resale versus direct buy

[lonebadger]

i was told by a resale broker that as of 3/21/11 Disney vacation club will no longer allow people who purchase resale share will no longer be able to use the points for certain places. is this true? or has this always been the case?

i need some good advice on this

 

[mckryan]

New Policy Announced for Re-sale Purchases

Disney Vacation Club® has announced a new policy that limits access to certain Member Getaways exchanges for Ownership Interests purchased on the secondary market (also known as the re-sale market).

Under the new policy, Members who purchase from anyone other than Disney Vacation Development, Inc., on or after March 21, 2011, will not be eligible to use those Vacation Points to make reservations within the Concierge Collection, the Disney Collection or the Adventurer Collection. Those Vacation Points will instead be valid only for reservations at Disney Vacation Club resorts, as well as for RCI® exchanges, Club Cordial and Club Intrawest.

The affected collections are special Member benefits programs offered by Disney Vacation Development, Inc., and are not part of Members' Ownership Interests. That said, Members who purchased on the secondary market prior to March 21, 2011, may use those Vacation Points for all Member Getaways.

Note that the policy doesn't impact banking, borrowing or transferring Vacation Points. All Members will continue to have the ability make such transactions, regardless of where they purchased their Ownership Interests. Complete rules about these transactions are available in the Home Resort Rules and Regulations section of this website.

(taken from the DVCmember.com website)

 

[Smile&Nod]

Don't know if things have changed or not, but I bought a resale from the Timeshare store a couple years ago - once I was in the disney system and settled it is just as if I bought from Disney - no restrictions. I have points at Boardwalk Villas and can reserve at 11 months there, or 7 months at the other DVC properties. If you haven't checked out the Timeshare store I can recommend them!

 

[lonebadger]

Don't know if things have changed or not, but I bought a resale from the Timeshare store a couple years ago - once I was in the disney system and settled it is just as if I bought from Disney - no restrictions. I have points at Boardwalk Villas and can reserve at 11 months there, or 7 months at the other DVC properties. If you haven't checked out the Timeshare store I can recommend them!

thanks, that's what i've been looking at. would it be the best to do resale? if you could get the closing costs before 3/20/11?

 

[chalee94]

thanks, that's what i've been looking at. would it be the best to do resale? if you could get the closing costs before 3/20/11?

IMO, the perk you are losing (the ability to pay a $95 fee to trade out for places like the GF and disney cruises for high point costs) is not that valuable. it's cheaper to book those options with cash rather than DVC pts, so i would never use my points that way anyway.

if you want that perk, though, and want to save a little money by buying resale - you would need to jump in now.

if you don't care about using that perk, you might get a better deal by waiting for a resale after 3/20/2011.

 

[epd0407]

if you don't care about using that perk, you might get a better deal by waiting for a resale after 3/20/2011.

I second that!

 

[cheezNE1]

so i guess all those rumor thread that had started awhile back that was knocked down turn out to be true after all.

 

[alldiz]

so i guess all those rumor thread that had started awhile back that was knocked down turn out to be true after all.

Well.....kinda...the original rumor was much more viscious.

The fact that previous owners are "grandfathered in" and that they seemed to give enough notice to snatch up a cheap resale now.
ahem...Like me
Kerri

 

[Dizny Dad]

The important part of all of this is that Disney has now made some differentiation between Direct Buy & Resale owners; a move that is significant in and of itself. It really has nothing to do with what perks were affected. It is easier to make the second change than the first. And it makes DVC just another one in the pack, as other timeshares have owners and "those owners".

Hold on to your . . . . .

 

[cheezNE1]

If this is the case, then Disney should start a buy back program as well. This new policy will devalue current owners' points.

 

[ssawka]

If this is the case, then Disney should start a buy back program as well. This new policy will devalue current owners' points.

Disney only cares about the value of current owners' points to the extent that it influences new buyers. Disney already has your $ and your contractually obligated to pay your MFs. From Disney's standpoint they don't care what the value of your contract is on the secondary market. Disney will actually benefit from a depreciation in the value of resale contracts, that means they can ROFR the contracts at a cheaper price. The only thing they need to worry about is that the value does not drop to the point that new buyers have a fear of buying due to rapid depreciation.

 

[Simba's Mom]

Disney only cares about the value of current owners' points to the extent that it influences new buyers. Disney already has your $ and your contractually obligated to pay your MFs. From Disney's standpoint they don't care what the value of your contract is on the secondary market. Disney will actually benefit from a depreciation in the value of resale contracts, that means they can ROFR the contracts at a cheaper price. The only thing they need to worry about is that the value does not drop to the point that new buyers have a fear of buying due to rapid depreciation.

