset is actually worth.
B. A should be amortised (amortised) over a period.
C. The annual maintenance cost.

So, as an example, a purchase of say 150 points at SSR at $95, assuming maintenance costs of $4 per point, and that you could sell it for $60 net, would have a real cost like this:

A = $35 x 150 = $5,250.

You could amortise this over the life of the asset say 46 years, but to be conservative amortise it over 10 years, so...

B = $525 pa over 10 years after which you have cleared the purchase premium.

C = $4 x 150 = $600pa

So...the true cost (as opposed to the cash flow) would be B + C = $1,125pa for 10 years, after which it would reduce to just the $600pa maintence costs.

The maintenance costs will rise over time but (hopefully) the resale value of the DVC will rise too so in practice A will reduce over time, i.e. if you could resell it for $75 net per point A will fall to $20 x 150 = $3,000. In time you might be able to sell it for what you paid for it say, $95 which would wipe out the premium. If you can resell for more, you would make a profit.

DVC is not a way of buying a cheap vacation. A package holiday in a hotel or villa will inevitably be cheaper than DVC, but it will not be of DVC quality. DVC is IMHO a value for money way of staying in on-site quality accomodation in WDW.

The sums above ignore your financing costs which are on the whole asset but there are ways of minimising these if these are an issue for you.