Will DVC buy my timeshare?

[canadiandisneynut]

Hi there
I have a timeshare contract for non Disney or Florida property. We trade into RCI and were lucky enough to get into BLT last summer. We are hooked. In the past I have gone to other Timeshare presentations who have offered to take over my contract and then add onto to buy into their company. We never have. Is this something anyone has ever heard of Disney doing? It would be worth about a third of the size of contract I would want to pick up. Part of me thinks Disney doesn't have to but who knows.
Would love to hear
Thanks!

 

[Brian Noble]

No, they do not.

 

[Dean]

Hi there
I have a timeshare contract for non Disney or Florida property. We trade into RCI and were lucky enough to get into BLT last summer. We are hooked. In the past I have gone to other Timeshare presentations who have offered to take over my contract and then add onto to buy into their company. We never have. Is this something anyone has ever heard of Disney doing? It would be worth about a third of the size of contract I would want to pick up. Part of me thinks Disney doesn't have to but who knows.
Would love to hear
Thanks!

Basically no one does this, even when they say they will and when they do, you're really paying them to do so. I know of many cases where people "traded in" a timeshare and bought another only to find out later they owned both and were responsible for the fees on both. Historically Marriott has done this but they required a large thread to do so, the last time I knew specifics, the spread had to be at least $15K based on what was paid. I don't think Marriott does it routinely any more since they've closed their resale department.

 

[canadiandisneynut]

If we do end up buying DVC then we will either a) sell our contract or b) keep it and use it outside of DVC. Thanks for the replies gentlemen!

 

[Dean]

If we do end up buying DVC then we will either a) sell our contract or b) keep it and use it outside of DVC. Thanks for the replies gentlemen!

You'll likely either have to keep it or give it away. Unless you have a very high demand option, getting out without paying anything might even be unlikely. High demand would be things like mid summer in HH, certain weeks in the Caribbean (5, 7, 51, 52), 4th of July at Big Cedar, THE Ski weeks, and the like. Simply being red time is not nearly enough demand by itself. If you'll actually plan and use it, that's very likely your best option unless the combination of dues, exchange fees and exchange company membership are more than you could rent the same thing for. If you were to give us an idea of what you own, some of us could likely give you a better picture.

 

[bellablue2]

using it to trade into dvc might be a continuing option - expect saratoga in trade

 

[lgpav1]

We have a DVC and a Hilton Time-Share. We find they complement each other. Both are not really big - so it seems to work well.

 

[heynowirv]

using it to trade into dvc might be a continuing option - expect saratoga in trade

And if you're anything like my family you'll love Saratoga Springs.

 

[Dean]

using it to trade into dvc might be a continuing option - expect saratoga in trade

SSR, OKW and AKV are the more available but you're correct in that SSR is the most of the 3. As for whether it's a good option depends on variables we don't have. Those variable might include whether they have to pay the exchange company membership fee, what their TPU is (weeks) or their # of RCI points, is their a mortgage and what their dues are. The other and really important variable is whether it works for them for non DVC trips. For a points mini system like Bluegreen, Wyndham, Shell, Worldmark, Hilton, Starwood, or the like the answer is likely yes if they learn the system and use it well. OTOH, if they have a low TPU or # of RCI points compared to the maint fees and have to pay for the exchange company, it's likely to cost them more than they could do on cash plus getting out just by paying the transfer fees might be unlikely.

 

[canadiandisneynut]

Thanks everyone! We will hang onto our timeshare. We might get $5000 for it at the most. Our dues are super low, $450 a year, but we manage to come away with about 20-25 points each year. It does take us about 35-40 RCI points to do anything at DVC however at $450 a year it is still worth it for us to trade into DVC and enjoy our time in deluxe there. Right now there is a 1 bed at SSR available for 40 points. AKL, BWL and Wilderness have popped up frequently. Thanks for all of your insight!

 

[summabreeze85]

Definitely worth hanging onto to trade into dvc. DVC are the best rci resorts (imo). Google the top 10 rci resorts and 5 of them are Disney. Then you can buy dvc to supplement your rci exchanges - add onto your weeks or take shorter more frequent trips. Enjoy!

