So, You've Decided to Buy DVC

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The DVC Moderators

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Introduction to DVC

On October 1, 1991, the “Disney Vacation Club” resort opened at Walt Disney World. This resort, themed as iconic Key West, FL afforded guests access to a unique on-site resort at WDW.

The first members bought ownership in “The Disney Vacation Club” with no guarantee that additional resorts would ever be built. “The Disney Vacation Club” was a timeshare property with the ‘Disney Difference’.

Shortly after Disney’s second DVC resort opened in Vero Beach, Florida on October 1, 1995 , “The Disney Vacation Club Resort” was renamed Disney’s Old Key West Resort to identify the original DVC Resort with its unique theming.

A third Disney Vacation Club (DVC) resort opened at Hilton Head Island, South Carolina on March 6, 1996 and a fourth DVC resort would open at WDW as Disney’s Boardwalk Villas Resort in June, 1996.


There are now with 13 resorts available and others in various stages of design and development. In addition to the DVC Resorts at Walt Disney World, there are also Resorts in the system at Vero Beach (FL), Hilton Head Island (SC), Anaheim (CA), and Ko ‘Olina (HI).

The most recent additions to the Disney Vacation Club were at the Grand Floridian Resort and Polynesian Village Resort at Walt Disney World. Under construction at this time is a DVC addition to Disney’s Wilderness Lodge.

DVC is one of the many divisions of the parent Disney company. All DVC Resorts have been developed and sold by 'Disney Vacation Development' (DVD) and 'Disney Vacation Club Management Corporation' (DVCMC) is the managing entity for each and every DVC Resort.

Owners at each DVC Resort have the right to replace DVCMC as management, but that would be an extremely cumbersome process with the outcome (if successful) meaning that the new management team would need to contract for all services being provided by DVC/Disney. This would include Housekeeping, Maintenance, Transportation, Reservation services, Landscaping and all other aspects of maintaining the resort and services for the member/owners. The removal of DVCMC as management for any individual resort would also mean that resort would be removed from the ability for members to freely reserve at other DVC resorts unless the new management could contract for that ability.

 

The DVC Moderators

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What is The Disney Vacation Club - DVC?

DVC is a ‘Vacation Ownership Plan’
The Disney Vacation Club is a ‘Vacation Ownership Plan’ where those purchasing an ‘ownership interest’ in the condominium automatically belong to the ‘Club’. Many people are familiar with traditional Timeshare Resorts, where owners purchase the right to use an accommodation at that resort for a specific period of time each year.

DVC uses a different concept.

Under DVC’s points-based system, for a one-time purchase price, members purchase a fractional portion of a 'Unit' consisting of a building or a number of villas within a building at a specific resort. That 'ownership interest' is expressed as a specific number of DVC points representing their ownership interest for use each year. They will receive the same allotment of points each year for use until their contract expires.

These points may be used for stays at any time of year, in a selection of different-sized villas, at many different resorts – based on availability.

Vacation Ownership Program?

Although the Disney Vacation Club commonly refers to itself as a “vacation ownership program”, it is more properly called a “leasehold condominium“, in fact the legal name is "Disney Vacation Club Condominium Association, Inc". This association is described as a not-for-profit corporation and is the entity responsible for operation of Disney Vacation Club at Walt Disney World. The association has engaged "Disney Vacation Club Management Corp" (DVCMC) as the management company for the DVC properties.

Disney’s own promotional materials include the following disclaimer in some form:

THIS PUBLIC OFFERING STATEMENT CONTAINS IMPORTANT MATTERS TO BE CONSIDERED IN ACQUIRING AN INTEREST IN A VACATION OWNERSHIP PLAN.

UNITS IN THIS CONDOMINIUM ARE SUBJECT TO A VACATION OWNERSHIP PLAN UNDER FLORIDA LAW

Ownership Interests are free interests in real property. For DVC Resorts located in Florida, Ownership interests are “time-share estates” within the meaning defined in Section 721.07(5)(28), Florida Statutes and Sections 721.57, Florida Statutes.


 
  • The DVC Moderators

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    Disney Vacation Club Cost

    What does it cost to join DVC?

    When you buy into the Disney Vacation Club, you purchase an ownership interest which is expressed as a specific number of “vacation points.” Currently, the cost per point to purchase from Disney Vacation Development is $171 per point but may vary depending on the Resort you are considering. DVC ownership may also be purchased via the resale market, usually at lower cost.

    Disney usually requires new member to buy a minimum number of points. Initially, the minimum was 230 points, but that number has been lowered numerous times over the years. Currently the minimum for most resorts is 100 points so at $168 per point, the cost is $16,800. Disney may offer incentives that will lower the cost per- point and the price may be even cheaper if you buy points through a reseller where there is no minimum purchase requirement. Thus, if a smaller contract is available via resale it may be available through resale.

    If you buy through Disney where financing will be necessary, you will need to make a down payment of at least 10% or 20%, depending on which financing plan you use. Using the financing offered by DVD , the annual percentage rate for paying over 10 years is between 9% and 17.5%, depending on the applicant’s credit score. There will also be associated closing costs for the purchase.

    Current DVC Price per Point for direct purchases:


    $110 – HHI, VB

    $140 – OKW, SSR

    $160 – AKV, BCV, BWV, VWL

    $182 – CCV, AUL

    $220 - PVB, VGF

    $235 – VGC



    When you finance through Disney, your purchase of an ownership interest is considered real estate for tax-reporting purposes. You will receive a 1098 statement from Disney at the end of the year, and the interest you pay may be deductible on federal taxes.


    History of DVC Direct Sales pricing– A record of the price per point that DVC has charged over the years not including any incentives available at the time.

