Resale Question

[thewelts]

Why do people sell new (newish) DVC contracts?

I'm surprised to see so many VGF and Aulani contracts listed on The Timeshare Store site. Why would people buy these from Disney and then sell them so quickly?

Don't they have to sell them for much less than they paid?

Can anyone offer a detailed example? Curious to understand the logistics.

Thanks!

 

[supersnoop]

Why do people sell new (newish) DVC contracts?

I'm surprised to see so many VGF and Aulani contracts listed on The Timeshare Store site. Why would people buy these from Disney and then sell them so quickly?

Don't they have to sell them for much less than they paid?

Can anyone offer a detailed example? Curious to understand the logistics.

Thanks!

Life happens. Either they had no idea what they bought, missed the rescission date, and just need out, or something happened and they can no longer afford the dues and/or loan payments.

 

[luckyman_apd]

I didn't think I'd see Grand Floridian up there yet. I wonder if they are exercising the ROFR on any of those resales since it's not sold out yet.

 

[Msmithmd]

Historically DVC has very rarely exercised ROFR on properties they are still actively selling, the exception being extreme low contract agreements.

For a while a few years ago, they were grabbing a few AKV contracts that were absurdly low (in the 40's) but letting pretty much everything else go by. Then when it truly finished selling, they tightened up the ROFR somewhat to the levels you see in that current thread.

So, if you tried to sell a VGF contract to a friend tomorrow at $80pp, I expect DVC would grab it. But I am willing to bet that $110-120 would get by. There's just not the incentive for them to pay $110 for the contract to resell it at $165, when they have their own pile of points they are trying to sell that return them twice that profit margin. After DVC's points run down, their incentive to grab resale contracts will increase to meet the demand of buyers who insist on direct purchase.

Edit to add: when I checked, there actually aren't any AKV that have been ROFR in the current thread; I recall there being some grabbed in the $50-65 range in the prior iteration of the thread, which was after AKV truly sold out it's original direct points inventory.

 

[tasha99]

Job loss? Divorce? etc etc

 

[jerseyduke]

Not knowing what you were buying? Deciding it wasnt for you? The 11 month booking window might catch people.

I have thought of selling my VGF to to get a fixed week, but decided against it.

The nice thing to see is what the resale contracts are going for. Having paid 150 per point, if i were to sell it at 120, considering I have used it twice, any loss would be negligible if I would have had to pay for the room.

If I viewed it as a huge mistake, I could bail with almost no loss, that is not something that happens often.

Not to mention, even with "free hotel", Disney still is not a cheap vacation.