Is Disney Losing DVC Members/Contracts due to Covid??

[The_Jobu]

That would be An outrageously good deal for most of them. The prices of the resorts vary greatly, due to differences in location, popularity, relative difficulty of booking for non-owners, annual dues, and number of years remaining.

Judging a resorts “value” also depends what you’re comparing it to. Compared to renting DVC points to stay in a room the cheapest DVC contracts are for Old Key West and Saratoga Springs, which are also the only ones that typically sell in the $90s in normal times. Compared to Disney’s cash rates the cheapest contracts are usually at Boardwalk; that’s more like $110/point, but because it was the 2nd DVC to open and they didn’t really know what they were doing yet, it costs fewer points per night to stay there than almost any other resort.

https://www.dvcstore.com/prices.htm is a good resource for what people are actually paying, anything less than that is a deal. $90 for AKV is an absolute steal, and normally, one should expect Disney to exercise its right of first refusal at that price and buy that contract back.

Cool beans.

It's honestly kinda fun to just follow this stuff on the resale sites, now it makes sense to me. Eg. There's 1770(!!) points at OKW going for $72 a point. Bonkers.

 

[davidcyndi]

Just purchased 200 direct Disney akl points today. Got 4$ off per point and they doubled the first years points. Now have 515 AKL points woohoo.

 

[nickys]

Just purchased 200 direct Disney akl points today. Got 4$ off per point and they doubled the first years points. Now have 515 AKL points woohoo.

Congrats!

What use year do you have? Was it the same as your first contract? And are you planning a trip anytime soon?

 

[davidcyndi]

Congrats!

What use year do you have? Was it the same as your first contract? And are you planning a trip anytime soon?

Thanks.

Use year on both is October. Yes we have two trips planned November 4-11 2020 and January 30 - February 4 2021. November trip is 2bdr BLT, and Jan trip is AKL 2bdr.

 

[nickys]

Thanks.

Use year on both is October. Yes we have two trips planned November 4-11 2020 and January 30 - February 4 2021. November trip is 2bdr BLT, and Jan trip is AKL 2bdr.

So just wondering, they doubled the 2019 points? So it came with 400 points ready. Wow, that’s not normal.

What I suspect happened is that you received your 2019 use year points, which you are entitled to because this is still within your 2019 use year. Those points would ordinarily expire at the end of September 2020, but DVC will have banked them for you into your 2020 use year so you can use them until the end of September 2021. Plus of course you get your 2020 points on 1st October.

 

[Mousse']

But that is not guaranteed. Let's say the economy is so bad that when you put your $1 contract on the market, nobody wants it. DVC is not going to come along and buy it either.

But, you say, SOMEBODY will want a contract for $1. Maybe, maybe not. Hopefully that time never comes, but there are other timeshares out there are are being offered for $1, and they are sitting on the market.

I'd buy up those $1 offers in a heartbeat for the speculative nature alone (resale in a year or two with only a small, flat investment and a trifle of dues... Hell, the tax deduction on the property taxes alone might have value... Not giving tax advice, consult your own, blah,blah, blah...)

 

[Makarov42]

One thing I have seen mentioned several times is the increase in Dues. A lot of that has to do to real estate tax increases that we not in DVCs favor. Disney won a court case earlier this year that the Tax Assesors office was unfairly raising DVC taxes based on a lot of factors they used to try to milk DVC owners disproportionate to other residents. Another court overruled a portion of this but the overriding factor is that we should see the taxes increases reduce and possibly go down in the near future which helps the due. Disney ran there case with just one or two resorts originally, but they have now filed on behalf of all the resorts. Also, the Tax assesor who was the driving force to milk DVC for all they were worth just lost his bid to be reeelcted.

 

[mlayton144]

One thing I have seen mentioned several times is the increase in Dues. A lot of that has to do to real estate tax increases that we not in DVCs favor. Disney won a court case earlier this year that the Tax Assesors office was unfairly raising DVC taxes based on a lot of factors they used to try to milk DVC owners disproportionate to other residents. Another court overruled a portion of this but the overriding factor is that we should see the taxes increases reduce and possibly go down in the near future which helps the due. Disney ran there case with just one or two resorts originally, but they have now filed on behalf of all the resorts. Also, the Tax assesor who was the driving force to milk DVC for all they were worth just lost his bid to be reeelcted.

correct me if I’m wrong , but this issue wasn’t specific to DVC , it was all of Disney and perhaps others

 

[nickys]

correct me if I’m wrong , but this issue wasn’t specific to DVC , it was all of Disney and perhaps others

That may be the case.

But this is discussing the implications for the DVC annual dues. Those cannot rise in order to pay other Disney resort taxes, annual dues can only rise in order to cover running costs of the DVC resorts (including any shared amenities).

 

[LuvtheGoof]

That may be the case.

But this is discussing the implications for the DVC annual dues. Those cannot rise in order to pay other Disney resort taxes, annual dues can only rise in order to cover running costs of the DVC resorts (including any shared amenities).

True, and we have to wonder how next year’s dues will be affected. Since DVC splits the cost with CRO for cash reservations at the DVC resorts, I wonder how they’ll calculate that for all the people that they moved to DVC resorts from other closed non DVC resorts. Will be interesting to see how that affects us.

 

[CastAStone]

True, and we have to wonder how next year’s dues will be affected. Since DVC splits the cost with CRO for cash reservations at the DVC resorts, I wonder how they’ll calculate that for all the people that they moved to DVC resorts from other closed non DVC resorts. Will be interesting to see how that affects us.

