SSR and resale prices...

[lenshanem]

Curious... Probably a given SSR will have a longer contract ending date. I know this has been discussed before, but as far as the effect it will have on our DVC purchase and resale prices...
Can someone explain this option DVD has to buy back a resale? Does DVD do this when a resale is going for less than they would like? So they have first option to buy it before the purchaser? Now here's my real question-If indeed SSR has a longer date and resale prices plummet, will DVD buy all those up so in essence the resale prices will have to stay at a higher rate similar to what they are now? I understand as time goes by the points will be worth less on resales, but I'm a little concerned since we have already signed paperwork for BCV. It would be a little painful to me if resales for DVC were much less than they are now come next spring when they start selling SSR. We would have only had our points for a year. Side question-What does DVD do with the contracts they buy back? Use them for add-ons? I wonder if once SSR sales start if add-ons will have a longer contract date, too? Add-ons will then be more per point?

 

[Dean]

I don't think it's a given that SS will have a longer contract life. I actually doubt it will happen. If it does, count on more DVC resorts to follow. Even if your scenario holds, there will be no wholesale drop in points costs resale. Only modest decreases in relationship to the then retail price which will likely be higher than now. Count on a price increase this summer or early fall, then presales for SS then a price increase again when it opens getting the total up to around $90 or $92 pp retail and resale prices staying in the low to mid $70 pp range depending on specifics.