Expiration year -- how is it going to work

[Brian Noble]

Mexico resorts are all RTU. I think there are also some oddities in e.g. Scotland, but don't remember the details.

However, in the Mexico case, I am fairly sure the RTU is not tied to an underlying lease that ends for everyone at the same time, so it is perfectly possible to sell me a 30 year RTU today, and you a 30 year RTU in three years on the same property.

I can't think of another US-based timeshare structured this way.

 

[Sandisw]

Yes as stated no 2043 booking, maybe not even any real 2042 booking. Best case is to probably borrow them and use them prior to any issues, but I’m sure when we get closer like within a few years (3-5) they will have an outline and defined plan set for all the 2042 points expiring.


I’d be surprised if they cut everyone off end of Jan 2042, but I would think you’d have to have something booked by then.

Me too!!
I’m thinking the thought process might be having some sort of great incentive as an owner to whatever they do beyond 2042 with that location. I have thought about that as well, I’m sure they will want people to roll over into something else before it actually expires.

Unless DVD decides to change things, the ground lease ends 2042 and the building and land go back to Disney.

There will be no availability to book beyond January 31st 2042.

Now, DVC could decide to offer owners some potential options but it won’t be within the DVC unless they get Disney to extended because those resorts are gone.

It’s also why I see them moving toward the trust model because they don’t run into this with new resorts. No more leasehold and only RTU to properties.

 

[Genie+]

We bought a 2042 contract because we wanted BW or BC and that’s all you get lol, and it matches our expected timeline of usage. I liked the idea of not being tied in too long.

Our plan is to roll with whatever DVC decides is the best way to transition the membership through this period (within reason). With a Sept UY there will only be 5 months of inventory left for our 2041 point allocation. I can’t say exactly how DVC is going to smooth the wrinkles but I’m fairly certain DVC will make a few adjustments near the end. Maybe they don’t allow banking some or all of our 2040 points, change home priority booking window to something different than 4 months, and/or they offer incentives to roll points into a new contract. It’s not something they can commit today because the DVC landscape in 15 years is unknown. Closer to then they’ll determine any likely issues and see how they might prevent.

My only prediction is DVC probably wants the dues paid first to use 2041 points in 2040

 

[muppets3d]

Are there other big timeshares like DVC that don't go on forever and have an actual expiration? Or is DVC unique that way. Wondering if there's examples out there already.

It's not terribly common, at least for points-based timeshares. Most of them seem to be perpetual, except DVC. But Disney doesn't like the idea of anyone except them owning property inside the district. But now with Golden Oak things seem to be changing a bit.

 

[Sprinkles&Sprints]

I guess this is another indirect advantage of Favorite Weeks. I have two contracts with Dec UY - one at BWV (and per the points above could be an absolute mess the last year) and CCV (where at least I know I’m guaranteed to have Week 52 that year). Although hypothetically - how would that last year work if someone has a Dec UY and a Favorite Week in March?

 

[DougEMG]

So what would motivate a DEC UY owner to pay the dues in 2041 if DVC puts some kind of restrictions on borrowing in place thus forcing the owner to use the points in only Dec 2041 and Jan 2042?

 

[muppets3d]

So what would motivate a DEC UY owner to pay the dues in 2041 if DVC puts some kind of restrictions on borrowing in place thus forcing the owner to use the points in only Dec 2041 and Jan 2042?

We are 18 years away FFS can we keep the "what ifs" to at least the same presidential administration, if not the same year?

 

[Brian Noble]

So what would motivate a DEC UY owner to pay the dues in 2041

If they do not pay 2041 dues, they won't be making any reservations from about March '41 on, because dues are CY not UY.

I would assume 2042 dues will be pro-rated for everyone, at 1/12th, just as dues are pro-rated at the beginning of a resort's life. Anyone who owns any other points in the system are going to need to pay that off, or their account overall is going to be frozen. If you only one '42 points, then maybe the only reason to pay is that they are honest.

 

[Chili327]

So what would motivate a DEC UY owner to pay the dues in 2041 if DVC puts some kind of restrictions on borrowing in place thus forcing the owner to use the points in only Dec 2041 and Jan 2042?

Zero motivation if you don’t plan to use them.

We are 18 years away FFS can we keep the "what ifs" to at least the same presidential administration, if not the same year?

We are less than 18 years away from it becoming an issue, most likely will have to be worked out & completely in place by 2040, so at best 15 years (technically 14 and some change)

 

[Sandisw]

I guess this is another indirect advantage of Favorite Weeks. I have two contracts with Dec UY - one at BWV (and per the points above could be an absolute mess the last year) and CCV (where at least I know I’m guaranteed to have Week 52 that year). Although hypothetically - how would that last year work if someone has a Dec UY and a Favorite Week in March?

Your last FW will be March 2041 regardless if UY because the resort ceases to exist on January 31st, 2042.

