Me - well me at 255 - I was planning on buying more points already before they announced VGF2 - and I want to stay with direct because my existing points are direct and keeping the points the same as far as booking abilities is important to me.
Addonitis!
That was a month ago. It is hit or miss especially if you have a preferred UY.Addonitis!
You could call them and add on right now. Word is they are still selling if you call. Any reason why you are waiting?
Disney may not be pricing it to sell fast. There are sales tactics in play.
I did for these same reasons. Plus the resale prices , including stripped contracts, were just too expensive to wave the direct benefits.
But they are setting the floor for new sales at 150 points. So at $255 it is $38,250. That’s a lot of cash for a minimum purchase.
And new homes have increased their prices $30,000-$40,000 in the last 3 months due to increased wood prices. But people are buying them like hot cakes.
Especially if you just spent $7k to $10k on a vacation at WDW, unless they let you deduct that from your current reservation. Dropping $45K in one year for most families is a big deal.
I agree and really much of COVID time frame for direct sales I’m going to disregard. But the big drop in RIV sales over the past two months has to be a concern to DVC. Park capacity is constantly increasing, unemployment going down, all should lead to an increase in direct RIV sales. Yet May was basically an all time low for RIV direct (and April was also poor). That’s what is hard to figure out.
Especially when that minimum purchase only gets you a week in a standard view studio during the cheapest seasons, based on the current VGF points charts. If VGF2 studios are more points per night, that 150 buy-in won't even get you a week.
The reality is a vast majority of direct DVC buyers finance. Their concern is actually monthly payment/down payment. But the increasing cost still play into this. $255 a point for $150 points $38250. So 10% down $3820 comes out to payments of $471 a month. Then add annual dues on that of about $100 a month and now you are selling a $571 a month payment for the next 10 years to stay in a studio for one week a year. That’s a lot, and that is the majority of Disney’s direct sales.
Home prices are up mostly due to the fact that I can buy a new home with a 30 year note for 2.5-2.75% interest. So a 30k jump in price although a lot of cash is almost an insignificant increase in monthly payments. And timeshare sales just like home sales are primarily driven by monthly payments. One thing no one is factoring here is the incredible spread Disney makes on financing DVC. If prime rate for Disney is 2% or so, but they still charge new buyers 10.99% they are making 8-9% spread on a loan that is virtually no risk to them because in case of default they have a simple foreclosure process. It is by far in DVCs best interest to sell as many points as they can, as quickly as they can, and get as many to finance as they can.
My UY for VGF is April so I’m in no rush - just in case the initial offer is less than $255…Addonitis!
You could call them and add on right now. Word is they are still selling if you call. Any reason why you are waiting?
Ours is February, I wonder if they are going to sell 2021 UY points to existing owners, or make them wait for 2022 points.
Good question
If we buy anymore at all...... a big if, we would then probably wait till December 2022 or January 2023 to buy. Just the savings on MFs for most of 2022 would be better than most incentives that DVC offers.
