New Restrictions Announced on Resales: Effective Jan 19

[DisneyStarWisher]

so pretty much buy resale points for any other resort (14) u can stay at those.

buy resale points for rivera or any new going forward place and only be able to stay at just that 1 resort (the one you bought resale points for).

i say next year they add that any resale contract for where u are buying is for that resort only. so if u buy at beach club u are only staying there.

I sure hope not. We just decided to wait awhile before purchasing a BRV resale. Of course, the plan is to use the points only at BRV, but if there were no more studios available, I would need another option. I really hope your prediction does not come true!

 

[KAT4DISNEY]

They can’t even figure out that Jambo and Kidani are the same timeshare.

Best point ever!

 

[donaldbuzz&minnie]

I wonder if there will be any accommodations made for resales purchased through Disney. Ex: if I were to buy 100 BWV points through Disney after Jan 19, instead of through The Timeshare Store, would I be able to use those points at the Riviera?

 

[KAT4DISNEY]

I wonder if there will be any accommodations made for resales purchased through Disney. Ex: if I were to buy 100 BWV points through Disney after Jan 19, instead of through The Timeshare Store, would I be able to use those points at the Riviera?

DVC does not sell resale. They sell direct points at all DVC resorts including what are termed "sold out" resorts - ie ones that are not in active new sales. It's an important distinction. They will have the perks and access of direct points although it sounds like it will take 100 points to qualify for those perks. Hard to say if they'll set a minimum purchase for access as well.

 

[crvetter]

I wonder if there will be any accommodations made for resales purchased through Disney. Ex: if I were to buy 100 BWV points through Disney after Jan 19, instead of through The Timeshare Store, would I be able to use those points at the Riviera?

This is considered a direct purchase.

 

[Drewferin]

Unbelievable. This is going to sink resale values IMO- will be interesting to see how much. Creating a second exchange open only to certain owners is just going to make the system too complicated for a casual user.

Just tonight I've noticed a resale list prices drop in AKV on major resale websites by $10pp... uhhhhg not a happy camper.

 

[ELMC]

Just tonight I've noticed a resale list prices drop in AKV on major resale websites by $10pp... uhhhhg not a happy camper.

I think that is a bit premature. I think that demand will be high for the next week as those on the fence scramble to purchase an "unrestricted" resale contract before the deadline. After Jan 19 will be interesting. The last round of restrictions didn't do much to suppress prices, but restricting resort access is a whole new ballgame.

 

[ELMC]

Wow, this is the dumbest idea yet. No one with half a brain is going to buy the Rivera because your resale price just got destroyed with this announcement.

I guess it will work out for Disney though as they will be able to ROFR all those ultra cheap Rivera contracts and sell them as new again to some other sucker.

Such a jaded take. Not entirely incorrect, but pretty jaded.

But here's the thing...while this matters to the people on these boards, it's not going to matter to the majority of the general public. It's the heart, not the brain, that is being put to use the majority of the time when people make a timeshare purchase. I'm sure DVD will spin this that they are actually protecting new purchasers of the newest and shiniest and most desired resort by keeping out the resale riff-raff with these restrictions. That is if they mention it at all. Now I sound jaded too. I will say this. If I stay at the Riviera and like it I will anxiously await the first resales to hit the market at $50 per point.

 

[DougEMG]

Such a jaded take. Not entirely incorrect, but pretty jaded.

But here's the thing...while this matters to the people on these boards, it's not going to matter to the majority of the general public. It's the heart, not the brain, that is being put to use the majority of the time when people make a timeshare purchase. I'm sure DVD will spin this that they are actually protecting new purchasers of the newest and shiniest and most desired resort by keeping out the resale riff-raff with these restrictions. That is if they mention it at all. Now I sound jaded too. I will say this. If I stay at the Riviera and like it I will anxiously await the first resales to hit the market at $50 per point.

One thing any resale owner of the Riviera is going to have to be careful of is making sure they book their trip before the 7 month window opens. With other owners able to book into the Riviera, but resale owners note allowed to book out, there could be horrible availability problems for those resale owners.

This new DVC II club sounds like it will be set up to only allow resale owners to book at their home resort and never anything else.

