Question on expiry of contract in 2060

[montrealdisneylovers]

I know I am thinking way far ahead but I was wondering if anyone knows the answer to this or has even given it some thought.

Upon expiry of the contract (January 31, 2060 in the case of BLT) what happens to points that year? Is there a reason that January 31st was chosen? Those of us with a December use year will get points Dec 1 2059 and do we have to use them by January 31, 2060 or do we get until November 30, 2060? If it is the former, it would seem that there is a disadvantage to getting a December use year and a February use year would be the most beneficial. If it is the latter, then that would make sense to me.

Any thoughts on the matter, and don't at me!!

 

[drusba]

All is lost January 31, 2060 at BLT. You cannot use points or have any reservation that takes place after that date. There is no perceived disadvantage to having Dec use year as long as you can still borrow points and take earlier trip. Why January 31 was chosen is unknown but that is the end date for all resorts (but year is different). Some chance that Disney will offer extensions at some time before expiration but it is not required to. Basically at midnight January 31, 2060 it can just tell you to go fly a kite.

 

[chalee94]

There is no perceived disadvantage to having Dec use year as long as you can still borrow points and take earlier trip.

implied here is that DVC has the right to suspend banking and borrowing if they choose...

 

[disneynutz]

No one know what DVD will do and what will happen at the end of the contract because it has never happened yet.

My guess is that they will tear down the buildings and rebuild. Then sell new contracts because that's where the money is.

Bill

 

[Dean]

I know I am thinking way far ahead but I was wondering if anyone knows the answer to this or has even given it some thought.

Upon expiry of the contract (January 31, 2060 in the case of BLT) what happens to points that year? Is there a reason that January 31st was chosen? Those of us with a December use year will get points Dec 1 2059 and do we have to use them by January 31, 2060 or do we get until November 30, 2060? If it is the former, it would seem that there is a disadvantage to getting a December use year and a February use year would be the most beneficial. If it is the latter, then that would make sense to me.

Any thoughts on the matter, and don't at me!!

We don't know what they will do but there is one hard fact, there are simply not enough units for every member to use every point at a DVC resort (directly or indirectly) within the last couple of years of the RTU. It's simply mathematically impossible. I think it's a given they'll have to suspend banking the last 2-3 years minimum, whether they suspend borrowing depends on how they tend to allocate the points the last few years. Choices as I see them include:

• Prorating the points.
• Having a Lottery or similar
• allowing members to opt out (and out of fees) the last year or two
• Having a free for all.

Regardless of the method, I suspect fees will be prorated based on points that are used or could actually be used.

 

[DVC SSR Owner]

Good time to use my points on a cruise!

 

[wbl2745]

We don't know what they will do but there is one hard fact, there are simply not enough units for every member to use every point at a DVC resort (directly or indirectly) within the last couple of years of the RTU. It's simply mathematically impossible. I think it's a given they'll have to suspend banking the last 2-3 years minimum, whether they suspend borrowing depends on how they tend to allocate the points the last few years. Choices as I see them include:

• Prorating the points.
• Having a Lottery or similar
• allowing members to opt out (and out of fees) the last year or two
• Having a free for all.

Regardless of the method, I suspect fees will be prorated based on points that are used or could actually be used.

This is confusing. I thought that if there were perfect use of the allocated points then there are exactly enough points (less the 2% that DVD owns) for every unit to be occupied completely through out the year.

 

[DenLo]

The DVC has not sold more points than they can use in a UY for each resort. The problem is that people bank or borrow points and that could mean there are more points to be used than villas that can be booked in a single year. Combined with the fact that all of the UYs except for February will not have a full 12 months in which to use their points in the final year of the contract.

I think they will prorate the points for that final year. So if you have a December UY you will be eligible for 1/6 of your points since there will be two months in which to use them of course you would pay less MFs too. I also expect that they would suspend borrowing and banking the last two years.

We'll have a better idea before 2060 because there are several contracts that expire before then, the first in January 31, 2042. OKW will be interesting since some of the owners have extended their contracts and others have not.

I think any of the resorts that are in a prime location will not be offered an extension, because Disney can use that property for another DVC or even another Disney cash resort.

 

[Mtnman44]

The problem is that no one's use year will include 12 full months of availability in that final year before Jan 31. Some people's UY will have just started on Dec 1. So naturally many, many DVC members will be borrowing their final UY points in order to be able to use them in their final "full" year. Since so many will be borrowing, but no one will be banking, this creates an imbalance in points vs. physical inventiory so something will have to give.

The most logical solution is to continue to somehow allow reservations thru Nov 30th of the year that the contract terminates. or, perhaps the final dues will be waived. People will likely be very glad to get out of what surely will be 3 to 4k of annual dues on a contract that is essentially un-saleable.

This is confusing. I thought that if there were perfect use of the allocated points then there are exactly enough points (less the 2% that DVD owns) for every unit to be occupied completely through out the year.

 

[Dean]

Good time to use my points on a cruise!

My guess is that won't be an option for anyone the last couple of years.

This is confusing. I thought that if there were perfect use of the allocated points then there are exactly enough points (less the 2% that DVD owns) for every unit to be occupied completely through out the year.

That's incorrect as others have noted. Think of the last year, would you think that someone who gets points in Dec and the contract expires 2 months later (31 Jan) would have fuse use options on the table, the answer is clearly no. I'd estimate that roughly half of the points the last full year could be used at most or 75% of the last 2 years. As I noted, there are many ways they could divide up the options of use the last couple of years. Without some sort of adjustment, all then current members would owe 1 month worth of dues in the expiration year and a full years worth of dues the last full year no matter their UY.

The most logical solution is to continue to somehow allow reservations thru Nov 30th of the year that the contract terminates. or, perhaps the final dues will be waived. People will likely be very glad to get out of what surely will be 3 to 4k of annual dues on a contract that is essentially un-saleable.

They will have to allow some type of usage through the night of 31 Jan of the expiration year. As for most logical, I think it's too early to tell. My guess is the most logical will end up being to allow those to opt out (both using points and fees) the last 1-2 years. This will likely be enough to cover the discrepancy. Stopping banking is a no brainer for the last 2-3 years minimum. Borrowing will likely be allowed until there are no more borrowing options (1 Dec). But there are many more options, I've mentioned a few of them above but there are more.

 

[BirdsOfPreyDave]

I'll be 95 when my BLT contract expires. I don't think I'll care too much one way or another how Disney handles that year.

My grandkids may care, but I'm personally not too concerned.

 

[tjkraz]

People will likely be very glad to get out of what surely will be 3 to 4k of annual dues on a contract that is essentially un-saleable.

Not if people have a use for the points.

If dues continue to rise at a 3% average, 200 BWV points will have dues of over $2600 come 2041. However, given the same 3% increases in room rates, the price of a One Bedroom villa at BWV will up to $1300-1400 per night come '41.

When you can get 7-10 nights with those 200 points, paying the dues and using the points is still a no-brainer.

 

[Dean]

I'll be 95 when my BLT contract expires. I don't think I'll care too much one way or another how Disney handles that year.

My grandkids may care, but I'm personally not too concerned.

The owner at the time will likely care and the question was related to the expiration timeframe. I know some think it's too far away that no one should care, I disagree, but those that feel that way are welcome to bypass the discussion.

 

[BirdsOfPreyDave]

The owner at the time will likely care and the question was related to the expiration timeframe. I know some think it's too far away that no one should care, I disagree, but those that feel that way are welcome to bypass the discussion.

Wow

 

[Nancy F]

I'm 56 so it's not going to be as much of an issue for me. But then... who knows. LOL.

Nancy