What does Disney do with ROFLs?

[FLDisneyFan]

I'm curious as to what Disney does with the membership when it exercises ROFR. Does DVC offer resales? Does Disney offer them to other brokers to resale? Or would it go into some sort of DVC limbo?

 

[DVC Mike]

DVC breaks up the contracts and re-sells the points to new and prospective DVC members.

You can buy points at any DVC resort direct from Disney -- even "sold out" ones.

 

[Jason@dvcstore]

I'm curious as to what Disney does with the membership when it exercises ROFR. Does DVC offer resales? Does Disney offer them to other brokers to resale? Or would it go into some sort of DVC limbo?

They sell it to someone that in my opinion doesn't know that resales exist.

Quick story: I have a client who bought at OKW back in the early 90's. They continued to add on to their membership throughout the years directly from Disney. While at the pool one time in 2004 they met another member that told them about buying points from The Timeshare Store, Inc.® Since then that member has bought 4 contracts via resale for Old Key West. If they never knew that resales existed they would have continued to buy more points from Disney.

In my opinion DVC sellers wish more people knew that resales existed. Then less resales would be available on the market and the prices would most likely increase.

In my opinion DVC buyers like less people to know that resales exist. That way more listings on the market and they can get a better price when they want to buy.

Jason

 

[DVC Mike]

They sell it to someone that in my opinion doesn't know that resales exist.

Jason

Jason,

There are pros and cons to both.


Add-On from DVC

• There are no closing costs
• You can get the exact number of points that you want
• You will get your same Use Year, and the add-on will be a sub-contract of your initial contract
• Faster than resale (you will get your points in a couple of days and be able to make reservations much faster than resale, which takes 6-8 weeks)
• No worries about the purchase if Disney executes ROFR, since that only applies to resale purchases
• More expensive cost per point than the resale market
• You can finance through DVC, and Disney doesn’t report the loan to credit reporting agencies; also, the interest on the loan will be tax-deductable (in most cases) since it’s a mortgage
• You can pay with a Rewards credit card and get points/cash back
• The full set of points you buy will be available immediately, versus a resale contract which may be “stripped” of points.

Add-on via Resale

• You will have to pay closing costs
• You may not get the exact number of points you want
• It may be difficult to get your existing Use Year and combine the new resale into your existing contract
• It will take much longer to get into the DVC system and have your points (resales typically take 6-8 weeks)
• Disney may exercise ROFR and you may loose the resale and have to start all over (When buying resale, one of the potential pitfalls to try to avoid is making an offer that will cause Disney to exercise it’s Right of First Refusal)
• Resale is typically less expensive then buying from DVC
• You can’t finance through DVC, although most resale brokers will recommend a finance company; also, the interest on the loan will not be tax deductible
• A resale contract may be “stripped” of points where the user has used many of the current year’s points, and may have borrowed some or all of next year’s points.

 

[Jason@dvcstore]

Jason,

There are pros and cons to both.

Add-On from DVC

• There are no closing costs

• 
  
  Most buyers to pay closing costs, however, some buyers present offers to sellers having them pay closing costs and sellers accept.
  
  

  Jason,
  
  There are pros and cons to both.
  
  Add-On from DVC
  

  • 
    

  Add-on via Resale
  

  • You can’t finance through DVC, although most resale brokers will recommend a finance company; also, the interest on the loan will not be tax deductible
    

  
  I believe if you finance through Timeshare Lending . Net it is treated as a mortgage and would be tax deductible.
  
  

  Jason,
  
  There are pros and cons to both.

Add-on via Resale

• A resale contract may be “stripped” of points where the user has used many of the current year’s points, and may have borrowed some or all of next year’s points.

The Timeshare Store, Inc.® has many offerings for DVC. It is very easy to avoid such a contract when purchasing. I don't want anyone to think that they will purchase a contract via resale from The Timeshare Store, Inc.® and it has 2008, 2009 and 2010 points and when it goes to closing you find it does not. This does not happen with our listings. When looking at our listings you should also see a brief paragraph showing what is in that account currently or when the points are coming in the account. There should be no surprises regarding the point status when buying from The Timeshare Store, Inc.®

Jason

 

[disneynutz]

I understand that Disney also has/had a relationship with GMAC to sell resale contracts.

Bill

 

[Chuck S]

I did my three OKW add-ons directly through Disney because it was much simpler. I didn't want to wait to have the seller accept my bid, wait on Disney's ROFR, and then pay closing costs. When I did my add-ons the relatively small savings wasn't worth the hassle on such small contracts.

There are advantages to going through resale brokers, but there are advantages to going throguh Disney as well, each buyer need to base that decision on what works best for them, and what they are comfortable with For larger add-ons, where the savings could be substantial, I'd likely go the resale route.

 

[Chuck S]

I understand that Disney also has/had a relationship with GMAC to sell resale contracts.

Bill

I think their "relationship" is strictly financial---GMAC (they have a new name now) likely pays a fee to be the "official" DVC reseller, the one DVC will recommend if you call to ask.

 

[SSR]

What does Disney do with ROFLs?

Maybe they get down on the floor and start laughing at buying resale themselves and then selling at a 25% premium to unsuspecting folks??

 

[disneynutz]

I think their "relationship" is strictly financial---GMAC (they have a new name now) likely pays a fee to be the "official" DVC reseller, the one DVC will recommend if you call to ask.

I thought that to but I have been told by another Broker that Disney lets them sell smaller contracts as part of the agreement.

Bill

 

[disneyrunningnut]

I think Disney has a big advantage with small add-ons. When the points goes up the advantage goes down. If you are looking for a 50 point add-on with a specific use year and resort you might be waiting a long time. By the time you factor in closing costs and potential of a striped contract it isn't so good.

There is a huge advantage that resale has over Disney that isn't brought up very often. A first time buyer can buy into DVC as a full member with a resale contract as low as 25 points. That is good for someone who isn't wanting to buy at least 160 points right off the bat. I know that the minimum buy in is now 100 points at AKV and SSR but that is new and very unusual.

 

[FLDisneyFan]

Maybe they get down on the floor and start laughing at buying resale themselves and then selling at a 25% premium to unsuspecting folks??

Ha ha! I meant ROFR, but might ROFL be a Goofy-an slip?