Question about Purchase of DVC Resale points

[Creslane2]

Sorry if this question has been posted before ...
We're thinking of buying a resale contract if we find the right use year with the right price. But we're concerned about any current, and most importantly. any future limitations/restrictions Disney may put on resale contracts. Obviously the resale price per point is very attractive now but we wonder what the future restrictions may be sooner or later if Disney changes the rules.
Are we worried for nothing? Are there any rumors or whispers out there about limits for resale contracts? Thank you for any advice!

 

[Dean]

Sorry if this question has been posted before ...
We're thinking of buying a resale contract if we find the right use year with the right price. But we're concerned about any current, and most importantly. any future limitations/restrictions Disney may put on resale contracts. Obviously the resale price per point is very attractive now but we wonder what the future restrictions may be sooner or later if Disney changes the rules.
Are we worried for nothing? Are there any rumors or whispers out there about limits for resale contracts? Thank you for any advice!

Currently DVC resale points can only be used for DVC and timeshare exchange options (RCI & BVTC). I doubt you'll see anything else of substance but there may be peripheral changes such as no ability to combine future purchases, no extension options or lack of access to other perks/discounts. It's clearly still the best way to go with no current downside and little potential for substantive changes.

 

[Creslane2]

Thank you Dean. I was afraid there may be rumors/plans to restrict the use of resale points to only the resale resort and no other DVC properties.
If that is not the case then a resale purchase may be the way to go

 

[Dean]

Thank you Dean. I was afraid there may be rumors/plans to restrict the use of resale points to only the resale resort and no other DVC properties.
If that is not the case then a resale purchase may be the way to go

My view is that they can't legally do this to the current club resorts though some have suggested it as a possibility. I don't believe there's any risk or legal ability to restrict to only the resort owned for resale buyers while continuing the same option for retail or grandfathered owners. Technically the exchange options could be limited or taken away but even if they were, one would still be able to do direct exchanges and use the independent exchange companies. The loss of non DVC options to me is a plus rather than a negative because it forces people to focus on the points they'd use for DVC and look at non DVC options for the other possibilities.

 

[Sandisw]

In order to restrict someone to their home resort, the resort would have to be removed from the club and if that happened it would be all members of that resort and not just easel buyers. Now, Disney could certainly adjust the booking rules so that direct buyers have an advantage over resale buyers since our contracts give us only a 1 month advantage over non resort owners. However, I just can not see them doing this.

One should understand that when you buy DVC, you are buying to stay at your home resort as that is all that is really guaranteed, even buying direct. Everything else is pretty much a perk and can be taken away. As long as this is understood, then there really is no reason not to go the resale route, especially as a new buyer. The prices are just so high with Disney it's hard to justify or recommend anyone buy that way. The only exception might be for small add ons as then the price difference is manageable to accept.

Good luck!

 

[Dean]

In order to restrict someone to their home resort, the resort would have to be removed from the club and if that happened it would be all members of that resort and not just easel buyers. Now, Disney could certainly adjust the booking rules so that direct buyers have an advantage over resale buyers since our contracts give us only a 1 month advantage over non resort owners. However, I just can not see them doing this.

One should understand that when you buy DVC, you are buying to stay at your home resort as that is all that is really guaranteed, even buying direct. Everything else is pretty much a perk and can be taken away. As long as this is understood, then there really is no reason not to go the resale route, especially as a new buyer. The prices are just so high with Disney it's hard to justify or recommend anyone buy that way. The only exception might be for small add ons as then the price difference is manageable to accept.

Good luck!

I don't believe there's any way to adjust the rules so that qualified and unqualified points have a different booking window. It's possible they could come up with a VIP system that would indirectly to the same thing going forward but I think that's unlikely. They can't legally just say that retail buyers can reserve earlier than resale.

 

[JimMIA]

One should understand that when you buy DVC, you are buying to stay at your home resort as that is all that is really guaranteed, even buying direct. Everything else is pretty much a perk and can be taken away.

This is probably THE key point to remember.

Non-guaranteed benefits of DVC can and do come and go. The things that are currently restricted for resale purchasers could be discontinued for direct purchasers as well. All it takes is one swipe of the Mouse's pen.

These discussions get diverted to the various perceptions of value of things like DCL, etc, and we often forget this central underlying reality. Almost nothing is guaranteed to ANY DVC owner, no matter how they purchase.

Buy DVC (or don't) for DVC -- ignore all of the other stuff, no matter how you choose to buy.

 

[Sandisw]

I don't believe there's any way to adjust the rules so that qualified and unqualified points have a different booking window. It's possible they could come up with a VIP system that would indirectly to the same thing going forward but I think that's unlikely. They can't legally just say that retail buyers can reserve earlier than resale.

Well, the POS specifically says that resort owners get a 1 month advantage over non-resort owners. So, while I doubt it'd happen, I do think they could say that those that own resale points get what they are entitled to--1 month advantage-- and then give those that have direct points, the 4 month advantage. Not sure how one could argue something if they are following the rules of the POS. To me, it's really no different than what they did already--they took away something not guaranteed.

As I said, I doubt they will and still feel that everyone needs to buy DVC for one purpose only--to stay at their home resort-- as long as you are happy with that then you can't be too disappointed down the road, regardless of what they do with the rules.

 

[Dean]

Well, the POS specifically says that resort owners get a 1 month advantage over non-resort owners. So, while I doubt it'd happen, I do think they could say that those that own resale points get what they are entitled to--1 month advantage-- and then give those that have direct points, the 4 month advantage. Not sure how one could argue something if they are following the rules of the POS. To me, it's really no different than what they did already--they took away something not guaranteed.