    Pre-sales - $48
    October, 1991 - $51
    July, 1992 - $54.50
    November, 1992 - $56
    July, 1993 - $57.50
    June, 1994 - $60.50
    November, 1994 - $61.50
    July, 1995 - $62.75
    January, 1999 - $65
    May, 2000 - $67
    January, 2001 - $72
    June, 2001 - $75
    June, 2002 - $80
    December, 2002 - $84
    August, 2003 - $89
    April, 2004 - $95
    June, 2005 - $98
    February, 2007 - $101
    June, 2007 - $104 (AKV, SSR)
    September, 2008 - $112 (BLT)
    January, 2009 - $112 (AKV)
    March, 2009 - $112 (VGC)
    October, 2009 - $120 (BLT)
    July, 2010 - $120 (AKV, VGC), $95 (SSR)
    October, 2010 - $120 (BLT, AKV), $114 (AUL)
    November, 2010 - $120 (AUL, BLT, AKV)
    December, 2010 - $130 (BLT)
    June, 2011 - $140 (BLT)
    August, 2011 - $150 (BLT), $130 (VGC)
    December, 2011 - $135 (AUL)
    January, 2012 - $155 (BLT), $125 (AKV)
    April, 2012 - $160 (BLT), $130 (AKV)
    July, 2012 - $165 (BLT), $135 (AKV, AUL)
    December, 2012 - $140 (AKV, AUL)
    March, 2013 - $165 (BLT), $145 (AKV, AUL)
    May, 2013 - $145 (VGF)
    June, 2013 - $150 (VGF, AKV, AUL)
    February, 2014 - $165 (BLT, VGC), $155 (VGF, AKV, AUL)
    June, 2014 - $ 165 (VGF), $160 (AUL)
    January, 2015 - $160 (PVB)
    February, 2015 - $170 (BLT), $165 (PVB, VGF, AUL)
    December, 2015 - $168 (PVB, AUL)
    February, 2016 - $180 (BLT, VGC, VGF), $160 (AKV, BCV, BWV, VWL), $140 (OKW, SSR)
    May, 2016 - $171 (PVB, AUL)
    January 18, 2017 - $175 (PVB, AUL)
    March 8, 2017 - Sales begin for current DVC Members at Copper Creek Villas (CCV) $176
    April 8 ,2017 - Sales open for non-members at Copper Creek Villas
    July, 2017 - Pricing for DVC Resorts - $115 (VB, HHI 50 pt min), $145 (OKW, SSR 50 pt min), $165 (AKV, BCV, BWV, BRV 100 pt min), $176 (AUL, CCV, PVB 100 pt min), $185 (BLT, VGC, VGF 100 pt min)
    January 17, 2018 - Pricing for DVC Resorts - $115 (VB, HHI 50 pt min), $145 (OKW, SSR 50 pt min), $165 (AKV, BCV, BWV, BRV, 100 pt min), $182 (CCV, AUL 100 pt min), $220 (PVB, VGF 100 pt min), $235 (VGC 100 pt min)


    In addition to the purchase price, there are also additional costs associated with purchase. These include closing costs, title insurance and any financing expenses. After purchase, fees associated with DVC Membership are annual maintenance fees (either paid as a lump sum in January for the calendar year or split evenly over 12 months with no financing fee) and any fees associated with optional programs like exchanges outside of DVC Resorts.

    DVC membership covers the cost of the room and not any associated expenses during a reserved stay (Transportation, Theme Park admission, food, recreational costs, etc.).


     

    The DVC Moderators

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    How many points will I need to buy?

    How many points will I need to buy?

    The number of points required to book a room varies by resort, type of villa, time of year, and in some cases room view. The number of points you will personally need will be determined by those point costs and the number of times each year you may decide to stay at a DVC Resort and your budget. Many DVC Members have begun with a small number of points and later purchased additional contracts (called add-ons) after they discover what needs they will most enjoy as time goes on. At this time, many first-time buyers probably settle on 100 – 150 points as their starting point.

    Buying additional points later?
    Many DVC members start out small and then add additional points later. Add-on points will be in the form of another contract and which may be added to the original membership with the same Use Year or as a separate membership, including a different Use Year and even a different Resort.

    Add-on points can be obtained from Disney or through the resale market. The minimum add-on contract available through a Disney Vacation Club guide is 50 points for Disney-financed purchases or 25 points for cash purchases. Resale contracts are available only as the number of points in the original purchase as contracts cannot be broken up into smaller amounts except by Disney. Resale listings may range in size from 25 points (the minimum for any contract) to hundreds of points in a single contract.

    Can I sell some of my points later?

    DVC contracts consist of a specific number of points at a specific resort with a specific Use Year. Members are not allowed to change any aspect of their contract. You can only sell the full number of points in a contract.

    With a direct purchase from Disney, purchasers may direct the number of points divided into as many separate contracts as they wish, as it provides greater flexibility down the road. If you plan on purchasing 200 points, it might be worthwhile having Disney break that up into two 100-point contracts. Having multiple contracts in a Membership does not affect making reservations in any way, but it could make a difference should selling a contract later be of interest.

    My DVC Guide told me that the number of points needed to stay at my DVC Resort will never change.

    Once declared, DVC cannot change the total number of points for a resort without building additional inventory at the resort.

    To the owners at each resort, DVC has the responsibility to try to maintain occupancy rates year-round. While the total number of points sold at the resort is a fixed number and cannot be changed, point needs for individual nights can be changed in order to level out occupancy rates.

    They accomplish this by reallocating points based on time or the year (Point Seasons), villa type, weeknights/weekends, and even view. Originally, weekend nights were about double the point cost of weekday nights and it resulted in many Members reserving Sunday – Thursday nights leaving weekends under-occupied at least be DVC Members.

    DVC can make adjustments to the point chart for a resort to better reflect member demand and utilization. Reallocation is the process used to raise the point requirements for a specific resort / room size / season / day of the week, while lowering the points for another room size / season / day of the week at the same resort. The total number of points at a resort does not and cannot be changed. If any night or group of nights is raised, other nights.goups MUST be lowered to keep the total number of points in balance for each resort.

    Historically, points have been reallocated several times at DVC Resorts. The first was in 1996 only for Old Key West. The change to the point charts was announced in late 1994 and took effect on January 1, 1996. In that reallocation some weekend night point requirements were lowered and some weekday nights raised. It did affect those who had purchased a specific number of points to use only for week nights since they now found that they needed more points to maintain their same travel plans.

