New DVC Resales Restrictions

[perelandra]

Disney Vacation Development makes profit selling direct to customers. DVD doesn't make any money when one DVC member sells their contract to someone else.
.

But DVD has ROFR, so they allow DVC members to sell to one another. If they wanted to stop they could exercise ROFR on everything they wanted until they controlled the whole resale game. By allowing it to exist and then distinguishing between different types of owners rubs me the wrong way.

I'm not saying it's not within their rights, I'm just saying it rubs me the wrong way.

 

[rfc0001]

I assume this was updated after this change because the benefits were transferred to resale buyers until this change.

Florida Statute requires them to say they aren't transferrable regardless. I believe the old Membership Extras terms had the same verbiage, but to your point they were transferring them anyways -- it's a case of no good deed goes unpunished since they had voluntarily been transferring them then stopped.

 

[GoofGoof]

Florida Statute requires them to say they aren't transferrable regardless. I believe the old Membership Extras terms had the same verbiage, but to your point they were transferring them anyways -- it's a case of no good deed goes unpunished since they had voluntarily been transferring them then stopped.

The legal disclaimer is just a CYA for DVC. It probably was in place mostly to cover owners who rent out points from trying to allow renters from using their perks. I've seen many people who were going to rent points ask if they could get food and merchandise discounts or access to Top of the World lounge which was never allowed.

 

[LuvtheGoof]

This^^^^ I can't understand why anyone is trying to justify this or thinks this is remotely good except maybe DVC sales reps. Now if they offered more perks to existing members to make up for the decrease in perks for new resale members I'd be on board

I have heard a rumour that this is in the works, but the exact details are not releasable as of yet.

 

[glvsav37]

I think no matter how you slice it, it was a bad PR move. Seriously, you are going to take away my plastic member card? That is clearly creating a class distinction with ownership, but if I bought a week before, I'm a "real" member.
If it's all about money, then why doesn't Disney eliminate the resale market all together by exercising ROFR on everything within reason, and then control the resale game themselves?

Because that would COST Disney money. Unless DVC has a buyer on the hook, all they would be doing is purchasing back inventory it has to go out and work to resell....i know, crazy right??

so instead they will allow the resale market to exist, but then stomp their feet and hold their breath b/c no one is buying from them.

 

[DVC Mike]

Disney does make lots of money off of ALL DVC MEMBERS in their annual dues. We pay for Disney transporation which charge a fee and makes a healthy profit. We pay for laundry which is sent to Disney laundry service. We pay for check in and that is provided by Disney and profitable. Now I think this is a good thing but don't think for a second that Disney or any timeshare company doesn't make a profit yearly after selling out. If that were the case no timeshare company would exist. Sales are extremely profitable but the yearly profits on services are high too.

Non-Sequitur. I said DVC makes more money off direct sales than resales, and you respond that Disney makes money off of all members (which I happen to agree with). OK, but how does your statement relate to the change in benefits for resale purchases?

 

[DVC Mike]

Actually, if you buy used Toyota within the first two years, they honor the remaining 2 years worth of oil changes, as well as the remaining manufacturers warranty.

Ok, so Toyota allows a transferrable warranty and Hyundai and Kia don't. The point is, when you sign the DVC paperwork and buy from them, you acknowledge that the perks may be modified or discontinued at any time, and that you should not purchase an ownership interest with the expectation that any of the perks are transferrable when you sell your ownership interest.

 

[DVC Mike]

But DVD has ROFR, so they allow DVC members to sell to one another. If they wanted to stop they could exercise ROFR on everything they wanted until they controlled the whole resale game. By allowing it to exist and then distinguishing between different types of owners rubs me the wrong way.

Disney exercises ROFR to prop up resale values. Their profit margin on selling new points is much greater than selling ROFR'ed points. Disney doesn't want the resale values to plummet, otherwise that would harm their ability to have a high profit margin on new direct sales.

I'm not saying it's not within their rights, I'm just saying it rubs me the wrong way.

Oh, I understand that. I think the majority of DVC members weren't very excited to hear this change.

 

[rfc0001]

Disney exercises ROFR to prop up resale values. Their profit margin on selling new points is much greater than selling ROFR'ed points. Disney doesn't want the resale values to plummet, otherwise that would harm their ability to have a high profit margin on new direct sales.

Moxactly! The last thing DVC wants is to make resale prices go down -- would put even more pressure on direct sales new resorts.

 

[perelandra]

Ok, so Toyota allows a transferrable warranty and Hyundai and Kia don't. The point is, when you sign the DVC paperwork and buy from them, you acknowledge that the perks may be modified or discontinued at any time, and that you should not purchase an ownership interest with the expectation that any of the perks are transferrable when you sell your ownership interest.

