Upcomming announcement speculation thread

[pinnocchiosdad]

"Disney Vacation Club is set to raise the price on three of its older resorts.

Effective Sunday March 7, 2010, the price for points at Disney's Beach Club Villas and Disney's BoardWalk Villas will increase from $106 per point to $115 per point. Additionally points at the Villas at Disney's Wilderness Lodge will increase from $101 to $102 per point.

Although each of these properties as been "sold out" for many years, Disney Vacation Club does maintain a small inventory primarily for add-on sales to existing members. Until the price increase goes into effect points can still be purchased at these locations at the existing price point.

Ownership at each of these three DVC resorts is scheduled to end on January 31, 2042."

This is making me think that the big "deal", will allow current members to addon at discounted prices to the new higher prices as a sales ploy.

 

[Maistre Gracey]

Yeah.. If that's the news, why would the guides advise people to wait?

MG

 

[TisBit]

..With "old resort" price increases, I wonder if DVC is attempting to move more into the resale-type market? If they do not have another internal WDW resort in the near future, I think they will need to be more actively selling the other resorts.

Wow, $115/point for the WDW resort with the highest MF's, BWV, and tied for the shortest term contract (2042)!

I'm guessing this lets DVC raise ROFR about $9 on those...

and maybe see another "DVC" extension......

 

[BWV Dreamin]

I sure hope there is bigger news coming... Why doesn't DVC add things to the sales incentives that cost little to nothing for them? For example fast passes, more discounts with the membership card, preferred booking, etc. They really could get more creative with their sales tactics that would generate revenue on the back end.

 

[corpcomp]

Yeah.. If that's the news, why would the guides advise people to wait?

MG

When I added a small contract at BCV yesterday I asked my guide point blank if there were any additional incentives or discounts related to BCV before I closed the deal. He said no. I took him at his word and added on at the $106 rate. I'm comfortable with the purchase. Gives me 87% of one more mid week day at Spring Break.

 

[pinnocchiosdad]

If they realy wanted to give sales a shot in the arm they should drop the financing rates. You can get a home mortgage for about 5%. DVC charges 10.75% for there financing/mortgages. This is disgusting.

 

[tjkraz]

Yeah.. If that's the news, why would the guides advise people to wait?

MG

I've said this before and I'll say it again--I don't think Guides really did have any knowledge of changes coming. There was a staff meeting about a week ago and they may have told people to wait on the basis of "just in case." But I really don't think there was any hard evidence of major changes coming.

In another thread someone mentioned receiving a post card promoting HHI and VB purchases as "$35 off of BLT." HHI and VB are currently selling for $80 per point and BLT for a net of $115--that's the $35 price differential. I doubt that DVC would have sent out such a mailing if there were BLT price adjustments coming in the near future.

If they realy wanted to give sales a shot in the arm they should drop the financing rates. You can get a home mortgage for about 5%. DVC charges 10.75% for there financing/mortgages. This is disgusting.

Sure it is high but I doubt it has a huge negative impact on sales. People who can arrange their own financing are certainly welcome to do so. I suspect folks who would borrow $20K at 11% don't give a whole lot of consideration to the amount of interest they pay in the long run.

DVC may lose some sales due to the high rate but I suspect it's more than justified by the amount of sales they actually DO close at 11%.

I sure hope there is bigger news coming... Why doesn't DVC add things to the sales incentives that cost little to nothing for them? For example fast passes, more discounts with the membership card, preferred booking, etc. They really could get more creative with their sales tactics that would generate revenue on the back end.

None of those things are truly free. DVC has to compensate other Disney business units for FastPasses, the AP discounts and some other discount programs. Unless the establishment is willing to provide a discount to DVC members at no charge (like Wolfgang Puck's giving meal discounts), there is usually a charge to DVC.

 

[pinnocchiosdad]

Sure it is high but I doubt it has a huge negative impact on sales. People who can arrange their own financing are certainly welcome to do so. I suspect folks who would borrow $20K at 11% don't give a whole lot of consideration to the amount of interest they pay in the long run.

DVC may lose some sales due to the high rate but I suspect it's more than justified by the amount of sales they actually DO close at 11%.

I have always said that DVC does not pay if you finance. But, I am in the boat for those paying 10.75% for the next ten years. DVC is an emotional purchase. Disney knows this.

 

[Maistre Gracey]

I have always said that DVC does not pay if you finance.

Not to change the topic, but I disagree. If someone waits until they can pay in full, in the mean time they are paying CRO rates for rooms. In addition, the DVC prices are increasing.
Add those two together, and that will pay for a lot of finance charges.

There are several other reasons I feel financing is fine in many situations, but I'll save it for another thread.

MG

 

[Mickey'sApprentice]

I guess its a good thing that BWV is an awesome resort!

 

[lulu2]

I spoke with our guide again tonight and now she said that they had a meeting today. She confirmed (what we have all heard) that the prices of the 4 sold out resorts will definately go up on Sunday. She also said that any "new incentives" will not be released on Sunday but most likely somewhere between March 13-17. So let the waiting begin.

