New APs and DVC incentive

[ziravan]

WDW easily applies penalties for AP holders not using their park reservations. It would be easy with DVC and APs as well: after first use, failure to pay in full will result in 5 year ban from purchasing another AP with DVC discount and permaban on using payment plan.

If you’re a DVC member uninterested in APs, none of this matters. If you ARE interested, and especially if you bought direct for the chance at a gold pass “discount”, you aren’t gonna incur the penalty and lose out on the future DVC pass advantage.

 

[Meem93]

My guess: the point of monthly payments (for the Company) is to spur impulse purchases. A Florida resident visiting the parks who realizes that for "a few dollars more" right now they can get an annual pass and can come back later might convert.

I'm not sure the same impulse-purchase levers are there for DVC Members.

2/3 of my contracts were an impulse buy to a degree hahah “the prices are just increasing, better add on now”

 

[DonMacGregor]

Being a DVC member is what stops you. That’s like doing an eat and dash at your local diner.

It’s why Florida residents won’t typically do so and the same logic applies to DVC. We are coming back…

This right here.

Disney doesn't really have any more leverage over Bob from Okahumpka than they do over some dude from Montana. It's all about the expectation that Bob is likely to return to the parks and continue payment, which is the same logic that can be applied to a DVC owner. Regardless of what state that owner is a resident of, there is a (very) strong likelihood that the DVC owner will be making regular trips to Orlando, maybe even more often that a Florida resident from the Keys or Pensacola.

Because park entry is also likely a significant component of at least some of the DVC owner's trips to their resort, the potential for some sort of blacklisting resulting from defaulting on an AP purchase would be a real and powerful deterrant.

 

[Sandisw]

This right here.

Disney doesn't really have any more leverage over Bob from Okahumpka than they do over some dude from Montana. It's all about the expectation that Bob is likely to return to the parks and continue payment, which is the same logic that can be applied to a DVC owner. Regardless of what state that owner is a resident of, there is a (very) strong likelihood that the DVC owner will be making regular trips to Orlando, maybe even more often that a Florida resident from the Keys or Pensacola.

Because park entry is also likely a significant component of at least some of the DVC owner's trips to their resort, the potential for some sort of blacklisting resulting from defaulting on an AP purchase would be a real and powerful deterrant.

I have read elsewhere though that payment plans like this would have to meet different state requirements as well (not all the same) so it could be more complicated when you have DVC owners all over.

It was similar to the laws regarding referrals. Some owners were not eligible for the incentives and others were. Maybe Disney has decided it is just too complicated to involve 50 states.

 

[DonMacGregor]

I have read elsewhere though that payment plans like this would have to meet different state requirements as well (not all the same) so it could be more complicated when you have DVC owners all over.

It was similar to the laws regarding referrals. Some owners were not eligible for the incentives and others were. Maybe Disney has decided it is just too complicated to involve 50 states.

I'd have to see that. You're purchasing a product in Florida, that's available for use only in Florida, so the purchase and payment terms should be governed by Florida statute. Where the purchaser resides either at the time of purchase, or subsequently, should have little to no bearing on the transaction.

I could see where something like a layaway purchase where the seller maintains possession of the product until all payments are complete, the purchase of some service or product that itself is subject to different state taxes and/or regulations (alcohol, firearms, aftermarket auto parts, etc.), or some transaction involving applied interest might cause some roadblocks from a taxation or regulatory perspective, but in today's world of e-commerce, a simple purchase broken up over multiple payments shouldn't be an issue.

I think the "we don't want people running out on their AP payments" argument is the most simple and elegant explanation.

Owner referrals are a whole different beast and involve real estate laws which absolutely do vary by state. California, for example, would consider any compensation given to an owner for a referral to be “compensation to an unlicensed agent” unless it falls under a “finders fee” exemption (the referral was purely accidental and unsolicited), which DVC solicited referrals would not.

 

[RoseGold]

I'd have to see that. You're purchasing a product in Florida, that's available for use only in Florida, so the purchase and payment terms should be governed by Florida statute. Where the purchaser resides either at the time of purchase, or subsequently, should have little to no bearing on the transaction.

It matters a lot. For the disclosures, for the terms, for what lender you use, for all kinds of things. It's why some in some states, DVC can't even sell to you remotely, you have to do it in Florida. Or some can't do Aulani, and so on. Same thing with the title and finance companies. They may or may not be able to do business with your state, they may have different loan terms, different rules, lots of red tape.

 

[Sandisw]

I'd have to see that. You're purchasing a product in Florida, that's available for use only in Florida, so the purchase and payment terms should be governed by Florida statute. Where the purchaser resides either at the time of purchase, or subsequently, should have little to no bearing on the transaction.

