How low will Disney let Poly go?

[DisMomKY]

Booking PVB studios is going to be the same cost as booking a 1BR Value at AKL. So gauge it off of that one.

If you felt 100 points was enough but you were staying in Studios at AKL then you might want more.

Thanks! We don’t mind staying studios, and want to be able to do about 6 nights in the fall or may/June

 

[frank808]

They'll tell you that, but you can buy a 25 point contract. 100 points is the current blue card membership minimum.

You have to be a current DVC owner to purchase at 25 points direct.

 

[ChipNdale8887]

You have to be a current DVC owner to purchase at 25 points direct.

I don't think that's true you just need to find the right agent willing to do it. We were told on here that you couldn't buy 50 points direct at Riviera but our agent was going to sell us as new members so I think its all in the agent.

 

[Yinn]

You have to be a current DVC owner to purchase at 25 points direct.

I don't think that's true you just need to find the right agent willing to do it. We were told on here that you couldn't buy 50 points direct at Riviera but our agent was going to sell us as new members so I think its all in the agent.

That’s exactly right. My agent was willing to do it. The question is if it’s worth it due to closing costs. For a cheaper direct purchase, it’s almost 20% of the purchase.

 

[spunkylouamanda]

I could see this for contracts that are paid in full and dont hit those laid off until dues are due but what about the ones with financing payments due every month? Those are the contracts that might get sold at lower prices. If they can't make their mortgage payments or car payments DVC might be the first thing to go unfortunately.

Out of curiosity, how quick are the finance companies willing to pull the plug on those contracts? I don't know. Earnest ask.

 

[Yinn]

Out of curiosity, how quick are the finance companies willing to pull the plug on those contracts? I don't know. Earnest ask.

I think it depends on a number of variables.

1) If you’re a finance company, do you want the potential bad PR of pulling something like this during a global pandemic? What if that person was in the hospital? Or a nurse pulling 24x7 shifts? Or otherwise too occupied. Excuse for missing a payment? No. But imagine the headline.

2) What’s your company’s overall view on recovery? The rates on these loans are ABSURD. At a 10%+ APR, it’s about the only loan out there that actually provides decent profits in today’s low rate environment.

3) What can your company do with the asset? We saw it during the last financial crisis. In the beginning, foreclosures were fast and furious. Until banks realized they became a real estate agent and rental company, all while spending operational overhead to sell an asset that continued depreciating. Then they were much more willing to work with people. Also reference #1.

In a down economy, I’d actually think it’s less likely for these contracts to be repo’d without working with the people, especially if there’s a strong history of consistent payments.

 

[EM Lawrence]

Bumping this. How low do you think Poly really will go? Do you think the 120-125 pp contracts on the ROFR thread are unicorns, or do you think prices will get that low on average or continue to slide? DH thinks they will go lower. I’m not so sure, because I assume most sellers that have put contracts on the market have loans to pay off and will try to hold the line on prices.

 

[Bearval]

That’s exactly right. My agent was willing to do it. The question is if it’s worth it due to closing costs. For a cheaper direct purchase, it’s almost 20% of the purchase.

Agents often supply bad information because they themselves sometimes do not know all of the rules/conditions especially after they have been changed. The only way you would know for sure here if if you said ok to the purchase and then the agent tried to get the contract written up. If you did I wouldn't be surprised if they contacted you back and told you that it couldn't be done. Also remember what the agent tells you is not legally binding, only what is in the contract. So you cannot go back to DVC and demand they sell you less than 100 because the agent told you that you could.

 

[ChipNdale8887]

Agents often supply bad information because they themselves sometimes do not know all of the rules/conditions especially after they have been changed. The only way you would know for sure here if if you said ok to the purchase and then the agent tried to get the contract written up. If you did I wouldn't be surprised if they contacted you back and told you that it couldn't be done. Also remember what the agent tells you is not legally binding, only what is in the contract. So you cannot go back to DVC and demand they sell you less than 100 because the agent told you that you could.

No reason to not believe him. He's been with DVC for 25 years.

 

[CastAStone]

Bumping this. How low do you think Poly really will go? Do you think the 120-125 pp contracts on the ROFR thread are unicorns, or do you think prices will get that low on average or continue to slide? DH thinks they will go lower. I’m not so sure, because I assume most sellers that have put contracts on the market have loans to pay off and will try to hold the line on prices.

Only way to know is to keep low-balling new contracts that pop up. As Disney plans a sixth MK DVC resort, do we expect the market to prop up Poly's price indefinitely with a more expensive point chart than most of the others and less flexibility than any of them? I don't.

