DVC Direct Pricing Heading Up

[KAT4DISNEY]

I was hoping to get the new points before e price increase.

25% savings on 50 points vs same UY on a waitlist.

Seller told me last week I could buy as many points as I wanted :/

It very likely would be available prior to the price increase although not guaranteed like if you selected a different UY. It's points that people have had held and sent contracts on or even already had a contract done but maybe changed their mind about UY, quantity or even buying at all. That could happen tomorrow. Maybe they would set you up for points in a different UY but waitlist you for the October and if became available in a few days you could switch.

 

[GMG_3]

It very likely would be available prior to the price increase although not guaranteed like if you selected a different UY. It's points that people have had held and sent contracts on or even already had a contract done but maybe changed their mind about UY, quantity or even buying at all. That could happen tomorrow. Maybe they would set you up for points in a different UY but waitlist you for the October and if became available in a few days you could switch.

Thanks for the suggestion. Already sent an email !

Would really make my day to have all one UY but 50 dec wouldn't be terrible to manage. Bank and borrow to use 150 for a week every 3 years.

 

[BoPeepDH]

If DVD went this route, essentially there would be no home resort and all contracts would equilibrate to SSR's maintenance fee plus cost per point per year remaining on contract. Given Aulani's high MFs, resale ppt would halve to $50/pt. It should give one serious pause about buying into DVC at all.

I can't help but wonder about owners who celebrate the continuing tiered memberships given that they were able to buy in prior to 2016, 2011, etc. Every change DVD makes moving in this direction will impact every owner who isn't planning to stay under contract to end.

I'm not sure VGF. BCV, AKV, SSR, etc. points would necessarily be valued identically if they made this change. A way to keep home resort advantage, but still confer greater privilege to direct buyers is to let direct purchased points book 1 month ahead of resale points. For example, they can either let direct points book their home resort at 12 months out or adjust resale points to book home resort at 10 months out. The same can be done to the 7 month window if they wanted (i.e. direct SSR can book BCV at 8 months out).

 

[act1980]

Have they sold out of the Poly yet?

 

[CarolMN]

I'm not sure VGF. BCV, AKV, SSR, etc. points would necessarily be valued identically if they made this change. A way to keep home resort advantage, but still confer greater privilege to direct buyers is to let direct purchased points book 1 month ahead of resale points. For example, they can either let direct points book their home resort at 12 months out or adjust resale points to book home resort at 10 months out. The same can be done to the 7 month window if they wanted (i.e. direct SSR can book BCV at 8 months out).

Respectfully, as far as booking windows go, there is nothing in the contract language that would permit discriminating between owners of the same resort based on how they purchased.

 

[Ben E N]

Have they sold out of the Poly yet?

Nobody has stated as such, but it is reaching the slim pickings stage. You will not be able to get any UY that you are interested in, but if you are looking to get points at Poly, I would jump on any that you can get. Within a couple of years, resale prices will be higher than the current direct prices if these trends continue the way they are.

 

[BoPeepDH]

Respectfully, as far as booking windows go, there is nothing in the contract language that would permit discriminating between owners of the same resort based on how they purchased.

I agree. I was just raising the possibility of what they might be able to do. I don't know that there is anything legally that would prevent them from doing this. I'm wondering if the condo declaration with the county covers this.

As a resale owner with no direct point interests, I hope this is all a bluff. If not, I hope I can at least book my home resort before the 7 month window.

 

[Bing Showei]

As a resale owner with no direct point interests, I hope this is all a bluff. If not, I hope I can at least book my home resort before the 7 month window.

As a DVC member, direct or resale, you should more than just hope, you should expect a home resort advantage. Anything less would be acquiescing to a 2nd class member designation that serves only to profit DVD.

If future resale buyers are relegated to this sub-class of 7-month only bookings, EVERY DVC owner should be upset. Unless you plan to ride out the contract to end, the value of your timeshare has been changed drastically.

 

[ELMC]

Rookie here, but if one were already considering a direct purchase of Poly (for various reason), this would be a decent idea to go ahead and move forward on...correct?

I think this is part of the thinking that is behind the price increases. An impending price increase is going to be a huge motivator to help close sales. They can always discount the prices if they need another incentive.

Also, historically, they have not introduced a new DVC property at a price point higher than an existing property. With Poly and the Grand Flo in the 200+ price range, it gives DVC the green light to introduce the Rivera at the "low" price of $195 per point.

 

[ELMC]

I will say that when DVC first started, they were criminally underpriced. And incentives like free passes were unreal.

I think from 1995-2005, they realized they were underpriced but not just how underpriced they were.

From 2005-2015, they decided to test the limits of pricing.

I think they found it above $165.

Now. I think they’re trying to find the best combo of price/incentive/perks to hit their sales goals. At this point, the higher the price, the higher the incentives.

