Why Do People Sell Their Dvc

[pmcpmc]

I have often wondered

 

[CarolMN]

Multiple reasons - most are the same for any sale of personal assets.

Change in financial circumstances - i.e., loss of a job, investment loss, death, etc.

Divorce (this could be a big one)

No longer want/need to go to Disney as often, DVC no longer fits their lifestyle or something else fits it better.


IMHO, those would be the major reasons. Very few reports of sales on this board. Posters here are much more likely to add on than sell.

 

[crisi]

Divorce

Death

Change of Finances

Illness

DVC doesn't work for them (it happens - maybe they were happy at the All Stars or offsite. Or they like to plan a month or two out and travel when they can get bargain airfare)

Kids outgrow Disney and mom and dad aren't Disneyphiles

Disney overload - if you don't go into the parks much anymore and spend your time hanging at the resort - its a darn nice resort, but it is a pricey timeshare. Maybe they'd rather spend half the money for a nice timeshare in Cancun.

Sell the investment at a profit and spend the money on something they want or need more (original OKW owners can do this now, for instance).

Don't go to Disney as often as anticipated

Bought an add on for a special trip or two (lets get my family together and then next year your family) and now don't need that many points.

Bought with other options in mind (concierge collection - cruising - etc.) and the point price of those options has increased.

Miss their favorite resort (the Poly, the GF) and have decided they'd rather just book there.

Had a really bad experience (or experiences - we know it isn't ALWAYS perfect) and decided to bail.

Bought after their first Disney vacation in that fit of "this is the most wonderful vacation we've ever had." Get home and realize that they can't afford it or have other vacation plans (by the time we visit Grandma every year, and we really want to take the kids skiing).

One spouse buys, the other doesn't approve.

I'm sure there are more....

 

[KANSAS]

CRISI
I was really impressed with your list, how did you come up.
What you have heard from others, over the years, or do you sometimes think these things, yourselves, for a few seconds, about your own DVC Membership.

 

[KANSAS]

i will not be upset, if someone calls this a stupid reason to sell dvc, because it probably is.

I sometimes think sell all my 625 DVC Points and get the capital back, then relieve myself of $2500 in annual dues.

I then would rent, sunday-thursday night stays, at $11.00 per point, when I need them.

I would then have about 225 dvc rental points, for the cost, of annual dues, on my 625 dvc points.

I would have 400 less DVC Rental points each year, but I would have about $44,000 in capital, I think, from sale of my 625 REntal points, to generate some income, to rent more DVC than 225 points each year.

I then could easily, skip DVC for a couple or three years, and go to other places in the world, and come back to DVC later in life, very conveniently.

I also would be protected, from dVC point values, falling 35% overnight, if DVC, guits RORF, in the next 38years.

I ahve met some people on this dis board, who rent to others, on a regular basis. They are professional people and I have had several positive transacations with them, so they have credibility with me, that transacation, would be clean and honest.

If anyone, sees alot of flaws, in the possible reason to sell DVC, please tell me this. It is just an idea, not a plan of mine.

 

[Chuck S]

Kansas, make decisions on what "feels right" to you. But, if you expect to get $44,000 in immediate capital for 400 points, you're in "Fantasyland" - that's $110 per point. A better estimate may be $26,000 for 400 points ($65/point)

Through all of your various posts, it seems you are looking at timeshare ownership as an "investment". I doubt it was presented to you that way by DVC. It is more accurately a way to enjoy more spacious and relaxing on-site acomodations for folks that visit WDW regularly at prices less than what they would pay for a comparable room or suite at a Deluxe-class WDW hotel.

 

[CarolMN]

Kansas -

Maybe you just have too many points for your actual needs. Lots of us get by on way less than 625 points per year.

If I were seriously considering the option you propose, I'd do the math on selling all but 225 (or whatever you believe you would really need) of your allotment. Of course that assumes you have smaller contracts making up the total and can sell part of your total.

My belief (too lazy to do the math right now) is that owning points is more cost effective than renting every year. But that assumes you will continue to go to Disney at least every other year and pay to stay in a deluxe property. If that is no longer describes your vacation habits, then you should sell and do something else with your vacation money.

JMHO.

 

[KANSAS]

CHUCKS
you are correct, if I was thinking about selling 400 DVC POINTS and getting $44,000.
I stated. Iwould sell all 625 DVC POINTS , for an average of $70.40 per point, and get $44,000.

 

[KANSAS]

CHuckS

I do not see my DVC membership, as an investment. It is a prepaid vactation.
Do you feel it was incorrect, for me to be attracted to it, because it does not devalue tremendously, like other timeshares??
I have over 50 clients, that bought timeshares in branson, mo and have lost 90% of its value.
I am just always guilty of trying to think of a way, to get the same DVC benefits, at the least amount of cost.

 

[KANSAS]

carol MN

Thank you for your advice, it really is a stupid idea. But, the thread, was titled, why would you sell your DVC?

I own many small contracts, because of the advice, from this board.
I can easily reduce my exposure to DVC, from 625 to 225.

I do not see DVC as an investment, just as prepaid vacation.

But, If always trying to get the same DVC benefit, for less cost, is a crime. I am guilty as charged!!

