New Incentives Impact on Resale Market

[Opie100]

Would you expect the resale market to be affected in any way by the new incentives? Also, while I'm thinking of it, is there any seasonality influencing resale demand? Any reason to expect the resale market to look differently in 8 weeks than today?

 

[Sandisw]

I think that the new incentives may impact the sales of the AKL contracts. The price through Disney is now comparable to some of the contracts. Since buying direct is quicker, someone considering AKL, especially an existing member adding on, may go that route. This way, they can get the UY, and # of points they want instead of having to wait for the "right" contract.

I know that if they had been offering BLT at $96.00 per point (what I will now be paying for my add on) to new members when I bought via resale in February, I would have just gone that route. Instead of buying my VWL resale contract for 50 points to become a member, I would have just gone direct through Disney for the whole thing.

 

[Brian Noble]

Also, while I'm thinking of it, is there any seasonality influencing resale demand?

The timeshare resale market generally tends to drop during late fall/early winter, and recover in spring/summer. Most believe the drop is due to those facing their annual assesments re-thinking their ownerships, and the recovery is due to the fact that that's when families tend to plan/take vacations.

I haven't followed the DVC market closely, so I couldn't say whether it follows this general trend.

 

[DeeCee735]

What amount of points does one need to add on to AKV to get the points for $96 each?

That's what I paid for my 50 point add on last year direct through Disney.

 

[hellerjw]

I belive you have to buy 200 pts or more to get them for $96/pt.

 

[MichelleB]

You only need to buy 100 pts as an add-on. You get the $10 off per point for buying and then an additional $6 per point for 100-124. At 125, you get $8 off per point in addition to the $10 off.

 

[Opie100]

The timeshare resale market generally tends to drop during late fall/early winter, and recover in spring/summer. Most believe the drop is due to those facing their annual assesments re-thinking their ownerships, and the recovery is due to the fact that that's when families tend to plan/take vacations.

Does that mean that fall may be the best time for buyers to find the resale inventory they want?

 

[Brownie54]

Right now a resale of BLT 160 points is listed at $107.50 per point. With the newest incentives you can get the same from Disney for $98!!! I'm guessing resale prices will have go down also.

 

[Brian Noble]

Does that mean that fall may be the best time for buyers to find the resale inventory they want?

More like very late November/December/January---and, again, this is only "in general", not necessarily true for DVC. I haven't paid attention that closely. My impression is that DVC seems to be impacted in a much more pronounced way by economic cycles than seasonal ones.

 

[icydog]

Would you expect the resale market to be affected in any way by the new incentives? Also, while I'm thinking of it, is there any seasonality influencing resale demand? Any reason to expect the resale market to look differently in 8 weeks than today?

I was looking at a 350 point VWL resale contract. With closing, maintenance fees for points in 2008 Use Year, and closing, the price was $28,300. For $5K more I bought the same number of BLT points in my UY from Disney. The maintenance fees were not an issue with the Disney Contract, and with the incentives, the longer contract life, and no closing fees, it was well worth the difference in money to us.

So yes, resale will definitely be impacted especially on the newest resorts like AKV and BLT. It will make no sense at all to buy either resale with the costs to close the contracts. That being said, it hurts me too as I am selling my VB contract in this same economic climate.

 

[disneynutz]

During the last 8 months the resale market has tanked. Many owners are dumping their contracts due to the economy. Disney has responded with this double discount nonsense. Just put the prices back to where they were last year.