What would make you buy direct?

[JimMIA]

I'll answer your question by sharing what WON'T help make me want to buy direct:

A cost of $40 to $50 per point higher than the going market price.

Or $60 to $70 higher!!!

 

[JimMIA]

I think it all depends on your time frame needs. If you are not in a hurry, chances are good that a sub 100 contract will come around. lf you need to make travel plans soon, then yes, the speed and ease of a direct purchase might be worth it to you.

Although...some might argue that you're focusing on a one-time benefit (booking soon for one trip) rather than much more important factors in your purchasing decision -- and paying a huge price differential for a minimal benefit that really doesn't matter at all over the length of your ownership.

 

[Modan]

I'll answer your question by sharing what WON'T help make me want to buy direct:

A cost of $40 to $50 per point higher than the going market price.

 

[DeeCee735]

What would make us buy direct is:

The right promotion
The immediate availability of points in our UY at our preferred DVC location
The bankable points from 2010 UY points on top of the points coming up for the 2011 UY (not a stripped contract)

 

[DisneyStarWisher]

I have 3 contracts, all of which I have bought direct. The first one was 100 pts. at AKV which I bought in 2008 for $96/pt. I had been researching DVC and really wanted it, but I couldn't afford the 160 pt. minimum. Then when the 100 pt. minimum came out, I jumped on it. The next contract was 50 pts. at HHI which I bought in 2009 for $80/pt. I had been looking at resale but the right contract with the right UY never became available, so I just bought direct since we wanted to book a reservation for the summer of 2010. Just a couple of months ago, I added on another 50 points at $80/pt. Again, no resale available. My plans are to add on another 100 at AKV and 2 more 50 pt. contracts at HHI. I will probably add on direct again. It's just simpler and with all the talk about restrictions, I don't want to take that chance. I add on small amounts and pay cash, so not a big deal. Also, this way my kids can divide the points evenly if something happened to us.

 

[JimMIA]

The bankable points from 2010 UY points on top of the points coming up for the 2011 UY (not a stripped contract)

You do realize, I hope, that you are getting nothing for nothing in this scenario? DVC timeshare salesmen will try to make this seem like a benefit, but honestly, you're just getting the points you are PAYING FOR.

If you are buying during your 2010 UY, you get the points. Period. You also get pro-rated dues, which you would probably not have to pay for a resale purchase.

Not saying that buying direct is bad per se, but you have to do honest math for all available options to see which alternative is best for your family.

 

[JimMIA]

To answer OP's original question, I would buy direct if the direct price was within $5 or so of the resale price.

I last saw that opportunity in 2004...and I recently sold that contract at more than a 20% loss.

 

[deerislemaine]

For our family the decision to buy resale was a financial one. We were able to find a fairly loaded contract that allowed us to book a couple trips immediately. The price was $62 less than direct, so that was a good value for us right away (and less money out of our pocket).

We were very pleased with the Timeshare Store, and we got our points exactly 7 weeks after making our initial offer. That may be better timing by a few weeks, but we could wait for what we wanted.

 

[jsivigny]

I would buy Direct if the costs were comparable (within 10%) to Resale on both price and length of term. As DVC members, we should all EXPECT our contracts to reduce in value over time. With a finite term on the contract, all contracts will decline in value. Basic economics. If Disney wants to improve sales on new timeshares....do away with the term limits. That is value people will pay a premium for!

What is interesting to me is what Disney will do once these contracts do start to expire. Still a ways off, but when these contracts get close to expiration, they'll inherit a HUGE inventory of points. Disney will need to make the payments on taxes and upkeep. Very expensive for them. My guess is they'll offer more contract extensions at other resorts.

 

[tjkraz]

What is interesting to me is what Disney will do once these contracts do start to expire. Still a ways off, but when these contracts get close to expiration, they'll inherit a HUGE inventory of points. Disney will need to make the payments on taxes and upkeep. Very expensive for them. My guess is they'll offer more contract extensions at other resorts.

I'm not so sure.

Ignoring HHI and Vero for the moment, the first to expire will be BWV, BCV and VWL in January 2042. Those are arguably the most in-demand resorts available. Assuming that Disney intends to keep those resorts in-operation for another 50 years without any substantial changes, they could start marketing "new" 50-year contracts around 2040 or 2041. The first people to get the offer will be the current owners. Those who don't renew will see their points offered to the general public.

The millions of points re-acquired won't sell instantly, but there will be substantial demand. And DVC will be selling with little-to-no up front investment since the resorts already exist.

Next up would be Saratoga Springs, but not for another 12 years. Given the general perception about that resort, I would say it's a fair candidate for some sort of re-development. I'm not sure that it would be worthwhile to try and resell the 12 million or so points without some modifications to the property.

Then you've got OKW and AKV in 2057, BLT and VGC in 2060, and so on.

In other words, Disney's re-acquisition of the resorts is staggered in such a way as to aid the re-selling process down the road. Re-acquiring the points is a gradual process, and really it's not much different than building a brand new 300-400 unit resort in the first place.

 

[jsivigny]

I'm not so sure.

