RoFR back??

[Stargazer65]

I am surpsied you were allowed to get a direct contract in 2009 at 100…I bought that year ans the minimum was 160 points for a new buyer.

Really, huh that's odd. I don't remember it being a sticking point. I remember saying we were reluctant to spend a lot all at once, and I thought he said 100 was the minimum which seemed like a good compromise and entry point. Maybe it was an unofficial minimum that he got approval for?

 

[Jwaire]

If they buy them back it means they're eating a check every year for annual dues with no one on the other end to pick up the tab for whoever knows how long until the economy goes the other way/their image improves.

I didn't think DVC/DVD paid dues, just stepped in case of a shortage.

 

[Sandisw]

Really, huh that's odd. I don't remember it being a sticking point. I remember saying we were reluctant to spend a lot all at once, and I thought he said 100 was the minimum which seemed like a good compromise and entry point. Maybe it was an unofficial minimum that he got approval for?

I tried several guides and supervisors. It was a big no…they let me walk away. I ended up buying BRV resale a month later, and within a few days of closing and having my points, I called back and was able to purchase a 115 contract.

 

[Robbie Cottam]

Disney hasn't made a right business decision in 4 years, someone probably clicked the buyback button by accident.

In reality they can't buy enough resale contracts to raise the price to force people to buy direct based on the economy currently. The market is flooded with contracts for sale. If they buy them back it means they're eating a check every year for annual dues with no one on the other end to pick up the tab for whoever knows how long until the economy goes the other way/their image improves. And we know they aren't selling enough direct or they wouldn't be offering GFV with a $50pp discount essentially. They're gonna have to live in a spot cherry picking contracts and collecting dues every year, that's the only smart play.

I don't think your statement is correct.

People buy resale for a deal, but they also expend a lot of time and effort.
If Disney even hits that they might ROFR a contract, the buyer has incentive to make a reasonable offer.

Disney just needs to put the though "If I got too low, Disney will take this" and prices will come back up

 

[Sandisw]

I didn't think DVC/DVD paid dues, just stepped in case of a shortage.

Correct when it comes to operating expenses. But, they do owe the taxes and capital reserves part.

 

[Stargazer65]

I tried several guides and supervisors. It was a big no…they let me walk away.

What was that for? Mine was BLT.

 

[zavandor]

Too early to tell since these are the first three we've seen - I think what's notable, is that even though these per-point values are low, which could justify the buyback, we've seen much lower numbers pass, raising pause to the assumption that this is just a small check-in for ROFR.

That's always been a big mistery, apparently identical contracts and the pricier one is taken. Which led to the theory that ROFR is decided by a drunken monkey throwing darts to a wall of contracts.
Possibly, the unit number matters. If DVD has a few spare points in a unit, acquiring a contract for the same Unit might allow them to consolidate and sell them.

 

[Cartman3132]

I didn't think DVC/DVD paid dues, just stepped in case of a shortage.

What I meant was instead of a person having the points out in the wild and paying dues every year, if Disney buys them back then they'll control the points but won't be able to collect dues.

 

[Sandisw]

What was that for? Mine was BLT.

Sure was! It’s why I always mention thst getting a new guide or supervisor doesn’t always change things if they have a directive to not allow something.

Now mine was in March 2009 so maybe you bought later in the year and they relaxed it??

 

[AstroBlasters]

Disney hasn't made a right business decision in 4 years, someone probably clicked the buyback button by accident.

In reality they can't buy enough resale contracts to raise the price to force people to buy direct based on the economy currently. The market is flooded with contracts for sale. If they buy them back it means they're eating a check every year for annual dues with no one on the other end to pick up the tab for whoever knows how long until the economy goes the other way/their image improves. And we know they aren't selling enough direct or they wouldn't be offering GFV with a $50pp discount essentially. They're gonna have to live in a spot cherry picking contracts and collecting dues every year, that's the only smart play.

They don’t have to pay dues on points they own. They have to backstop a shortfall.

Also “Hasn’t made a right decision in 4 years” is just inflammatory.

 

[intamin]

So what would be the difference between these cards....
Sounds like you would just make things harder on the CM and they would either stop checking or would give you the wrong discount

Not all of the CMs currently even know how to check if someone is DVC-Y or not. A waitress at Le Cellier tried telling me I had to have a printed card in order to get the discount and gave me a hard time over it. Creating this tiered system although would likely benefit me based on sheer number of points would be a nightmare for these mostly college aged cast members who really don’t care what tier of DVC you are or if you have it.