 

[Chuck S]

I am just always guilty of trying to think of a way, to get the same DVC benefits, at the least amount of cost.

Time is money, if you spend hours and hours worrying about how to get the very best deal - what have you saved? Really, the last several years you could get pretty good room rates with an AP...but with DVC you don't have the hassle of calling CRO, looking for the rate, hoping they release special deals. There is no guarantee that you could rent points and get the accomodations you want in the timeframe you want to travel, even planning early. Using your 11 month booking window wisely will almost guarantee you adequate accomodations.

As far as other timeshares losing value, that would only be a consideration if you have a need to sell. If you continue to use the timeshare as it was originally intended, it is of value to you. Holding resale value was not a consideration in my DVC purchase, as I hope to be able to take full advantage of my points at OKW (or other DVC resort). I hope to still be around in 2042 when the DVC commitment ends..if not, well so be it. If my heirs don't like the DVC that is their problem, if they think it was a foolish venture, it isn't THEIR money yet - I bought for ME! They can sell it and if it is too close to 2042 to get much...too bad, so sad.

 

[manning]

Life is short, buy for enjoyment and reducing your vacation costs if you will be staying at higher end Disney Resorts. Never for investment.

.

 

[crisi]

Kansas,

Its culled from my own thoughts, some observations of how other people work, some discussions on this board and some discussions with other people.

I don't see us selling DVC in the near future....but I wouldn't make any effort to hang onto it if finances were suddenly tight because one of us was unemployed. I can see a scenario where we decided to own more than our little 150 points while the kids are young so we can bring aunts and uncles and cousins and grandparents and friends - but sell the extra contract (or contracts) when DVC becomes my husband and my golf resort and the kids are in college.

As to your plan....if I rent at $10 pp, I figure I pay a $4 pp premium (I figure my cost at about $6 a point). But at a $4 pp premium, it would take a very long time for me to get return on investment. You really don't sound happy with your purchase. You question where the dues go (I figure as long as I get value - which I do - and they don't go up to the point where I don't get value - which they haven't - why worry about it), worry about the resale value, worry about getting the best "deal," own a ton of points, but don't want to stay weekends because it isn't a value, talk about vacationing somewhere else easily, all in all - this seems to be giving you far more worry than pleasure.

 

[Lisa P.]

Great list, Crisi! For us, the main reason we sold it was:
Change of Finances

However, these factored in:
DVC doesn't work for them (it happens...)
Kids outgrow Disney...
Disney overload (for DH)
Don't go to Disney as often as anticipated

Once most folks sell it, they don't usually keep reading and posting to a DVC forum. I enjoy all kinds of timeshare (including DVC) so I still occasionally look in on this forum and post.

At one time, we thought we'd like to have 3 contracts, each worth 150 points, which could be left to our 3 kids. We wanted 150 at OKW and 300 at HHI. However, before we could afford to buy the 2nd & 3rd contracts, we realized we had other financial goals competing with this one.

150 points really didn't work for our family of 5. DVC's maint fees were much, much higher than our other timeshares (for the 2BRs we needed). We could still enjoy terrific condo vacations in a variety of places, including Orlando, without DVC so selling it made sense. We haven't regretted that decision. Instead, we've found that we all appreciate our other vacations to other destinations much more now and only return to Orlando about every other year. Our offsite Orlando vacations are more relaxing for us, where we tend to enjoy the resort amenities and visit non-Disney attractions nearly as much as Disney attractions. This is more affordable without DVC, which is best used to stay onsite at DVC resorts, when that is one's strong preference.

 

[dcfromva]

KANSAS,
I believe the price per point will go down as time goes on. The way I figure it based on when I purchased: the initial purchase price of my DVC should depreciate by roughly $2.00 per year per point since it is a fixed contract that ends in 2042 (and for SSR 2054).
Even though prices have gone up, I would not expect that to continue forever.
I would still feel like I got my $$ worth from my DVC if I ever sold it as long as I could get aprox $2.00 per point per year left on the contract. I believe I would still be ahead of renting the points.
For some lucky folks, the price has gone up. Even if the price were to hold steady, if you think about it, you are using up years left on the contract and as time goes by--you would still be making a profit.
Who knows what the future holds--but I hope I get to enjoy every last year of each on my contracts when their value will go down to zero .

-DC

 

[Cruelladeville]

Good list, but I didn't notice my reason for selling--I want to buy a larger contract at a different resort. I currently have 105 pt add-on at BCV which will serve as the down payment for a larger contract at OKW. I'm just waiting for the right one.

 

[KANSAS]

cruella
do you mind, if I ask?Why are you selling BCV, for OKW??

 

[sters]

Yes, Cruella, do tell! I'm trying to decide between these resorts particularly (and possibly SSR) so hearing your reasons would greatly interest me.

 

[Richyams]

Its really not that hard to guess.

I bet that the dramatically larger rooms, parking in front of your unit, availability and point cost of GVs, along with the lowest dues and lowest point schedule have something to do with it.

I compliment Cruelladeville on her good taste and obvious intelligence.

 

[crisi]

Not to mention she will have Rich as a neighbor....probably what tipped the scales in favor of OKW.

(Cruella, are you really sure about this? I hear he cooks pigs feet).