Scared to death by the restrictions on resale pts thread

[willihm]

We just signed a contract to buy resale last Sunday. We started out talking with Disney directly but they never mentioned anything about resale pts being different than direct purchase pts (and I did ask directly about differences between buying from them and buying resale).

However, our friends who just purchased from Disney asked their guide about it and he did tell them that he had heard Disney was very close to inking a deal to restrict resale pts so that they couldn't use RCI. I told my friend that really concerned me and that I didn't think I would buy AT ALL direct or resale if that was true because of what I felt it would do to the value of resale should I ever find myself needing to sell. She gave me her guides contact info and I contacted them and she contacted them too to find out more and all they said was that they had not heard any more about it and it seemed to be off the table. So I assumed it was just a sales tactic and nothing more.

All the discussion on this forum about it, though, has scared me again. I would be incredibly furious if we bought resale and then they turned around and restricted our pts because of it. I wouldn't even be able to enjoy the vacations anymore (even though we do plan to vacation primarily at Disney). Just the principle of the thing would infuriate me.

So I'm wondering.... I still have a few days. Should I just cancel the contract and forget it? I know that no one has the answer as to whether or not they would really do it, but for the amount of money I'm putting into this, I'm thinking I might not be willing to risk it..

Man, we were so happy about the contract we found, too.

 

[drusba]

Sounds like ridiculous rumor to me and a guide who should be fired for making it up. Resale purchasers have always been treated the same as purchasers from Disney. Many purchasers from Disney have also purchased points resale (I am one of those). They really can't change the rules for existing owners like that. Moreover, there is no logical reason to create the restriction you note and it would be a logistical nightmare for member services.

 

[friends with mickey]

All points originate from Disney and I do not know how there could ever be restrictions on using them, no matter how they are purchased. It seems to me that if Disney wanted to restrict/control points they have the ROFR to resecure the points and maintain control of them. Let's say I sell my points to you. Now they are yours and you decide to sell them again in the future and the contract does not make it through ROFR so Disney gets them back. I do not see how those points could have been restricted in any way during the change of ownership. As long as Disney continues to allow resales, then I think it would be safe to purchase from resales. If people disagree I am sure they will post their opinion.

 

[ELKHUNTER]

Just as you posted orignally if resales were restricted, Disney would have a hard time selling new contracts, because who would buy something they could not unload or sell if times got hard. IMO i believe the post you read on this is members who bought direct not knowing much about resales and are now justifying the higher prices they got stuck paying!

 

[CarolAnnC]

My guess is that if DVC were ever to modify resales like this, most likely those already resold would be grandfathered in. Just speculation on my part..

 

[DenLo]

If it happens it will affect a large number of DVC members. Like many, we have DVC contracts that were purchased direct and one that was purchased resale. And having 100 of our points suddenly not worth the same value as the others would severely restrict our vacations.

There has been multiple threads about this rumor. In fact another one this morning. http://www.disboards.com/showthread.php?t=2556970

You might want to check out the above link as it has a link to an older thread. I would suspect if the rules change all current owners would be grandfathered in so only purchasers after a certain date would be affected. Try not to worry and enjoy your membership.

 

[jarestel]

The possibility of changes to almost any part of the program does exist, so though I wouldn't necessarily allow those possibilities to scare me to death, it would be prudent to realize that changes (or enhancements in DVC-speak) in one form or another to the program as it exists today will almost certainly happen somewhere down the line.

As far as exchanges thru RCI go, RCI was only recently added to the program and could just as easily be dropped at some future point. So don't count on that option always being there, regardless of buying direct or resale.

 

[palaemon]

If it happens it will affect a large number of DVC members. Like many, we have DVC contracts that were purchased direct and one that was purchased resale. And having 100 of our points suddenly not worth the same value as the others would severely restrict our vacations.

There has been multiple threads about this rumor. In fact another one this morning. http://www.disboards.com/showthread.php?t=2556970

You might want to check out the above link as it has a link to an older thread. I would suspect if the rules change all current owners would be grandfathered in so only purchasers after a certain date would be affected. Try not to worry and enjoy your membership.

I agree that it's just a sales tactic, but if true even just for future ressies, it would in fact affect everyone.

Everyone who wanted/needed to sell that is.

 

[Sammie]

and this is the DVC that spends no telling how much to make a 30 minute infomercial running now on national TV that says several times that DVC is not a high pressure sale, quote: "just as you would expect from Disney"

Honestly I think lately anything is possible from them.

 

[zev]

As many have said before look at the signed contract. That is what you are guarenteed to get. Never trust what the salesperson said, DVC or otherwise. DVC has all sorts of perks and incentives that could change at anytime, but many people are convinced that is what they payed for in the contract. The DVC guides may be better then most but they are out to make a sale like all the others. I bought points at SSR and that is what I am guarenteed to get. Still it is Disney so if people complain and it affects their revenue no telling what perks they may offer. I have had fun with my DVC but I would have no issue with selling it as well. I have every right to sell the points I have ownership of. If Disney tries to change that basic relationship too much the lawsuits would start flying.