    Reallocations have occurred a few other times over the years, sometimes affecting all DVC resorts and sometimes affecting a specific resort or resorts.

    While Reallocation is not a frequent event, it is something every DVC member should be aware of as a possibility.

    GUARANTEED WEEK OPTION
    Over the years, DVD recognized that many DVC Members do enjoy returning for the same week each year so DVC also now offers a ‘Guaranteed Week’ purchase option which allows an owner to secure a reservation each year at their Home Resort for a specific week, in a specific villa type and view throughout their DVC ownership. The week, villa type and view are determined at purchase. This may sound like a traditional timeshare but there are significant differences. Owners of these ‘Guaranteed Weeks” and are not restricted to only use the week they purchased as they can release that week to other members and reserve other DVC options using the points recaptured from releasing that week.

    A ‘Guaranteed Week’ consists of seven consecutive nights arriving on a Sunday and departing the following Sunday. ‘Guaranteed Weeks’ are numbered from 1 to 52 and correspond to the Sundays in the calendar year. Week #1 starts with the first Sunday in each calendar year, while Week #52 starts with the 52nd Sunday in each calendar year. Arrival and departure dates for each guaranteed week will vary from year-to-year just the same as the dates for Thanksgiving and Easter will vary each year.

    ‘Guaranteed Week’ owners do pay a premium for this option and also are exempt from any future reallocation of points.

    This purchase option is currently available only at Disney’s Aulani Resort & Spa, Disney’s Villas at the Grand Floridian, and at Disney’s Polynesian Villas and Bungalows.


     

    The DVC Moderators

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    Other expenses to expect after purchasing DVC?

    What other expenses are there after the initial purchase price?

    Aside from the initial (and one-time) purchase cost, DVC members must pay Annual Maintenance Fees. Maintenance fees are assessed as a per-point basis, and will vary by resort to cover the expenses to operate, maintain and provide services at that resort.

    These annual fees cover all operating expenses (like Front Desk, housekeeping, maintenance, transportation, landscaping, utilities, insurance), administrative expenses (Member Services, member mailings), real estate taxes and the cost to update and maintain the interior, exterior, and common areas of the resort.

    You can choose to pay your dues annually in January each year or spread payments out in twelve monthly payments with no finance charge as an auto-debit from a checking account. Maintenance Fees cover each calendar year, without regard to Use Year. They are pro-rated for purchases direct from Disney (if you purchase on June 30, you will pay 6 months of Maintenance Fees for that calendar year and then a full year of Fees for the next calendar year).

    Maintenance Fees vary by resort and historically have increased 2-4% per year. Fees cannot be raised more than 15% without approval by vote of the owners (which has never been necessary). Current fees are shown below as a per point dollar amount.

    2019 Maintenance Fees per point by Resort:

    Animal Kingdom Villas - $7.4355

    Aulani Resort & Spa - $7.8603

    Bay Lake Tower - $6.3994

    Beach Club Villas - $6.9415

    Boardwalk Villas - $7.1722

    Boulder Ridge Villas - $7.3220 (Formerly VWL)

    Copper Creek Villas - $7.4256

    Hilton Head - $8.5630

    Old Key West - $7.2289

    Polynesian Villas & Bungalows - $6.7625

    Saratoga Springs Resort - $6.4041

    Vero Beach - $9.4766 (VB Subsidized - $7.4465)

    Villas at Grand Californian - $6.2664

    Villas at Grand Floridian - $6.3850




    A History of DVC Maintenance Fees -http://www.disboards.com/threads/dvc-resource-center.3501933/#post-55557126



     

    The DVC Moderators

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    Making a DVC Resort Reservation

    HOW DIFFICULT WILL IT BE TO MAKE A RESERVATION WHEN I WANT TO GO?
    With a few exceptions, members will have little difficulty reserving villas at their Home Resort 11 months in advance. There are certainly some limited views and Resorts with a limited number of unique villas where thousands of member will be unable to reserve the five or six unique villas for the same date but beyond those few exceptions, making reservations using the 11 month Home Resort Reservation Priority will be successful.

    Making reservations at non-Home Resorts 7 months before your arrival date is also very possible, but will find varied success based on date, villa type and view.

    There are a few very popular times of the year for DVC Members, including the first two week of December each year when Christmas decorations and programs are all in full swing and the DVC Member Annual Meeting is held each year during this time. Point costs are also lowest at this time. In the fall each year, the Epcot Resorts are also very popular during the Epcot Food & Wine Festival. Mid-January hosts the Disney Marathon and DVC resorts are very popular during that low point cost time also.

    There are also some specific villa types that tend to reserve quickly due to their low point costs (Value Villas at DVC Resorts offering that category are an example).

    Many DVC Members will reserve at their home resort during your home resort priority period, and then to try to change the reservation to the desired resort at the seven-month mark.

    The larger resorts like SSR, OKW and AKV will generally be the last to fill up and will often still have availability after other Resorts have none remaining.

    Studios are typically the first to be gone from available inventory, followed by 2 bedroom villas, and then 1 bedroom villas. However, due to the volatility of the DVC Reservation system, villas that were not available may be available today, so it never hurts to check online.

    DVC also offers a waitlist option where members are placed on a list to fill specific dates when they open up. Some members will also check daily for these same specific days needed to fill a desired reservation. Others will end up with reservations at multiple resorts for their desired dates. The negative with that strategy is the need to move out of one villa and check into another. DVC will assist with luggage transport for those situations.


     
  • The DVC Moderators

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    DVC Point Rentals
    DVC members are expressly allowed to make reservations for others and offer those reservations for rent. The DVC Public Offering Statements for all DVC resorts include specific language allowing the rental of accommodations at DVC Resorts. DVC themselves make reservations using DVC points so allowing Members the same ability was made part of the documentation for all DVC Members.

