Rumor: Direct Minimum for DVC Purchase Increasing to 150 Points

[Yinn]

I wouldn't expect to get the $172/pt and I don't see an accounting for the almost 9% commission I believe they are now charging. I'd estimate it being closer to $8K to make that switch and probably a bit more.

Hence why I included both numbers and stated "as little as" It was done to illustrate with the direction it's moving the difference isn't really all that large. Based on the instant sale number, less commission and fees it would be $26,066 and be a difference of $10,133.20. The specifics will then be dependent on the person as well as the contract they hold (ie, my AKV contract won't come close)

For my situation I have 0/400/200 on the contract, I'd rent out at least 500 points (@$16/pt) of it before I sold the contract. A 0/0/100 contract would only pays $9/pt less - $135 instant sale but I'd also have $8,000 in rental income. Then at $135/pt * 200pts - 8.9% - fees = $24,427+$8,000 = $32,427. It would then be a difference of $3,773 from buying 200 points at Riviera. The new Riviera contract would also have current UY points to utilize.

That math is just based on their instant pricing. There seems to be a 8% premium (based on their blog) on reselling on market vs their instant sale offers. This implies a stripped contract could sell for $146/pt on market which would close that gap even more.

But again...this is very specific to what I hold. People will be closer or further depending on their contract. There are certain contracts that will definitely net money in the switch (VGF) and ones that won't come close (OKW)

 

[KAT4DISNEY]

Hence why I included both numbers and stated "as little as" It was done to illustrate with the direction it's moving the difference isn't really all that large. Based on the instant sale number, less commission and fees it would be $26,066 and be a difference of $10,133.20. The specifics will then be dependent on the person as well as the contract they hold (ie, my AKV contract won't come close)

For my situation I have 0/400/200 on the contract, I'd rent out at least 500 points (@$16/pt) of it before I sold the contract. A 0/0/100 contract would only pays $9/pt less - $135 instant sale but I'd also have $8,000 in rental income. Then at $135/pt * 200pts - 8.9% - fees = $24,427+$8,000 = $32,427. It would then be a difference of $3,773 from buying 200 points at Riviera. The new Riviera contract would also have current UY points to utilize.

That math is just based on their instant pricing. There seems to be a 8% premium (based on their blog) on reselling on market vs their instant sale offers. This implies a stripped contract could sell for $146/pt on market which would close that gap even more.

But again...this is very specific to what I hold. People will be closer or further depending on their contract. There are certain contracts that will definitely net money in the switch (VGF) and ones that won't come close (OKW)

And don't forget the MF's on the 500 points. You would normally get reimbursed for at least a part of them. So the net rental income is less than the $8,000 and is right around the $9/pt less in the instant sale. But yeah, don't do an instant sale especially for something like this. That's for those desperate for cash then and there.

 

[Sunnyore]

Man, I don’t know if it’s always like this but I just got a tour of the grand villa at Riviera and they are busy. So many people touring the place. It sure gives that feel that they can raise whatever price and people still will be interested.

 

[Yinn]

And don't forget the MF's on the 500 points. You would normally get reimbursed for at least a part of them. So the net rental income is less than the $8,000 and is right around the $9/pt less in the instant sale. But yeah, don't do an instant sale especially for something like this. That's for those desperate for cash then and there.

That's a very valid point. I didn't account for dues. The CCV dues would be roughly $7.59/pt. So the decision on whether to strip it or not would be a difference of $144 - $12.82 (8.9% commission) +$7.59 = $138.77/pt vs $135 - $12.02 (8.9% commission) +$16 = $138.98. Which closes that gap right up.

One thing I noticed when I bought was that dues would be on current UY. I don't think I saw anyone charge for dues on banked points, but often credit would be given on borrowed points. Is that pretty consistent? If so, then I would probably account for only getting the dues on 300 of the points and there may be an in between.

The math isn't quite there for me to jump on it but its swinging enough to catch my attention and consideration.

 

[the_grinch]

Now that Disney has officially raised the minimum point for blue card, has it officially said old blue cards are grandfather in? I looked at DVC website and did not see it (I am not that best at finding thing on DVC website)

(i got my blue card with a 25 point buy in)

 

[npatellye]

Now that Disney has officially raised the minimum point for blue card, has it officially said old blue cards are grandfather in? I looked at DVC website and did not see it (I am not that best at finding thing on DVC website)

(i got my blue card with a 25 point buy in)

I don’t see why they wouldn’t be. Have they normally posted a statement saying old blue cards were grandfathered in?

 

[the_grinch]

i think in the past they have not 100% sure .that why i am ask if they officially have stated it .

 

[BWV Dreamin]

I would think if you already have a blue card you will continue to have it, unless the contracts that qualified get sold. I’m sure there is some algorithm in place.

 

[Sandisw]

Man, I don’t know if it’s always like this but I just got a tour of the grand villa at Riviera and they are busy. So many people touring the place. It sure gives that feel that they can raise whatever price and people still will be interested.

I saw them busy in March too. I think the resort sells itself and now that more are traveling, more new sales will happen.

If they raised the minimum less than 8 months later, they did it knowing it would not hurt sales.

