Should we rescind?

[ziravan]

Hello everyone. This my first post, and as you'll probably be able to tell, I am a total DVC noobie. Please go easy.

Two days ago, we purchased directly from DVC with the Poly as our home. And I now realize that we may have made a mistake.

We have two young girls, so while a studio is perfect for us now, in 5+ years it won't be a great option for us, making the Poly's 11 month reservation window almost worthless. I now understand that through the resale system, we can buy 150% more points for the same price at other home resorts that will be more flexible for our needs 5, 10, 20 years from now.

Are the perks of being a member who has purchased direct worth the extra cost vs. resale? Honestly, I don't think so based on my research but my DH is concerned that we'll regret it.

Are there any other reasons that we should NOT rescind and go ahead with this purchase?

Thanks so much for your help!

~Bea

Yes. I haven't even read your post or any other responses yet.

The answer is yes.

If you're asking that question, if you have any doubt, then rescind.

Rescind. Research. Re-buy (if appropriate).

Now, I'll read the thread.

 

[Sammie]

On March 21, 2011, Disney changed its policy on the sale of DVC contracts on the resale market so that resale points owners do not have the same privileges as owners who purchased points directly from Disney.

Resale buyers can no longer use their points to make reservations in the Concierge Collection, the Disney Collection (non-DVC Disney resorts at Disneyland and Walt Disney World as well as the Disney Cruise Line), or the Adventurer Collection.

If that is suitable to you, then there is no reason to buy direct unless you want the Polynesian.

 

[ziravan]

On March 21, 2011, Disney changed its policy on the sale of DVC contracts on the resale market so that resale points owners do not have the same privileges as owners who purchased points directly from Disney.

Resale buyers can no longer use their points to make reservations in the Concierge Collection, the Disney Collection (non-DVC Disney resorts at Disneyland and Walt Disney World as well as the Disney Cruise Line), or the Adventurer Collection.

If that is suitable to you, then there is no reason to buy direct unless you want the Polynesian.

But. Those are all very poor uses of points. DVC did resale buyers a favor here.

These were only ever gimmicks anyway.

For example, using points to pay for a cruise sounds like a great benefit....until you realize that you'd get much more pop from your points towards a cruise by renting out the points and using the cash on the cruise reservation.

I certainly wouldn't pay thousands of extra dollars to essentially buy the right to allow DVC to buy my points back from for a cruise at a deep discount (for DVC) from the real value of those points. DVC wins that way both coming and going.

I own both a resale and a direct contract. I guarantee I'll never waste my direct points on the costly perks that DVC uses to lure customers away from resale. But then, I know the value of my points.

 

[suebeelin]

If you have second thoughts, then DEFINITELY rescind. You can also go back and rebuy after more research, losing nothing but gaining time and information. The post on what each resort "should" cost using poly's price point as a cost basis was awesome.

We personally love bwv- the location is key for us. Also, the thing with bwv is the standard rooms. That means if you buy bwv for $85/pt, it's the same as poly. However, each room at bwv cost much much less, especially the std rooms, so your points stretch further.

We are, personally, obsessed with the std rooms. We don't need beautiful views.

 

[crisi]

Regarding more years or a different resort. Spending more to stay in a resort you want may be worth the extra years. Things change a lot in 25 years. Your kids are young, but in 25 years they will be independent adults (hopefully ) and you may decide that you like to vacation other spots once the kids are gone.

For the smaller and popular resorts, if you want to stay there regularly, you do need to own there. Otherwise it will be a matter of timing and luck. If you don't mind where you stay, or if you are buying a resort with the intention of staying other places (and don't mind SSR/AKL and OKW, which usually have availability into the seven month window), your best bet is going to be buying SSR, which has more years, low dues, and a lower resale price.

I wouldn't buy the Poly direct with the intention of staying other places. Too expensive.

 

[Vernie822]

We researched for quite a while and it took some convincing but I finally got my fiance to understand that resale was our best option. We put in an offer in the middle of August and it got taken by ROFR. We put in another one as soon as we found a good contract (middle of September) and we are JUST NOW waiting on our membership packet. It has been a total of 4 months for the contract we are actually getting and 5 months if you count the one that was ROFR'd.

So what I'm trying to say is.. to us, saving the money was worth the hassle of the LONG resale period. It will all be worth it, just have patience!

 

[ColinBlair]

We personally love bwv- the location is key for us. Also, the thing with bwv is the standard rooms. That means if you buy bwv for $85/pt, it's the same as poly. However, each room at bwv cost much much less, especially the std rooms, so your points stretch further.

