What happens in 2042/2054?

[ArtieMcD]

I'm trying to do a cost analysis of the DVC timeshare purchase, but I have not found any resource anywhere on the web that clearly explains what happens at the end of the leasehold contract. I assume the exact procedure is described in the owner contract.

But how exactly are the final points due to a DVC member going to be issued for members with use years that are no February.

For example. Will a person with a December user year at a resort that expires in 2042 receive their last point allocation on 12-1-41 or 12-1-42? If they do get a point allocation on 12-1-42, will it be a full allocation, or a prorated allocation for the two months left on the leasehold contract?

Also, considering this, how will the maintenance fees be handled? Since the fees are due in January, are they based on the use year in effect on Jan 1st, or the use year that begins in that calendar year? Using the same example for the Dec user year, Are maintenance fees going to be due in 2042? If so, will it be a full share or a prorated share (I assume this will match the answer to how many points the user will be granted in Dec 2041).

Thanks in advance for any definitive answers to this.

 

[spiceycat]

most of DVC will stops January 31, 2042 (except for SSR)

so dec would be 2041.

I don't think there is a January use year.

so the points really stop in 2041.

the other answers - well I am not sure DVC has decided.

they might continue our membership for a big fee paid a few years before.

I don't think anyone really knows.

 

[DVCLiz]

Hi, Artie! Welcome to the DIS!!!!!

Like the existence of the Loch Ness Monster and the whereabouts of Jimmy Hoffa, you've hit on one of the great mysteries of life. No one knows the answer to your question, although many have debated and speculated on these boards!!!!

Relax, take the plunge, you'll be glad you did!!!! Might as well make those last year points and membership dues work in your favor - no one really knows exactly how Disney will handle this. Most of us think that's a long way away and not really terribly important in the long run.

 

[paulh]

Wow planing for your dues so far in advance.I am impresed
Paulh

 

[RobDoc]

Here is a recent thread discussing the same topic.

Basically, DVC has not released ANY information about 2042 or 2054 - probably because that decision has not yet been made and no one actually knows at this time.

I wouldn't lose any sleep over that issue now and I do trust that Disney will make a decision that is fair for everyone - not that there won't still be complaints.

Enjoy!

 

[Disney Doll]

I don't think anyone has any idea what will happen at contract's end. I will be 80 and DH will be 84. If we are still alive and wanting to go to Disney, we'll deal with it then.

 

[ArtieMcD]

Hi, Artie! Welcome to the DIS!!!!!

Like the existence of the Loch Ness Monster and the whereabouts of Jimmy Hoffa, you've hit on one of the great mysteries of life. No one knows the answer to your question, although many have debated and speculated on these boards!!!!

Relax, take the plunge, you'll be glad you did!!!! Might as well make those last year points and membership dues work in your favor - no one really knows exactly how Disney will handle this. Most of us think that's a long way away and not really terribly important in the long run.

Yeah, it looks like from the info I have garnered in other forums, that full point allocations will be made in 2053 and 2041 for all use years, even though those use years will not be a full 12 months long. So it appears that if I buy a contract, I will be buying one with a February use year if I can find one in the market. IE, it would not be good to have a December user year, pay a full years worth of maintenance fees and only have 2 months to burn the points in competition with everyone else. Of course, you can borrow the points to the prior year, but you wouldn't be alone trying to do that.

 

[LisaS]

Yeah, it looks like from the info I have garnered in other forums, that full point allocations will be made in 2053 and 2041 for all use years, even though those use years will not be a full 12 months long. So it appears that if I buy a contract, I will be buying one with a February use year if I can find one in the market. IE, it would not be good to have a December user year, pay a full years worth of maintenance fees and only have 2 months to burn the points in competition with everyone else. Of course, you can borrow the points to the prior year, but you wouldn't be alone trying to do that.

The maintenance fees are paid on an annual basis and are unrelated to your Use Year. They cover the costs to operate and maintain the resort for the coming year and the annual property taxes. So nobody is getting a better or worse deal than anyone else when it comes to the fees at the end of the contract. You are right though about the time available to use up the final points if everyone gets their full point allocation at the usual time in the last year of the contract. I suspect people will want to be in borrowing mode in the final years so that they run out of points before the contract runs out.

In another thread somebody (Dean, I think) suggested that Disney might restrict members from using points at non-home resorts to maximize availability for owners of 2042 resorts to use up their final points.

 

[RobDoc]

Yeah, it looks like from the info I have garnered in other forums, that full point allocations will be made in 2053 and 2041 for all use years, even though those use years will not be a full 12 months long. So it appears that if I buy a contract, I will be buying one with a February use year if I can find one in the market. IE, it would not be good to have a December user year, pay a full years worth of maintenance fees and only have 2 months to burn the points in competition with everyone else. Of course, you can borrow the points to the prior year, but you wouldn't be alone trying to do that.

Use Year has nothing to do with maintenance fees since those are simply based on the calendar year. The only advantage for a February use Year would be that you would have a full year to use your points.

I expect that banking and borrowing will be suspended or at least limited during the last few years (DVC has this right without input from members) and could even use a lottery or other such tool (like the "Special Seasons Priority List" that was originally used for Decemebr 24-31 and could easily be resurrected).

I'm certain that the decision has yet to be made as to how this will be handled and DVC has a myriad of options regarding how points will be allowed to be used during the past few years.

Stay tuned!

 

[Dean]

Yeah, it looks like from the info I have garnered in other forums, that full point allocations will be made in 2053 and 2041 for all use years, even though those use years will not be a full 12 months long. So it appears that if I buy a contract, I will be buying one with a February use year if I can find one in the market. IE, it would not be good to have a December user year, pay a full years worth of maintenance fees and only have 2 months to burn the points in competition with everyone else. Of course, you can borrow the points to the prior year, but you wouldn't be alone trying to do that.

I think that's highly unlikely as there simply are not enough DVC units to accommodate all potential points in the last year or so unless about 50% of those eligible voluntarily bow out. Of a number of likely options, I'd think that pro-ration and a lottery are the two most likely approaches. I'd also expect members to pay dues on the points available to them to use. If everyone gets all the points the last couple of years and there is a free for all for the units available, there will be a lot unused points and unhappy people.

IMO, the more interesting and potentially risky issue, is how dues are structured the last few years. I don't recall anything in the POS that would govern the condition of DVC when it reverts. And while DVD may want to get them back in top shape at our expense, I doubt that will be allowed without major other concessions. And best of all, we can discuss this a few more times between now and then.