Why Would You Buy Direct Anymore?

[ChipNdale8887]

Got my RIV points for $155. In the same boat when I look at other park adjecent resale prices.



Or possibly restrict days more.

I honestly think florida resident AP holders are whats keeping the parks as filled as they are. We live around Pittsburgh and went after Christmas and a majority of the cars in the parking lots were Florida plates.

 

[Brianstl]

I agree they'll be back. No reason to not bring them back, if they want to make more $ they'd raise the AP prices like they have been over anything.

I think eventual something new will replace AP's in CA and FL. Probably a tiered membership system that in addition to blackout days limits the amount of total days per month members can use their passes.

 

[KAT4DISNEY]

With a major caveat, I believe sooner is better than later. Why pay for a stay at CBR in October instead using your newly purchased points?!?!

Additionally, when you buy direct -- you can always buy a fully loaded contract. So say you buy a October use year.. you can get your October 2020 and October 2021 points, and really splurge on a big October trip.

My only caveat: Wait if you can't afford it. It's better to wait than to finance.

To be a stickler - when you buy direct you always get current points. Resale is the only way to actually get a fully loaded contract. Points already banked, current and points going forward.

 

[DL1WDW2]

I think eventual something new will replace AP's in CA and FL. Probably a tiered membership system that in addition to blackout days limits the amount of total days per month members can use their passes.

Anything to make it more confusing ...

 

[Eric Smith]

This is an interesting theory. Is there a good discussion thread on this?

I haven't seen one

 

[KAT4DISNEY]

This is an interesting theory. Is there a good discussion thread on this?

Only about every other month. What will happen in 2042 or will BCV/BWV get an extension. They usually have more concluding that DVC will let them expire and then resell after refurb/rebuild. Or else that an extension will be offered closer to the end.

 

[RanDIZ]

I have 500 points that I bought direct. Often, the new resorts on sale are not much more than resale. Also, buying resale requires a lot of time looking for the right contract.

My first contract was at BLT. I bought direct at $97/pp. We only added on a couple of years ago at CCV. I wanted 300 points at CCV split into two 150 point contracts in my current use year. Who knows how long that would have taken to find on resale (especially in 2018). I paid $163/pp. That is not too much more than what the resale costs are now. I got exactly what I wanted and the points were loaded right away. I was willing to pay more for that.

You're not doing too bad if you bought CCV 300 @ $163. Those 300pts now would be over $60k direct at approx. $210/pt. And the value would drop substantially after you sign the contract. On the other hand, resale would be around $40k @ $135/pt and maintain a decent value. That's a huge difference.

 

[Eric Smith]

Only about every other month. What will happen in 2042 or will BCV/BWV get an extension. They usually have more concluding that DVC will let them expire and then resell after refurb/rebuild. Or else that an extension will be offered closer to the end.

I think an interesting idea would be what would happen to current restricted resale contracts if Disney allows those 2042 resorts to expire? Would it make it harder to stay outside your home resort?

 

[KAT4DISNEY]

Shows they are willing to change the rules to make re-sale less attractive. They wouldn't want to make direct purchasing less attractive. Not to mention, it's much harder contractually to change the rules for a direct purchase.

Yes, future resorts *might* not play by the same rules. But it's in Disney's best interest to keep them playing by the same rules. Because switching rules undermines new direct sales. (why should I buy new if I can't trust Disney? If I'm buying in 2024, and they just betrayed all the pre-2024 purchasers, then how do I know they won't do the same to me?)

25 years of reliability is the big selling point of DVC... It's certainly possible they mess with it. But if they do, it will create both contractual problems and major marketing problems.

1 - buying direct now IS actually less attractive than it was 10 years ago because when you go to resell there are restrictions on the contract. That did not used to happen. So DVC is willing to make direct less attractive IMO.

2- Are you sure about the statement "it's in Disney's best interest to keep them playing by the same rules. Because switching rules undermines new direct sales"? They already proved they will do it - with Riviera.

Here's the more accurate statement. "DVC will do whatever DVC believes is best for their own self interest".

Riviera on re-sale is selling for about $135-$145 per point. So far, the value is holding up much better than expected, better than many other resorts. AKL direct costs more than RIV direct -- But you'll lose more re-sale value by buying AKL.