Those are good points, I will have to take a look later at home resort point needs to see if I can calculate an adjustment value for each resort indexed to the GFV point needs.

 

[zavandor]

Those are good points, I will have to take a look later at home resort point needs to see if I can calculate an adjustment value for each resort indexed to the GFV point needs.

Standard rooms are a steal, true. But there are not enough standard rooms for every owner even att 11 months in the popular months. We are reading on this forum more and more reports about people not being able to book standard rooms even at 11 months. So don't buy BWV if you plan to stay in a standard room every time in the peak DVC period from late September to January: you may not be able to.

 

[Sammie]

But. Those are all very poor uses of points. DVC did resale buyers a favor here.

These were only ever gimmicks anyway.

For example, using points to pay for a cruise sounds like a great benefit....until you realize that you'd get much more pop from your points towards a cruise by renting out the points and using the cash on the cruise reservation.

I certainly wouldn't pay thousands of extra dollars to essentially buy the right to allow DVC to buy my points back from for a cruise at a deep discount (for DVC) from the real value of those points. DVC wins that way both coming and going.

I own both a resale and a direct contract. I guarantee I'll never waste my direct points on the costly perks that DVC uses to lure customers away from resale. But then, I know the value of my points.

As to whether using points for cruises is a poor use is subjective. Many purchases are not good use of our money but we all do it. I am sure many feel DVC in general is not the best use of one's money.

I just wanted to make sure the OP was aware of the difference. It will be up to them to decide.

Many people are not comfortable renting and do use their points to cruise.

We book a 2 bedroom for 3 people and I am sure others would think that is a poor use of points. However they are mine and I really don't care what someone else thinks about how I use my points.

 

[ziravan]

As to whether using points for cruises is a poor use is subjective. Many purchases are not good use of our money but we all do it. I am sure many feel DVC in general is not the best use of one's money.

I just wanted to make sure the OP was aware of the difference. It will be up to them to decide.

Many people are not comfortable renting and do use their points to cruise.

We book a 2 bedroom for 3 people and I am sure others would think that is a poor use of points. However they are mine and I really don't care what someone else thinks about how I use my points.

I take your meaning. With my direct contract (Poly), I will only use them at Poly because they were too expensive to use elsewhere.

And. I'm comfortable with renting out points.

If someone feels more comfortable using their direct points for cruises, you're right, to each his own.

That said, I wouldn't buy direct for that reason. I can see trading out for cruises because it's more convenient than the hassle of renting and paying cash. You pay for convenience. But in the case of buying direct, that's a double payment. If that's the rationale for buying, then a buyer is spending thousands of dollars just to be in a position to trade points at a loss to DVC for convenience sake.

It's a triple whammy for DVC because in addition to getting a premium in order to have the option of trading for points at a premium, they'll sell those points CRO for twice what a DVC member rents points. It's almost a racket.

 

[Dean]

As to whether using points for cruises is a poor use is subjective. Many purchases are not good use of our money but we all do it. I am sure many feel DVC in general is not the best use of one's money.

But buying currently with the plan to use for cruises is always a bad deal and that would be the applicable situation for this situation. Can people do so if they want, sure as long as the option remained in effect (it's not contractual) but there are zero situations where buying currently for the options i reasonable.

 

[Sammie]

I take your meaning. With my direct contract (Poly), I will only use them at Poly because they were too expensive to use elsewhere.

And. I'm comfortable with renting out points.

If someone feels more comfortable using their direct points for cruises, you're right, to each his own.

That said, I wouldn't buy direct for that reason. I can see trading out for cruises because it's more convenient than the hassle of renting and paying cash. You pay for convenience. But in the case of buying direct, that's a double payment. If that's the rationale for buying, then a buyer is spending thousands of dollars just to be in a position to trade points at a loss to DVC for convenience sake.

It's a triple whammy for DVC because in addition to getting a premium in order to have the option of trading for points at a premium, they'll sell those points CRO for twice what a DVC member rents points. It's almost a racket.

That I would agree with. At today's prices especially.

 

[DisMamaPf]

Thanks so much for the response, ktmo! Are you at all concerned about the fact that the BCV (which is also where we'll probably go if we do rescind) points will expire in 2042? That's another hang up for my DH.

~ Bea

I had a similar question about expiration dates. I asked my guide about this and he informed me that they have begun offering extensions on memberships, example is OKW. Owners were offered a 10 year extension at a rate of roughly $3k...according to my guide. He said this will also occur with the other resorts.

 

[DisMamaPf]

Hello everyone. This my first post, and as you'll probably be able to tell, I am a total DVC noobie. Please go easy.

