Poll: do you plan next DVC purchase resale

[DVC Dude]

With 70 people responding, 77% voted to buy resale.

 

[cc_nike]

I posted this on another thread with a similar topic and decided to repost it here.

I still believe that Disney is shooting itself in the foot with resale restrictions.
Rather than further restricting resales, I believe that Disney should remove the current restrictions, thus increasing the value of resales, removing the negative timeshare stigma and allow DVC to going back to the quality type of timeshare it was not that long ago.

It seems that more people bought direct before the resale restrictions came into play and lowered the value of resales. I believe that more people would prefer to buy from Disney if the price discrepancy were not so great. I know I would prefer to deal directly with Disney for a reasonable price difference. It would also be nice to know that my "investment" would not be worth half the minute I signed on the dotted line. It is nice to know that there is a reasonable after market for your contract. Right now, it is only reasonable if you buy resale!!!

I completely agree. If they put more restrictions on resales they devalue DVC and further reduce resale prices. They would create an even bigger gap between direct and resale now. I dont think they will add any more. Restrictions.

 

[bobbiwoz]

We want the GF villas, so it will be direct.

 

[Sammie]

If we make any additional purchases of points, they will be direct.

 

[DVC Dude]

If we make any additional purchases of points, they will be direct.

why...with prices so high, it makes little financial sense unless it is a small add-on

 

[Sammie]

why...with prices so high, it makes little financial sense unless it is a small add-on

If we buy it would be for Grand Floridian.

 

[mountdew1]

Of course, if Disney keeps building new resorts, they are pretty good at selling those locations (ie over existing resales) and there will be no resales for a few years.

Either way, it is my personal belief that the resale market will become a larger thorn in the foot of Mickey Mouse and they will either have to focus on new resort sales (that has been the trend since day one, but will it ever hit a wall), offer new perks to direct buyers (this is a great idea, but most perks will not help overcome a 50% upcharge over resale), impose more restrictions on resale buyers (i.e. this is where I predict that one day resales will be LIMITED to their home resort only or the 7 month window will shrink to 2-3 month window or they will exclude the newer resorts).

And there in lies the rub. Correct me if I am wrong, but once they finish the GF DVC unit, and then build the heavily rumored Poly DVC rooms, every deluxe resort on property will have DVC units. SSR and OKW seem to show that members often prefer to own/stay at a DVC wing of a Deluxe resort, rather than a completely standalone DVC property. HHI and VB seem to show that outside of a REAL destination (AUL I'm looking at you), people aren't terribly interested in non Disney locations. So whats next? Building another deluxe resort somewhere? Highly doubtful. Yes, DVC units end up making them gobs of cash, but the resorts themselves are still having a tough time hitting their occupancy levels, just look at how often they have run free dining this year. International parks? I'd say it's about time, but that ends up targeting a vastly different market.

DVC seems to realize that they are going to run out of units and places to build new units. I think that their recent VP posting whose job description ran the gamut, but included ROFR management, as well as developing benefits to enhance member satisfaction. Those two things right there seem to indicate to me that they know they are going to be running into a brick wall at some point and need to have a way to keep themselves in business. Coming up with more perks to convince people to buy, as well as helping to use ROFR to keep their direct inventory stocked both point out ways to keep DVC running beyond a maintenance organization.

 

[sweetdana]

And there in lies the rub. Correct me if I am wrong, but once they finish the GF DVC unit, and then build the heavily rumored Poly DVC rooms, every deluxe resort on property will have DVC units. So whats next? Building another deluxe resort somewhere? Highly doubtful. Yes, DVC units end up making them gobs of cash, but the resorts themselves are still having a tough time hitting their occupancy levels, just look at how often they have run free dining this year. International parks? I'd say it's about time, but that ends up targeting a vastly different market.

DVC seems to realize that they are going to run out of units and places to build new units. I think that their recent VP posting whose job description ran the gamut, but included ROFR management, as well as developing benefits to enhance member satisfaction. Those two things right there seem to indicate to me that they know they are going to be running into a brick wall at some point and need to have a way to keep themselves in business. Coming up with more perks to convince people to buy, as well as helping to use ROFR to keep their direct inventory stocked both point out ways to keep DVC running beyond a maintenance organization.

I did agree with 2 things
1) Disney will never run out of space for units. They have BB, TL, Poly, bigger WL, could build up the YC, S and D even if they wanted. (actually bunches of land between HS and BWV or S and D.) The could add a gate to the otherside of MK, where the new FL is, or a second tower on BLT. They could easily build something onto 1 of the mods or in the middle of nowhere. .. and all the resorts only have a 50 yr contract.. so they can redo all of the resorts they already have.. in another 30 yrs.
and
2) The resorts being empty, or having vacancies really is nothing. Do to our MF pay for the rooms. Meaning except the unsold points, if a room is vacant Disney loses nothing. ... and if they rent it due to being vacant.. it is 100000% profit. (Some rentals are due to trades, this is different. Others are due to no one RSVP the rooms. These are the ones that don't matter to them. ) As long as rooms go empty for no one renting them, those points just get lost. People (not on this board ) actually do not understand borrowing/banking/UY/ and/or just let points expire. Not knowing other options. ( A good friend of mine's dad, let 4 yrs of points expire cause they could not afford to go.... no idea on how or that they could rent them. They are not alone.)