    From a DVC Public Offering Statement delineating the allowance for Member rentals:

    Anyone may rent a DVC Resort accommodation from a DVC Member.
    The two methods you can use to reserve a DVC room are:

    Make a reservation directly with Disney Reservation Center (DRC) just as you would reserve any other Disney resort hotel

    OR-

    Rent from a Disney Vacation Club (DVC) member.​
    Available DVC inventory through DRC comes from Members through several avenues – inventory owned by Disney Vacation Club directly, inventory provided to DRC from DVC points used by members from non-DVC reservation options, and from DVC Breakage inventory for DVC villas not reserved by Members 60 days before arrival.

    Inventory from a DVC member is available when DVC Members offer to make reservations using points they will not be using themselves. There are a couple of ways to access DVC Members offering to make reservations for others – the DIS DVC Rent/Trade Board provides a ‘classified ad’ resource for DVC Members to offer DVC Resort rentals to others and Rental Brokers will make reservations for others using DVC Member points. It will typically cost less to rent from a DVC member than to book a DVC resort direct from Disney. Potential renters should always have an understanding what a reservation will cost when made through Disney directly before entering into a DVC rental.

    When you “rent points from a DVC Member”, the reservation will be in your name and you will check in at the regular Disney Resort arrival desk. You will be treated the same as every Disney Resort Guest and you will have access to almost all of the same amenities and perks afforded to each and every guest staying at a Disney Resort.

    If you do decide to rent points from an individual DVC member, there are a few things you should be aware of so that your rental is nothing less than a ‘magical’ experience.

    THE RISKS OF RENTING POINTS
    While commonly referred to as “renting points”, you are actually paying a DVC member to make a reservation in your name with points they own as DVC members. This is true for both rentals directly from a DVC Member or through a Rental Broker.


    Renting Points is a little different than booking directly through Disney​
    There are differences between renting points and booking a hotel reservation with Disney. Potential renters should educate themselves on the process of renting points and perform due diligence prior to entering into any agreement to rent points.

    These rental transactions are a private transaction between individuals and Disney is not going to be involved in any way. If anything goes wrong, you can’t complain to Disney or expect them to resolve any problem.

    There is inherent risk in these types of private transactions so if you are unwilling to personally accept risk, renting points may not be the way to go as we are not aware of any failed reservation transactions made directly through Disney.

    The risk is that someone else controls your reservation until you check in at the resort, even though it is in your name. It requires some trust that the DVC owner/member will honor your contract with them and not cancel the reservation or default on a loan payment of maintenance fee payment which might cause DVC to cancel the reservation from their end.

    While cancellation of a rental reservation is a very rare occurrence on our DVC Rent/Trade Board it is something that should not be overlooked. We always suggest Due Diligence in getting to “know” the DVC Member via reviewing their posts on the DIS, direct correspondence with the Member, contacting prior references, conversing via phone and reviewing their ownership online. If a renter is comfortable with the DVC Member after exercising Due Diligence as described above, a transaction can be a very cost effective means to enjoy a Disney vacation at a DVC Resort.

    Renting through a DVC rental broker may reduce the risk of losing your money, as some offer full refunds if there is negligence on the part of the owner/member. A broker cannot guarantee that your reservation will not be cancelled but, they will work with you to try to arrange comparable accommodations. If no comparable accommodations are available, you’ll just get a full refund. However, while using a rental broker may reduce your risk, it does not completely eliminate all risk. Your family could still face the disappointment of not having a reservation.

    The risk involved is that there is a small chance that the member (with or without a rental broker) you are working with could cancel your reservation before arrival. While this has happened only a few times over the past 19 years using the DIS DVC Rent/Trade Board, it has happened. Most of those failed transactions could have been prevented by using DUE DILIGENCE.

    That said, reported instances of failed DVC rentals occurring are extremely rare, and the actual amount of risk is low. Thousands of successful rental transactions have been completed throughout the history of the DVC program, and the substantial savings are obvious.

    If you are not comfortable accepting any risk then don’t rent a reservation from a DVC Member. Guests who want a risk-free choice should pay more to book directly with Disney rather than renting points – although it will cost much, much more. That peace of mind may be worth it to some.

    Disney offers a very friendly cancellation policy compared to renting points, as DVC Members have little flexibility regarding their points and allowing cancellations in many case would result in either penalties or, in some cases, the loss of their points.

    With reservations made through DVC Members, all requests will need to be made through the DVC Member. The Disney Dining Plan will need to be added through the DVC Member.

    “Free Dining” is not available through a DVC Member reservation as that program requires a full priced room reservation and also a Theme Park admission.

    DVC Reservations can (and should) be verified using the www.MyDisneyReservation.com/DVC website.

    DVC Members (and their guests/renters) will NOT receive daily Housekeeping services. Housekeeping will be on the 4th day of your reservation and will include clean towels and trash removal for stays of 7 days or less –OR- a full cleaning (which includes clean linens, trash removal, replenishing of supplies) on day 4 and a partial clean on day 8 for stays of 8 days or longer. (Arrival day counts as Day 1).

    DVC reservations are included for all WDW guests benefits like Disney’s Magical Express, Extra Magic Hours, Theme Park parking and the use of Disney transportation (busses, boats, monorails).



    HOW FAR IN ADVANCE SHOULD I LOOK FOR A RENTAL?

    DVC is a timeshare system built around the anticipation of full occupancy year-round. DVC Members are able to reserve at their Home Resort 11 months before arrival and 7 months for non-Home Resorts. We suggest making your reservation as early as you can. If you try to get a reservation less than 7 months in advance, your options will be limited to larger resorts such as Old Key West, Saratoga Springs and Animal Kingdom Villas. Reservations within 60 days of arrival can happen but the remaining DVC inventory is also available through DRC at 60 days which will limit reservation success. With most rental transactions, flexibility is not really an option (as with reservations made directly through Disney), so be sure your dates are firm before entering into any agreement.

    HOW MUCH WILL IT COST?
    When you rent from an individual DVC member, the price you pay may be negotiable. It can’t hurt to make an offer, but do not be offended if the owner is firm with their pricing unless the dates are within 6 months when their points can be considered “distressed” where they risk losing the points if they are unable to rent.

    Even those owners that are open to negotiate may not want to deal with lowball offers. Making a win-win offer may be in your best interest. It would be wise to already know what your dates, resort and villa type would cost if reserved through Disney directly.