 

[Sandisw]

Now that Disney has officially raised the minimum point for blue card, has it officially said old blue cards are grandfather in? I looked at DVC website and did not see it (I am not that best at finding thing on DVC website)

(i got my blue card with a 25 point buy in)

No, but they never have. I think if they were not doing it and you had to meet the new minimum, that would have been emailed to all owners.

Best way to reassure yourself is go to your membership and see if your blue digital card is still there. When I sold a contract that changed my status back to white, it changed immediately!!

 

[the_grinch]

thank my card is still blue

 

[T-i-double-guh-er]

I don’t remember it saying to obtain a membership card before, just membership benefits. That implies resale will not be getting even a white card now. I may be remembering or interpreting wrong.

The language is not new, it was the same wording with the 2019 increase from 75 to 100 points. The distinction is that blue cards are referred to as "Membership Card" and white cards are referred to as "Membership Identification" in the Home Resort Rules and Regulations and the Membership Extras Acknowledgment and Disclosure Statement.

Examples from the documents:

• Each Club Member named on the deed of an Ownership Interest will receive DVC Membership Identification in form of a physical card or digital identification based on their purchase.
• DVC Membership Identification shall mean the Disney Vacation Club Membership Card, digital DVC Membership Identification, or any other types of identification issued to each Club Member named on the deed of an Ownership Interest.
• To receive any Membership Extras, purchasers must present a valid Disney Vacation Club Membership Card along with a corresponding valid photo ID.
• Effective October 19, 2020, to obtain a Disney Vacation Club Membership Card, Members must accumulate a total of at least 125 Vacation Points purchased directly from DVD.

 

[eandt]

Now that Disney has officially raised the minimum point for blue card, has it officially said old blue cards are grandfather in? I looked at DVC website and did not see it (I am not that best at finding thing on DVC website)

(i got my blue card with a 25 point buy in)

I am in the process of signing my contract that we purchased direct yesterday right now and under the benefits section it refers to members must accumulate 125 to obtain a DVC membership card. Appears to confirm "grandfathering"

 

[KAT4DISNEY]

Now that Disney has officially raised the minimum point for blue card, has it officially said old blue cards are grandfather in? I looked at DVC website and did not see it (I am not that best at finding thing on DVC website)

(i got my blue card with a 25 point buy in)

They have done a statement via some method when certain benefits became excluded from resale but not when it's just been a changing of the amount of points required, unless that also corresponded to a change in the benefits themselves.

 

[CBar87]

Disappointed to see yet another increase in the point minimum to buy direct. I wonder what impact this will have on the resale market. I believe it will drive more demand for resale. Thoughts?

 

[Sandisw]

Disappointed to see yet another increase in the point minimum to buy direct. I wonder what impact this will have on the resale market. I believe it will drive more demand for resale. Thoughts?

I think it all depends but honestly, I don't expect it to drive more to the resale market except those who are current owners or those who frequent places like here. Many new DVC buyers are park goers who really do not have as much knowledge as the rest of us.

DVD knows what they are doing and if they are raising the minimum just 8 months after the last, there has to be a reason and they must feel they can make it work. Plus, I wonder if it is possible that many new buyers are getting that amount anyway, so in theory, it may be an increase that may have little effect on overall sales.

 

[AmishGuy91]

DVD knows what they are doing and if they are raising the minimum just 8 months after the last, there has to be a reason and they must feel they can make it work. Plus, I wonder if it is possible that many new buyers are getting that amount anyway, so in theory, it may be an increase that may have little effect on overall sales.

It could be this. We bought 150, instead of 125, a few months ago because of the incentive if you bought 150. The incentive enabled us to get 25 more points (over 125) at about resale price.

 

[ScubaCat]

Disappointed to see yet another increase in the point minimum to buy direct. I wonder what impact this will have on the resale market. I believe it will drive more demand for resale. Thoughts?

I made a chart of each resale restriction and their corresponding effect on the market, including this latest:

Implementation Date	Effect on Resale Market
March 2011 (no disney/concierge collection)	none
April 2016 (no member extras without some direct points)	nothing
February 2018 (no extras without 75 direct points)	nil
January 2019 (blocked from L14/new resorts exchange)	nada
September 2019 (no extras without 100 direct points)	zero
October 2020 (no extras without 125 direct points)	zilch
June 2021 (no extras without 150 direct points)	zip

 

[Yinn]

I made a chart of each resale restriction and their corresponding effect on the market, including this latest:

Implementation Date	Effect on Resale Market
March 2011 (no disney/concierge collection)	none
April 2016 (no member extras without some direct points)	nothing
February 2018 (no extras without 75 direct points)	nil
January 2019 (blocked from L14/new resorts exchange)	nada
September 2019 (no extras without 100 direct points)	zero
October 2020 (no extras without 125 direct points)	zilch
June 2021 (no extras without 150 direct points)	zip

I would be curious to see what the average first contract size is during those times. I would assume they keep getting larger to meet those minimums which is why they would keep increasing it.

 

[sssteele]

I would be curious to see what the average first contract size is during those times. I would assume they keep getting larger to meet those minimums which is why they would keep increasing it.

Point charts keep going up, as well. For example, more points needed for a week in a studio at the new resorts. We bought in many years ago (almost 20), and our stays at BCV, VWL, and AKV are many fewer points than is the case at new resorts.