With the new restriction on add-on member perk -- what is going to happen to resale?

[kniquy]

With approaching limitation for benefits at a 75 point contract -- what effect will this have on the resale market. Anything? Nothing?

I am interested to hear people's thoughts. There has been such a drive up in resale asking prices recently-- now (like disney wants) people will likely consider the full direct purchase vs the 25 point add on w/ a resale. Will this slow and decrease the value of the resale contracts? It will be interesting to see how it plays out.

Disney is wise with this move as this will get some people to re-consider their purchase and just say -- "hey i will just buy 150 points direct" vs trying to find a 75 point contract and then add on the 75. Why deal with the hassle of resale when they can go direct, get their perks and get their points quickly. Maybe those purchasing a large amount of points >200 will find the 75/125 split worth it.

I also wonder if this will drive up ROFR by disney -- they might have more people looking for older resorts.

I know there will still be a fairly strong resale market because there are plenty of people who (like me) only intend on purchasing to go every other year - and the perks don't mean as much.

 

[hakepb]

It could somewhat lessen demand for buyers wanting <150 resale, but it seems the resale market is strong enough that it won’t matter much.

I doubt it will change any ROFR behavior. DVD would rather sell new Aluani points than selling high-demand, used Beach Club or VGC points. (Think about it, DVD has people on waiting lists to throw money at DVC and they continue to make a minimal effort to get that “used point” money)

 

[CraigInPA]

About the only change I predict would be that there will be fewer 25 point add-on contracts written. Resale purchasers will now buy all the points they need resale and live without the extra perks that formerly came with a 25 point add-on contract. I don't see many people buying a 75 point add-on in order to get the perks.

In 4/16, people predicted that the resale market would tank because new resale purchasers wouldn't get the perks. Since then, resale prices have gone up 30-40%. DVC's direct pricing has gone up similarly.

 

[southerngirl528]

In 4/16, people predicted that the resale market would tank because new resale purchasers wouldn't get the perks. Since then, resale prices have gone up 30-40%. DVC's direct pricing has gone up similarly.

This. I agree.

 

[ScubaCat]

This. I agree.

+1. No effect whatsoever.

The goal is to drive more people to buy direct by justifying the higher cost, but most people still buy direct anyway.

 

[miTnosnhoJ]

I see very little impact for the resale market. I see direct and resale as two separate markets, with some overlap.

The Direct market is primarily first time buyers who need a lot of hand holding. They need to be sold. They do not initiate purchase on their own. There is an endless supply of prospects for Direct from the Theme Park visitors and hotel guests. They prefer to purchase directly from Disney due to the general sleaziness of the Timeshare industry.

The Resale Market is primarily existing owners who want to add on, coupled with new buyers who do not have to be sold, but initiate the transaction themselves and are willing to do some self education. These include frequent resort guests, people who have rented in the past, and in general, people who are confident in their ability to avoid the pitfalls of timeshares.

I think the issue that Disney is addressing is that many otherwise happy Direct buyers will take advantage of the recision period to check Google to see if there are any red flags or horror stories about DVC that would cause them to reconsider. They inevitably find sites like this one, where they are ridiculed for buying direct. By building up the Direct benefits, Disney can help their Direct purchasers over this hurdle.

 

[nkosiek]

One long term consequence could be people who decide to go the direct route pick up less points than they would with a resale contract. That may restrict them to studios making a small problem (people primarily wanting to book studios) into an even larger one, especially if they keep building things like the Poly Bungalows and the Copper Creek Cabins.

 

[CraigInPA]

One long term consequence could be people who decide to go the direct route pick up less points than they would with a resale contract. That may restrict them to studios making a small problem (people primarily wanting to book studios) into an even larger one, especially if they keep building things like the Poly Bungalows and the Copper Creek Cabins.

I'd love to shoot down this argument, but it's a real possibility. However, I suspect the number of people who would make a decision to force themselves into a studio versus a 1 bedroom solely upon whether they are "direct members" or "resale members" is probably a very small number.