 

[Jhoyer5150]

I'm a broken record at this point but I believe prices still need to drop further. Polynesian should hold >$100 levels but I think $120 will look rather average in a couple months and not a great deal. Reason: supply. There are tons of Poly contracts for sale everywhere. A lot of points purchased against those awful bungalows that sit idle and obstruct your view. Prices have fallen from $150 to $125 area now due to the abundance of supply. More to come too on the supply front, with unemployment now at 15% and rising, consumer confidence at its lowest point since 2008...oh and 11 of 12 Disney parks shuttered and 0 of 15 DVC hotels operating or even having a known re-opening date.

 

[zavandor]

Yes, they can adjust the charts, as long as it stays point neutral. So, studios could go up and 1 bedrooms can go down,

The point charts are built around 2 bedrooms as lock offs, so it allows them to adjust across room size,

From my understanding it becomes trickier for dedicated rooms. After I first joined, they made weekdays higher and lowered weekend to even it out,

So, it’s always good to have a cushion,.,or make sure you have enough to travel in the highest season.

That's one interpretation.

The other is that they cannot move points between different unit sizes, only within the same unit size in different time of the year. For example, increasing December to decrease September is legitimate, increase a 1BR to decrease a 2BR is not.
Last time they tried, they were challenged and at the end they rolled back, but they didn't explain why. They tried to do multiple things at once (seasonal reallocation, lockoff premium and move between unit sizes) so we don't really know what caused the rollback.
The official explanation (that 2 dozens people complained) doesn't hold up.

However, having a cushion is a good suggestion anyway. In case of seasonal reallocations the extra points can come in handy. I don't think they've finished with the 2021 reallocation.

 

[Brianstl]

I think in two months most resorts will be down at least another 20%.

 

[ClemTig]

I don't think Disney is willing to buy back ANY contracts until the pandemic is under better control and people are coming back to the parks. Until then, it is really up to the market to determine prices.

Disney is in a money crunch, guys. They are not a benevolent federal government out to save us from poor financial decisions with freshly minted dollars.

 

[ChipNdale8887]

I don't think Disney is willing to buy back ANY contracts until the pandemic is under better control and people are coming back to the parks. Until then, it is really up to the market to determine prices.

Disney is in a money crunch, guys. They are not a benevolent federal government out to save us from poor financial decisions with freshly minted dollars.

Totally agree.

 

[Brianstl]

Totally agree.

Exactly, it is going to be a long time before they will direct any revenue towards buying back any resale contracts.

 

[dsnymnkyuncle]

You have to be a current DVC owner to purchase at 25 points direct.

This is also financing related. 25 is a cash purchase for financing with Disney 50 points

 

[ChipNdale8887]

Exactly, it is going to be a long time before they will direct any revenue towards buying back any resale contracts.

Especially with the DVC sales department closed.

 

[Yinn]

Agents often supply bad information because they themselves sometimes do not know all of the rules/conditions especially after they have been changed. The only way you would know for sure here if if you said ok to the purchase and then the agent tried to get the contract written up. If you did I wouldn't be surprised if they contacted you back and told you that it couldn't be done. Also remember what the agent tells you is not legally binding, only what is in the contract. So you cannot go back to DVC and demand they sell you less than 100 because the agent told you that you could.

Let me clarify - we were going to do it.

The agent put me through waitlist for 25points, it cleared. The agent requested cc iormation. To proceed with the contract. I provided them my credit card information. They asked for confirmation of the number and asked for final confirmation to proceed. At that point, I requested a change to 75 points instead. So based on that, I have a high level of confidence that 25 pointcan be purchased.

But just in case, we then went through the entire process again for 75 points. Upon which, I completed my transaction. I have my contract. I have my points. I’ve used my points. Paid my annual dues and gotten my new UY points. Nobody has contacted me to rescind the contract.

So I’d say I’m 99.9% sure I have a legally binding contract and that my agent was telling me the truth. I’m still pissed I didn’t get ice cream though...

 

[Bearval]

Let me clarify - we were going to do it.

The agent put me through waitlist for 25points, it cleared. The agent requested cc iormation. To proceed with the contract. I provided them my credit card information. They asked for confirmation of the number and asked for final confirmation to proceed. At that point, I requested a change to 75 points instead. So based on that, I have a high level of confidence that 25 pointcan be purchased.

But just in case, we then went through the entire process again for 75 points. Upon which, I completed my transaction. I have my contract. I have my points. I’ve used my points. Paid my annual dues and gotten my new UY points. Nobody has contacted me to rescind the contract.

So I’d say I’m 99.9% sure I have a legally binding contract and that my agent was telling me the truth. I’m still pissed I didn’t get ice cream though...

We you already a member or was this your 1st contract resale or direct?