 

[Robbie Cottam]

Not all of the CMs currently even know how to check if someone is DVC-Y or not. A waitress at Le Cellier tried telling me I had to have a printed card in order to get the discount and gave me a hard time over it. Creating this tiered system although would likely benefit me based on sheer number of points would be a nightmare for these mostly college aged cast members who really don’t care what tier of DVC you are or if you have it.

YES, Im totally aware and have complained a few times about that.....
I had a similar experience at cape may, they lady tried to tell me the card had to be in my digital wallet to be valid...
I have had CM give the discount to people behind me in line because they over heard me asking for it and the CM did ask to verify

 

[Cartman3132]

I don't think your statement is correct.

People buy resale for a deal, but they also expend a lot of time and effort.
If Disney even hits that they might ROFR a contract, the buyer has incentive to make a reasonable offer.

Disney just needs to put the though "If I got too low, Disney will take this" and prices will come back up

The only reason why people are buying direct is because of the discounts that are making GFV almost the price of resale. The poster below me put out the numbers, GFV accounted for almost 50% of the points sold. There were 0 at multiple resorts. If they start buying all these points back and the resale price climbs short term they're good but when discount ends, which it will when they hit whatever threshold they set, they're going to be holding a bag of points and not collecting dues because they bought them back. That's not a good business strategy because then they'll have to discount another round of direct resorts.

 

[disneylandtour]

They don’t have to pay dues on points they own

I'm actually not sure this is true. It may be true before points are initially sold. But Disney not paying membership dues on points they buy back creates an undo burden on actual owners to keep up the property.

 

[Cartman3132]

They don’t have to pay dues on points they own. They have to backstop a shortfall.

Also “Hasn’t made a right decision in 4 years” is just inflammatory.

I understand that, what I meant was they're not collecting dues anymore, they're just holding a ton of points.

And I was being sarcastic although based on my stock holdings Its closet to the truth than not

 

[E2ME2]

Yep - I'm fake news.

Hello Paul
No Explanation Necessary!
You have the street cred with us disboarders!
BTW - I enjoyed your most recent VLOG, and look forward to more from you & Amy !

 

[Robbie Cottam]

The only reason why people are buying direct is because of the discounts that are making GFV almost the price of resale. The poster below me put out the numbers, GFV accounted for almost 50% of the points sold. There were 0 at multiple resorts. If they start buying all these points back and the resale price climbs short term they're good but when discount ends, which it will when they hit whatever threshold they set, they're going to be holding a bag of points and not collecting dues because they bought them back. That's not a good business strategy because then they'll have to discount another round of direct resorts.

The only reason? I promise you there are more than one reason people are buying direct points.....

So I think they started to ROFR again is to drive the price of resale higher so that DISNEY CAN charge more.

When diseny is holding a bag of points, as you call it, they don't just expire, Disney uses those points in the form of cash rooms.

That is a much better business strategy, than letting your product be devalued.

Again, if Disney slow raises the ROFR threshold they can keep resales prices higher....

 

[Jwaire]

I'm actually not sure this is true. It may be true before points are initially sold. But Disney not paying membership dues on points they buy back creates an undo burden on actual owners to keep up the property.

I don't worry about this.

If all else fails, they'll loan the condo association any necessary funds at a 1% interest rate like they do when the hurricanes damage Hilton and Vero.

Our management criticism aside, I don't think anyone here has ever accused DVC of not maintaining property, paying property tax, etc no matter how much in dues they collect.

At the end of the day, we just own an expiring interest, not the actual property.

 

[Sandisw]

I'm actually not sure this is true. It may be true before points are initially sold. But Disney not paying membership dues on points they buy back creates an undo burden on actual owners to keep up the property.

It is true. DVD guarantees that the price calculated in December for the following year will not be raised and if a shortfall exists, DVD will pay for it.

They do not have to offer the guarantee to owners, but they always do. To me, it means they must make out in the end when they compare not paying operational costs on points owned by them and a shortfall to be covered. And, points taken back by ROFR become part of "unsold" inventory...which is why they can sell them again.

Here is the actual language from RIV. It is the same for all resorts (with specifics changed):

 

[Epcot Forever Forever]

You can look up a deed but I don’t think you will be able to see if Disney exercised ROFR.

DVD steps in as the buyer so you might need to check all of those deeds with dvd as the buyer. You need to rule out all of those that they got as foreclosures and deed back?

You can get pretty darn certain. Lots of clues that a contract became Disney’s through a distressed means or a voluntary surrender.

The thing you can’t tease out is that if you call Disney and ask them to buy your contract from you they will sometimes say yes and THAT looks exactly like ROFR in the OC database.

Also I just believe Paul.