New DVC Resale restrictions with Direct Contracts

[xipetotec]

Okay, so we all know the new DVC resale perks have been removed.

And from what I understand, if we HAVE a direct sales contract AND resales, we're still good for discounts. Is that right?

In the past, we bought our initial membership direct from Disney. We have a membership card and everything. We then purchased RESALES twice in the same use-year, same resort. This was in the past, so no consequences.

But let's say I buy a new add-on ( same use year, same resort ) again. I guess I still get discount perks because we still have an official membership card yes?

what about using those points to book Disney Collection or Disney Cruise Line? Will they differentiate between my previous points and new points? Like if I have a grand total of 500 points, will I only be able to use those points from before the resale purchase, or will it not matter because I do have a direct sales contract?

 

[CarolMN]

My understanding is that if you have any directly purchased points or purchased resale prior to 4/4/2016 , you still have all the discounts & perks and will get a membership card. It now appears that your resale contract must have been submitted to Disney before 4/4/2016 to be grandfathered for the perks and discounts.

If you purchased resale after March,21 2011, you many NOT use those points for the Disney, Adventurer's or Concierge Collections. The Disney Collection includes cruises on the Disney Cruise Line.

If your new add-on contract is purchased directly from Disney, you may use those points for the Collections mentioned above.

 

[disneynutz]

Non restricted points can used for everything, restricted points can't. My understanding is that some of the website downtime prior to the latest restriction change allows that contracts/points to be tracked separately.

Bill

 

[LisaS]

Will they differentiate between my previous points and new points? Like if I have a grand total of 500 points, will I only be able to use those points from before the resale purchase, or will it not matter because I do have a direct sales contract?

They can easily track which points were purchased prior to the restrictions and which points were purchased after that date. If you own both restricted and unrestricted points, only the unrestricted points can be used for the options CarolMN mentioned (cruises, etc.)

 

[xipetotec]

Got it. So anything "Members only" related is fine since we have a direct purchase. ( For example, DVC parties, DVC discounts ). But anything specific to POINTS depends on where/when they come from.

I think that's all clear. Thanks!

 

[Dean]

Got it. So anything "Members only" related is fine since we have a direct purchase. ( For example, DVC parties, DVC discounts ). But anything specific to POINTS depends on where/when they come from.

I think that's all clear. Thanks!

That's the way I understand it but they could certainly further require that anything that was stay specific be on qualified points to get X perk.

 

[bigtony777]

Does anyone else think about buying a very small contract directly before your current contract expires down the road? This will allow one to have the member benefits of discounted passes and such without a large financial outlay. At this point we love DVC and use it regularly, but at some point we will not need such a large contract. I am not sure if that time will be once it expires or selling it earlier.

 

[Dean]

Does anyone else think about buying a very small contract directly before your current contract expires down the road? This will allow one to have the member benefits of discounted passes and such without a large financial outlay. At this point we love DVC and use it regularly, but at some point we will not need such a large contract. I am not sure if that time will be once it expires or selling it earlier.

I'm sure we'll see a lot of talk about buying smaller contracts the next few years largely for the perks and rightfully so. Likely the best alternative going forward for now is to decide if the perks offer enough value to justify the retail purchase then plan the number of points one needs. Then buy resale and then do a retail add on if the perks make sense. Of course it's likely to be a moving target.

 

[drusba]

My current understanding:

Of all the incidental benfits, the only existing one that actually depends on the use of points is the Disney Collections (including the cruise), and any resale points purchased after March 21,2011, cannot be used for those, including post April 4, 2016 resale points. Any points purchased before March 21, 2011, whether from Disney or resale, can be used for the Collections, and also points purchased from Disney after March 21, 2011, can be used for the Collections. In essence, the latest rule change has not really changed anything in relation to the Disney Collections.

All the other incidental benefits, such as merchandise and annual pass discounts, entry to special events, others, depend not on the use of any points but instead on your status as a DVC member. If you purchase resale after April 4, 2016, and have no point purchases directly from Disney, you are excluded from the use of those incidental benefits. However, all who have any points purchased before April 4, 2016, whether from Disney or resale, can use those benefits, and that will continue to exist even if those members purchase resale after April 4, 2016 to add to their existing points. Moreover, unless another rule change is made, any post April 4, 2016 resale purchaser, who did not own before, can get the right to use those incidental benefits by doing a 25 point add-on from Disney to their membership.