Disney has a team of statisticians whose sole job function is determining just how much they can charge for various items before customers balk. It wouldn't surprise me if DVC prices were subject to this analytical process.

 

[Littlelulu01]

With direct pricing heading up so much I wonder if there’s going to be a change in the potential savings claims. The typical rate of increase in mf’s seems a little higher too. Some properties are staying within their claims but Aulani has been increased at an alarming rate. Housekeeping is purported to be a culprit. With the new introduction of daily trash and towel service I see mf’s going up at an even higher clip in years to come. With Aulani the mf’s don’t include the transient accommodation tax- that’s also really increasing. Then there’s the five percent extra to state of Hawaii for selling and now an increase for direct pricing when Aulani resale is selling for less than half direct. Sure some brokers list Aulani resale at $110 but unless subsidized I don’t think many actually sell for that when many brokers advertise Aulani resale loaded at $88. I've seen many subsidized recent listings at $90-$95. I’m not knocking Aulani- I own there but just don’t see the advantage of direct purchase at upcoming pricing.

 

[MJB62676]

Just out of curiosity, I looked at cash pricing to stay at Poly. I think the 7-8 year break even I was "sold" will easily hold true.

I'm watching Aulani as I could see that being our "next" property as I could see a trip there every 2-3 years as very appealing.

 

[keaster]

With direct pricing heading up so much I wonder if there’s going to be a change in the potential savings claims. The typical rate of increase in mf’s seems a little higher too. Some properties are staying within their claims but Aulani has been increased at an alarming rate. Housekeeping is purported to be a culprit. With the new introduction of daily trash and towel service I see mf’s going up at an even higher clip in years to come. With Aulani the mf’s don’t include the transient accommodation tax- that’s also really increasing. Then there’s the five percent extra to state of Hawaii for selling and now an increase for direct pricing when Aulani resale is selling for less than half direct. Sure some brokers list Aulani resale at $110 but unless subsidized I don’t think many actually sell for that when many brokers advertise Aulani resale loaded at $88. I've seen many subsidized recent listings at $90-$95. I’m not knocking Aulani- I own there but just don’t see the advantage of direct purchase at upcoming pricing.

I agree, which is why we jumped on a subsidized contract. We are paying $110/point for a 400 point contract, and the sellers are paying closing costs. It includes 217 banked points for 2018, March UY. I was wondering if DVC tries to ROFR the subsidized contracts, but they let this one pass.

 

[Littlelulu01]

I agree, which is why we jumped on a subsidized contract. We are paying $110/point for a 400 point contract, and the sellers are paying closing costs. It includes 217 banked points for 2018, March UY. I was wondering if DVC tries to ROFR the subsidized contracts, but they let this one pass.

Yes. I don’t think you paid too much at all especially for subsidized. With a contract this big those mf’s savings are tremendous.

I was just thinking about poly or the other huge increases on direct pricing and the number of years it’s now going take prior to break even. With Aulani there’s the double whammy because it loses so much value direct over resale. If GFV, CCV, or poly was sold at $110 Dvc would exercise rofr but Aulani doesn’t get rofr’d. At least with poly or CCV you can potentially sell for not a huge loss but if one can currently pick up Aulani at $110 subsidized, and in the 80’s non subsidized that’s a huge loss should one who purchased direct have to sell for unforeseen reasons. The person who sold his Aulani subsidized contract to me and you didn’t lose because they purchased at a lot lower than Aulani direct is selling for now and they’ve had several years to use.

 

[kmorlock]

So, for all buying direct re: UY...I called a couple days ago asking about a 25 Point add-on at OKW. It’s where we currently own and want to have the same 2057 expiration our extended contract has. I was told they would adjust the UY to be the same that I have? Reading this thread it seems maybe I misunderstood?

 

[CarolynFH]

So, for all buying direct re: UY...I called a couple days ago asking about a 25 Point add-on at OKW. It’s where we currently own and want to have the same 2057 expiration our extended contract has. I was told they would adjust the UY to be the same that I have? Reading this thread it seems maybe I misunderstood?

They probably meant they know they’ll have sufficient points available in your UY to match it.

 

[Ben E N]

So, for all buying direct re: UY...I called a couple days ago asking about a 25 Point add-on at OKW. It’s where we currently own and want to have the same 2057 expiration our extended contract has. I was told they would adjust the UY to be the same that I have? Reading this thread it seems maybe I misunderstood?

They just had points in your UY sitting there via ROFR.

 

[kmorlock]

They didn’t have anything so I’m on the waitlist. I’m trying to get in under the increase as many others are. At least OKW is only increasing $6 a point.

 

[The Jackal]

It’s my understanding that anything less than 50 points when bought direct will be same use year as what you have. Over 50 point on some resorts you have to wait or take what you can get.

 

[kmorlock]

It’s my understanding that anything less than 50 points when bought direct will be same use year as what you have. Over 50 point on some resorts you have to wait or take what you can get.

Thanks so much.