Two days ago, we purchased directly from DVC with the Poly as our home. And I now realize that we may have made a mistake.

We have two young girls, so while a studio is perfect for us now, in 5+ years it won't be a great option for us, making the Poly's 11 month reservation window almost worthless. I now understand that through the resale system, we can buy 150% more points for the same price at other home resorts that will be more flexible for our needs 5, 10, 20 years from now.

Are the perks of being a member who has purchased direct worth the extra cost vs. resale? Honestly, I don't think so based on my research but my DH is concerned that we'll regret it.

Are there any other reasons that we should NOT rescind and go ahead with this purchase?

Thanks so much for your help!

~Bea

I had the same concerns as you. We recently bought direct, but insisted on our guide finding me an available contract for AKL rather than the Poly and Aulani they are currently pushing. We also have small children and will always want a 1Br or larger. Using a points calculator to give us an estimate, we were able to buy AKL with the aporoximate number of points we would need for a week-long stay in a 1Br at the resort I felt would best suit our needs. We will likely end up adding more points down the road, and those points will definitely be resale.

 

[ziravan]

I had a similar question about expiration dates. I asked my guide about this and he informed me that they have begun offering extensions on memberships, example is OKW. Owners were offered a 10 year extension at a rate of roughly $3k...according to my guide. He said this will also occurs with the other resorts.

Wow. That's as close to an outright lie as I've ever heard of guides telling.

DVC offered an OKW extension once, about 8 yrs ago. It was roundly considered a failure and they haven't, and likely won't, repeat that mistake.

What they do with resorts they're going back to now (VWL) and extensions is unknown. If, as seems likely based on the wording of their announcement of VWL, they plan a 2nd resort in terms of contract, then I doubt they will offer extensions.

In any case, seems weird for a guide to tell this lie as I would think he'd be pushing Poly and Aulani, and it appears to be a statement against his best interests.

 

[sndral]

I had a similar question about expiration dates. I asked my guide about this and he informed me that they have begun offering extensions on memberships, example is OKW. Owners were offered a 10 year extension at a rate of roughly $3k...according to my guide. He said this will also occurs with the other resorts.

I believe DVC offered a take it or leave it 15 year extension at OKW in late 2007/early 2008. The price was $25 per point w/ a $10 credit for those who ponied up the extra cash (DVC was willing to finance) before 2/28/08. So for your guide to say 'they have begun to offer' is a bit inaccurate IMO, as they did it one time at one resort 8 years ago.
They have not made a similar offer for any of the other older DVC resorts. What offers, if any, they make to existing Wlderness Lodge owners once they start selling the new points being created there may give us a clue as to how DVC intends to proceed going forward.

 

[DisMamaPf]

Wow. That's as close to an outright lie as I've ever heard of guides telling.

DVC offered an OKW extension once, about 8 yrs ago. It was roundly considered a failure and they haven't, and likely won't, repeat that mistake.

What they do with resorts they're going back to now (VWL) and extensions is unknown. If, as seems likely based on the wording of their announcement of VWL, they plan a 2nd resort in terms of contract, then I doubt they will offer extensions.

In any case, seems weird for a guide to tell this lie as I would think he'd be pushing Poly and Aulani, and it appears to be a statement against his best interests.

This makes me sad. It was part of his response to my question of why these memberships expire...and why can't we keep it for life. I liked the idea of extensions offered. I hope they come up with something by the time my membership is near expiration.

 

[ziravan]

Oh, and I just noticed that I just topped a thousand posts. That's almost like an anniversary.

 

[DisMamaPf]

I believe DVC offered a take it or leave it 15 year extension at OKW in late 2007/early 2008. The price was $25 per point w/ a $10 credit for those who ponied up the extra cash (DVC was willing to finance) before 2/28/08. So for your guide to say 'they have begun to offer' is a bit inaccurate IMO, as they did it one time at one resort 8 years ago.
They have not made a similar offer for any of the other older DVC resorts. What offers, if any, they make to existing Wlderness Lodge owners once they start selling the new points being created there may give us a clue as to how DVC intends to proceed going forward.

Yes, once and 8 years ago is definitely not how he made it sound. Oh well...nothing can be done about it now. What do you mean by selling new points at VWL? How are they getting new points? Are more villas being added? I thought each resort had a precise number of points. I'm very curious to see how this plays out. I know that 2057 is a long way off...but that should be a great time for my family...I suspect I'll have grandkids by then and I'd hate to have the membership expire in my golden years

 

[DisMamaPf]

Oh, and I just noticed that I just topped a thousand posts. That's almost like an anniversary.

Happy Anniversary!! This is my 5th post I think