Stuck with DVC

[RedShirt]

While recently in Orlando we bought a non-disney times share with Westgate. Luckily we wised up before the 10 day cancel policy hit and canceled the next day. (Got back to our DISNEY room and read westgate reviews and was horrified!) So the next day we went on the DVC tour with a terrible tour guide. The whole experience was bad and he couldn't get us out of there fast enough it seemed. Surprisingly Westgate was better regarding the sales pitch.

My point of this is, anyone out there stuck with their DVC? The main thing about Westgate is no one could sell their timeshare due to so many in Orlando. We currently live in FL and go to Disney twice a year. Seeing that the DVC is 40-50 years I can't guarantee that we will still be here 10-20 years from now. I know the Disney name carries some weight so it would be a bit easier to unload. Also does Disney ever actually buy the points back or is that just part of the pitch they sell you?

 

[trs518]

While recently in Orlando we bought a non-disney times share with Westgate. Luckily we wised up before the 10 day cancel policy hit and canceled the next day. (Got back to our DISNEY room and read westgate reviews and was horrified!) So the next day we went on the DVC tour with a terrible tour guide. The whole experience was bad and he couldn't get us out of there fast enough it seemed. Surprisingly Westgate was better regarding the sales pitch.

My point of this is, anyone out there stuck with their DVC? The main thing about Westgate is no one could sell their timeshare due to so many in Orlando. We currently live in FL and go to Disney twice a year. Seeing that the DVC is 40-50 years I can't guarantee that we will still be here 10-20 years from now. I know the Disney name carries some weight so it would be a bit easier to unload. Also does Disney ever actually buy the points back or is that just part of the pitch they sell you?

We bought two years ago and have enjoyed it so far.

There is a viable resell market for DVC, so if you don't like it you can sell it. You will lose money, but you won't be out everythigng.

 

[Phonedave]

The DVC resale market is quite lively, so if looking to unload it should not be a problem. You may take a hit, but should be able to get out of the property.

DVC recently made resales a bit less attractive by placing restrictions on them, but it does not seem to have hurt it that much.

As for buying back points, you cannot just go to the DVC and say "I don't want my points anymore, buy them back." Thats not how Right of First Refusal works.

What happens is, you put your 100 points up for sale on the open market. Let say you really really want to unload them so you offer them for $5 a point - $500. Someone will take that offer in a heartbeat. Before that sale goes through, it has to pass DVC ROFR. That means, if DVC wants it, they get to buy your points for $500, instead of the original buyer. If they don't want to buy them, they pass and the original buyer gets them.

DVC will snap up any points that are being sold for low market value. What this does is keeps the resale market for DVC points high. But there is no such thing as "DVC will buy your points back if you want them to"

-dave

 

[RedShirt]

So basically once you find a buyer....if Disney feels the price is too low they'll jump on it over said buyer. Which at the end of the day doesn't matter cause you're still selling it to someone. But you can't put them on the market for $500 and get Disney to buy them, correct?

The fact that I most likely won't get stuck with this years from now is encouraging. I do understand it's a long term commitment...I just like that there is an option to get rid of it. Even at a loss it would probably still work out for the best as long as you use your points yearly or every other year.

 

[Pioneer Hall]

So basically once you find a buyer....if Disney feels the price is too low they'll jump on it over said buyer. Which at the end of the day doesn't matter cause you're still selling it to someone. But you can't put them on the market for $500 and get Disney to buy them, correct?

The fact that I most likely won't get stuck with this years from now is encouraging. I do understand it's a long term commitment...I just like that there is an option to get rid of it. Even at a loss it would probably still work out for the best as long as you use your points yearly or every other year.

Well if you don't finance the purchase and don't mind a loss on selling you can definitely get rid of them. Eventually you can set the price to a point where someone will agree to buy them and then either they or Disney will get the contract. Another reason I am happy I never financed...should I need to sell I don't have to worry about being "underwater" with the mortgage.

 

[tjkraz]

DVC has been known to offer to buy back without ROFR but their offers were so low that it wasn't even worth consideration.

About 3-4 years ago (pre-Bay Lake Tower, pre-recession) Beach Club points were selling for upward of $90 per point on the resale market. DVC's best offer to buy back was in the neighborhood of $50 per point.

So I wouldn't count on DVC providing you with a clear means of exit. But as long as Walt Disney World remains a popular vacation destination, there will be demand for DVC points. But it's impossible to predict how much you stand to recoup if you wish to sell at any point in the future.

 

[RedShirt]

Thank you everyone for the responses. You have cleared this up for me. I think it's funny whenever you mention selling and the sales pitch they always respond with "you'll never want to sell it, but you can will it".

Thanks again.