 

[Supplanter]

Knowing that there is every possibility they pull the ap discount at some point, here's the math I've looked at.
If you buy the max 8 discounted ap's that's 8x106 savings per year ($848). I don't know of any other current incentive that has as much value since most are available other places, but lets assign them a total value of $152 per year to make the math easy. You can save around/ up to $1000 per year on a direct membership.

If you consider the purchase price of $154 per point, and a Polynesian contract with around 50 years of vacations, and a regular room at around 25 points a night... You need about 300 points for a nice vacation for a large family, or about 50k plus dues.

I've been considering the dues basically the price of the accommodation and the purchase price more of the cost of buying in that you look to recoup through a future sale of the thing or through these discounts.

If the alternative is to grab 300 saratoga springs points for 80 a point ($25000), you can save about 25k... That's a lot of annual passes. If instead however, you grab 275 resale points and the 25 direct points, you end up paying 26k (a thousand extra $) but you also get all those discounts which can pay off quickly potentially.

 

[freediverdude]

Why do I get the feeling there is going to be this flood of 25 point purchases in the next year or two from Disney, and then all of a sudden Disney decides to make another rule, lol.

 

[Supplanter]

Why do I get the feeling there is going to be this flood of 25 point purchases in the next year or two from Disney, and then all of a sudden Disney decides to make another rule, lol.

I wonder what percentage of people actually look to the resale market. It sure seems like its gotta be a small chunk. It'd be interesting to know the stats on the club.

 

[Dean]

Knowing that there is every possibility they pull the ap discount at some point, here's the math I've looked at.
If you buy the max 8 discounted ap's that's 8x106 savings per year ($848). I don't know of any other current incentive that has as much value since most are available other places, but lets assign them a total value of $152 per year to make the math easy. You can save around/ up to $1000 per year on a direct membership.

If you consider the purchase price of $154 per point, and a Polynesian contract with around 50 years of vacations, and a regular room at around 25 points a night... You need about 300 points for a nice vacation for a large family, or about 50k plus dues.

I've been considering the dues basically the price of the accommodation and the purchase price more of the cost of buying in that you look to recoup through a future sale of the thing or through these discounts.

If the alternative is to grab 300 saratoga springs points for 80 a point ($25000), you can save about 25k... That's a lot of annual passes. If instead however, you grab 275 resale points and the 25 direct points, you end up paying 26k (a thousand extra $) but you also get all those discounts which can pay off quickly potentially.

I think you can only buy 4 a year (? per member household) plus the discount with renewals is even less. People are actually more likely to buy these passes with the discount but that doesn't necessarily mean it's a good choice for them. You also need less points in all likelihood if you buy at SSR or similar than Poly/VGF. Plus the passes don't make sense for every member.

Why do I get the feeling there is going to be this flood of 25 point purchases in the next year or two from Disney, and then all of a sudden Disney decides to make another rule, lol.

When you consider not everyone is gong to know this, that passes don't make sense for everyone, that many of those buyers are already members and that the relative number of resale buyers is small; I doubt it'll be a lot. But there likely will be some uptick and I probably would if I were buying resale now not being a member otherwise.

 

[drusba]

Knowing that there is every possibility they pull the ap discount at some point ....

I actually do not think Disney will just pull the AP discount in the future. When it comes to discount programs of significance for WDW, Disney has usually been more devious than that. Instead of pulling the discount, what it does is what it has already started to do in the last two years with the AP discount: continuously raise the price and lower the discount of the desired item, while at the same time adding more and more restrictions to its use, until you reach the point that it no longer makes any economic sense to buy the item or use the supposed discount and eventually the discount program is discontinued for lack of buyers.Tables in Wonderland has also started on that path.

 

[SuperRob]

I wonder what percentage of people actually look to the resale market. It sure seems like its gotta be a small chunk. It'd be interesting to know the stats on the club.

It must be a large enough percentage that Disney would bother instituting a policy to begin with.

 

[disneynutz]

It must be a large enough percentage that Disney would bother instituting a policy to begin with.

IMO 2 reasons for the restrictions, to sell add-on contracts to members who bought restricted resale and the big reason is to use the restrictions to convince new buyers that they should buy direct.

Bill

 

[bwvBound]

My guess is that DVD/DVC will pull the AP discount replacing it, instead, with APs that you buy from DVD/DVC using your qualified points. That encourages folks to own more qualified points, shifts the AP purchase to "monthly dues" (spreading out the cost as they offer to FL/SoCal residents) and continues the game of 'abstracting' the funds you give to Disney. (You didn't pay cash for those APs ... you paid points. Doesn't that make you feel better?)