    In many cases, the DVC Member is already motivated to rent their points by making a reservation. This is especially true if the points were banked from the prior year or if they are already beyond their banking deadline for the current year. For dates within 6 months, availability will be the greatest challenge, so haggling over a few dollars is counter-productive for everyone as the reservation may not be available tomorrow.

    Use the DVC Point Charts to determine total point cost, based on room type, resort, and time of year.

    THE DISboards DVC RENT/TRADE BOARD

    DISboards.com offers the “DVC Rent/Trade” Board which serves as a “classified ad” board where you can go if you want to connect with individual DVC members to rent points. The DIS is NOT involved in the actual transactions between the parties involved, and has no control over the truth or accuracy of the listings or the abilities of the parties to complete the transactions, and cannot and will not be held responsible for same. The DIS will not intervene in any issues resulting from these private transactions. The DIS does not endorse anyone offering rentals, trades or transfers and all transactions should be viewed as “Buyer Beware”.

    ** How to use this Board** thread at the top of the Board before posting as there are suggestions included for both potential renters and DVC Members.

    USING A DVC RENTAL BROKER

    As a potential renter, using a DVC Rental Broker is another option. These services can simplify the rental process.

    The downside is that it may cost more than renting direct from a DVC member, since the the third party rental broker will be compensated for their service. You need to decide whether you feel it’s worth paying a little more for some peace of mind.

    WILL USING A RENTAL BROKER ELIMINATE ALL RISK?

    When using a rental broker, a potential renter can’t do any due diligence, since they will NOT know who the owner is they are renting from. You will work directly with the rental broker who will take care of everything for you. It’s almost like you’re calling up Disney reservations and booking direct with Disney. Most rental brokers will refund money from a failed transaction and will also work hard to find suitable accommodations for their renters in the event of a rare failed reservation.

    Renting DVC points still involves some risk since a renter could find themselves without a reservation at arrival. That risk is what creates the opportunity for great potential savings. If a renter wants more protection and stronger assurances, they can pay twice as much and book directly with Disney.

    A rental broker can offer some more protection assurance than a direct rental, but there are still risks – perhaps not losing your money, but of losing your reservation. Regardless, thousands of successful rentals have been transacted using the DIS DVC Rent/Trade board and over the years with very, very few failed transactions.



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    The DVC Moderators

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    IS BUYING DVC A GOOD DECISION FOR ME?

    Most families will look at a DVC purchase as they do buying a home or a car due to the expense and related ongoing financial responsibilities.

    DVC Membership is not for everyone. There are certain aspects which are very appealing at first glance and spur of the moment decisions are often made by families exposed to the friendly, comfortable informational tour taken while at Walt Disney World, Disneyland or even on a Disney Cruise.

    FINANCIAL CONSIDERATIONS

    DVC is not a one-size-fits-all product as each family will have their own set of needs and their own comfort level. For many, the analysis done before purchase will change later due to realization that they enjoy what DVC offers more than they originally considered or they are not able to use the program as much as originally thought.

    One aspect of DVC sales is to compare the cost of DVC vacations to rack rate stays at Disney’s Deluxe Resorts. While there is certainly a good savings over ‘rack rate’ expenses, few Disney guests end up paying that rate as over the past 25 years, Disney has also offered discounted rates for most of their resorts on a fairly regular basis. There is certainly a savings with a DVC purchase, but be sure to do the math which includes the annual maintenance fees in addition to the one-time purchase price.

    For those used to staying at Disney’s Value Resorts, a comparison with DVC is not likely to fare well at all but comparisons with Disney’s Moderate and Deluxe Resorts will often offer a different outlook especially when larger DVC accommodations are being considered.

    NON-FINANCIAL CONSIDERATIONS
    Financial considerations are a part of the decision process but the quality and amenities of the accommodations can also serve as a great reason for a DVC purchase.

    For families of four or more, Two-Bedroom Villas can offer wonderful space as children grow older and families enjoy the freedom afforded by additional space, washer/dryer and full kitchen right in the villas.

    For multi-generational stays, families will also enjoy the space of a Three-Bedroom Grand Villa available in some DVC Resorts to sleep up to twelve adults.

    For the times when space for the entire family is not necessary, many couples can still enjoy a Deluxe Studio available at all DVC Resorts especially when considering the point cost savings for such stays may allow the possibility of additional stays with those savings.

    When someone is considering a DVC purchase, most Members will suggest a thorough understanding of the program and how it fits with the vacation habits of potential new members.

    The DVC Tour will touch on all of the extra vacation opportunities available using DVC Points, but most members recognize that the best value of DVC Points is when used at DVC Resorts. Certainly, there is peace of mind to reserve a Disney Cruise using only the points you have already paid for and there is a value in using your points in that fashion but the cost reality may well lead one to find that the Cruise could have been purchased using cash for less than the comparable cost of the DVC Points.

    DVC can be a huge decision for your family. Just take your time to learn all about the program before rushing into a program with an expectation to cruise every year or take an Adventure trip using DVC Points on a regular basis. With prudent understanding of all aspects of the program new buyers are better able to make an informed decision with likely fewer surprises later on.



    For many current DVC Members, their one regret is that they did not purchase sooner!



     

    The DVC Moderators

    DVC Moderators
    Moderator
    Joined
    Oct 26, 2011
    PURCHASE DIRECT FROM DISNEY OR RESALE?
    Most potential buyers are first aware of DVC while staying at a Disney Resort or while in a Disney Theme Park. DVC has done a wonderful job or promoting their product directly to those already staying at a Disney Resort or visiting a Disney Theme Park. The kiosks in the resorts and Theme Parks are there to offer some general information about the program, but mostly to invite guests to take a tour at the Sales Center from a DVC Vacation Guide where they will be treated to lemonade, cookies, ice cream and will be shown a Disney production about DVC and all of the vacation options available.

    Most will not even be aware that there is also a resale market where existing members have decided to part with their DVC ownership in whole or just in part. Just as purchasing a new/used automobile or home, DVC contracts are also available for sale.