As I said, I doubt they will and still feel that everyone needs to buy DVC for one purpose only--to stay at their home resort-- as long as you are happy with that then you can't be too disappointed down the road, regardless of what they do with the rules.

I am certain you are misinterpreting this. The rule is in place to allow a home booking window for those who own at that resort and a resale owner would be a resort owner as well and legally, the same as any owner of that resort. They cannot make a rule that would differentiate between owners of a single resort based on how they bought. Likewise, I don't think they could do the same for other members of the club, other than through a VIP system, there is no legal basis.. In order for something to be allowed, there has to be legal wording to back it up, the wording you quote differentiation between owners and non owners does not give the legal latitude to support a difference between resale and retail. They could write different rules into any future separate system and I suspect they could do the same thing to a degree through a VIP system simply because others have done so that are based in FL.

 

[joeyrose]

one strategy...buy the best deal now, use it and trade as best you can with it, get your money's worth, and do not worry about future resale restrictions.

 

[Sandisw]

I am certain you are misinterpreting this. The rule is in place to allow a home booking window for those who own at that resort and a resale owner would be a resort owner as well and legally, the same as any owner of that resort. They cannot make a rule that would differentiate between owners of a single resort based on how they bought. Likewise, I don't think they could do the same for other members of the club, other than through a VIP system, there is no legal basis.. In order for something to be allowed, there has to be legal wording to back it up, the wording you quote differentiation between owners and non owners does not give the legal latitude to support a difference between resale and retail. They could write different rules into any future separate system and I suspect they could do the same thing to a degree through a VIP system simply because others have done so that are based in FL.

But, those owners would still have the right to reserve prior to non-resort owners so I'm not sure how they would be violating things. Maybe it would have to be a VIP type perk.

I am not a lawyer so you are right, there could be a challenge, but if you are getting what you are entitled to, how is that any different than right now where some owners points can be used for cruises and some can not? I just think that if they wanted to, they could make different booking windows for direct and resale points and don't know how you fight something when you are getting what you are legally entitled to via the POS.

Like I said, do I think that they would ever go this route--no--but it supports the notion that buying DVC is about buying into your home resort and nothing else--whether you go direct or resale, people need to remember and know what they are guaranteed and what they are not.

 

[Deb & Bill]

one strategy...buy the best deal now, use it and trade as best you can with it, get your money's worth, and do not worry about future resale restrictions.

That means buy some cheap timeshare that gets you RCI privileges and trade into DVC.

 

[Dean]

But, those owners would still have the right to reserve prior to non-resort owners so I'm not sure how they would be violating things. Maybe it would have to be a VIP type perk.

I am not a lawyer so you are right, there could be a challenge, but if you are getting what you are entitled to, how is that any different than right now where some owners points can be used for cruises and some can not? I just think that if they wanted to, they could make different booking windows for direct and resale points and don't know how you fight something when you are getting what you are legally entitled to via the POS.

Like I said, do I think that they would ever go this route--no--but it supports the notion that buying DVC is about buying into your home resort and nothing else--whether you go direct or resale, people need to remember and know what they are guaranteed and what they are not.

As long as the owners at a given resort and other club owners are on the same program, the legal issues will be settled, they cannot legally differentiate home resort OR club use based on the concept being discussed.

 

[joeyrose]

That means buy some cheap timeshare that gets you RCI privileges and trade into DVC.

there's way too much risk in that for my taste. my suggestion is limited to dvc resale points.

 

[JimMIA]

That means buy some cheap timeshare that gets you RCI privileges and trade into DVC.

Where's the "Like" button when you need it!

That IS one option, although you have to remember that DVC could change exchange companies. In fact they have -- they used to be with RCI, then II, now RCI again.

But you shouldn't buy ANYbody's timeshare (including non-DVC) to exchange. Doing so is just too unpredictable to be a basis for a purchase decision.

 

[DougEMG]

But you shouldn't buy ANYbody's timeshare (including non-DVC) to exchange. Doing so is just too unpredictable to be a basis for a purchase decision.

this Is really why other timeshares don't really interest me, there just isn't any other place I would want to go year after year other than WDW.

 

[JimMIA]

this Is really why other timeshares don't really interest me, there just isn't any other place I would want to go year after year other than WDW.

Well, not many timeshare programs are as limited within their own systems as DVC. DVC has 11 resorts total, and I'd argue the four of those are at locations where there are better choices than the DVC resorts.

For example, we own Wyndham and have our choice of about 80 Wyndham resorts to choose from (including 11 in Hawaii alone, all of which are better located than Aulani). That's internal, NOT using RCI, so it's much more reliable to book (actually easy) and much better value.

 

[Dean]

there's way too much risk in that for my taste. my suggestion is limited to dvc resale points.

It is a higher risk option but a very high reward option as well. I would not generally recommend the novice buy for this purpose, however, if another timeshare makes sense for someone and they can also trade into DVC at least part of the time, the potential reward is great.

this Is really why other timeshares don't really interest me, there just isn't any other place I would want to go year after year other than WDW.

It may be that DVC, and nothing else, is the absolute best for you and that the higher costs are worth it Frankly, I don't think many on this board have enough info to make an informed decision in that area. However, for anyone looking at doing none DVC trips (or even non park locations), buying DVC for those is never going to be a reasonable option other than maybe HH and VB if those are all that interest you. Many people go to WDW without owning DVC. I guess the question is whether you want to do none DVC park locations and if so, what system would work best for getting you there. Often that's cash but many times a good mini system like wyndham or Bluegreen will be a better and cheaper choice. Certainly better to spend $1K and find out it's not perfect for you than $20K. For many, I believe that owning DVC combined with something else is often best.