What can I say, the bump in 1 bedroom points, increasing the lock-off premium to create free points for Disney and now this new resale restriction is all combining to make me feel that DVC is becoming just like every other sleazy timeshare company! Just waiting for them to dissolve the DVC I club, make all the old resorts join this new DVC II club and then apply the same resale restriction around trading out to every resale owner.

 

[WilsonFlyer]

Caveat emptor.

 

[Matty B13]

With the way DVC has been going after resale contracts, it will definitely keep me from advising anyone to buy direct or resale. But, if DVC is doing this I don't think I would buy into any other point bases system either with the way things are going. We were looking into buying at one of the other point based systems, but if this is the way timeshare management is going, I'll keep my money and rent.

 

[Marionnette]

I'm at a point where I'm done with adding on. There are only so much in MFs that we can afford! All of my contract are resale, some are from prior to the time when resale owners were given white cards like scarlet letters. I'm grandfathered in as far as the new restrictions are concerned.

Of course, I'm concerned about how this will affect the resale value of my contracts. I have no intention of selling right now. But you never know what the future might bring. Until yesterday, all of them would have commanded a bigger price than what I had paid for them. Who knows what they will be worth next year? Makes you kind of wonder whether DVC is intentionally driving the resale price of the older resorts down so that they can get them thru ROFR at a bargain price and then resell the points at a premium.

It will be interesting to see if this mentality backfires on them. I had no interest in Riviera nor the other new resort. I have even less interest now. The resale value of the new resorts is going to be horrible. And the problems the "only at your home resort" will create will be crippling if enough people buy resale there. For me, even though I'm grandfathered in to using my points at any DVC resort, I would be just fine being able to stay at any of the 14 classic resorts and never use my points at the new ones. There's alway cash reservations or rentals if I really want that.

So, I'm not going to run around with my hair on fire over this...yet. I'll wait to see how it shakes out. I'm more upset over the 2020 reallocation than I am over this announcement.

 

[Best Aunt]

One thing any resale owner of the Riviera is going to have to be careful of is making sure they book their trip before the 7 month window opens. With other owners able to book into the Riviera, but resale owners note allowed to book out, there could be horrible availability problems for those resale owners.

I was thinking that sometimes it's hard to book at your home resort even before the 7 month window opens. I read about people booking the minute the window opens at 11 months, people who can't even do that presumably because other people are walking their resies... So what if you buy resale at Riviera and want to travel at a particular time but can't get a resie at Riviera for that time? If, for the time period that you want, you can't get a resie at Riviera, and you can't use your points anywhere else, won't your points feel worthless?

My other concern is that I bought into DVC because there was such a strong resale market. I thought that if I later decided I had made a mistake, I wouldn't be stuck because I could sell my contracts. If DVC makes the resale market weak, then aren't they actually lessening the value of the product which they want to sell?

(I realize some people buy based on emotion and won't think these things through.)

 

[Marionnette]

I was thinking that sometimes it's hard to book at your home resort even before the 7 month window opens. I read about people booking the minute the window opens at 11 months, people who can't even do that presumably because other people are walking their resies... So what if you buy resale at Riviera and want to travel at a particular time but can't get a resie at Riviera for that time? If, for the time period that you want, you can't get a resie at Riviera, and you can't use your points anywhere else, won't your points feel worthless?

My other concern is that I bought into DVC because there was such a strong resale market. I thought that if I later decided I had made a mistake, I wouldn't be stuck because I could sell my contracts. If DVC makes the resale market weak, then aren't they actually lessening the value of the product which they want to sell?

(I realize some people buy based on emotion and won't think these things through.)

DVC would probably argue that the points still have value because those owners can still trade into RCI. Of course, they won't be able to book any Orlando resorts with that trade but...oh well!

I don't think DVC cares about resale buyers and whether they can use their points or not. The less that they use their points, the more that goes into breakage. The more that goes into breakage, the more Disney can book for the public and pocket the profit (only a small percentage goes back to DVC to offset MFs). It's a moneymaking scheme that stinks to high heaven (just like the creatio ex nihilo points garnered from the 2020 reallocation). Legally, they can do it. But they are doing this at a risk to their reputation as a premier timeshare. Piss off your members enough and social media will do the rest.

