Weird dvc question

[davidcyndi]

We have resale purchased 315 points to AKL. We want to buy direct 100 points to AKL through Disney.
Now for the question. Does our resale purchased 315 get grandfathered into the new 100 direct contract with same use year or do they remain separate?

thanks

 

[starry_solo]

We have resale purchased 315 points to AKL. We want to buy direct 100 points to AKL through Disney.
Now for the question. Does our resale purchased 315 get grandfathered into the new 100 direct contract with same use year or do they remain separate?

thanks

not unless the direct has the same use year as resale. If you want the same membership number, make sure direct is titled the same way as resale.

but the points don’t get grandfathered in for benefit purposes

 

[Sandisw]

As long as it is titled the same and the same UY, it will be considered an add on contract to your membership.

The membership will then be eligible for a blue card. However, the points from resale will still have whatever booking restrictions they currently have. Owning direct points does not change that.

So, if those resale points were bought after Jan 2019, they will still not be eligible for booking RIV or any other new resorts.

In order to keep the blue card benefits, you can not sell the 100 point AKL in the future...if you do, that goes away.

 

[davidcyndi]

Thank you so much for the replies.

 

[macman123]

I have 1 direct BLT and 2 resale BLT.

They are all August Use Year

If its different UY think of it was different memberships. As such its always handy to try and make sure its the same for ease of management

 

[Deb & Bill]

We have resale purchased 315 points to AKL. We want to buy direct 100 points to AKL through Disney.
Now for the question. Does our resale purchased 315 get grandfathered into the new 100 direct contract with same use year or do they remain separate?

thanks

DVC will try to sell you direct points with the same UY so you can use them more easily. The resale points maintain their status whatever that was when you bought them.

 

[DaveNan]

Within the last 2 years DVC changed the rules and when they sell you direct points at sold out resorts, they are allowed to change the UY to match your UY, even if the ROFR points or foreclosed points came from a different UY. In fact I believe if you just have points in one UY, they insist the added direct points match your current UY. The best practice is to first buy your resale points and then add direct points to your existing UY, not by direct and then try to find a resale to match your direct points. You need to make sure the direct points are titled the exact same as the resale points (full name and same number of owners). If they are titled identically and the same UY, you can book easily and mix and match the points on one reservation (with the exception of RIV right now).

 

[davidcyndi]

Again thank you all for your answers. Have a call with Disney tomorrow to go over details.

 

[davidcyndi]

We finally got through to DVC sales. Had a great conversation. We got the same use year, said everything will be seamless between points. We got 4 dollars off per point and they even doubled our points for the first year. We ended up buying 200 points instead of only 100. Now we have 515 points every October. Woohoo. Thank you all for your help.

 

[Sandisw]

We finally got through to DVC sales. Had a great conversation. We got the same use year, said everything will be seamless between points. We got 4 dollars off per point and they even doubled our points for the first year. We ended up buying 200 points instead of only 100. Now we have 515 points every October. Woohoo. Thank you all for your help.

Congrats! Just for others to understand, it sounds like you have an Oct UY...the reason you got what seems like double points is because you are still in the Oct 2019 UY and therefore, are entitled to get current UY points when you buy.

But, timing a purchase direct toward the end of a UY is a great strategy for that exact reason!

 

[My3kids1989]

What’s the going rate for direct AKL? I’m looking at 100 points, it could be worth it but I could just be impatient

 

[sethschroeder]

What’s the going rate for direct AKL? I’m looking at 100 points, it could be worth it but I could just be impatient

186 new member and 184 existing member

 

[DaveNan]

186 new member and 184 existing member

So if Disney ROFR points at 100, they can flip them and make a quick 85 buck, minus costs. And if the resale price is lower, say $85, they would be making $100 per point. Disney is not interested in "supporting" the resale price. They want resales to be as undesirable as possible, so a larger premium is warranted on direct points. That larger premium results in more profit per sold point for them. With Reflections on hold, that means they need to stretch out RIV and they will be more active in the sold our resort market. I do not believe this will drive them to eliminate the distinction between direct and resale, rather the opposite. They will keep doing things to make resale less desirable and drive down the price. This way they buy low and sell high. If lower resale prices start to "attract buyers away from direct", they won't prop up the resale market, they will make those resale points less desirable to drive folks over to direct, or they could simply lower the direct price. If resale versus direct is able to warrants an $85 premium, Disney does not care if that is $100 and $185, or $45 and $130. In fact, both margin and invested capital are better in the second example. They would love to drive down the resale value, so it warrants $100 difference.

 

[sethschroeder]

So if Disney ROFR points at 100, they can flip them and make a quick 85 buck, minus costs. And if the resale price is lower, say $85, they would be making $100 per point. Disney is not interested in "supporting" the resale price. They want resales to be as undesirable as possible, so a larger premium is warranted on direct points. That larger premium results in more profit per sold point for them. With Reflections on hold, that means they need to stretch out RIV and they will be more active in the sold our resort market. I do not believe this will drive them to eliminate the distinction between direct and resale, rather the opposite. They will keep doing things to make resale less desirable and drive down the price. This way they buy low and sell high. If lower resale prices start to "attract buyers away from direct", they won't prop up the resale market, they will make those resale points less desirable to drive folks over to direct, or they could simply lower the direct price. If resale versus direct is able to warrants an $85 premium, Disney does not care if that is $100 and $185, or $45 and $130. In fact, both margin and invested capital are better in the second example. They would love to drive down the resale value, so it warrants $100 difference.

Further the price seperates the more people will start passing on direct and the more resale will be talked about outside small groups of owners.

In the end every resale is a net loss of new customer that would have possibly purchased direct.

There isn't really anything extra you can take away from resale except possibly make booking different where direct get 11 months and resale gets 10 months which not sure it's plausible they could make the change except possibly on future resorts.

Also if the contract is worthless you may run in to more giving away of contracts which may or may not transfer direct benefits as I know there is certain ways to do that.