What if ...

[cseca]

I'm just thinking out loud here ...

DVC offers a trade-in program?
Something like... Trade in your BCV/WLV/AKV/etc. for $xx.xx/point for GFV at $yy.yy/point

You know something like car dealership.
Do you think people would bite?
Of course they would offer it lower than the current resales. But it would eliminate the hassle of finding a buyer, rofr etc.

 

[disneynutz]

Disney doesn't want to get stuck with older resort inventory, they make most of their money selling new proprieties.

They have worked the numbers and the know how much they want to make on each sale. If they didn't have such a number in mind, they would ROFR everything. You need to remember that they also have to pay dues on resale inventory where they don't on new units not declared.

Bill

 

[drusba]

And if Disney offered it, it would probably offer something like $10 a point for your exisiting points toward VGF purchase. Disney neither wants nor needs to be in the trade-in business for its timeshares. It is not like automobiles where most purchasers are those who need to trade in a prior vehicle.

 

[cseca]

Disney doesn't want to get stuck with older resort inventory, they make most of their money selling new proprieties.

They have worked the numbers and the know how much they want to make on each sale. If they didn't have such a number in mind, they would ROFR everything. You need to remember that they also have to pay dues on resale inventory where they don't on new units not declared.

Bill

True...
Buuuut... I'm thinking if they do something like a lightning sale.
Where they offer that kind of deal for 24hours for a selected resort.
It wouldn't be a forever deal but something that would really benefit them more than us. However, still a little benefit to members who have been thinking of doing "resort swap".

DVC still get to pick the resorts they want to buy back for cheaper than ROFR-ing contracts and sell the current resorts on top of that.

 

[MousekeTom]

I don't think you put enough y's in your formula.

 

[cseca]

And if Disney offered it, it would probably offer something like $10 a point for your exisiting points toward VGF purchase. Disney neither wants nor needs to be in the trade-in business for its timeshares. It is not like automobiles where most purchasers are those who need to trade in a prior vehicle.

Oh I get that...
But I just wonder if it costs them less to do that than ROFR-ing contracts wouldn't it be beneficial for them to try?
Or maybe there are just too much paperwork to go through.

I don't think you put enough y's in your formula.

I thought about adding a couple more "y"s in there...

 

[tjkraz]

There's already a way to do it: sell what you own resale and buy new. DVC would NEVER offer financial terms better than that. Not even close.

 

[Greysword]

I think DVD exercises their ROFR only if they know they can turn the points quickly (like VGC, which has a waiting list). Otherwise, they would need to spend marketing dollars to unload the points, and they likely get enough points from most resorts via foreclosures to cover any ancillary demand.

While the guides will sell us points at the other resorts, they focus on selling their current new inventory. The former is more of a fringe benefit for us more than them.

 

[LisaS]

There's already a way to do it: sell what you own resale and buy new. DVC would NEVER offer financial terms better than that. Not even close.

I agree. For example, a few years ago Disney offered to buy back BCV points from members for $50-$55 per point. At that time BCV contracts could be sold very quickly on the resale market for $85-$90 per point. Even after paying a 10% commission to a broker, the seller would have netted at least $76 per point vs. selling to Disney for $55.

 

[Dean]

I'm just thinking out loud here ...

DVC offers a trade-in program?
Something like... Trade in your BCV/WLV/AKV/etc. for $xx.xx/point for GFV at $yy.yy/point

You know something like car dealership.
Do you think people would bite?
Of course they would offer it lower than the current resales. But it would eliminate the hassle of finding a buyer, rofr etc.

I've long since thought they could have a viable program. Taken from other similar programs, I would expect the following restrictions.

• Only if one bought retail.
• Credit for price paid or retail price at the time of the original purchase.
• Minimum additional points purchase, likely 100 but could be 160 OR they could have a minimal additional dollar amount (Likely $15-20K).
• Must trade entire contract, not partial.

I'm sure they would not do something like this without the additional money added. For example, they would never let you trade 300 SSR points for 100 GF points.

 

[cseca]

I've long since thought they could have a viable program. Taken from other similar programs,...

Phew thanks Dean!
I thought I was the only crazy person to ever think this is a possible program ... Not saying it is profitable for the member

LisaS,
I didn't remember that offer. I guess they have done something like that.
Must've not gotten them anywhere since they didn't repeat it.

 

[Dean]

Phew thanks Dean!
I thought I was the only crazy person to ever think this is a possible program ... Not saying it is profitable for the member

IMO it could easily be a win-win. A subset of members have already proven they're willing to sell and buy new no matter the numbers as well as accept less than reasonable value for things like cruises. They could also use the same program both for new sales and to dispose of points they take back in for resort extensions where you buy a minimum retail purchase and extend your current contracts. A third option would be to buy new and get your resale points qualified though that one would be a little more questionable.

LisaS,
I didn't remember that offer. I guess they have done something like that.
Must've not gotten them anywhere since they didn't repeat it.

I don't think it as a formal offer. It was only reported about twice IIRC and it was members who specifically contacted DVC asking for them to buy it back.

 

[crisi]

I think they'd get takers.

I think the sticking point is that they want more new members and existing members to grow their ownership. This would be a good program for members, and not a bad program for Disney, but would not expand the point base.

They may also get stuck with more old contracts than they really want to have. IF they did something like this, I suspect they'd try it out as a promotion - not something that has an unlimited life.