ROFR Thread Jan to March 2022 *PLEASE SEE FIRST POST FOR INSTRUCTIONS & FORMATTING TOOL*

[snowy82]

what does a subsidized contract mean??

 

[CaptainAmerica]

what does a subsidized contract mean??

Basically, Disney botched their accounting for Aulani when it was first being sold, so owners who bought prior to things being sorted out were granted a subsidy on their annual dues which will continue for the life of the contract.

 

[HIRyeDVC]

what does a subsidized contract mean??

Aulani dues are $8.67pp for Aulani. But there are some contracts out there where Disney subsidizes the dues so the owner only pays $6,52pp.

 

[HIRyeDVC]

Buy another one lol

No way! Besides, I doubt the seller will budge much from asking price since it’s fully loaded. And 260 points at Aulani is already too much for me. You buy it! I love how we all try to get each other to spend more money on these boards.

 

[Sandisw]

If a contract has no points and Disney requires it, Disney can just reload a new contract with points to sell. Once Disney requires old contracts, the contract just goes back into the mix of the remaining inventory of what is to sell for that resort. Disney can sell the points however a new customer needs them. They can sell less, add more points, change the use year, etc.

An example is Bay Lake was an old resort they ran a promotion for in Februrary. If they needed points to sell new customers (this includes current members who might want add on contracts) that wanted to buy direct but Disney did not have enough inventory, Disney could ROFR a Bay Lake contract. Disney would take what points they needed from the contract and create a new contract for the new customer.

Another example is if Disney is gearing up for a new promotion for an old resort, they may start buying up that resort at lower price points now to sell to customers later.

Currently, according to a few Disney resale companies, BW and BCV are not getting through ROFR. Maybe Disney is gearing up for a new promotion like thinking of extending the contract end date like what they did with OKW or maybe they have something else in mind.

I feel like I never know what to expect when it comes to DVC sales! It is always a mystery.

To clarify, they can’t just add points…they must have them in stock.

When they take a contract is is dissolved and all current points go back in the bucket. There is no longer that contract.

When they sell, they use all the points now owned to create new contracts to sell.

But if they buy a contract that has no 2021 or 2022 points, then when the contract is dissolved, no 2021 or 2022 points can be added to the big pot of points.

That is why when buying direct at a sold out resorts it’s not always a guarantee they have the points you need for your UY in stock.

 

[snowy82]

To clarify, they can’t just add points…they must have them in stock.

When they take a contract is is dissolved and all current points go back in the bucket. There is no longer that contract.

When they sell, they use all the points now owned to create new contracts to sell.

But if they buy a contract that has no 2021 or 2022 points, then when the contract is dissolved, no 2021 or 2022 points can be added to the big pot of points.

That is why when buying direct at a sold out resorts it’s not always a guarantee they have the points you need for your UY in stock.

thank you. i was curious what benefit disney gets when they buy a loaded contract...

 

[MICKIMINI]

A subsidized VBR popped up yesterday and was gone in a couple hours - asking was $100 PP for 50 points. If someone is staying in studios off season at 7 months it's a steal!

My subsidized was not identified in the listing and neither was the one I saw yesterday. You have to do a quick calculation on any newly listed contracts to check it out. I paid $75 PP within the last year. I see more AUL than VBR's but it is more often then you'd think!

 

[Chia1974]

No way! Besides, I doubt the seller will budge much from asking price since it’s fully loaded. And 260 points at Aulani is already too much for me. You buy it! I love how we all try to get each other to spend more money on these boards.

Listen, I live on the east coast and I don’t need another UY. If this was an April, September or October UY then maybe.hint hint!

 

[DKZB]

thank you. i was curious what benefit disney gets when they buy a loaded contract...

DISNEY's benefit to buying a loaded contract is not only to add points to the pot for reselling at a higher price but any points they own can be used to book cash rooms that go to Disney's bottom line profit.

 

[CaptainAmerica]

To clarify, they can’t just add points…they must have them in stock.

When they take a contract is is dissolved and all current points go back in the bucket. There is no longer that contract.

When they sell, they use all the points now owned to create new contracts to sell.

But if they buy a contract that has no 2021 or 2022 points, then when the contract is dissolved, no 2021 or 2022 points can be added to the big pot of points.

That is why when buying direct at a sold out resorts it’s not always a guarantee they have the points you need for your UY in stock.

I thought they changed that last bit and now have the availability to tinker with UYs.

 

[snowy82]

back when i was naive and dumb about dvc resale, we put in an offer for a really really loaded contract (2020 points!) and started mentally planning trips to use with those points. we obviously lost that one and the subsequent (not nearly but still) loaded contract, so i'm trying to figure out how to best price the next loaded contract for OKW. is $137 a point a better shot??

 

[dado4]

So the deed on the Beach Club that we bought was recorded on Friday!
Also, I'd like to update the thread on the points on the contract we thought it was pretty stripped, but it turns out it was almost fully loaded. Do I just repost it with the updated details?

 

[snowy82]

the board is very quiet today....where's all the good news?!

 

[Ashlotte]

100 pt March UY loaded Aulani subsidized available on Fidelity.

Does Disney ever buy back the subsidized contracts? I know they don't buy back Aulani in general, but it seems like it would be in their best interest to reclaim these accounts.

 

[Sandisw]

I thought they changed that last bit and now have the availability to tinker with UYs.

They do but they still have to have points in the UY to change. For example, if right now you wanted a Sept UY, you’d need 2021 points.

Say all they have is Feb or March UY in stock. Since those have started their 2022 UY, they can’t change those because they no longer have 2021 points with them.

But, say they had June and Aug UY in stock,, with 2021 points, those can be changed to September because they have the points you need.

 

[HIRyeDVC]

Does Disney ever buy back the subsidized contracts? I know they don't buy back Aulani in general, but it seems like it would be in their best interest to reclaim these accounts.

i was thinking this too. it seems like a no brainer for disney to take these back so they no longer haveto subsidize the dues anymore but as far as i'm aware, they haven't taken back any. i'm guessing aulani is so far from being sold out, they are not interested in ever taking these back.

 

[Chia1974]

i was thinking this too. it seems like a no brainer for disney to take these back so they no longer haveto subsidize the dues anymore but as far as i'm aware, they haven't taken back any. i'm guessing aulani is so far from being sold out, they are not interested in ever taking these back.

They still have to compete with resale market. They put out some really good promotions for Aulani but still not solid out. Why would they want more points when they already have a ton to get rid of?

 

[HIRyeDVC]

Listen, I live on the east coast and I don’t need another UY. If this was an April, September or October UY then maybe.hint hint!

So did you buy it? It's no longer listed on Fidelity. That was faster than I expected considering the price.

 

[Chia1974]

So did you buy it? It's no longer listed on Fidelity. That was faster than I expected considering the price.

Nope! One is good for now. Plus I have BWV in ROFR and possibly interested in VGF2.

 

[Ashlotte]

i was thinking this too. it seems like a no brainer for disney to take these back so they no longer haveto subsidize the dues anymore but as far as i'm aware, they haven't taken back any. i'm guessing aulani is so far from being sold out, they are not interested in ever taking these back.

That makes me feel better. We are sale pending on a subsidized account and I was nervous that Disney would take it. Thanks!