At the moment the few RIV resales have taken a larger than normal hit on resale than other new resorts have in the past. And we still have yet to see the point where we have a decent quantity. Once that happens is when we'll really see how it holds up with the restriction of being able to only stay there.

Kind of the same when people are quoting availability at 7 months. We also won't really know what that looks like until it's been sold out for a couple of years.

Longer term, there may be an issue after 2042 for availability at the remaining original resorts. Once Beach Club, Boardwalk, Boulder Ridge, Hilton Head, a majority of Old Key West and Vero Beach all expire, the number of resorts where restricted members can use their points shrinks and that may make it more difficult to stay outside your home resort (if that is important to you). It's a ways off, but it's something to consider if you're younger.

The total ownership will shrink by the the number of resorts expiring. Because the largest resorts will still be in the mix I agree it might be more difficult to trade into the remaining smaller resorts but I don't know if I'm willing to bet on it changing much in 2042 from what it was in say 2035.

 

[Apeters430]

Currently waiting to see what "perks" will still be available. Especially the AP discount. We were finally able to buy direct when COVID hit. We went with resale instead over the summer. We would still like to add direct because we love RR but I refuse it until I see what they do with APs.

 

[KAT4DISNEY]

I think an interesting idea would be what would happen to current restricted resale contracts if Disney allows those 2042 resorts to expire? Would it make it harder to stay outside your home resort?

I just responded a bit to that above but since the 2042 owners will no longer be part of the mix I'm not certain it will change all that much. Or at least not all that much from what it is in the years leading up to 2042. It may also depend on how many owners at the remaining Original 14 resorts still have the ability to trade into the new resorts. The good safety thing is to own where you're happy staying but if trading is still possible before 2042 it'll probably still be possible afterwards.

 

[chalee94]

This is an interesting theory. Is there a good discussion thread on this?

maybe start here:

What does DVC look like in 2042? | The DIS Disney Discussion Forums - DISboards.com

 

[havoc315]

1 - buying direct now IS actually less attractive than it was 10 years ago because when you go to resell there are restrictions on the contract. That did not used to happen. So DVC is willing to make direct less attractive IMO.

2- Are you sure about the statement "it's in Disney's best interest to keep them playing by the same rules. Because switching rules undermines new direct sales"? They already proved they will do it - with Riviera.

They changed re-sale. They did not change direct purchase -- A direct purchaser has the same usage rights as ever before. Yes, changing re-sale *could* have an effect on a direct buyer when they re-sell. But it does noting to change the direct buyers usage rights as long as they own the contract.

You're confusing 2 very different things: They did not change the rules for a direct purchase. They only changed the rules for re-sale. Of course, anything that hurts re-sale values could be seen as a negative impact on a direct purchase. Close a resort restaurant, reduce park hours -- all those things could reduce re-sale value. But they don't change the rules for how a direct purchaser can use the timeshare.

At the moment the few RIV resales have taken a larger than normal hit on resale than other new resorts have in the past. And we still have yet to see the point where we have a decent quantity. Once that happens is when we'll really see how it holds up with the restriction of being able to only stay there.

This is true, it's too hard to judge right now. But in the long long term, (15+ years), the resale restrictions will likely hurt all resorts to basically a similar degree. Imagine it is 2045 -- There are now only 9 "original" resorts, about about 12 "new/restricted" resorts. So all 12 newer resorts will have the same restrictions... And buying the original 9 will suffer from being locked out of more than half the resorts.

In the short term, I can see re-sale of Riviera taking a bigger bite than other resorts. So ok, Riviera might only get 55-60% of direct price, where other resorts get 60-65% of direct price.
But in the longer term, it will almost certainly even out.

 

[Eric Smith]

They changed re-sale. They did not change direct purchase -- A direct purchaser has the same usage rights as ever before. Yes, changing re-sale *could* have an effect on a direct buyer when they re-sell. But it does noting to change the direct buyers usage rights as long as they own the contract.

