New DVC Resales Restrictions

GoofGoof

Premium Member
I love the greed of Disney's management. The following is the history of my interest in buying in (note this has been a multi-year procrastination)...

- Strongly considering buying into Poly when the Poly rumors were swirling.
- DVC jacks up the price per point... I no longer am considering buying direct (way to go Disney)
- I get close to pulling the trigger on indirect... Disney pulls the Perks... for the time being, no longer interested in buying in at all (way to go Disney)
- I get comfortable with the idea of buying resale and adding on 25 points directly to get the perks... read the 3 year limit language... interest drops again (way to go Disney)
I wouldn't put a lot of weight on the 3 year thing. Nothing has changed except for an expiration date on member cards which is most likely due to the resale rule change. How many former DVC owners are out there who still had membership cards and were using them for discounts? Having a card that expires every 3 years is a sound practice to prevent abuse.
 

YorkshireT

Well-Known Member
It's a good thing if you're a direct owner like myself but I could see how it would anger people that aren't. I realize that not everyone can afford to buy directly but, at the same time, people aren't "entitled" to certain things when they sorta try to take a "shortcut" or whatever. As long as you have an actual direct contract you are good though.
It's not a good thing for you, as it has affected the resale value of your contract (a bit, not much).
 

YorkshireT

Well-Known Member
There is no proof that this will affect resales at all. Might it? Sure, but it might not. Why don't we wait and see in a year what happens, and then discuss. Oh, and it does not affect me for the simple reason that we will never sell our points for any reason. Our kids love WDW, and have no problem with taking over our contracts at some point. I'm sorry that others MAY get affected, but it's way to early to state that it WILL affect them.
Nearly a year later... It didn't affect prices much, maybe a little. If I was a Dvc owner who bought from Disney, I'd be unhappy. My contract worth a bit less, for what? Given the resale market has held up, this indicates resales held up, so demand held up, so not that many people rushed to Disney rather than resale.
Disney prices are way too high. I bought a loaded SSR contract recently (with all last year's points) for $75pp. Disney charge 90% more!
 

GoofGoof

Premium Member
I bought resale a few years ago, so I'm grandfathered in to all the benefits of direct- and I'm glad they put these new restrictions in. If that means less crowded DVC events because new resale people coming in aren't allowed- that's just a benefit to me. Additionally, I wouldn't be terribly upset if they forced resale memberships to have to use their home resort- or maybe only have a 5 month window instead of 7 month window, etc. (of course, we would be grandfathered in) Would that effect resale? Undoubtedly- but it makes life easier until I sell. I'm so far ahead monetarily anyways on DVC based on my renting and price I got in at (during recession of 09)- that it doesn't matter what happens at this point.

If a person were to buy at $180pp, then I have no sympathy for them, as they have the financial knowledge of a gorilla.
What if you weren't grandfathered in?
 

GoofGoof

Premium Member
What do you mean? The discussion was if the new restriction of not being able to go to events/etc effect the resale prices. So you're either grandfathered in, or you're able to participate in the slightly lower resale prices.
If you're talking about my hypothetical "7 month" idea- then anyone today, too, would be grandfathered in. So if it tanked the resale market, only those being able to take advantage of the tanked market wouldn't be able to be grandfathered in.
Everyone knows what they would be getting into. The only people negatively affected would be those who were wanting to sell right after a new restriction were to pass. That's poor timing, unfortunately. But other things outside of DVCs control can dictate that just as well, such as the housing market (which is why I got in so cheap in 09').
You are assuming that they would grandfather in all of us current owners who bought resale to any future changes but that isn't guaranteed. I know that's how it worked historically but there's no legal requirement it has to. So what if they created 2 classes of owners direct and resale and the resale class included all resale buyers current or future and was limited to 5 month reservations.
 

