VWL better value with new MB program?

[sgtpet]

Just curious if members are more inclined to purchase new contracts or add ons since the MB program has improved for VWL.

 

[dtheboys]

Can you explain further? I must of missed this new MB program?
I haven't heard anything about a new MB program at VWL?
Thanks!!

 

[dianeschlicht]

dthboys,
They are offering $10 per point MB for all of the first year's points at VWL and $13 per point MB for Vero and HH.

 

[poppop]

We just closed on a contract for 150 pts not too long ago. The ink probably isn't even dry! However, with this new promotion, we are seriously considering doubling our points and getting an add on for another 150 pts.



PopPop

VWL 5/02

 

[Mickbee]

IMHO it is worth it. We just added another 100 at VWL and 100 at HHI. The MBs reduced our cash out of pocket by $2300.00! We have a Feb use year so we won't miss the 2001 points. Besides, we have two trips booked on other points between now and then.

We should be set for points for some time...

 

[vols001]

sgtpet,
We were going to wait to join when the BCV went on presale but when we saw the MB promotion we decided to join yesterday. I called my guide and put down a deposit for 252 points and is expected to close in three weeks. It is definitely worth it!!

 

[sgtpet]

I am serious thinking about it now. That is an excellent offer. Just my wife is not so big on vwl from the pictures in the book. So we are going down to WDW on vacation next month. I hope to convince her otherwise I will be waiting for BCV.

This has to impact the resale values? In essence don't go this year and the points are roughly 65. pp Not bad

 

[Mickbee]

sgtpet,

My wife was a bit reserved too regarding VWL until we stayed there. We are from NH and she thought it was too much like home with the logs and greens. After the first day she was in love with the place (we all were). I really do not think the pictures do the resort any justice. During our stay, we took a ton of pictures and we don't think they are a fair representation of the resort. The attention to detain is great.

If you have time to visit the resort but are not staying there, try to spend a few hours taking it in. A quick walk through may not give a full appreciation.

 

[baileybrad]

I am betting that the VWL property will more than exceed your wife's expectations, SgtPet. We stayed there this past February and loved everything about it. We were surprised at how peaceful it was. The sitting areas in the commons area are wonderful. And you can mosey up to the WL and relax in their beautiful sitting areas whenever you feel like it. It is a great resort.

 

[loribell]

On a recent trip we stayed at OKW with the intention of trying it out before we bought through resale. Visited Wliderness Lodge and fell in love, signed a WL contract while we were there. I also was not impressed by the pictures, they definately do not do the place justice.

 

[Dean]

I'm don't think the MB is a good deal across the board but it can be for some. For those that don't have the initial buy in but can easily afford the payments, it can be helpful. The only worry I have about those that can't afford the down payment is whether they can afford DVC in general. The other situation MB seems reasonable is someone that wants to buy in but doesn't have a trip planned for the current year. Also if one needs less than the 150 minimum. Otherwise it likely makes more sense in the long run just to buy less points currently and then look at add on's later (with cash).

Just remember what's happening. You are buying the points, paying fees on them then renting them back to DVC. The "rental" price is fair but not a windfall, even at the $13 pp at HH and VB. You can do the same with a resale though more hassles and uncertainty involveed. I'd never recommend buying at HH or VB with the purpose of staying mostly at WDW, just doesn't make sense regardless of the savings and incentives.

 

[Mickbee]

Fortunately it is late in the calendar year, which will make the pro-rated 2001 dues (approx. 25%) far less than if you purchased late in the year. IMHO, I feel that this late in the year it is worth it to use the MBs.

If someone just returned from their trip to one of the resorts and do not plan to return in the use year 2001, then I believe there is an incentive. It appears that the average going rate on a few of the popular resale sites is approximately $65.00 per point. If the seller has points for this year, they usually want a portion of the dues. In addition, there are closing costs associated with the resale.

Using HHI as an example: a resale would have to be $55.50 ($62.00 after MBs - $650.00 HHI closing costs) per point just to break even with the Disney offer through MBs. This is assuming this years points are used. If the points are not used, and you plan to rent them to get to the Disney number, you would have to rent them for an outrageous price.

Prior to buying our latest add-on, we compared both resale small contracts with a comparable sized add-on. There wasn't any benefit to buy the resale contract. We did purchase a resale last month but it was for OKW which is sold out and had last years banked and the entire 2001 allotment.

I believe if someone purchases 150 points and they intend to visit every year, they are likely to stay in a studio. If they don't use the MBs or plan to return this year, they will bank or rent the points. As Dean mentioned, a hassle. If they are banked, then they need to alter their intended vacation habits to burn the extra points. This could be by staying in a larger unit, or a longer trip. These are options that not all DVC are wanting to do. If my travel habits are to stay in a certain type unit, and I upgrade to a larger one to use points, I would feel like I am throwing my points away.