 

[marynvince]

If they realy wanted to give sales a shot in the arm they should drop the financing rates. You can get a home mortgage for about 5%. DVC charges 10.75% for there financing/mortgages. This is disgusting.

there is nothing disgusting about charging more in financing for a luxury purchase.

 

[Sandisw]

I was told the same thing...if a better deal comes arould my guide will rewrite the contract for me. Is that true if I sign and mail the contracts back? He also said that as the time passes the incentives get worse. The first time we came in we could have bought GCV at $104/pp and got a $3500 gift card...and then the next time it was the same price with 2 premium annual passes...now all I get is $15 off $112 and a blue binder that doesn't close and 2 red hats...no tote!

He did mention Aulani going to be released for sale but he believes it will be a higher price point...he seems to think if there will be new incentives it will be for Hawaii...

Disney has allowed owners to have the contracts re-written if new incentives come out before the contract closes, even after papers have been signed and sent back.

That is what I did last year. I was lucky as my guide got it pulled the day before it was set to close. I ended up getting BLT for $96/ppt instead of paying $105 and getting SSR developer points.

If you have your papers now, I might hold off a few days before sending them back. Once you sign, they can't close the contract for at least 10 days (your rescind period).

When I did my 2nd add on in June, I also asked if they could wait a month to bill my CC for the balance of the contract--this helped push the closing back a whole month. I was hoping BLT incentives would get better than what I had locked in.

 

[pinnocchiosdad]

there is nothing disgusting about charging more in financing for a luxury purchase.

Maybe luxury= high interest rates in your world, but not in mine. $120 for BLT is the price of luxury, not 10.75% interest. Would you expect your bank to charge you a higher interest rate for a MERCEDES loan than for a FORD? I hope not.

 

[pinnocchiosdad]

I spoke with our guide again tonight and now she said that they had a meeting today. She confirmed (what we have all heard) that the prices of the 4 sold out resorts will definately go up on Sunday. She also said that any "new incentives" will not be released on Sunday but most likely somewhere between March 13-17. So let the waiting begin.

Is it just me, or do you have to be crazy not to buy resale? If you do not now what I mean click on the TIMESHARE STORE logo at the top of the screen and scroll through their listings.

 

[dizfan]

Maybe luxury= high interest rates in your world, but not in mine. $120 for BLT is the price of luxury, not 10.75% interest. Would you expect your bank to charge you a higher interest rate for a MERCEDES loan than for a FORD? I hope not.

When the economy crashed, the company that used to buy the mortgages from Disney stopped doing business with them.
I'm not sure if things have changed, but The Timeshare Store also had no one interested in financing timeshares for awhile.

I suspect that's part of the reason for the high interest rate.

 

[BWV Dreamin]

DVC packaged these "securitized" loans and sold them to other lenders for a nice fee. When the banking industry collapsed these loans stayed with Disney, thus creating a huge profit loss. Increasing rates is what happened industry wide , not just with Disney. Mortgage rates and timeshare loan rates are not the same. There are reasons why the rates are different.

 

[keishashadow]

I have always said that DVC does not pay if you finance. But, I am in the boat for those paying 10.75% for the next ten years. DVC is an emotional purchase. Disney knows this.

so sayeth my mr who insisted i "gasp" save up cash to buy into DVCand for all add-ons

once you buy in small via resale, it's not difficult to add on directly thru DVC if the additional resales you're interested in don't come up on the maket.

Is it just me, or do you have to be crazy not to buy resale? If you do not now what I mean click on the TIMESHARE STORE logo at the top of the screen and scroll through their listings.

i hate to pay full price for anything vacation related, including DVC

 

[lulu2]

Is it just me, or do you have to be crazy not to buy resale? If you do not now what I mean click on the TIMESHARE STORE logo at the top of the screen and scroll through their listings.

So, I'm not sure if this was directed to me? But, we are looking for a 80 point add on at VGC and I a haven't seen to many of these resale. It also does not appear to be an advantage to buy resale vs. direct for VGC with a June UY.

I do know how to scroll through the resale website

 

[Tiger926]

Is it just me, or do you have to be crazy not to buy resale? If you do not now what I mean click on the TIMESHARE STORE logo at the top of the screen and scroll through their listings.

It has nothing to do with crazy if there is no contract that fits your needs. Saving money is all fine and dandy, but if there is no contract in which to save money on, that's a moot point.

We wanted a very small add-on of 60 points and it had to be our same use year of June at either SSR or AKV. Sure there were some great contracts over at TSS, especially for SSR, but nothing for 60 points with a June use year. We waited months, and nothing was available and we needed those points. It made no sense to buy a bigger contract as we didn't need those points, so, we added-on with Disney @ AKV. I had noticed that AKV prices had crept up a bit too, so there wasn't a huge difference between resale and Disney over the life of the contract. We had our points within hours, got last year's points and June use year. Perfect package for us!

So, for us, there was no suitable contract and we didn't want to wait a year as that would mess up our vacation plans (we had already been looking for at least 6 months and nothing came up).

Just another side of the coin for you, Tiger