Confused about what just happened

[MSS91]

Hoping someone can clarify for me the big DVC change that happened today.

So it's my understanding that some people are losing their benefits that come along with having DVC. Are these people that purchased their points from someone who purchased their points directly from Disney? Or does this also apply to people who buy DVC points from Disney and add contacts over the years?

Thanks!

 

[DVC Mike]

https://*******.com/dvc-announces-new-benefit-restrictions-resales-buyers/


http://i235.************************************************************* DVC Mike - *******.com

 

[miTnosnhoJ]

Hoping someone can clarify for me the big DVC change that happened today.

So it's my understanding that some people are losing their benefits that come along with having DVC. Are these people that purchased their points from someone who purchased their points directly from Disney? Or does this also apply to people who buy DVC points from Disney and add contacts over the years?

Thanks!

It applies to people who buy resale in the future. It does not directly affect current owners who purchased either direct or resale.

 

[Whitters87]

I'm still trying to figure it out as I was hoping to purchase this fall... Theoretically if it's a true reduction in benefits/expected value then resale price per point should drop. But in reading the membership extras document that lists everything it doesn't seem all that material to me.. Though I'll admit I'm more in this for the timeshare aspect than the perks. Though if I wasn't able to use magic express I would definitely reconsider (I highly doubt they would get rid of that).

I am curious on how it would be handled if I bought a bulk of my points in resale and then 50 points direct from Disney. Would I then get the official membership card and savings? Does anyone know?

 

[pangyal]

I'm still trying to figure it out as I was hoping to purchase this fall... Theoretically if it's a true reduction in benefits/expected value then resale price per point should drop. But in reading the membership extras document that lists everything it doesn't seem all that material to me.. Though I'll admit I'm more in this for the timeshare aspect than the perks. Though if I wasn't able to use magic express I would definitely reconsider (I highly doubt they would get rid of that).

I am curious on how it would be handled if I bought a bulk of my points in resale and then 50 points direct from Disney. Would I then get the official membership card and savings? Does anyone know?

Yes, you definitely would. You might even be able to buy 25 points direct instead of 50.

 

[lovin'fl]

Folks who close on a resale after 4/3/16 no longer get perks (resales are bought in secondary market...classic resorts bought through Disney are considered direct purchases and are safe). The biggest thing being lost, IMO, is the DVC AP. You can buy a resale and then buy 25 points direct to get the perks, supposedly (cheapest they have available direct are SSR and OKW at $140pp but can get on waitlist for HHI or VB for $110pp).

 

[miTnosnhoJ]

But in reading the membership extras document that lists everything it doesn't seem all that material to me..

I agree that it is not all that material. In dollar terms, the price per point might go down a nickel for the economic value of these benefits. Even the annual pass discount is a transitory thing since they can and will change the pricing on annual passes annually. However, it is creating a lot of fear, uncertainty, and doubt, (known as FUD), which may scare a lot of new resale buyers for a while. This may make the resale market more attractive for a few weeks, but prices cannot go down too far without Disney exercising ROFR. And new resale buyers are a small percentage of total resale buyers.

The prime market for DVC Direct is people who are new to timeshares and new to DVC. Disney can make the purchase experience painless, and there is comfort in knowing that even if your guide is lying to you (which they generally don't - except for FUD factors), that Disney will somehow make it right.

The prime market for resale are people who have owned timeshares before, or especially, people who already own DVC and want access to bigger accommodations, more weeks, or a different resort. These people will not be distracted by the FUD.

 

[Lynne M]

I agree that it is not all that material. In dollar terms, the price per point might go down a nickel for the economic value of these benefits. Even the annual pass discount is a transitory thing since they can and will change the pricing on annual passes annually. However, it is creating a lot of fear, uncertainty, and doubt, (known as FUD), which may scare a lot of new resale buyers for a while. This may make the resale market more attractive for a few weeks, but prices cannot go down too far without Disney exercising ROFR. And new resale buyers are a small percentage of total resale buyers.

The prime market for DVC Direct is people who are new to timeshares and new to DVC. Disney can make the purchase experience painless, and there is comfort in knowing that even if your guide is lying to you (which they generally don't - except for FUD factors), that Disney will somehow make it right.

The prime market for resale are people who have owned timeshares before, or especially, people who already own DVC and want access to bigger accommodations, more weeks, or a different resort. These people will not be distracted by the FUD.

Yes. Informed current members know that the things being taken away here were a) of token value over the life of the membership, and b) never guaranteed to resale OR direct purchasers.

The primary benefit to Disney here is a more concrete way to scare potential buyers away from resale. It gives guides something to point to and say "oh, buy you'll lose this long list of benefits if you don't buy direct!" Since a lot of their first-time buyers are impulse buyers who don't know much about timeshares, they won't bother to actually look at what they'd be losing, it'll prevent them from ever contacting a resale broker in the first place.

 

[Tinkerdreams]

I'm still trying to figure it out as I was hoping to purchase this fall... Theoretically if it's a true reduction in benefits/expected value then resale price per point should drop. But in reading the membership extras document that lists everything it doesn't seem all that material to me.. Though I'll admit I'm more in this for the timeshare aspect than the perks. Though if I wasn't able to use magic express I would definitely reconsider (I highly doubt they would get rid of that).

I am curious on how it would be handled if I bought a bulk of my points in resale and then 50 points direct from Disney. Would I then get the official membership card and savings? Does anyone know?

Yes, if you buy a resale contract and do an add-on directly from DVC, then you would receive all the benefits.

 

[kddlm]

I am a current DVC Owner (initial bulk purchased directly from dis in 2005), then a 50 pt. resale contract purchase in 2008 or so (no restrictions whatsoever, can cruise, etc...). If i were to now buy a 50 pt. resale contract (preferrably with same UY), are those new 50 pts restricted from being used for cruising, perks, etc... or do they just get lumped to my contract since I'm grandfathered??? How would they distinguish this??

 

[bobbiwoz]

I am a current DVC Owner (initial bulk purchased directly from dis in 2005), then a 50 pt. resale contract purchase in 2008 or so (no restrictions whatsoever, can cruise, etc...). If i were to now buy a 50 pt. resale contract (preferrably with same UY), are those new 50 pts restricted from being used for cruising, perks, etc... or do they just get lumped to my contract since I'm grandfathered??? How would they distinguish this??

The new points would be restricted. You could not use them for DCL, Adventures by Disney or other Disney properties, and no Concierge collection.

 

[miTnosnhoJ]

Not sure my answer is correct so deleted it

 

[Paula Sedley-Burke]

Are we sure that if you buy resale you can buy the minimum 25 points or do they now count you as a 'non member' and you have to buy direct minimum 100 points? Also what about inherited DVC? Anybody know?

 

[m3retired]

Would like to see some info on the inherited DVC also.