You're confusing 2 very different things: They did not change the rules for a direct purchase. They only changed the rules for re-sale. Of course, anything that hurts re-sale values could be seen as a negative impact on a direct purchase. Close a resort restaurant, reduce park hours -- all those things could reduce re-sale value. But they don't change the rules for how a direct purchaser can use the timeshare.

Well, they only changed the resale rules for direct contracts at Riviera (so far) so that does affect direct purchases going forward. The lack of ability of whoever buys your contract on resale to stay anywhere but the one resort likely will have a negative effect on how much money you could get for that contract on the resale market.

 

[KAT4DISNEY]

They changed re-sale. They did not change direct purchase -- A direct purchaser has the same usage rights as ever before. Yes, changing re-sale *could* have an effect on a direct buyer when they re-sell. But it does noting to change the direct buyers usage rights as long as they own the contract.

You're confusing 2 very different things: They did not change the rules for a direct purchase. They only changed the rules for re-sale. Of course, anything that hurts re-sale values could be seen as a negative impact on a direct purchase. Close a resort restaurant, reduce park hours -- all those things could reduce re-sale value. But they don't change the rules for how a direct purchaser can use the timeshare.

They haven't done any changing to how a resale buyer uses their purchase either though. If it came without restrictions it has no restrictions in use. If it came with restrictions it keeps those same restrictions for use.

It's subtle but the change hurt the direct purchaser because they no longer get to sell the same product that they bought. For a new resale buyer they will know what they are purchasing and will get to sell the same product if they either decide or need to. However lets say DVC decides to restrict more on when owners sell then at least the resale buyer has a good amount of depreciation already built in and the direct buyer will now have a couple of adjustments to factor into a sale.

Your point is about if what is provided with a direct purchase is of value to pay direct pricing vs paying less than direct for resale and having those rules for the life of the contract. Then comes the time to sell and it's different than it used to be.

 

[RanDIZ]

Well, they only changed the resale rules for direct contracts at Riviera (so far) so that does affect direct purchases going forward. The lack of ability of whoever buys your contract on resale to stay anywhere but the one resort likely will have a negative effect on how much money you could get for that contract on the resale market.

I agree. The saying goes “buy where you want to stay” so RIV resale is exactly that. You’re stuck! I’m sure the majority of owners buy DVC for having the flexibility to move around. This will certainly play a role on RIVs resale value.

 

[sethschroeder]

That's a huge difference.

Which is why you should buy when a resort first is going on sale not after its 4-5 price increases leading up to being sold out.

 

[Sandisw]

Well, they only changed the resale rules for direct contracts at Riviera (so far) so that does affect direct purchases going forward. The lack of ability of whoever buys your contract on resale to stay anywhere but the one resort likely will have a negative effect on how much money you could get for that contract on the resale market.

This only matters who buy DVC expecting a strong resale value. We did not, including when we first bought.

I think it does come down to how often people may want to stay at RIV or any new resorts, IMO, DVC is too expensive to go resale solely because you are worried about resale value IF staying at RIV is something you want,

Now, someone who has no desire and doesn’t care, it does make it harder to choose buying direct.

Everyone is different, I went the resale route with BLT summer and because RIV is one of my top resorts, even though I have plenty of other points, it is a regret having it and should have stuck with unrestricted points.

 

[ChipNdale8887]

You're not doing too bad if you bought CCV 300 @ $163. Those 300pts now would be over $60k direct at approx. $210/pt. And the value would drop substantially after you sign the contract. On the other hand, resale would be around $40k @ $135/pt and maintain a decent value. That's a huge difference.

CCV is now $220.

 

[KAT4DISNEY]

This only matters who buy DVC expecting a strong resale value. We did not, including when we first bought.

I think it does come down to how often people may want to stay at RIV or any new resorts, IMO, DVC is too expensive to go resale solely because you are worried about resale value IF staying at RIV is something you want,

Now, someone who has no desire and doesn’t care, it does make it harder to choose buying direct.

Everyone is different, I went the resale route with BLT summer and because RIV is one of my top resorts, even though I have plenty of other points, it is a regret having it and should have stuck with unrestricted points.

You've done selling to buy different though. Would you have made those choices if the resale prices weren't high or if say your original purchase could now only be sold for 1/2?