 

[Chuck S]

Truly, though, while there are several timeshares that hold their value for resale, including DVC, the fact is there are many, many more that are pennies on the dollar. And we all know that DVC can not hold its value forever, as it is a leasehold time limited timeshare. The resale price now is artificially supported by DVCs Right of First Refusal.

In reality, that support could drop at anytime, especially as the older resorts near the end of their usage contracts. The true value of any timeshare is in the use of your time, not the price of a resale. Does anyone really think the 2042 resorts will be worth much on the resale market in 2025 or 2030? That's only 15 to 20 years away. If that scares anyone to death, likely any timeshare is not a great purchase for them.

 

[JimMIA]

You'll see a wide range of DVC timeshare salespersons. Some are sleezy and will lie through their teeth even when the truth would serve them better.

On TUG, many members call developer sales personnel (e.g. DVC salesmen) Sales Weasels, and their sales pitches are called weasel speak.

 

[littlestar]

Honestly, not being able to use DVC points in RCI to trade would be doing you a favor. I only use my DVC points for DVC point reservations. I've got timeshares that I paid less than $500 for to trade in RCI. I'm not worried about restrictions on DVC points bought resale. I bought my SSR DVC points to use the majority of the time at SSR or occasionally at other DVC resorts.

 

[willihm]

I looked at the other thread and I can't find the additional link to an even older thread...

What "scares me to death" is not as much the devaluation, as I never plan to sell it, but the fact that I would be very disappointed in having an inferior product if in fact my pts bought resale were not the same as the dvc direct pts. If that happened I'm afraid I wouldn't be able to enjoy my vacations anymore because I would be .. Bitter, for lack of a better word.

A Lot of people have suggested that I should read the actual contract with Disney to understand exactly what is legally "mine" but I won't get to see that contract as a resale buyer until I am past the point of no return, so to speak.

I appreciate all the thoughts, though. I have a few days left to contemplate. If you see another angry post in a few days about someone pulling out of a contract, you'll know who to hate!

 

[Chuck S]

The truth is, the RCI or any other trade option could disappear at any time for all of us. I don't think it is likely to go away, but it is possible. Remember that RCI was the original trading company affiliated with DVC, then they switched to II, and now they are back with RCI. But they could certainly switch again.

And the number of point required could also change at any time, I would say they are the more reasonable now than they were in the past, but there is certainly nothing stopping them from raising a trade week to say 300 pts for a one bedroom. I would not recommend anyone buy DVC that has any definitive plans to trade regularly to locations outside the DVC system. I agree it is nice to have the option for an occasional non-Disney stay, but it should not be a primary reason for your purchase.

 

[DebbieB]

It would be a shame if you cancelled your contract because of this rumor. I don't see how they could do this retroactively. Plus it would pull down the resale value of contracts purchased direct.

 

[Dean]

You're likely safe, I wouldn't cancel based on this issue. The truth is that IF they made any changes it's unlikely to have any real affect on the underlying value of using DVC. As Chuck noted, if they limit some choices they're likely doing you a favor. But they could and I'd put the long term risk at around 50%. It's likely they'd grandfather in those who already owned though there is also a likelihood they'd catch a few in the process but not yet official.

 

[BWV Dreamin]

At this point, the only thing anyone is guaranteed, direct or resale purchasers, is that we can stay at our home resort. All other variables, trading out to RCI, points for cruises, points for non-DVC resorts, even staying at non-home DVC resorts, can change in the future. If you purchase knowing you'd be statisfied staying ONLY AT YOUR HOME RESORT, than everything else is icing on the cake so to speak.

 

[ssawka]

You're likely safe, I wouldn't cancel based on this issue. The truth is that IF they made any changes it's unlikely to have any real affect on the underlying value of using DVC. As Chuck noted, if they limit some choices they're likely doing you a favor. But they could and I'd put the long term risk at around 50%. It's likely they'd grandfather in those who already owned though there is also a likelihood they'd catch a few in the process but not yet official.

ITA that DVD would "grandfather" existing contracts. The whole purpose of such a change would be to encourage new sales over resales. DVD would gain nothing from adding restrictions on existing members and it is far better to "save face" with your existing members than to add restrictions that do not increase your bottom line. Now if the owner of the existing resale contract sells the contract to someone else, then those restrictions would apply to the purchaser. Just my $0.02

 

[NewDCLGuy]

So which is higher on the Believability Scale:

A) Internet Rumor
B) Stuff timeshare salesmen claim in order to make a sell?

To the OP:

For a variety of reasons, I don't believe these rumors. At all. But it sounds like your issue is more emotional than worries about the specific restrictions being discussed. For many, emotion is a large factor in DVC. Disney knows that any plays up the "home" concept. Nobody wants to be treated like a second-class citizen in their home. I sure don't.

As I said, I don't expect to see the type of restrictions being discussed here. But I do think it likely Disney will introduce a new benefit in the future, available only to those that buy directly. Would that be enough to upset you? If so, I'd be careful.

But I'd be careful about any DVC purchase. I think Disney has a strong itch to introduce differentiation into DVC. If not with retail/resale, then with a large-point-club. I hope the come to their senses and don't do it (see note above about people not wanting to feel like second class citizens in their home) but it's a real possibility to consider before buying in.