There’s a cap on how much Disney has to reallocate to DVC for cash bookings (2.5%?), plus Disney has to use whatever points they own and aren’t using for holding/renovations.

After that, guests are paying cash to Disney and DVC owners are paying all the expenses.

Pretty brilliant for Disney.

No wonder they don’t care if they’re moving guests from All Star Sports to a 1 bedroom at Bay Lake Tower.

Parking is unconstrained though. I saw someone somewhere figured out that each resort’s fund balance is given a little over $20 for every $25 a cash guest spends on parking.

 

[CastAStone]

Quasi-relatedly, what do you think Aulani’s dues will be next year? $4?

 

[GimpYancIent]

Quasi-relatedly, what do you think Aulani’s dues will be next year? $4?

Impressive that so many have so much disposable income to throw into the DVC bottomless pit.

 

[CastAStone]

Impressive that so many have so much disposable income to throw into the DVC bottomless pit.

Just because it doesn’t make sense to you it doesn’t mean it doesn’t make sense to everyone.

And yes, having read lots of DVC threads on this and other message boards, it’s clear that a lot of people buy it for no other reason than that they want it and they have the money to. I don’t think that’s any dumber than buying a BMW or a Mercedes. At least you get more than 10 years out of DVC.

 

[LuvtheGoof]

Impressive that so many have so much disposable income to throw into the DVC bottomless pit.

What exactly is bottomless?

 

[LuvtheGoof]

There’s a cap on how much Disney has to reallocate to DVC for cash bookings (2.5%?), plus Disney has to use whatever points they own and aren’t using for holding/renovations.

After that, guests are paying cash to Disney and DVC owners are paying all the expenses.

Pretty brilliant for Disney.

No wonder they don’t care if they’re moving guests from All Star Sports to a 1 bedroom at Bay Lake Tower.

Parking is unconstrained though. I saw someone somewhere figured out that each resort’s fund balance is given a little over $20 for every $25 a cash guest spends on parking.

That isn’t exactly true. Take BLT for example. DVC and CRO pay for the percentage of guests that stay at both BLT and the Contemporary when configuring shared costs.

 

[nickys]

True, and we have to wonder how next year’s dues will be affected. Since DVC splits the cost with CRO for cash reservations at the DVC resorts, I wonder how they’ll calculate that for all the people that they moved to DVC resorts from other closed non DVC resorts. Will be interesting to see how that affects us.

That would come from breakage though in the end, even if it was anticipated breakage. It isn’t as if the resorts were full, therefore they could have taken those rooms anyway.

 

[LuvtheGoof]

That would come from breakage though in the end, even if it was anticipated breakage. It isn’t as if the resorts were full, therefore they could have taken those rooms anyway.

Oh, sorry, but I wasn't talking about them taking the rooms, as you are absolutely correct that they could anyway. I was merely wondering how that will affect dues for those resorts, as, even at SSR or OKW, which are 100% DVC, if cash guests stay there, CRO pays that portion of the dues cost for those rooms, and that lowers the dues slightly for the DVC owners. Will be interesting to see what we end up with.

 

[Phonedave]

Just because it doesn’t make sense to you it doesn’t mean it doesn’t make sense to everyone.

And yes, having read lots of DVC threads on this and other message boards, it’s clear that a lot of people buy it for no other reason than that they want it and they have the money to. I don’t think that’s any dumber than buying a BMW or a Mercedes. At least you get more than 10 years out of DVC.

Exactly,

If it is disposable income, then who am I to say how somebody should dispose if it.If somebody says something factually incorrect, then sure I will discuss it. But if somebody does something with their discretionary cash, that is their call.

 

[ZoneOfTheEnder]

As was said, you cannot just "return your contact" to Disney. That is how every timeshare I know of works. Once you buy your contact, it's yours and you can't just walk away from it. There is a whole legal business around helping people get out of their timeshare contracts because they are stuck with them, and nobody wants to buy them.

DVC at least has a robust resale market (for now) and it still has customers that want to buy direct at sold out resorts. Because of this, you can still sell an unwanted contract on the open market, and if it is priced low enough DVC will exercise their right of first refusal and buy it to resell direct.

However, if people stop wanting to buy sold out resorts direct (or DVC stops selling them entirely) and the resale market tanks, then people who want to unload their contracts will be stuck with them.

Thank God we sold our DVC contracts especially since rationing is now in effect and Disney will love that so in the future the DVC will be just another regular old Timeshare where you have your week and that's it (if you have two weeks of points you wont be able to use them for the same vacation). For folks with points that are beyond one week, 5 days or less at a time the cost now will close to double to be able to enjoy those points.
Example we HAD 600 Boardwalk points that we used each year for a 16 to 18 night stay and we drive down from Maine and the travel cost was around $1,600 (my daughter has medical issues) plus $3,400 in annual dues ( at 18 nights our cost was $277 per night). Under the new rules we would have to take 3 trips to the Boardwalk each year so the cost would be $8,200 plus food (we no longer enjoy the parks and entry is too difficult for my daughter due to her medical issues) so the cost would be $455 per night).
Concerning Disney buying the contract under first refusal don't believe this could happen. They would prefer to foreclose and keep charging interest on any unpaid dues but wait it costs them money to foreclose so they will find a way to take more money from you. Disney and the DVC are controlled now by greed and if they can manipulate us to be fearful and accept a tiny piece of what was Disney and collect more money they will under the guise of "keeping us safe" they will.