    The reasons for a member deciding to sell are many. For some, they have fallen on financial difficulties and must sell to keep their home. Others have just found they were not using their membership the way they originally believed. Their loss can be your gain as these resale purchases will usually be more economical than a purchase directly from Disney.

    However, there are some differences.

    Direct purchase vs Resale purchase

    For almost 20 years, those buying through resale received the exact same product and access to the exact same programs and benefits as those who purchased directly through Disney.


    March 21, 2011 Restrictions for Resale Purchases
    Beginning on March 21, 2011, DVC made some changes to the way purchasers were treated after becoming members by purchasing a contract via the resale market. Those purchasing since March, 2011 were still DVC members and received all perks and benefits as all other members. However, they were not allowed to use their points for the Disney, Concierge and Adventure Collection travel options which included using DVC Points for non-DVC options like a Disney Cruise, staying at non-DVC Disney resorts.

    Resale members could still use the World Passport Collection to exchange to other timeshare resorts and still had full access to all DVC Resorts based on availability.

    Many members did not regard this as a loss at all as they still had access to DVC Resorts (which was the reason most purchase in the first place) and also access to all benefits afforded to DVC Members (Theme Park admission discounts, dining discounts, shopping discounts, special Member events, etc.)

    All of these benefits are incidental to DVC membership and may be modified or removed at any time. They are not guaranteed in any way and over the years have been changed or removed many times. They are used as a marketing tool by Disney Vacation Development (DVD) the developer and sales arm of the DVC program and they also pay for these ‘extra’ programs – they are not part of DVC Member Maintenance Fees.

    These incidental benefits were still included with resale purchases after March, 2011.

    April 4, 2016 Restrictions on Resale Purchases
    On April 4, 2016, DVC made the following announcement:


    “Effective April 4, 2016, Members who do not purchase their ownership interest directly from Disney Vacation Club will not have access to other Membership Extras, such as exclusive Member experiences and discounts.”


    This now means that those purchasing a DVC contract except directly through Disney will not have access to any Member Perks or ‘Extras’. Those members are still DVC Members and will be able to use their DVC points at their Home Resort and at other DVC Resorts but will not have the ability to receive any Member discounts or ‘Extra’ programs.


    The announcement went on to reassure all current Members with the following:


    “Please know that as a current Disney Vacation Club Member (regardless of when or where you bought your membership), your access to Disney Differences and these additional Membership Extras will not be affected by this policy change.”




    Comparison of Direct vs Resale
    Direct purchasers are able to buy the number of points they would like, choose their own Use Year and divide their purchase into smaller contracts if desired.


    Direct Purchases will come with all points in the current Use Year and another allotment of points when the next Use Year begins.


    Direct Purchase will be very fast. New Members are often in the DVC System and able to use their points within 24 hours.


    Maintenance Fees for the current year will be pro-rated based on the date of purchase.


    DVC offers financing (not reported to credit agencies but usually with higher rates than available personally).


    Payment may be made with a credit card to benefit from Rewards associated with your card.


    Direct Purchases will come with all points in the current Use Year and another allotment of points when the next Use Year begins.


    All direct purchases will include access to ALL programs within DVC and ALL current ‘Member Extras’. There are no restrictions on the use of these points or on the Membership.


    Direct Purchase costs will generally be more.


    Direct Purchase will have a minium points requirement for first-time purchasers.




    Resale purchases will typically be at much lower cost than a direct purchase.

    Unlike Direct Purchase, resale purchases may be made for fewer than the minimum required with a Direct purchase. The number of points, Resort and Use Year in a resale contract cannot be changed.

    Resale financing is not as easy as with a Direct purchase, but may be available at a lower rate.

    The Resale process will take longer due to Right-of-First-Refusal (ROFR) and delays incurred along the way. Six weeks or longer is not unusual for a resale closing and then another 2 weeks to gain access to use the points. If DVC exercises ROFR the process will need to start again with a different resale contract.

    Resale contracts will come with whatever points remain and not necessarily with a full complement of points included. This should be evident before beginning the process however.

    Resale purchases no longer come with access to the Disney Travel Program (DCL, non-DVC Disney Resorts, Adventures by Disney), or Concierge Collection. ‘Member Extras’ – discounts on passes, dining, shopping, Member events, etc, - are no longer offered to those purchasing via resale.






    Points Available in Resale Contracts
    When reviewing Resale listings, you should pay attention to the number of points held in the contract. This will be disclosed as part of the listing in two ways. The first will identify the number of points you will be purchasing and the second will identify the number of points actually remaining in the contract available for your use after closing.

    A contract may come with all banked points from the prior Use Year, all points available from the current Use Year and all points available in the next Use Year. This is typically described as ‘Fully Loaded’

    A contract with all points remaining in the current Use Year and all points still available in the next Use Year is described as ‘Loaded’.

    A contract listing with no banked points, no current points and no points in the following Use Year is described as ‘Fully Stripped’. Be aware that you should include this information in your offer since you will be the one paying the Maintenance Fees for the next calendar year whether there are points available to use or not.

    A contract listing with no banked points, no current points and only some of the points in the next Use Year has been ‘Stripped’ and again consideration should be made in any offer.

    ROFR – Disney’s Right of First Refusal
    When buying resale, one of the potential pitfalls to try to avoid is making an offer that will cause Disney to exercise its Right of First Refusal (ROFR).


    If you find a contract you like and you and the seller agree on a purchase price, the agreement to sell the points is submitted to DVC for review. If the price is too low, Disney will step in and exercise their ROFR, which means DVC will purchase the property themselves at the terms agreed upon by the seller and the original buyer. DVC then becomes the buyer. The seller instead gets its money from Disney and the buyer loses the contract.

    If DVC exercises ROFR, the original buyer can’t come back and make a higher offer. There is no second chance; the resale contract is lost to Disney. There is no financial hardship on the potential buyer — they will receive a refund on any down-payment that may have been part of the deal. But the buyer will have to go back to square-one and try to find another deal.

