question on direct vs. resale

fordchevyguy

FordChevyGuy
Joined
Feb 21, 2013
Understanding will help me understand the value of my purchase if forced to resale.

Part #1

If I buy resale OKW - 2057 extended today I would get access to OKW (11 months) and all other resorts except RIV forward (7 months).

If I buy direct OKW-2057 extended I would get access to OKW (11 months) and all including RIV ( 7 months).

Part #2
Now the part I want to better understand, If I resale my contract in 5 years - are they the same product.

I know neither will have access to RIV forward resorts, but will the direct and Resale have any different limitations on them as it applies to other resorts?

I might be over thinking this, just want to cover my bases.

thanks..tgs
 

CarolMN

DVC Co-Moderator
Moderator
Joined
Aug 18, 1999
Once the direct contract is sold, it becomes a resale contract with no ability to book RIV or any future resorts. Also, no blue card perks transfer with the sale.
 

Akck

Mouseketeer
Joined
Jul 10, 2019
My understanding is that if you sell both, they will each be subject to whatever restrictions are being applied at that time. So with the current restrictions, both will be barred from Riviera and any future resorts.
 

fordchevyguy

FordChevyGuy
Joined
Feb 21, 2013
my concern was the the direct being resold might be limited to Just OKW and not have access to the other pre RIV resorts.
 

havoc315

DIS Veteran
Joined
Aug 22, 2010
my concern was the the direct being resold might be limited to Just OKW and not have access to the other pre RIV resorts.
As of now, that is not the policy. Though beware, the contract only guarantees you OKW. So they could add more resale restrictions later. But as of now, if you resell it, it will be limited to the "original" resorts.
 

DianaMB333

Mouseketeer
Joined
Jan 27, 2020
Just to add something for your consideration... the current incentives for RIV can get you a deal between $155-$170 pp, which is fairly reasonable vs the avg resale of BLT or similar deluxe ones.. this gives you all the perks and access RIV (and any new ones)

of course under the assumption that you are going to keep the contract for the years to come; because if you think that you will resale it later, the resale value and restrictions will a bad deal...

another way to add value to the current incentives is the fixed week.. moreover if you are willing to land a high demand week ..
 

fordchevyguy

FordChevyGuy
Joined
Feb 21, 2013
thanks for help,,, I have 250 pts at boardwalk that we have had for 15 plus years. I was just looking for 75 ish more points at a resort that was close to Disney Springs. I do not really need RIV -- I will more likely expire prior that then contract. 12 tp 15 more years ( SS or OKW) will get me by pretty well.
 

DVCsloth

Mouseketeer
Joined
Jan 10, 2020
I think OKW direct for a smaller contract is not a bad deal. I never stayed there but I know people who own AKV and always book OKW. They love the rooms and the laid back atmosphere.
 

RoseGold

DIS Veteran
Joined
Jan 21, 2020
There is no promise that direct gets access to anything beyond RIV (and I think DL tower based on declarations?). This is something guides and these boards act as assumed, but Disney has shown their goal is money and they are willing to change the rules.

There is no reason DVC2 or DVC Star Wars or whatever has to play nicely with legacy contracts.
 

sethschroeder

DIS Veteran
Joined
Feb 24, 2013
This is something guides and these boards act as assumed, but Disney has shown their goal is money and they are willing to change the rules.
Except the easiest way to basically kill the whole Disney timeshare system is by removing future resorts and placing them in stand alone systems.

They would then have to basically redo all the marketing, their sales pitch, and would lose the primary value to a purchaser (look at all these resorts you can stay at).

We act as assumed because there is not a reason why it would make sense to all of a sudden setup stand alone timeshares with no connection to anything else. I guess if they wanted to make it harder to sell, be worth less, and have more people seek out resale that might be a reason to do it.
 

_auroraborealis_

I like marshmallows. And adult beverages.
Joined
Oct 18, 2015
"BVTC has reserved the right to associate additional resorts as DVC Resorts or delete existing DVC
Resorts from time to time."
There are significant legal barriers to having a resort leave BVTC under the current contract terms and then rejoin BVTC2 (basically, RIV's terms in the trading association). The barriers and impacts are such that it is safe to assume it will not happen, because the reward for doing so will bee a lot less than the costs of making it happen, even looking at a 2042 timeline to make it make financial sense.
 

sethschroeder

DIS Veteran
Joined
Feb 24, 2013
There are significant legal barriers to having a resort leave BVTC under the current contract terms and then rejoin BVTC2 (basically, RIV's terms in the trading association). The barriers and impacts are such that it is safe to assume it will not happen, because the reward for doing so will bee a lot less than the costs of making it happen, even looking at a 2042 timeline to make it make financial sense.
Well and I would think some of this goes back to the board having to look out for membership. Yes DVC members are not voting members but Disney can't just decide to do anything they want a completely screw over membership either.