Good point! Here's hoping that DVC tooks a close look at the fact that new buyers may be reluctant to buy because of this fear. However, we have 460 point, of which 360 were bought resale, and we bought all our points with the idea that we just can't foresee ever selling. But then, maybe we're looking at things thru rose colored glasses.

 

[csharpwv]

If I read one more thread that says that DVC should buy back point due to devaluation or due to this - that - or the other thing - I think I'm going to go

DVC doesn't owe anyone - anything!

DVC - and all other timeshares are NOT an investment that will hold its value.

When a members signs a contract to own DVC points - they sign a contract that gives them the right to stay at their home resort as much/as often as their real estate interest (points) will allow each year.

It doesn't guarantee that you can bank your points into the next year- and it doesn't guarantee that you can borrow your points from the following year.

The only guarantee is your RTU - at your home resort.

There is no guarantee that your 'value is locked in' - there is no guarantee that you can sell your real estate interest for what you paid for it - there is no guarantee that you can book at Beach Club if you own at Saratoga.

I understand that no one reads contracts anymore - and I understand that some people make assumptions - however - assuming that a document placed in front of you to sign is in your best interest or reflects everything you have been told about the contract is absolutely absurd!

We purchased a timeshare through another company - and I got home and read the contract, looked at the floor plan of the unit we purchased and NOTHING - I MEAN NOTHING matched up. We were promised 1, 2 and 3 and we got X, Y, and Z. We returned the following morning - canceled our purchase - and contacted the attorney general's office in that state to report the fraud. Indeed - they Attorney General's office knew exactly what company - what they told us - and the reasons for canceling. Did they do anything about it - NO!

Lesson learned the hard way - life goes on.

DVC doesn't own anyone anything except what is in the contract each member signs in agreement of what is being offered to the buyer.

The rest of the benefits will last as long as DVC finds those benefits profitable tools in the sale of real estate interest.

While we'd all like to think that DISNEY/DVC would never make a decision to hurt, harm, or cost anyone anything extra - that is being very unrealistic. Disney didn't become the worlds biggest entertainment company by looking out for anyone's best interest but their own.

Disney isn't a bad company - they a great company. A responsible corporation. But like any other business - they are out to make money - to be profitable for their shareholders.

If someone want invest money - buy Disney stock.
If someone wanst to go to Disney until 2060 and stay on site - and pay half of the rack rate - buy DVC points.

One is an investment - the other isn't.

Sorry if this sounds harsh - but people just need to be realistic!

 

[cheezNE1]

If I read one more thread that says that DVC should buy back point due to devaluation or due to this - that - or the other thing - I think I'm going to go

DVC doesn't owe anyone - anything!

DVC - and all other timeshares are NOT an investment that will hold its value.

When a members signs a contract to own DVC points - they sign a contract that gives them the right to stay at their home resort as much/as often as their real estate interest (points) will allow each year.

It doesn't guarantee that you can bank your points into the next year- and it doesn't guarantee that you can borrow your points from the following year.

The only guarantee is your RTU - at your home resort.

There is no guarantee that your 'value is locked in' - there is no guarantee that you can sell your real estate interest for what you paid for it - there is no guarantee that you can book at Beach Club if you own at Saratoga.

I understand that no one reads contracts anymore - and I understand that some people make assumptions - however - assuming that a document placed in front of you to sign is in your best interest or reflects everything you have been told about the contract is absolutely absurd!

We purchased a timeshare through another company - and I got home and read the contract, looked at the floor plan of the unit we purchased and NOTHING - I MEAN NOTHING matched up. We were promised 1, 2 and 3 and we got X, Y, and Z. We returned the following morning - canceled our purchase - and contacted the attorney general's office in that state to report the fraud. Indeed - they Attorney General's office knew exactly what company - what they told us - and the reasons for canceling. Did they do anything about it - NO!

Lesson learned the hard way - life goes on.

DVC doesn't own anyone anything except what is in the contract each member signs in agreement of what is being offered to the buyer.

The rest of the benefits will last as long as DVC finds those benefits profitable tools in the sale of real estate interest.

While we'd all like to think that DISNEY/DVC would never make a decision to hurt, harm, or cost anyone anything extra - that is being very unrealistic. Disney didn't become the worlds biggest entertainment company by looking out for anyone's best interest but their own.

Disney isn't a bad company - they a great company. A responsible corporation. But like any other business - they are out to make money - to be profitable for their shareholders.

If someone want invest money - buy Disney stock.
If someone wanst to go to Disney until 2060 and stay on site - and pay half of the rack rate - buy DVC points.

One is an investment - the other isn't.

Sorry if this sounds harsh - but people just need to be realistic!

Good points, but investment or not, no one wants to see something they own depreciate quicker than it should. We all like to think that we gonna keep this for the next 50 yrs, but you never know. That's too far into future for me.