Irrational DVC Resale Pricing???

[ToddyLu]

I think purchasing DVC or any timeshare or other "big" purchase needs to be studied. So many people that post on here do not know the basics and that always surprises me. But even being on here 6 months before I purchased did not make me the informed buyer I am today. If so, I maybe would have looked resales (but loved the immediate satifaction of Disney Direct) or have my contract separated out into smaller portions for a possible gifting or sale later. Would I have chosen a different amount of points or different resort? No. DH was very sure about wanting AKV. (like many others resort was not as important to me, but after being at AKV once he so made the right choice for us) I was happy with the amount of points and he was happy with the resort.

 

[Deb & Bill]

...Also, many original OKW owners may simply see themselves as too old (or dead) by 2042 to receive enough use to justify the extension. ...

Me in 2042 = (more than likely based on my family history) DEAD

The old "a bird in the hand..." And I probably won't choose to saddle my son with my DVC dues when he is still young and starting a family (if he waits like we did).

 

[LisaS]

I do think that maybe there is also a set of people out there that really don't take into account the expiration date and would have made a different choice if more informed.

And there are others who prefer the shorter contracts so that we won't be stuck paying dues at a time when we may no longer be able to travel. Dues could well be $15/point by 2042 and I'll probably be glad to be off the hook by then.

I agree that there will come a time when the longer contracts will be worth more on the resale market but I didn't buy DVC as an investment. Once I pass my break-even point, if I decide to sell before the end anything I get for it will be gravy.

 

[DadwhoLOVESDisney]

Very helpful thread...thanks!

 

[FoodLover]

And there are others who prefer the shorter contracts so that we won't be stuck paying dues at a time when we may no longer be able to travel. Dues could well be $15/point by 2042 and I'll probably be glad to be off the hook by then.

Bingo. I actually think the expiration of membership is a "feature" rather than a negative. Most timeshares are purchased in perpetuity. That means someone (i.e., your heirs) is going to be stuck paying dues FOREVER, unless you or they can sell the membership. With Disney, you know the date when you'll no longer have to pay dues.

Due to our ages, my husband and I deliberately bought a DVC property that expires in 2042.

 

[adminjedi]

I do think that maybe there is also a set of people out there that really don't take into account the expiration date and would have made a different choice if more informed.

Hmmmm.....You actually believe people are buying resorts other than SSR because they aren't informed? I would think that after people ask "how much" they ask "how long". And as Disney is currently selling 4 New Resorts, the answers would reveal the different expirations.

We buy where we want to stay. My DH will be 87 when our BCV contracts expire, we will still have more years at AKV, and when those contracts expire we will have 5 more years at Aulani. We are totally informed and still not buying SSR. Why? I don't care how cheap it gets, we do not like staying there.

 

[Jason@dvcstore]

econ 101: supply and demand set the market price.

I think this is the best and concise answer.

Jason

 

[Jason@dvcstore]

Some people have purchased at a resort that has a lower price or lower dues, banking on being able to book a different resort at 7 months. Keep in mind that Disney can change the 11/7 month rules at any time and that the only guarantee per our contract is that you can book at your home resort.
Bill

I think Disney is leaning towards changing the rules to be 11/10. You can then start booking at your non home resort at the 10 month mark.

Jason

 

[dianeschlicht]

I think Disney is leaning towards changing the rules to be 11/10. You can then start booking at your non home resort at the 10 month mark.

Jason

I'd be interested in knowing why you think DVC might do this?

 

[FloFlo71]

I think Disney is leaning towards changing the rules to be 11/10. You can then start booking at your non home resort at the 10 month mark.

Jason

I can see big advantages to this for owners at SSR who want to stay at other resorts, perhaps they are hoping that this would sell some of the SSR points that seem to be abundance everywhere. I haven't bought in yet, I would love to own at BLT but its twice the price of SSR if I could book BLT with SSR points at 10 months out I would be much happier to buy in at SSR prices.