You're right.
My reaction is emotional. I have been saving up cash for a while, so that I wouldn't have to pay interest on future vacations (trying to do the right thing). Turns out if I would have gone ahead and financed, even a month ago, I would have been a full fledged, card carrying member. Now, I'll be the red headed step- child sort of member. I just would have appreciated a month or two notice and I would have gone ahead and financed the rest.

 

[GoofGoof]

You're right.
My reaction is emotional. I have been saving up cash for a while, so that I wouldn't have to pay interest on future vacations (trying to do the right thing). Turns out if I would have gone ahead and financed, even a month ago, I would have been a full fledged, card carrying member. Now, I'll be the red headed step- child sort of member. I just would have appreciated a month or two notice and I would have gone ahead and financed the rest.

Welcome home...no wait, not you

 

[xdan0920]

Welcome home...no wait, not you

Yeah! Not you cheapo! Who cares if your one of our best customers and visit every single year. You bought resale, like a LOSER.

 

[perelandra]

Yeah! Not you cheapo! Who cares if your one of our best customers and visit every single year. You bought resale, like a LOSER.

I'm ok with the proposal for the water fountains, and I prefer to ride in the back of the bus anyway, but in light of recent events, the separate bathroom thing is going way too far!

 

[GoofGoof]

I'm ok with the proposal for the water fountains, and I prefer to ride in the back of the bus anyway, but in light of recent events, the separate bathroom thing is going way too far!

You think they are going to provide you bathrooms...those are for our "real" owners and don't let them catch you with one of those DVC stickers on your car either

 

[ford91exploder]

Actually, if you buy used Toyota within the first two years, they honor the remaining 2 years worth of oil changes, as well as the remaining manufacturers warranty. They also want you to associate yourself as a Toyota owner and they want you to visit their dealerships and repair facilities often. They do not want you to be treated differently because you bought used. That would ruin resale value and resale value is a major selling point. Maybe DVD should try to use that to their advantage instead of trying to kill it.

Disney is acting like a company in dire financial straits right now all they care about is next quarters earning they don't give a damn about a year from now. At one time DVC was like Toyota they though long term those 'free' oil changes sold you that NEXT Toyota or in DVCs case the add on. When I bought my first points my guide noted that a strong resale market helped support DVC as they did not have the abandoned contract problems of other timeshares. Keep this crap up and Disney will have the abandoned contract problems in spades

 

[ford91exploder]

Ok, so Toyota allows a transferrable warranty and Hyundai and Kia don't. The point is, when you sign the DVC paperwork and buy from them, you acknowledge that the perks may be modified or discontinued at any time, and that you should not purchase an ownership interest with the expectation that any of the perks are transferrable when you sell your ownership interest.

Which has the better resale value. Like other timeshares you practically cannot give a used Kia or Huindai away yet Toyotas have great resale value much of which is created by being a member of the Toyota family so to speak.

This kind of mindset is what allowed DVC to thrive for a long time this kind of crap keeps up well DVC will wither and die

 

[DVC Mike]

I agree that overall, especially during the past year, the changes by DVC and Disney have changed my perception of the Disney brand - tarnished their image in my mind.

 

[seascape]

Non-Sequitur. I said DVC makes more money off direct sales than resales, and you respond that Disney makes money off of all members (which I happen to agree with). OK, but how does your statement relate to the change in benefits for resale purchases?

I'm sorry my response was not just to you post. The thing I see is Disney is making more money now from annual dues than they do on new sales. They are selling 1.5 million points a year give or take. The profit margin on is outrageous but the what they charge for annual fees is way more than I pay for other timesharea that are owned forever. In 2042 Disney will gain full ownership free of charge for millions and milllions of points. That is the reason to continue to provide top notch extras. I think they are making a mistake on their new changes but as a resale only owner I understand it.

It could also be that they are planning on offering extensions and by restricting benefits to current direct buy customers maybe they can use extensions as a way to increase the percentage of owners taking advatage of an extension offer. I would consider extending my BWK ownership at a reasonable price.

 

[ford91exploder]

Speaking as someone with 800 DVC points purchased, Yes Disney is within their RIGHTS to do this but but just because you CAN do something does not mean you should.

This is something which directly harms me as an owner of membership interests because it devalues them,

Say I was transferred overseas on a long term basis by my company I would probably sell my points because paying for things in the US (like membership fees) from overseas is a giant PITA because of US policy. Disney has now devalued my membership interest without compensating me in any shape or form.

There is a reason the timeshare industry has a bad name and it's deserved, DVC WAS DIFFERENT once now it's heading down the well worn path to being just like other timeshares.

 

[Ralphlaw]

Excellent points, all.