. ... and I will add.. every dvc person, is a returning client to them. someone who has to come back yr after yr. It is a win for the parks, and a win for the inital bottom line. ... They will never let stock run out, (except to make it seem like it is ... a trick Apple is getting very good at.)

I do think it is a smart decision to buy some ROFR back .. maybe even a drop more than they are, to keep a smaller gap between prices.. falsely inflating theres to push a few more into direct thinking.. it is only 3K difference. I think this will start happening when the economy pixks up a drop more.

 

[Lil' Grumpy]

oops, i lectured more than i realized~just off from work &
this is similar to my group settings.

however, if you knew me, would recognized this format.

anyhoo, we- both (my wife) are being sought out to "guide" some
friends that are very interested in buying dvc. it is easy to tell about
the good stuff, but how much do we decide on the bad ?

so we are trying to compare notes - so they won't be upset
if problems occur.

if we had went resales, our expectations would have never
the same as going direct. what i think?, "it is shocking from
the "lack" of restrictions especially those protecting the
business interests." and there are so many options &
areas they could do this, that would have no effect on
those going resales @ all. ( therefore, i wonder how many
resales owners are in the "inside", )

trying to "home in"---why haven't some of the internal "activities"
haven't produced red flags is beyond me. sometimes the
person posting here , did not recognize the implications because
they were getting what they want. ( i wonder how they felt,
if they were the member that was left out. )

then we have had some very un-disney encounters that
we would have never consider @ disney even when we stayed
in "value resorts". ( i remember / not that long ago .....
when we saw those staying in deluxe with their extra perks,
never bother us or made us even for a second trying to break
any rules or sneaking in) . to read how a dvc member parking
right in front our home resort, though staying @ another
resort...sorta gave insights of the room we saw torn apart.
that & the workers' frustrations from managers letting
them get by with it.

but for restrictions, i think when one group go way out rationalizing
their opinions are the best argument for. if done skillfully - the desire
outcomes are real. and this timeshare isn't like any other-
and why are they short changing--has me wondering about
the backgrounds & the conflicts of interests. for ex., why
isn't dvc disney asking their direct members if they have
any ideas for restrictions--would produce new ideas but
a big jump in positive recommendations. not one restriction i can
think of, would be negative.

it just liked the new rumor for the grand f., it make sense to me.
sure wish they did that with blt. the playing field isn't fair-
ssr owners don't need to make revs @ their home resort for
any 7 mos. changes--but blt owners, it a must do. so what
are they going to do...to even this up? , i
have a few suggestions.

and i am still waiting to see any positive gain for any owners
regarding rci. instead of getting anger when dvc ask this--
show us something desirable. ( if one added the real process
with the sales pitch , then i think it would be dropped.) however,
maybe if they dropped rci~ then they would be motivated
to give "real" benefits.

again, sure hope dvc mangers are reading the dis...
nor were my previous observations were to insult but
to high light where i think dvc must go for future growth &
success.


almost forgot...betting on the odds that restrictions should be
between resales/direct, we will only go direct. our dvc isn't
to make money. it is for recreation only. however, if we can't
use our points, we like to give them to family & friends.
also we are involved in helping families in our community,
and wouldn't mind sending them to experience wdw. the
potentials of dvc, are greater than great. but i don't want
any family deciding on our recommendation based on
what we experienced. i strongly feel that one added perks
from buying direct, should be a "guide" that can be counted
on as a "resource.".

it is this ongoing/grey area that really hit home, because
we don't recommend resales!~ to those that are now asking
us--as experienced dvc owners. ( & we not-less than 3 years.)
so "d." if do & dvc finally make the needed changes or
"d." if we don't, and they keep ignoring the direct
owners.

 

[dvcterry]

If we buy it would be for Grand Floridian.

Yes, me too. And then maybe a Poly DVC one day.

 

[Cruznmore]

First post here. We are not members yet, but are looking seriously into joining.

It seems to me that Disney has all it needs to minimize the resale market with the ROFR. By exercising it more often, they would increase the price of resales to get it more on par with Direct.

The expiration of contracts in 2042 seems to be flexible as well since Direct points for OKW now have an expiration of 2057.

If they see the loss of $$s to the resale market being an issue, then I see them picking up the contracts through ROFR and turning them into Direct. Already seems to be happening to OKW since there was a large uptick in ROFR'd deals based on the sales data post.