 

[atthebeachclub]

With 2042 contracts, the "always be borrowing" motto makes some sense, since we don't know if you'll really have a good option to use the last year of points otherwise.

 

[TheDailyMoo]

With 2042 contracts, the "always be borrowing" motto makes some sense, since we don't know if you'll really have a good option to use the last year of points otherwise.

yup was gonna say this is the only case my perpetual borrowing is actually a positive. I'd borrow 2041 points now if they let me.

 

[Sprinkles&Sprints]

Your last FW will be March 2041 regardless if UY because the resort ceases to exist on January 31st, 2042.

But if I had FW 1, that would still give me 2042, correct? (Also recognize this is moot since FW don’t exist in 2042 resorts…)

 

[muppets3d]

Zero motivation if you don’t plan to use them.



We are less than 18 years away from it becoming an issue, most likely will have to be worked out & completely in place by 2040, so at best 15 years (technically 14 and some change)

Still more than far enough away to where we don't have to "what-if" all these silly edge cases.

 

[Sandisw]

But if I had FW 1, that would still give me 2042, correct? (Also recognize this is moot since FW don’t exist in 2042 resorts…)

Since FW use current UY points, yes, it would be booked with the 2041 points.

If someone had a FW after January 31st, then they would simply get regular points with their 2041 points since there is no 2042 FW to book.

 

[Chili327]

Still more than far enough away to where we don't have to "what-if" all these silly edge cases.

But then what would we have to worry about? lol

 

[Mirabell Rose]

If the Contract expires on Jan 31 2042 one will receive the 2041 points which will need to be used by or on January 31 2042. Use years were sold on the month you will vacation meaning most will vacation in the month of the use year so there should be no leftover points. In other words most use the points in the month received.
The dates are in the contracts and simply put this is the end date. If Disney will extend any grace period is TBD but by no means do they have to so plan accordingly. What Disney will do with resort is the better question. I would think they will continue DVC if there is still interest and could easily sell points for Beach Club as new prior to the end date with a Different end date for any contracts they ROFR.
Lets all face the facts Disney is NOT going to do anything without $$$ involved no need to take an extension route they will just sell the contracts with a later date as they did with OKW - don't forget DVC was and is selling the ROFR OKW contracts with the later date. This is well overlooked and only the option to extend is remembered as it was a mess but selling with a later date was not.... This is in fact the only thing I can see DVC doing if they intend to keep BC and the other 2042s as a DVC resort without crashing the entire resale market and maybe hurting their direct price as well. there are a few things in play here and this will determine the future expirations:
Buyers will have less resort choice if DVC just lets resorts close, choice is a huge consideration for any timeshare. We see this with Riv and how it affected both direct and resale. I will add however this all every contract promises but never enforced like with Riv. Yes there is other resort resale buyer to see how pulling a resort our of DVC will affect resale prices maybe? Is this a strong selling point for DVC direct? although I do not think this is related to expiration more of a future way to extract $ from DVC buyers.
Simple math there is a point paying 100 or whatever the price for 2042 contact coming soon adding the dues the buyer receives no benefit over paying cash meaning neither DVC nor a current contract holder can sell the points. Another downside in many ways from future buyers saying X years from expiration I am stuck.... To why pay my dues when I no longer want to go in the last years DVC will just take the points back. Will DVC maintain the resort if this happens being there is a loss - yes there are fall backs for Disney to sell cash but no one knows what the details are or if there is a limit.
I could go on with a long list but in the end it would all be bad if DVC does not start selling at least some of the resorts with a new expiration date. In the end the only ones hurt are those who currently hold the contracts which will is easily over looked by a buyer and hey they offered the current holders 20 off a point which the new buyer would love to have and see as a good thing... That is 3K off a 150 point contract...... and DVC goes on as it is now.
Don't in any way Discount what DVC has learned and did with Riv as this has NOT been done with any others that have opened after... Disneyland Hotel, The Cabins, Poly tower... Lakeshore lodge is the only unknown right now.

OKW extension to 2057, because of the way they did it, hit all OKW points. DVC ROFRing OkW points and selling them directly with 2057 expiration is not the same as selling points to the other ‘42 resorts with a longer expiration date.

 

[Judique]

yup was gonna say this is the only case my perpetual borrowing is actually a positive. I'd borrow 2041 points now if they let me.

Although I doubt I'll be traveling, if I'm still breathing, my oldest DD is an owner of my contracts. She was 21 and on the trip with me when I bought so it seemed like a good idea at the time. She doesn't pay the dues or manage the account in any way but loves joining in on trips when she can. I will probably have her start managing the accounts in a few years as I age a bit more, if she's interested.

I'm always in borrowing mode and with an October use year it only makes sense to try to use up all my points by borrowing in that last year. Restricting the use by suspending borrowing would almost be sure to end in forfeited points for those with a late in the year use year.

As far as paying dues in 2042, that's an interesting question. Why did they not end the life of the product on Dec 31, 2041, in line with a full year of dues?