UPDATE in post #34: "Time Sensitive Information about Your Disney Vacation Club Membership"

[WebmasterDoc]

Presently, barring another "extension" offer at other resorts, they have a LOT of resorts expiring in 20+ years.

While we don't know their true plans for those resorts, as suggested in posts above, OKW already has some owners with a 2057 expiration which means they have some obligation to try to completely sellout the resort (for the third time).

The more repurchases and ROFR they can manage prior to 2042, the fewer OKW contracts they will need to sell in anticipation of 2042 - when they will also have the potential problem of trying to also sell BWV, VWL/BR, and BCV along with OKW.

This assumes they will try to maintain those resorts as DVC resorts. In the late 1990's DVC was actively selling OKW (it had already sold out until they added Bldgs 62-64 and reopened sales), VB, HH, BWV and VWL. Since then, they have tried to maintain a position of active sales at fewer resorts at once.

Until we truly know what DVC will look like on January 31, 2042 we are speculating that all resorts will simply be sold and continued as part of DVC - but what if some current resorts are just taken over as Disney Resorts - or bull-dozed and rebuilt? I also believe VB and HH will be sold to another entity and not maintained as DVC Resorts after 01/31/42.

Stay tuned!

 

[Brian Noble]

I'm not a betting man, but...

what if some current resorts are just taken over as Disney Resorts

I think this is unlikely unless the economics of the Resort change fairly drastically. Since 9/11, WDW has fallen all over itself to turn cash rooms into DVC units, while at the same time building only very targeted cash rooms that they own (Gran Destino for convention traffic) and instead farming hotel development out to others in the Golden Oak and Flamingo Crossings plots.

or bull-dozed and rebuilt?

Definitely possible, and maybe even likely.

I also believe VB and HH will be sold to another entity and not maintained as DVC Resorts after 01/31/42

Strong agree.

 

[hhisc16]

Presently, barring another "extension" offer at other resorts, they have a LOT of resorts expiring in 20+ years.

While we don't know their true plans for those resorts, as suggested in posts above, OKW already has some owners with a 2057 expiration which means they have some obligation to try to completely sellout the resort (for the third time).

The more repurchases and ROFR they can manage prior to 2042, the fewer OKW contracts they will need to sell in anticipation of 2042 - when they will also have the potential problem of trying to also sell BWV, VWL/BR, and BCV along with OKW.

This assumes they will try to maintain those resorts as DVC resorts. In the late 1990's DVC was actively selling OKW (it had already sold out until they added Bldgs 62-64 and reopened sales), VB, HH, BWV and VWL. Since then, they have tried to maintain a position of active sales at fewer resorts at once.

Until we truly know what DVC will look like on January 31, 2042 we are speculating that all resorts will simply be sold and continued as part of DVC - but what if some current resorts are just taken over as Disney Resorts - or bull-dozed and rebuilt? I also believe VB and HH will be sold to another entity and not maintained as DVC Resorts after 01/31/42.

Stay tuned!

Does Disney have to keep VB and HH until 2042?

Or could they sell off before then?

Just curious.

 

[Sandisw]

Does Disney have to keep VB and HH until 2042?

Or could they sell off before then?

Just curious.

I don't think they can sell before then. They can certainly remove them from the club, and owners there would no longer have trading rights into the other resorts, but owners have a ground lease with Disney until 2042.

 

[LPnerd]

Why wouldn't they want the 2042s to just hold? They get a free foreclosure in 2042. The best explanation I can come up with is that this is short term thinking because they mark it up and sell it as extended, and RIV is going so badly they need to go get some of that great OKW.

This email seems pretty desperate, when they have millions of Aulani and RIV points just sitting around. The more I think about it the less it makes sense. Unless they are targeting people with paperwork issues on the quitclaim...

couple questions, are we sure this is from disney? there are many companies that resale timeshares and disney is the top of the top shelf.
I'm not going to tell you how much we paid for 250 points in 1996, but I will say M U C H less than what points sell for now!

 

[striker1064]

It's actually more than I though. If market value is currently just over $100, once you factor broker fees, $88 is only 10-15% less. I can see someone with a very large contract, so difficult to sell on the market, thinking about this.

And presumably you'd get your money a lot faster since it obviously skips ROFR. Someone who needed money quickly for whatever reason might see this as viable. It is very interesting.

 

[Brian Noble]

are we sure this is from disney?

Based on what @WebmasterDoc has said, I am.

 

[WebmasterDoc]

couple questions, are we sure this is from disney? there are many companies that resale timeshares and disney is the top of the top shelf.
I'm not going to tell you how much we paid for 250 points in 1996, but I will say M U C H less than what points sell for now!

Yes, it came from a DisneyVacationClub.com email account, the phone number answers with the "Thankyou for calling Disney Vacation Club" and then connects with a "Disney Vacation Club Quality Assurance Team" member. They have access to look members up by contract number, membership number and even phone number (which they used to identify me when I transposed two numbers from my memorized Membership # and he was unable to find it). I am definitely satisfied that I was communicating with someone from DVC.

This CM was not selling anything - he was not a DVC Guide and only explained the program suggested by the email. He could see the Use Year and number of points in the contracts he found using my phone number. He suggested that we should also consider a "third party" broker. This was not a sales pitch and there was no pressure to sell.