 

[Dean]

Definitely worth hanging onto to trade into dvc. DVC are the best rci resorts (imo). Google the top 10 rci resorts and 5 of them are Disney. Then you can buy dvc to supplement your rci exchanges - add onto your weeks or take shorter more frequent trips. Enjoy!

I'm not disagreeing but I will point out that TUG and other evaluation options are somewhat misleading. The more closed the system, the more likely any people who rate the system are owners. Owners are more likely to overate their resort than non owners. That's why Timeshare Today requires one to attest they are not an owner at that resort in their ratings. Plus given the setup of DVC and the way members tend to look at it (owning DVC rather than a specific resort), I'd say means DVC owners are more likely to overate DVC resorts in general. In addition, DVC owners tend to have the sense that DVC isn't really a timeshare even though most (not all) intellectual know it is.

 

[Lil' Grumpy]

i don't get that @ all...whatever you call it~ isn't important, really. instead the
"value" is in how well it works for your vacations. a tool in finding the right
resort & the things one need..like privacy, size, & so forth. so learning about
the functioning levels, will go a long way, making your vacations ...tailor made.

now if i was in a position of authority ...there would be major changes over
night. the ways dvc is expanding, it is self evident that the best thing for
its future, ..is go it alone! & get rid of any other time shares. for ex.,
you never see a dvc member trading for a rci...so they can "rent" it.
but go ebay & the site is loaded with rci ones even though it is against
the rules. take away rci trades ...& watched how fast their values
drop. another change that all dvc owners need to push for..
is dvc workers should be blocked from owning any rci because of the
conflict of interests.

if dvc ever get a "chief" with a progressive insight , things are going to change.
and the insight~ isn't about other timeshares..but understanding the dvc
system, and doing what is best for your program.

 

[bwvBound]

now if i was in a position of authority ...there would be major changes over
night. the ways dvc is expanding, it is self evident that the best thing for
its future, ..is go it alone! & get rid of any other time shares.

Having an exchange partner, RCI today and II yesterday, remains an important relationship for DVC. If nothing else, it is a multi-faceted marketing tool:

• At the sales table, it increases the options presented to the candidate DVC buyer. "Dear candidate buyer, you may use your points at these 12 DVC properties and, when you are ready, there are 4500 additional destinations worldwide through our exchange partner!" That is hopeful news to the candidate buyer, perhaps stirring their interest, pulling their heartstrings or even pursestrings.
• RCI inbound exchanges increases traffic to the sales table -- luring 'new guests' who are visiting the WDW because they got a great trade. Perhaps once 'hooked' -- they'll bite?

Without RCI, or another strong exchange partner, DVC could, very possibly, have slower growth resulting from slower direct/developer sales.

Then you might see the death spiral other timeshares experience when long term owners quit paying dues for lack of "options." Once the long term owner tires of WDW/DL they'll look for outside uses for the points. Beyond RCI, most of the outside options are extremely costly and limited (ABD, DCL, Concierge Collection, etc). If the long term owner has no personal use for their points they will likely look to sell. If there aren't sufficient reasons for a replacement owner (resale buyer) to buy their points then the long term owner is likely to walk away. This increases the cost burden to the remaining owners who, themselves, age over time ... becoming a long term owner seeking outside options. {Rinse, Repeat} Granted, I don't see this death spiral coming quickly to DVC -- but it is well documented in other timeshare offerings, some of which have folded in bankruptcy.

In short, DVC needs an exchange partner. Hopefully a well managed partner who is diligent to prohibit the "illegal" rentals of exchanges.

 

[CarolMN]

......(snip).............In short, DVC needs an exchange partner. Hopefully a well managed partner who is diligent to prohibit the "illegal" rentals of exchanges.

I completely agree that RCI (or another exchange company) is a good thing for DVC as a whole. We haven't personally used that option and probably never will, but just having the option makes our membership more valuable. As you posted, it's definitely a sales advantage - to both Disney and the members who want or need to sell.

The issue of "illegal" rentals of exchanges comes up periodically. IMO, it's a "tempest in a teapot".

When you consider the overall number of reservations & exchanges each year, this can't be something that happens often enough to be much of a concern to either DVC or RCI. I don't why any particular DVC member (who understand how the system works) should care who is actually using a reservation that would not be available to the membership anyway. People actually using them are almost certainly just like us.