I could see where something like a layaway purchase where the seller maintains possession of the product until all payments are complete, the purchase of some service or product that itself is subject to different state taxes and/or regulations (alcohol, firearms, aftermarket auto parts, etc.), or some transaction involving applied interest might cause some roadblocks from a taxation or regulatory perspective, but in today's world of e-commerce, a simple purchase broken up over multiple payments shouldn't be an issue.

I think the "we don't want people running out on their AP payments" argument is the most simple and elegant explanation.

Owner referrals are a whole different beast and involve real estate laws which absolutely do vary by state.

Was just reporting what others have said that could play a role in why they don’t offer it to anyone other the FL residents.

But, I am sure it is more likely not having to chase people down. Too bad Chase Disney visa can’t extend the 6 months interest free to ticket purchases of APs…while not quite the same, it would something.

They do for DVC purchase, vacation packages and cruises, so APs would assume doable if coded correctly.

 

[DonMacGregor]

It matters a lot. For the disclosures, for the terms, for what lender you use, for all kinds of things. It's why some in some states, DVC can't even sell to you remotely, you have to do it in Florida. Or some can't do Aulani, and so on. Same thing with the title and finance companies. They may or may not be able to do business with your state, they may have different loan terms, different rules, lots of red tape.

Right, but you’re conflating extremely highly regulated real estate transactions (see my edited post) with simple financed product purchases. I’m not convinced the selling of an annual pass, with an interest-free fixed payment schedule faces the same hurdles.

I would agree that any business offering loans within a state (say California) would be required to become licensed and be subject to California regulations (usery laws, etc). But retail installment loans (loans not offered by a financial institution or lender) are typically exempt from financing laws. Obviously, there are 48 other states besides California and Florida, so there may be some issues somewhere.

 

[DonMacGregor]

Was just reporting what others have said that could play a role in why they don’t offer it to anyone other the FL residents.

I totally get it. With Disney, there often seems to be a need on the part of some to craft complex and obscure explanations for why Disney, despite attempting to overcome extraordinary odds and hurdles, simply can't do something. Especially when the simpler and more acurate answer is "Because Disney doesn't want to."

Not saying that's the reason here, but "Disney would never, ever do that to us" is definitely a pattern.

 

[kmorlock]

I venture to say that a lot of DVC members also have Disney Visas. If you buy on the Disney Visa, you get 6 mos interest free. So, while it’s not 12 months, it does help a little when plunking $3-4 K down for your family’s passes.

 

[Sandisw]

I venture to say that a lot of DVC members also have Disney Visas. If you buy on the Disney Visa, you get 6 mos interest free. So, while it’s not 12 months, it does help a little when plunking $3-4 K down for your family’s passes.

Except you don’t get it if it’s just a ticket purchase, right? I know it’s been vacation packages only (And DVC and cruise)

Or, are you saying that charge from DVC for the ticket would get me the 6 months already? If so, that would be really cool.

If not, then I am going to email DVC to suggest it as a great benefit to try and negotiate with Chase!

 

[kmorlock]

Except you don’t get it if it’s just a ticket purchase, right? I know it’s been vacation packages only (And DVC and cruise)

Or, are you saying that charge from DVC for the ticket would get me the 6 months already? If so, that would be really cool.

If not, then I am going to email DVC to suggest it as a great benefit to try and negotiate with Chase!

I’m pretty sure we got 0% when we last bought AP’s on the Disney Visa.

 

[Sandisw]

I’m pretty sure we got 0% when we last bought AP’s on the Disney Visa.

I guess I will have to try it then the next one I get! if that is so, then those of us with DVC and the Visa, have a pretty similar program!,

Thank you!

 

[Maistre Gracey]

Is it really that hard to stash some money every month and use it to pay for the pass?
I mean, am I the only one that has a household monthly budget?

 

[jdkdorn]

They have an upfront cost, I thought $225, then payments...even if they did buoyant only make a few payments, they are getting at least 5-600 out of the person...with DVC they could just make it part of your dues at year end, if you stop paying. Like additional fees

 

[Sandisw]

Is it really that hard to stash some money every month and use it to pay for the pass?
I mean, am I the only one that has a household monthly budget?

I am currently doing that but it will be nice option if It is available for those that might want do it!

 

[DonMacGregor]

Is it really that hard to stash some money every month and use it to pay for the pass?
I mean, am I the only one that has a household monthly budget?

That was my thought during the shutdown at DL. If everyone had continued to put an amount equal to their former monthly payment in a separate account each month while the parks were closed, they’d have the cash to buy year one of the new passes outright, and could continue to save for year two in the same way during year one. Rinse, repeat.

 

[ldo]

In the past, I do not recall getting 0% on DVC AP on Disney visa.