 

[Madame]

I was thinking that sometimes it's hard to book at your home resort even before the 7 month window opens. I read about people booking the minute the window opens at 11 months, people who can't even do that presumably because other people are walking their resies... So what if you buy resale at Riviera and want to travel at a particular time but can't get a resie at Riviera for that time? If, for the time period that you want, you can't get a resie at Riviera, and you can't use your points anywhere else, won't your points feel worthless?

My other concern is that I bought into DVC because there was such a strong resale market. I thought that if I later decided I had made a mistake, I wouldn't be stuck because I could sell my contracts. If DVC makes the resale market weak, then aren't they actually lessening the value of the product which they want to sell?

(I realize some people buy based on emotion and won't think these things through.)

They’re maybe betting that they can sell DVC without resale factoring into the purchaser’s calculations.

As long as the economy clicks along I think they’re right. We, here, are in the minority. Most buy DVC impulsively while onsite, no thought to how to extricate themselves, whether they can afford it or not.

 

[DduzDis]

Looks like they have announced it now...

Update to Disney Vacation Club Resort Access for Contracts Not Purchased Directly from Disney

Effective January 19, 2019, only Members who purchase directly from Disney will be able to use their Vacation Points at the 14 existing Disney Vacation Club Resorts or future Resorts—such as Disney’s Riviera Resort or Reflections – A Disney Lakeside Lodge. Resale contracts purchased for the existing 14 Disney Vacation Club Resorts will only be able to exchange Points into those 14 Resorts.

This change does not apply to contracts purchased prior to January 19, 2019. Contracts gifted to family members will continue to have the same Resort access as before the ownership transfer.

The eligibility rules for Membership Extras and RCI access remain unchanged.

The Buena Vista Trading Company Disclosure Guide has been amended accordingly.

 

[Capang]

Looks like they have announced it now...

Update to Disney Vacation Club Resort Access for Contracts Not Purchased Directly from Disney

Effective January 19, 2019, only Members who purchase directly from Disney will be able to use their Vacation Points at the 14 existing Disney Vacation Club Resorts or future Resorts—such as Disney’s Riviera Resort or Reflections – A Disney Lakeside Lodge. Resale contracts purchased for the existing 14 Disney Vacation Club Resorts will only be able to exchange Points into those 14 Resorts.

This change does not apply to contracts purchased prior to January 19, 2019. Contracts gifted to family members will continue to have the same Resort access as before the ownership transfer.

The eligibility rules for Membership Extras and RCI access remain unchanged.

The Buena Vista Trading Company Disclosure Guide has been amended accordingly.

So direct buyers that already own and current resale owners are not affected? Am I correct?

 

[emilymad]

So it doesn't say what rights a resale buyer of Riviera will have?

 

[JGINPL]

I got on Chat with Disney today and they stated:

Members who purchase resale contracts for any of the existing 14 resorts will not be able to stay at future resorts, including Disney's Riviera Resort and Reflections - A Disney Lakeside Lodge.Additionally, once sales of Disney's Riviera Resort begin, Members who purchase resale contracts at Disney's Riviera Resort will only be able to stay at Disney's Riviera Resort.
This process will also apply to any locations built in the future.



So it sounds like they will be restricting to just home resort on any new DVC properties for resale. Some forums I was reading thought they would allow the new resorts in resale to be booked for new resorts, but it looks like this isn't the case.

 

[KSkywalker17]

This is a long play by Disney. They've basically crushed the resale market after 2042 -2068 when the "DVC1" resorts expire. I think this leaves little doubt that they won't extend any of these resorts, they'll simply roll them into the new system and brand them as new, "DVC2", properties. They've learned from their mistake and found a way to grab ahold of the revenue that was slipping away via resales. Luckily for most of us, there are plenty of great properties in "DVC1" to enjoy for many years.

Would I recommend anyone buy into "DVC2"? Only if you can afford buying direct (without any financing) and are prepared to take a significant loss if you have to sell. If you have the cash up front and can hold the contract for 50 years, this won't impact you at all. Huge "ifs"!