 

[crisi]

Not just SSR owners, but all owners who want to book other places and find things booked up right at seven months. A lot of people don't make plans 10+ months out, so you spread that demand, move some of the phone calls around. There would be excessive hand wringing from members though. A lot of members would like a better shot at a BLT value room or AKL conceirge or an OKW GV - even some of those BCV owners......

 

[a742246]

I agree with food lover, also I believe the best value in disney are the standard rooms at broadwalk.

 

[Wedgeh]

I think Disney is leaning towards changing the rules to be 11/10. You can then start booking at your non home resort at the 10 month mark.

Jason

I'd be interested in knowing why you think DVC might do this?

That opinion would encourage people towards buying the numerous resales available ? /cynic

 

[disneynutz]

I think Disney is leaning towards changing the rules to be 11/10. You can then start booking at your non home resort at the 10 month mark.

Jason

Or they could go to a home resort only rule causing a huge increase in sales.

Bill

 

[wdrl]

Or they could go to a home resort only rule causing a huge increase in sales.

Bill

Going to a "home resort only" rule might have the exact opposite affect. Some members may have bought into the DVC because they wanted to stay at different resorts. If that option is removed, then some members may try to sell their DVC. Other members who added on at another resort might discover they don't have enough points at their other resort to book the accommodations they want if they can't combine it with other resorts' points.

I don't see why Disney would impose 11 and 10 month booking windows, nor do I see why they would impose a home resort only rule.

 

[TisBit]

I think Disney is leaning towards changing the rules to be 11/10. You can then start booking at your non home resort at the 10 month mark.

Jason

I don't see Disney moving towards this for the main point that it would diminish home resort priority and the idea of buying where you want to stay. In reality it would actually hurt Disney direct sales, right now when they are selling BLT at a higher price per point they can use its location and home booking advantage as a sales pitch, if you only have a one month advantage and if most people don't always plan 11 months out, it will mean resales will be the way to go.

 

[cseca]

oh my... 11/10 would be even worse for members who are late planners. And absolutely no reason to have a home resort advantage unless you absolutely positively know where you want to go 11months prior.

I think I would be unhappy of this change because I purchased BLT/GCV specifically for the HRA. If they do this I might just do some math and see if it's financially beneficial to dump my points and purchase a much cheaper one at SSR or AKV. 4 months advantage is a huge deal for us. Without it there's almost no reason for us to own those 2 resorts right now (compared with SSR or AKV).

 

[ssawka]

There are many things to consider when deciding where to buy. You are focusing on only two of them, price and length of contract. Here are some others that are to be considered:

1. Would you mind staying at the cheaper resort if you "had to"?
2. Location, Location, Location! How much is your vacation time worth? Do you mind spending more time on buses?
3. How do you travel? I personally would not want to be at SSR or OKW without a car, and we never rent one.
4. Resort amenities (see #1). Is there something about a particulair resort you really like and you would miss if you "had to" stay at another resort?
5. Resale value. I would tend to believe that most DVC members do not intend to hold onto their contracts for the life of the contract, so price becomes very relative. If a resort is selling cheaper now, it will most likely be selling cheaper if you plan on selling in 10-15 years. This is not necessarily the case because when there are fewer years left on a contract, its value should decrease, however with 32 years left, none of the DVC resorts are there yet.
6. MFs over the life of the contract, although this can change.

I'm sure there are other reasons that people factor in, these are just off the top of my head.

 

[Anthony1971]

I have never heard Disney saying buy where you wnat to stay-- they sell DVC as having options.
If you can not book at 11 months out cahnces are you can not book at 8 making the present system as good as a new 11/10 for most --
I do not think most people buy because this is BLT or SSR I think they buy because this is what is being sold

 

[crisi]

There is also purchase timing. People who bought ten years ago didn't have the same choice in resorts. And people buying resale now - SSR is a great bargain, but there are other bargains to be had and bargains change a little over time. When we bought our resale, VWL had just finished selling, BCV was still being sold by Disney, and any resales for VWL were being sold at a premium - much like BLT is now - most people who resell can't afford a huge loss and Disney seems more likely to exercise a high ROFR on a currently selling resort. So while we WOULD have bought VWL had it been the same price as the BWV contract we ended up with, we didn't.