 

[Dean]

I completely agree that RCI (or another exchange company) is a good thing for DVC as a whole. We haven't personally used that option and probably never will, but just having the option makes our membership more valuable. As you posted, it's definitely a sales advantage - to both Disney and the members who want or need to sell.

The issue of "illegal" rentals of exchanges comes up periodically. IMO, it's a "tempest in a teapot".

When you consider the overall number of reservations & exchanges each year, this can't be something that happens often enough to be much of a concern to either DVC or RCI. I don't why any particular DVC member (who understand how the system works) should care who is actually using a reservation that would not be available to the membership anyway. People actually using them are almost certainly just like us.

I'm not sure having an exchange option helps that much per see but the perception of choices does when it comes to direct sales. Historically, and currently, timeshares use these type of options as smoke and mirrors to create the illusion of choice and value when in reality there rarely is much or any. And when there is true benefit, it essentially always comes with a price that is unreasonable as is the case with the options DVD blocks on resales. Occasionally there are some very rare and unique circumstances that might work out but they are always case by case and very specific.

Actually the renting of exchanges is a fairly large issue but only to RCI. It really doesn't affect DVC it's members in any way negatively and actually can have positive affects if it produces new sales leads. For RCI it's only as big of an issue as they choose to make it and historically they've taken the issue of renting exchanges very seriously.

 

[CarolMN]

I'm not sure having an exchange option helps that much per see but the perception of choices does when it comes to direct sales. Historically, and currently, timeshares use these type of options as smoke and mirrors to create the illusion of choice and value when in reality there rarely is much or any. And when there is true benefit, it essentially always comes with a price that is unreasonable as is the case with the options DVD blocks on resales. Occasionally there are some very rare and unique circumstances that might work out but they are always case by case and very specific.

My point was that it's a help to sales, both direct and resale - whether it's a good option or not. Perception is reality for many.

Actually the renting of exchanges is a fairly large issue but only to RCI. It really doesn't affect DVC it's members in any way negatively and actually can have positive affects if it produces new sales leads. For RCI it's only as big of an issue as they choose to make it and historically they've taken the issue of renting exchanges very seriously.

I'm having trouble believing it's a "fairly large" issue even for RCI, but I have no data to back that opinion up. I believe that if it truly bothered RCI, all they would need to do is limit the number of times (per some period of time) that an RCI member can select a DVC option. AFAIK, they do not limit. Doubt a limit would result in DVC inventory just sitting there unused for long periods of time. YMMV.

 

[Dean]

My point was that it's a help to sales, both direct and resale - whether it's a good option or not. Perception is reality for many.

I think we're mostly saying the same thing in different ways. I do think it adds very little from a resale standpoint because resale buyers tend to be more knowledgeable going in that a retail buyer. For retail it's about the perception of choices just like the 7 month availability issue though to a far lessor degree.

I'm having trouble believing it's a "fairly large" issue even for RCI, but I have no data to back that opinion up. I believe that if it truly bothered RCI, all they would need to do is limit the number of times (per some period of time) that an RCI member can select a DVC option. AFAIK, they do not limit. Doubt a limit would result in DVC inventory just sitting there unused for long periods of time. YMMV.

They actually do police it and I've seen them close down accounts for a year and actual ban a couple of people. I'm sure there are other ways they could limit renting but they'd all involve the law of unintended consequences, just like the walking issue. As you can imagine, doing it member by member is a daunting task so it's not surprising that it's hit or miss. I can't speak for RCI but from what I see it is a big issue to them which they take very seriously.

 

[bwvBound]

I don't why any particular DVC member (who understand how the system works) should care who is actually using a reservation that would not be available to the membership anyway. People actually using them are almost certainly just like us.

I care because I use both sides of the exchange process. While I do own some DVC -- I also own other properties that I have used to trade back into DVC. While I've been largely successful obtaining my own personal exchanges, I've invested countless hours studying the exchange process/game/strategies/stories over on TUG. The scenarios discussed there can make one's blood boil as related to frequency of obvious RCI Exchange Weeks being sold on eBay as Rental weeks. I've learned to quit reading, to ignore the conversations -- but only to protect my health.