Things like balancing point charts can easily be explained to the benefit of membership. There is a harder sell about the benefit to membership about removing it from the DVC family of properties.

Its also why I think you see Disney so often grandfather people in to changes to avoid any potential legal challenge by the membership as a whole/specific resort.
 

Sandisw

DVC Forums
Moderator
Joined
Nov 15, 2008
This is a misrepresentation of the O14 point system.
Not really, If a home resort is removed from BVTC, then you no longer have the right to trade.

While it may not be likely, it is a reality of the contract. Just like you keep mentioning there is no promise of those buying direct, including RIV are guaranteed to be used at future resorts, owners are not guaranteed the right to trade to other O14 if it is removed from the club.
 

RoseGold

DIS Veteran
Joined
Jan 21, 2020
Not really, If a home resort is removed from BVTC, then you no longer have the right to trade.

While it may not be likely, it is a reality of the contract. Just like you keep mentioning there is no promise of those buying direct, including RIV are guaranteed to be used at future resorts, owners are not guaranteed the right to trade to other O14 if it is removed from the club.
That's not what I said. That comment suggested Disney could implement RIV-style resale restrictions

So they could add more resale restrictions later.
That isn't accurate, and if it were Disney would have already done it. It's not an accurate representation of O14.
 

Heather07438

WDW Apprentice
Joined
Oct 20, 2015
From a buyers view, buying what was previously a direct or resale extended OKW is the same thing. It will be bound to the same exact resale terms of use.
 

havoc315

DIS Veteran
Joined
Aug 22, 2010
There are significant legal barriers to having a resort leave BVTC under the current contract terms and then rejoin BVTC2 (basically, RIV's terms in the trading association). The barriers and impacts are such that it is safe to assume it will not happen, because the reward for doing so will bee a lot less than the costs of making it happen, even looking at a 2042 timeline to make it make financial sense.
Very unlikely, true. But not guaranteed.
It's pretty safe to assume that direct buyers will have use of current and future resorts, as that becomes a big selling point.
If, for example... it's 2028, they are selling Reflections. And they decide to cut it out of participation with the existing DVC club, truly starting DVC2, so past buyers can't trade into Reflections -- That would mean the Reflections buyers wouldn't be able to trade into all those existing DVCs, and it would also mean that a Reflections buyer would have uncertainty about their own ability to use future resorts.
Thus, the ability to trade among all past and future resorts is a major part of the sales pitch of DVC. It will likely remain for direct buyers.

But, not necessarily with DVC club trading, Disney has more and more reason to restrict resales more and more. Basically, you have an ever growing inventory of DVC points to sell, as Disney builds more resorts. While the potential market of buyers isn't necessarily growing as fast as they are producing more units. (ie, the most passionate buyers already own. It's not something you re-purchase ever couple of years like a phone.). So you're effectively producing more supply while demand may actually be shrinking. Oversupply will cause resale prices to plummet. (You eventually get people nearly willing to give away their points to avoid the annual dues).
Disney has a monopoly on the ability to sell direct points, while resale is true free market. So if the free market prices resale at $60 per point (for example), how do you convince any buyer to pay $200 direct? You need to find more and more ways to make resale less appealing than direct.
The Riviera restrictions are a major step in this strategy. As each new resort includes the Riviera restrictions, and as the older resorts get closer to expiration, the appeal of direct grows compared to resale.

So where does that bring us? By the time we hit 2042, the resale restrictions will be a major impairment on resale purchases. Those restrictions alone may be enough to push direct buying. As we get closer to that time frame, I wouldn't be surprised to see Disney gradually remove "blue card perks".
But in the near term, Disney will continue to primarily use blue card perks, Moonlight Magic, AP discounts, to incentivize direct purchases. And if they can find other ways to discourage resale within the bounds of the contracts, they will do so.
 

CastAStone

Model Citizen. Math and business nerd.
Joined
Jun 25, 2019
Understanding will help me understand the value of my purchase if forced to resale.

Part #1

If I buy resale OKW - 2057 extended today I would get access to OKW (11 months) and all other resorts except RIV forward (7 months).

If I buy direct OKW-2057 extended I would get access to OKW (11 months) and all including RIV ( 7 months).

Part #2
Now the part I want to better understand, If I resale my contract in 5 years - are they the same product.

I know neither will have access to RIV forward resorts, but will the direct and Resale have any different limitations on them as it applies to other resorts?

I might be over thinking this, just want to cover my bases.

thanks..tgs
They will be identical to the next buyer. You’ll get the same price whether your buyer is the 2nd owner or the 5th.
 

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