 

[kboo]

I'd love to shoot down this argument, but it's a real possibility. However, I suspect the number of people who would make a decision to force themselves into a studio versus a 1 bedroom solely upon whether they are "direct members" or "resale members" is probably a very small number.

I tend to agree, but I wonder how many people buy into DVC in the first place, planning to stay in studios. We could afford to stay in bigger units, but for our first purchase we were pretty conservative and bought planning only to stay in studios. It's not until they go more often, and don't spend all their time in the parks, that a 1BR or larger starts to look "worth it."

 

[hakepb]

I tend to agree, but I wonder how many people buy into DVC in the first place, planning to stay in studios. We could afford to stay in bigger units, but for our first purchase we were pretty conservative and bought planning only to stay in studios. It's not until they go more often, and don't spend all their time in the parks, that a 1BR or larger starts to look "worth it."

I would think most are now looking at studios

I believe original OKW buyers had minimum 250 point contracts at $50/point ... and the free park tickets for 1/2 occupancy got a lot of buyers used to 2BR stays with an occupancy of 4. (For a $12500 buy-in)

Over time, DVD was basically selling 1BR for a moderate price. Now they can only sell studio vs Deluxe

Now a 100 point CCV buy-in is $18200. A new buyer would need 250 points for an average week in a 1BR ... at a buy-in of $45,500. (A 315 point 2BR contract would be $57,300)

 

[thelionqueen]

One long term consequence could be people who decide to go the direct route pick up less points than they would with a resale contract. That may restrict them to studios making a small problem (people primarily wanting to book studios) into an even larger one, especially if they keep building things like the Poly Bungalows and the Copper Creek Cabins.

Completely agree! Which will fill up the lower point rooms like OKW & SSR

 

[kboo]

Completely agree! Which will fill up the lower point rooms like OKW & SSR

I hadn't thought of that! This might not be such a bad thing (for Disney).

 

[4luv2cdisney]

I tend to agree, but I wonder how many people buy into DVC in the first place, planning to stay in studios. We could afford to stay in bigger units, but for our first purchase we were pretty conservative and bought planning only to stay in studios. It's not until they go more often, and don't spend all their time in the parks, that a 1BR or larger starts to look "worth it."

Agree. So many people are coming from values / mods in a regular room. The studios already feel like an upgrade for the kitchenette and "deluxe" resort.
Especially now that there are plenty of options for 5 in a studio.

I think that DVC allowing buy-ins as low as 50 points and a booming rental market probably created the studio availability problem more than anything else. People buying for the purpose of staying in 1 bedrooms and larger are not likely going to cram into studios just to get in. They're gonna rent. Rental is a great option if you're not worried about cancellations / changes and Disney's cancellation policy is not as great as it used to be anyway, so...

 

[thelionqueen]

Which is why I’m looking to add on to my OKW points. My favorite resort, best use of points, and I feel will shift to a higher sought out resort than it currently is. Remember the days when you could almost always find full availability at SSR or OKW? Those days are gone now...will only get worse imo

 

[Firepath]

I wonder if eventually due to high demand for studios vs. 1 BR, the points charts will adjust to somewhat higher for studios and somewhat lower for 1 BR ? As a family who mostly stays in 1 BR, that would be great for us, but not so good for those who only barely have enough points for a studio at today's point schedule.

 

[thelionqueen]

Very intersting thought. I’d love that too but doesn’t seem likely. Who knows? One can hope

 

[PatMcDuck]

FYI, we bought in 1995 originally. OKW was only option, and the minimum then was 150 points. We bought 150 points. (got the free park passes for 5 years or so, bonus!) We had 4 kids, we only booked 2BRs. The main reason we bought, was that we needed 2 hotel rooms anyway, and the kitchen was used for most meals. $$ was relatively tight, considering 6 plane tickets and park passes. And went every other year, until increasing to 200 points and avoiding Fri/Sat nights. (switched home resort to BCV when they sold BCV).

My personal opinion is that they should offer a 1BR that sleeps 6 with 2 full bathrooms. Use some of the ideas in the AoA suites, make it deluxe. (I love the AoA suites).

Currently looking to buy a resale, sold the BCV (well, in ROFL phase).