Ignoring HHI and Vero for the moment, the first to expire will be BWV, BCV and VWL in January 2042. Those are arguably the most in-demand resorts available. Assuming that Disney intends to keep those resorts in-operation for another 50 years without any substantial changes, they could start marketing "new" 50-year contracts around 2040 or 2041. The first people to get the offer will be the current owners. Those who don't renew will see their points offered to the general public.

The millions of points re-acquired won't sell instantly, but there will be substantial demand. And DVC will be selling with little-to-no up front investment since the resorts already exist.

Next up would be Saratoga Springs, but not for another 12 years. Given the general perception about that resort, I would say it's a fair candidate for some sort of re-development. I'm not sure that it would be worthwhile to try and resell the 12 million or so points without some modifications to the property.

Then you've got OKW and AKV in 2057, BLT and VGC in 2060, and so on.

In other words, Disney's re-acquisition of the resorts is staggered in such a way as to aid the re-selling process down the road. Re-acquiring the points is a gradual process, and really it's not much different than building a brand new 300-400 unit resort in the first place.

Good points...I suppose it's a matter of timing on how fast they could resell the points. Here's a thought on your "re-development" Run a new monorail line to both OKW and SS. Now that would be an incentive customers would value and pay for.

 

[palaemon]

Good points...I suppose it's a matter of timing on how fast they could resell the points. Here's a thought on your "re-development" Run a new monorail line to both OKW and SS. Now that would be an incentive customers would value and pay for.

That's what *I'm* talking about. Each resort has it's own perks/advantages to own there:

BCV: SAB, epcot proximity, Boardwalk
BWV: epcot proximity, Boardwalk, SV rooms
BLT, MK proximity, Monorail
OKW: cheaper points per night (in general)
AKV: cheapest rooms (value) overall (for the most part)
SSR: cheap THV (3 BR)
VWL: I can't think of anything for VWL

 

[palaemon]

What about the ability to pre-pay for a set (low) rate for MFs for say, five years?

Think about it. What if you had AKV, BCV or BLT: guaranteed 2% increase for the next five years, just pay upfront - but only if you buy direct from Disney.

Okay, this may not help SSR (unless maybe it was a freeze on MFs, and it'd have to be for 10 years. lol.)

 

[Jason@dvcstore]

I'm just wondering what everyone's breaking-point would be. Obviously lower cost per point, but I'm talking about the usual $120 (or $130) with usual incentives per point.

Would it be something like extra perks? (extra banking options??)

or

DVC @ The Poly or Yacht Club? (small epcot resort ala BCV or monorail resort ala BLT)

Or something else? (keep it realistic )

I think Disney should concentrate more on why people are selling rather than trying to change the rules if people buy direct. Of course, if all current Disney Vacation Club members held onto their memberships until the end then The Timeshare Store, Inc.® would not need to exist.

Jason

 

[ypv]

If the price gap between direct and resale were small enough, I'd go direct for the convenience.

 

[spencerbomar]

Joined in 1993.
Deal at the time was free passes for reservations until 1999.- 6 years.
Rent a studio or 1 BR- 2 free passes for every day there.
2 BR 4- passes.

Amazing deal then and even now.

not likely to ever occur again since OKW was called simply - Disney Vacation Club at the time- 1st one.

 

[Tink2312]

If the price gap between direct and resale were small enough, I'd go direct for the convenience.

That's one of the reasons we bought direct. The difference was about $6-8 pp. I paid that extra going through Disney as I never seemed able to find that just right contract through resale. Also, I didn't want the hassle of ROFR and waiting months until I was a member. I knew a price I'd be happy to pay, got it and bought - no regrets do far

 

[Deb & Bill]

I think Disney should concentrate more on why people are selling rather than trying to change the rules if people buy direct. Of course, if all current Disney Vacation Club members held onto their memberships until the end then The Timeshare Store, Inc.® would not need to exist.

Jason

Exactly.

 

[tjkraz]

I think Disney should concentrate more on why people are selling rather than trying to change the rules if people buy direct. Of course, if all current Disney Vacation Club members held onto their memberships until the end then The Timeshare Store, Inc.® would not need to exist.

Jason

Is there any reason to think that they are NOT giving the reasons for selling any consideration?

I suspect there are far more people who sell for reasons which are out of DVC's control than for reasons which DVC can influence. People sell when the lose a job or get divorced. They sell when children age and vacation habits change. They sell because they decide they like one resort better than another or when they move to Florida.

I'm sure that some people do sell over one satisfaction issue or another, but reading the forums all these years that seems to be the exception rather than the rule. Both DVC's own surveys and independent measures show their members' satisfaction to be the highest in the industry.

It's a given that you can't please all of the people, all of the time. Look at something like the reservation system (11/7 from arrival.) Some people love it and some people hate it. But it appears to be a change which serves the greater good. If someone is motivated sell their ownership over an issue like that, there really isn't much DVC can do.

 

[spiceycat]

okay something to encourage people to buy directly from DVC.

how about 20 fast passes each year for every guest in your villa - as long as you own it. once it is sold this extra goes away.

Imy direct buys were because the resort were just opening (except OKW - DVC then - could not buy in 1992 - but did in 1993)

brought BWV at $62, think vwl was $65 - okay BLT was expensive - but since sold OKW to buy it worked out okay at $101 a point (really though it was $96)