    Disney must be given up to 30 days to review the contract and decide whether they will exercise ROFR, but it usually takes less time than that.

    Typical Fees included with Resale Purchase

    All aspects of a resale purchase are negotiable between the parties involved.

    Buyers will generally pay all closing costs which will include aspects required to transfer legal title to the contract from seller to buyer. This could include recording of the deed in the buyer’s name, title search and title insurance policy (if ordered by the buyer). Maintenance fees are not usually pro-rated in resale purchases, but can be a negotiated item between parties.

    When a resale broker has been used, any commission will be paid by the seller from the sale proceeds. The seller will also pay the fees for ROFR and Estoppel.




    ROFR – Right of First Refusal

    With all resale purchases, Disney has reserved the right to review all accepted contracts before closing can occur. They have up to 30 days for this process. DVD will have the opportunity to purchase the contract under the same terms already agreed upon. Should ROFR be exercised by DVD, the seller will still receive the same price already agreed to, but the buyer will be left with nothing after their deposit has been refunded. They will need to begin the process all over again.

    From an early Public Offering Statement regarding ROFR:





     

    The DVC Moderators

    DVC Moderators
    Moderator
    Joined
    Oct 26, 2011
    Which DVC Resort to Purchase?

    While DVC Members may make a reservation at any DVC Resort, based on availability, choosing a Home Resort is an important decision to make before your first purchase.

    DVC Members may make reservations at their Home Resort 11 months before the desired arrival date and 7 months before arrival for other DVC resorts. The 4 month advantage does provide members a real opportunity for limited reservation options at their Home Resort. (DVC documents also allow for DVC to modify that advantage to as little as one month without vote or input by DVC Members.)

    When taking the DVC tour at the Sales Center, prospective Members will be shown models for the current resorts being actively promoted and many will be led to believe those are the only direct purchase options. DVC is able to sell contracts at all DVC Resorts but buyers may need to push the issue if they would prefer to purchase a resort not mentioned by their Guide.

    If a resort is still not offered through a Direct purchase, resale may be a good option.


    RESORT PURCHASE CONSIDERATIONS

    Buyers should consider all aspects of DVC before making a purchase decision. This may include:

    Purchase price – Purchase price can vary widely even for direct purchase which currently ranges from $110/pt to $180/pt.

    Maintenance Fees – Annual Fees currently range from $5.28 to over $8 per point owned.

    Reservation point costs – Many newer resorts have increased reservation point costs compared to older resorts.

    Contract expiration dates – Expiration dates for several early resorts were for fewer than 50 years and will expire on 1/31/2042. More recent resorts have expiration dates through 1/31/2066.

    Resort Theme – DVC Resort themes were designed to reflect certain time periods, locations and also to complement associated non-DVC Resort theming.

    Villa sizes and amenities – There is a wide variance in villa sizes, number of bathrooms, washer/dryer sizes, refrigerator sizes, etc.

    Location – Some resorts offer easy access to Theme Parks and others depend on transportation to/from the parks. Some are located in desirable non-Theme Park locations.

    Dining – Each DVC resort offers restaurants available at or near the Resort.

    Transportation – Guests may be able to walk to another destination or take a monorail, bus or boat from their resort.

    Recreation – Each DVC resort offers a variety of recreation options. In some cases, these options are a reason to purchase at that resort.


    MULTIPLE HOME RESORTS
    Many DVC Members find that they might want the 11 month Reservation Priority at more than one DVC Resort.

    This option will afford those Members the opportunity to reserve at each Home Resort using the 11 month priority. However, that option may be only with DVC points from the respective Home Resort as points from different Home Resorts may NOT be combined for a reservation until 7 months before arrival.

    If a Member owns at OKW and PVB, the points owned at each respective resort are the only ones that may be used at 11 months to make a reservation. Points from the other resort can still only be used 7 months before arrival. If you own 200 points at PVB, you might be able to use up to 600 points for a reservation at PVB by using banked, current and borrowed points from three Use Years, but no OKW points could be used to reserve at PVB 11 months in advance.


     
  • The DVC Moderators

    DVC Moderators
    Moderator
    Joined
    Oct 26, 2011
    MEMBER EXTRAS

    The Disney Vacation Club offers certain Perks, Discounts and Events to its Members. These are not guaranteed entitlements as they are often removed modified, or added as decided by DVC. Many are negotiated with other Disney divisions, stores, restaurants, and Parks. Some have no cost to DVC Members as they are considered incentives provided by the DVD the developer and some do come with a cost to those who choose to take advantage of the offering.

    These ‘extras’ were offered to all DVC Members. Some were in the form of a Limited Park Admission Program for early buyers at OKW and VB where they received free park passes through the end of 1999. Free Valet Parking was offered guests at BWV, BCV and VWL. Many discounts at WDW restaurants and stores have been offered and changed but do still exist for DVC Members. DVC Member events (Merry Mixers during the Holiday Season, Member lounges at Theme Parks, Member discounts for Disney Broadway shows and Member Previews of new Theme Park attractions) have all been offered to DVC Members over the years.

    Ownership at a DVC resort does NOT include any of these additional benefits as it includes the ability to make reservations at DVC Resorts using DVC Points – and nothing more. All other reservation options can also be changed, removed or added to but they are not guaranteed and are NOT a component of DVC ownership or membership.

    Those considering a new purchase will need to decide if the value of these ‘Extras’ is worth the likely additional expense of a direct purchase.

    Currently, there is an extensive list of these ‘Extras’ available on the DVC Member website and includes the following (this is only a partial list and these options change regularly):



     

    The DVC Moderators

    DVC Moderators
    Moderator
    Joined
    Oct 26, 2011
    Should I take a DVC tour?

    At Walt Disney World or Disneyland, all Disney Resorts and Theme Parks have DVC kiosks where you can schedule a tour at the DVC sales center. DVC will even provide free transportation to and from the Preview Center.

    The Walt Disney World DVC Preview Center is located at Disney’s Saratoga Springs Resort & Spa in Walt Disney World, and between the Disneyland Hotel and Disney’s Paradise Pier Hotel at Disneyland. Preview Centers may also be found at Aulani, HI, Tokyo and even while on a Disney Cruise ship.