We purchased our OKW initial contract in 1993 direct at $56 per point. Three years later we purchased a resale contract at $50 per point. OKW (with a 2057 expiration) is now selling at $170 directly from Disney.

 

[WebmasterDoc]

I don't think they can sell before then. They can certainly remove them from the club, and owners there would no longer have trading rights into the other resorts, but owners have a ground lease with Disney until 2042.

I'm not sure they can unilaterally remove VB and HH without some catastrophic even causing irreparable damage to those resorts (ie Hurricane) - the foundation fo such removal is spelled out in the POS for all DVC Resorts but my recollection is that it needs to be caused by some sort of calamity.

DVC owners at each resort do have the ability to replace DVC as the managing entity - but not without a vote of the entire ownership (I don't recall the % of owners required without looking it up). A new entity would then need to negotiate everything with the service providers to maintain the resort in similar fashion - think front desk, housekeeping, maintenance, transportation, grounds keeping, reservation system, bell services, recreation, etc., etc., etc..

 

[RoseGold]

$88/point is just insulting. So they’re just trying to pick up some points from old folks who don’t know about resale. This money-grubbing phase of DVC is not its finest moment.

 

[JETSDAD]

$88/point is just insulting. So they’re just trying to pick up some points from old folks who don’t know about resale. This money-grubbing phase of DVC is not its finest moment.

For larger contracts that could be a decent offer when you factor in commission and the fact that they could close faster with no need for ROFR.

 

[JETSDAD]

An interesting comparison is to look at the instant sale offer pricing with the board sponsor. With that you would still be paying commission, closing, etc. It brings the $$ amount very close to what DVC is offering and this would be even more instant. I'm not saying I would go this route but it's not as crazy as it may seem at first.

 

[WebmasterDoc]

$88/point is just insulting. So they’re just trying to pick up some points from old folks who don’t know about resale. This money-grubbing phase of DVC is not its finest moment.

They were very upfront about suggesting that going through a resale broker would likely be better.

As I noted above, they will provide a non-binding offer valid for 7 days so that Members can research other options to sell their contract.

 

[anomamatt]

If they have interest (willingness to buy) in stripped contracts (although it's impossible to fully strip a contract these days), $88/point is a reasonable price for BIG contracts. Commissions approach 9% and the big OKW contracts sell for a bit over $100/point. And this would be almost no effort.

It's not a good deal. But it could be a lot worse. When I first heard about this, I expected worse (like $50/point).

 

[pianomanzano]

If they have interest (willingness to buy) in stripped contracts (although it's impossible to fully strip a contract these days), $88/point is a reasonable price for BIG contracts. Commissions approach 9% and the big OKW contracts sell for a bit over $100/point. And this would be almost no effort.

It's not a good deal. But it could be a lot worse. When I first heard about this, I expected worse (like $50/point).

Don't forget that it's a range from 80 to 88. I can definitely see them offering $80pp for the larger contracts because they know those sit on the market a lot longer. As a buyer, I would think those with the amount of cash on-hand to pay for those 500+ contracts would rather buy direct? Just postulating here, but some of those large contracts is a significant down payment or even a whole house in some instances, so can't imagine there being a large subset of the resale buyer market interested in those and I'm sure DVC knows that and would offer on the lower end of that range.

 

[disneyfam]

Surprised Disney doesn’t do Resale themselves too? Strip the direct perks still but allow the process to be as quick as buying direct?

Me too. When they started putting restrictions on buying resale vs Disney direct, I thought to myself hmm, could they be venturing into the resale business in the future? When we bought in 2009 we didn't want our home resort to be what was offered (I think it was AK & SSR), we wanted Beach Club or Wilderness Lodge. At the time BC resale didn't have enough points/year for us but WL did, so we went with WL.

 

[anomamatt]

Don't forget that it's a range from 80 to 88. I can definitely see them offering $80pp for the larger contracts because they know those sit on the market a lot longer. As a buyer, I would think those with the amount of cash on-hand to pay for those 500+ contracts would rather buy direct? Just postulating here, but some of those large contracts is a significant down payment or even a whole house in some instances, so can't imagine there being a large subset of the resale buyer market interested in those and I'm sure DVC knows that and would offer on the lower end of that range.

Maybe. But DVC can slice and dice the larger contracts into whatever sizes they want (and sell whatever size their direct buyers want). It's less administrative work for DVC, too. So I could see DVC more interested in the big contracts.

My guess is the range of $80-$88 is the 10% limited-time "bonus" that the OP mentions. The normal price is $80/point but they are offering $88 for a limited period.

 

[RoseGold]

DVC could take a big bite out of the resale brokers if they paid the buyback rate transparently, minus the 9% broker commission. That's not what this math is, but I admit it is getting close. They never wanted to do that before because the focus was selling more profitable developer points, and they obviously don't have the direct demand for the volume of resale that is changing hands, and they seem to never take on international contracts.

Obviously, OKW's direct pricing, and RIV/AUL's's failure, has created too much direct demand. This is an interesting step... DVC has entered the resale broker business!

 

[Bookpodder]

Got the exact same email as the OP yesterday, but it was asking our interest in selling our points at Kidani.

 

[Lee Matthews]

You know with no new resorts due at WDW they are going to get the money from buying more in ROFR and selling on for as much as possible