GoofGoof

Premium Member
I don't know if they can legally do that. At least with the perks and the Cruise/Non DVC hotel ones they couldn't. They had to grandfather us in because those were part of the docs we signed originally- even via resale. Now, if the 7 month deal they do now is just based on their goodwill and it isn't in writing, then ya, I guess they could change it for anyone- including those that bought direct for that matter. Do we know if that's the case? I don't know for certain, but I recall reading somewhere that the 7 month "non-home resort" allotment is in writing and can't be changed unless they change it effective immediately, which would, by default, grandfather us in.
I'm not an expert at all, but I thought the only thing that you are guaranteed is the right to use the property at your home resort that's listed on the deed. The deed itself and the legal paperwork don't mention trading in at all. I know the additional perks are not guaranteed. Again, I'm no expert so I could be wrong.

It would be highly unlikely that they would not grandfather in current owners since the whole point of removing a perk from future resale buyers is to create an advantage for direct buyers. However, I still look at any restrictions as an overall negative to all owners. It provides no benefit to current or future owners. Maybe they should consider adding additional perks to direct buyers instead of just removing stuff from future resale buyers.
 

GoofGoof

Premium Member
Two non experts trying our best :D

I would argue these DVC events and new (post April 16') resale not being able to attend is "adding additional perks". We had one beach bash in 15' but clearly last year, and now this year, they have ramped it up- in particular with Epcot adding dates in December that weren't available in 16'. Additionally, the members club in Epcot. If we look at our benefits as a whole this year vs 2-3 years ago, it's much better. And of course, if you wanted to participate in those now, you'd need to buy direct.
Are you saying you think they can offer more because there are less owners to offer things to? I'm not sure that there is really a correlation between additional offerings like that and restrictions on resale buyers. It's such a small portion of the total ownership that I can't see it making a big difference on cost. Maybe down the road that will be the case, but for now it probably doesn't move the needle.
 

GoofGoof

Premium Member
No. I'm saying that these new events are "new offerings" that are for direct buyers only (or previous resale)- which is 99% of us right now. But in time, it will be significant.

So in a way- they have added without taking away- and that's good.
Agreed. The new events are good. I was more thinking along the lines of the bulk of the extra perks like discounted APs and merchandise/food discounts.
 

GoofGoof

Premium Member
Bring on more events glad they added the extras this year we plan to attend all of them.
I'd like to see more things like the lounge in EPCOT that more members can take advantage of. Maybe a location in each park. The one off events are probably good for locals but if you only visit once a year unless you get lucky on timing you can't usually take advantage. I did read that they cancelled the merry mixers this year in favor of more in park after hours events.
 

Seanual757

Well-Known Member
I'd like to see more things like the lounge in EPCOT that more members can take advantage of. Maybe a location in each park. The one off events are probably good for locals but if you only visit once a year unless you get lucky on timing you can't usually take advantage. I did read that they cancelled the merry mixers this year in favor of more in park after hours events.

I agree each park needs a members lounge, being local helps I can honestly say if I was not a local I would not have purchased DVC or AP's. It's nice being 20 minutes away and we have gone to the parks 5 times this month alone, and heading to the MK on Saturday morning too :)
 

Phonedave

Well-Known Member
I don't know if they can legally do that. At least with the perks and the Cruise/Non DVC hotel ones they couldn't. They had to grandfather us in because those were part of the docs we signed originally- even via resale. Now, if the 7 month deal they do now is just based on their goodwill and it isn't in writing, then ya, I guess they could change it for anyone- including those that bought direct for that matter. Do we know if that's the case? I don't know for certain, but I recall reading somewhere that the 7 month "non-home resort" allotment is in writing and can't be changed unless they change it effective immediately, which would, by default, grandfather us in.

Nope, they are not part of your contract (or my contact either) - when you bought DVC you got a conract to use a portion of the property you bought into. Thats it. Everything eslse, concerige collection, RCI, other resorts, cruises, parking, discounts, and anything else is subject to change.

-dave
 

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