    Disney Vacation Club Preview Center at Saratoga Springs Resort & Spa

    You will meet with a DVC Guide , who will explain the DVC program in detail and accompany you on a tour of the full-size replicas of the villas for the resorts that DVC is currently marketing.



    DVC Guide at Disneyland Resort Preview Center


    The DVC tour is not high pressure and you won’t be pushed to join DVC on the spot as with most other timeshare presentations.

    If you’re going to take the tour, you should allocate a couple hours of your time for the presentation and tour. Children are welcome and DVC provides a child center while adults are touring.


     

    The DVC Moderators

    DVC Moderators
    Moderator
    Joined
    Oct 26, 2011
    What types of villas are found in DVC Resorts?

    DVC Resorts offer Studio Villas that are similar in size to Disney’s Deluxe hotel rooms. Studios have a queen bed and either a queen sleep-sofa or a 2nd Queen bed and include a mini-fridge and microwave. They range in size from 316 sq. ft. for a value Studio at Disney’s Animal Kingdom Villas up to 455 sq. ft. for a Studio at Disney’s Hilton Head Island Studio. All DVC Resorts offer Studio accommodations. Studios also offer a patio or balcony. While there are no washer/dryers in the Studio villas, they are located nearby for use at no cost.

    Most DVC Resorts offer 1 Bedroom Villas which include a King Bed in the Bedroom, Queen sleep-sofa and a twin sleeper chair in the living room. 1 Bedrooms also offer full kitchens with refrigerator, oven, stove, dishwasher, washer and dryer. The bedroom includes a whirlpool tub, sink, toilet and shower. 1 Bedroom villas at AKV, BLT and VGC even have two bathrooms. Several resorts also feature 3-bedroom Grand Villas for the ultimate in luxury and space. 1BR villas will also have an exterior patio or balcony. Disney Polynesian Villas & Bungalows (PVB) do not offer 1BR villas.

    Two Bedroom villas are available in some form at all DVC Resorts. 2BRs are essentially a combination of a Studio and 1BR villa. Some are ‘lock-off’ 2BR villas, which may be used as a separate 1BR and adjacent Studio with a locked connecting door or used as a 2BR by unlocking the connecting door. Each lock-off component has an exterior door in addition to the potential interior connecting door. Other 2BR Villas are dedicated where there is no exterior entrance for the Studio and no kitchenette in the 2nd Bedroom. At PVB, the 2BR villas are bungalows located over the water of the Seven Seas Lagoon. They accommodate 8 guests with a King Bed in one bedroom, Queen in the other plus a queen sleep sofa and pull down bunk sized beds in the living room.

    Grand Villas are not available at all DVC Resorts. These are 3 Bedroom villas with sizes up to 2375 sq.ft. Most GVs will have two levels but a few are all on one floor. They will accommodate up to twelve guests. All have full kitchens, four bathrooms, washer/dryer and all other amenities found in 1 and 2 Bedroom villas. At Vero Beach the GVs are in the form of Beach Cottages with panoramic views of the Atlantic Ocean. Grand Villas are not available at VWL, BCV or PVB.

    In addition to having full sized Grand Villas in all buildings at SSR, that resort also offers 3BR Treehouses which sleep 9 guests and have Queen beds in two of the bedrooms and bunkbed in the third plus a sleep sofa and sleeper chair in the living room. The typical amenities of the larger villas (full kitchen, washer/dryer, etc.) are also found in the SSR Treehouses.


     

    The DVC Moderators

    DVC Moderators
    Moderator
    Joined
    Oct 26, 2011
    Does DVC ownership last forever?
    Disney Vacation Club ownership is tied to a land-lease contract with the owner of the ground where each resort is located. Member Owners do have deeded ownership of a portion of a ‘Unit’ (which can consist of a building or group of villas within the resort) but they do not own the land those Units sit upon. Each resort has an expiration date typically about 50 years from when the Resort opened. All of the original Resorts (OKW, VB, HH, BWV, VWL, and BCV) had an expiration date of January 31, 2042 (regardless when they opened) until DVC voted to extend the ground lease until January 31, 2057 in 2007 and offered that extension to all current owners. DVC has not extended the ground lease for any other resorts so far. Potential buyers might want to consider the remaining years on a contract. All direct purchases for OKW have the extended expiration date.

    Expiration dates for DVC Resorts:

    OKW - January 31, 2042

    VB - January 31, 2042

    HH - January 31, 2042

    BWV - January 31, 2042

    VWL - January 31, 2042

    BCV - January 31, 2042

    SSR - January 31, 2054

    OKW Extended - January 31, 2057

    AKV - January 31, 2057

    BLT - January 31, 2060

    VGC - January 31, 2060

    AUL - January 31, 2062

    VGF - January 31, 2064

    PVB - January 31, 2066

    CCV - January 31, 2068


     

    The DVC Moderators

    DVC Moderators
    Moderator
    Joined
    Oct 26, 2011
    What if I want to sell my DVC?
    DVC owners may sell their contract(s) just as homeowners may sell their home. DVC owners could find their own buyer or choose to work with one of many Timeshare Resale brokers.

    Unlike most Timeshares, DVC resort contracts do attract a lot of interest and historically have maintained their value over the first 25 years of Disney Vacation Club. Many DVC owners have been able to sell their ownership for more than they originally paid years ago.

    DVC itself will NOT assist a member in the sale of their ownership and may even refer members to a specific resale broker. Brokers will charge a commission in the 8-10% range for their services which includes marketing your contract to find a buyer and assisting with all details of the sale. These details include submitting the accepted offer to Disney for Right-of-First-Refusal as well as working with the closing company to complete the sale.

    Owners may try to sell their contract themselves but most buyers find a great advantage in working through the process with a knowledgeable broker especially since Right-of-First-Refusal provides a sort of floor for pricing and in most cases buyers may not benefit from sellers willing to lower their price to save the cost of the commission, especially if Disney chooses to exercise its Right-of-First-Refusal.


     
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