Spring Direct Incentives 2/9-4/27

[AstroBlasters]

1. Riv sales have been well documented to out sell VGF and most assume it would have sold out by now even with the restrictions if not for the pandemic.
2 & 3. Disney makes a killing renting at these two resorts even if people have AP or other discounts applied. So I think they are fine with the state of both of these properties.

Wait, what? RIV is better than VGF?

Restrictions don’t matter and it was all the pandemic?

I think this is gaslighting propagated by RIV owners with Stockholm Syndrome.

 

[intamin]

Except Riviera still hasn't sold out in nearly 10 years. Aulani is 15 years and nowhere close to selling out. And then there's the Cabins... Supply is not meeting demand in these cases.

A DVC loan is a mortgage, and the DVC rates are well above mortgage rates. I would even argue that DVC loans should be cheaper than typical mortgages because they're so much easier to repossess/resell if the borrower defaults.

10 years? It's barely been selling for 6 lol. Or are we just rounding up from 5 now

 

[eticketplease]

10 years? It's barely been selling for 6 lol. Or are we just rounding up from 5 now

It might not even be from five. It might be some of those crazy rounding at the stores are doing for pennies lol

 

[Patmcpsu]

It might not even be from five. It might be some of those crazy rounding at the stores are doing for pennies lol

I just did the googling and we're 2 months away from it being 7 years.
Disney Tourist Blog: Riviera Resort Pricing, Points Chart & Sales

Sales will officially begin March 27, 2019. Following that, bookings will begin April 10, 2019 for current members and April 15 for new members. The resort will open December 16, 2019, which is consistent with the cash bookings date.

I'm sorry for casually saying "Almost 10" when the precise answer was 7. I didn't know it would cause such a stir.

My point is that the resort cost hundreds of millions of dollars (6.7 million points * $50/pt assumed building cost = $335 million, as a back of the envelope estimate) and Disney has to pay interest on the money carried between construction and sale (plus expenditures, minus other revenue, sales taking places over time, I know it gets complicated). Because of that, charging a higher-than-market interest rate (which inherently slows sales) is not "pure profit" as others have said.

At a minimum, they should charge mortgage rates, not the rate usually seen on unsecured personal loans (there is collateral, after all). And I would even go as far as saying promotional interest rates may stimulate more sales than 5% price discounts do.