As always, this is just MHO.

I certainly did not feel the old $5.00 per point was worth it for VWL. When we purchased a larger contract at VWL, we did not sell any points back.

 

[MikeJ]

Another interesting factor in this is that Disney has apparently upped the value below which they'll exercise their first right of refusal. I received a call yesterday from someone working with Jaki at A Timeshare Broker and he informed me that Disney just upped it to $61/pt. That, coupled with the enhanced MB offer indicates to me that Disney may be feeling the effects of a robust resale market.

If you were to close on a resale deal at $61/pt, you then need to add $2-$4/pt for closing costs (depending on the size of the contract) to arrive at a final cost - which makes it almost as much as Disney's MB offer. Worse, in fact, if you're buying at HHI with its $13/pt MB and higher closing costs. To my mind, the only thing which would make a resale look better than purchasing from Disney (from a fiscal-only perspective) would be oodles of banked points and/or some creative work around dues payments. Of course, if you really don't want to own at VWL then the financial numbers won't matter but if you're only looking at the bottom line (and I suspect a lot of people may be doing that these days) then the Disney deal may be the best one going at present.

We were (are) looking for an OKW resale to go along with our current 180 pt contract, but we're seriously considering buying at VWL because of (a) MB, and (b) upping of the first refusal limit to $61. Which is likely what Disney is hoping would happen.

- MikeJ

 

[DanG]

I own at VWL, and if you love it and the MB program helps you pull together a down payment go for it.

But if you have reservations about whether you will like VWL or have been waiting for BCV, the enhanced MB program shouldn't be the factor that makes you buy. If there is one principle people seem to agree on on this board, its that you should buy where you most want to stay.

As Dean pointed out, you are simply renting points back to Disney. Over 41 years, the interest savings on those points (which represent the true savings) will be minimal.

DanG

 

[Dennis the Menace]

I am seriously considering purchasing 150 points at VWL because of the increased amount Disney is willing to buy back the first year's points at. I really will probably be using OKW more than VWL but I will always be going in September or October. I know that everyone says "buy where you go" but don't you think it will be fairly easy to get an off-season week at another resort within the 7 month window?

 

[Granny]

Dennis the Menace: The "buy where you want to stay" is good advice not only because of the 11 month/7 month reservation differential.

Nobody knows what changes could occur to the DVC options down the road. If Disney Collection points become unbearably high, and other trade outs less attractive, then it might be assumed that DVC members will be staying more in DVC resorts. This could cause more difficulty in getting reservations at these resorts, especially in non-home resorts.

This is a 40 year decision and to me, the cloudiness of the future forces me to make my decisions on those things I have confidence in. Right now, with DVC, I am confident that my home resort will be available for future reservations and EVERYTHING ELSE is a roll of the dice. This may be ultra-conservative, but even with that mind-set, I decided to join.

If 40 years of VWL is all I ever get, it'll still be a good deal to me!

 

[Dean]

In general, I think "buy where you want to stay" is still the best policy. The only reasonable exceptions to this are when one owns at WDW and wants to stay at another WDW DVC resort (especially OKW). You can schedule something at 11 months out and you know you have a spot so if you need to make vacation requests, airline reservations, etc.; things are set. OKW is the easiest to get into during a busy time due to being a larger and older resort as well as appealing to some crowds more than others. Also, there are those that want to try several resorts on a rotating basis and the factors are different in this situation and include the price, yearly fees and interpretation of what are the hardest to get into when THEY want to go.

When dealing with resale companies, remember they are working for the seller, not the buyer. I'd take any claims of price, etc with a grain of salt. I've even heard the main rep at one of the DVC resale companies that's discussed here tell everyone on a mailing list that if you got the points, you should pay the fees. When DVC is concerned this is inappropriate and I can only interpret this statement 2 ways. It's either lack of knowledge of the product or dishonest. While I know that a timeshare resale rep can't know a lot about every timeshare that comes along, when a company and specifically a rep puts themselves out as the place to go for DVC resales, they need to have an intimate knowledge of the product. I also tend to believe that some of the inflated prices over the years are more of a function of certain resale companies than DVC ROFR or the retail price. Remember you can always artificially drive up the price per point on a resale by adding in the closing to the offer.

I would find it very difficult to believe that DVC would routinely excercise their ROFR at $61 pp and then sell at $75 pp with the current MB program, the economics just don't make sense. As a matter of fact, I'd be surprised if they bought anything at $55 pp other than add ons or small points packages. Regardless, there's no harm in trying. By law in most states, the broker must present all offers unless specifically instructed by the seller not to present those that meet certain criteria. Also, if DVC does buy it back, the seller has lost nothing and the potential buyer is simply out some aggravation.