 

[BeachClubNut]

While recently in Orlando we bought a non-disney times share with Westgate. Luckily we wised up before the 10 day cancel policy hit and canceled the next day. (Got back to our DISNEY room and read westgate reviews and was horrified!) So the next day we went on the DVC tour with a terrible tour guide. The whole experience was bad and he couldn't get us out of there fast enough it seemed. Surprisingly Westgate was better regarding the sales pitch.

My point of this is, anyone out there stuck with their DVC? The main thing about Westgate is no one could sell their timeshare due to so many in Orlando. We currently live in FL and go to Disney twice a year. Seeing that the DVC is 40-50 years I can't guarantee that we will still be here 10-20 years from now. I know the Disney name carries some weight so it would be a bit easier to unload. Also does Disney ever actually buy the points back or is that just part of the pitch they sell you?

If you have doubts, dont buy, you will lose on a resale. We bought at Beach. Club absolutly love it. When Bay Lake Tower came up we bought, we stayed there twice and absolutly hated it. So we decieded to sell Bay Lake Tower and but more Beach Club points. We losy amost 1000 dollars selling Beach Club, luckily we are in a good financial position so it really didnt matter. We purchased more Beach Club Points and have never been happier. But the moral is in this economy and with the expansion of DVC you will lose if you sell. Its designed to save you money versus paying cash for a deluxe resort visit. If you prefer moderate resorts or value resorts its not worth the cost.

 

[NikiMouse]

We have sold 2 of our 4 contracts in the last 2 years. we had no problem. One of the contracts was on the market only 2 days.

Of course we lost a bit as far as value, but the trips that those contracts paid for while we used them was worth the bit of loss.

- Niki

 

[slappy magoo]

We have sold 2 of our 4 contracts in the last 2 years. we had no problem. One of the contracts was on the market only 2 days.

Of course we lost a bit as far as value, but the trips that those contracts paid for while we used them was worth the bit of loss.

- Niki

I think it also important to point out that some people in the past have "profited" from selling DVC. Not lately, certainly. Possibly never again. But if you factor out maintenance fees*, just the upfront purchase price versus the upfront selling price, some people have made money when they sold their DVC. After this giant burp in the economy clears the room, and when/if DVC starts upping the price to $140 a point or more (which based on their price increases could happen easily within the next 10 years), I can see someone who paid around $80/pt maybe being able to sell for $90/pt. Me, I paid (I think) around $82/pt in Saratoga back in 2005, so I doubt I'd ever get my initial investment back. But of course, I took a lot of trips on that initial investment too, so things do work out...

*Just to nip it in the bud, someone will inevitably say you can't factor out maintenance fees when it comes to any profit or loss you incur selling DVC points, it's all a giant black hole of s__________g money out of your wallet and to say otherwise is just me kidding myself blah blah blah. To which I say, in advance, you can feel that way, but then when it comes time to sell YOUR house, you MUST factor in every dime you ever paid to utilities, property taxes and maintenance before you can consider yourself to have made a profit, too. Or else YOU are only fooling YOURSELF. And then I'll probably say something under my breath that'll make you want to punch me.

 

[wild01ride]

^ Slappy, this is definitely one of the best and most straightforward rationales of DVC sales/resales I've read.
Well-put!

I've had the same thing happen with cars - I've bought and sold a car for the exact same price. Some would say I "lost out" because I didn't make a profit. However, as you explained, I got two years and 20,000miles of use out of the car in the meantime - that's pretty good "breaking even" in the end if you ask me!

 

[Pioneer Hall]

I think it also important to point out that some people in the past have "profited" from selling DVC. Not lately, certainly. Possibly never again. But if you factor out maintenance fees*, just the upfront purchase price versus the upfront selling price, some people have made money when they sold their DVC. After this giant burp in the economy clears the room, and when/if DVC starts upping the price to $140 a point or more (which based on their price increases could happen easily within the next 10 years), I can see someone who paid around $80/pt maybe being able to sell for $90/pt. Me, I paid (I think) around $82/pt in Saratoga back in 2005, so I doubt I'd ever get my initial investment back. But of course, I took a lot of trips on that initial investment too, so things do work out...

*Just to nip it in the bud, someone will inevitably say you can't factor out maintenance fees when it comes to any profit or loss you incur selling DVC points, it's all a giant black hole of s__________g money out of your wallet and to say otherwise is just me kidding myself blah blah blah. To which I say, in advance, you can feel that way, but then when it comes time to sell YOUR house, you MUST factor in every dime you ever paid to utilities, property taxes and maintenance before you can consider yourself to have made a profit, too. Or else YOU are only fooling YOURSELF. And then I'll probably say something under my breath that'll make you want to punch me.

I might be reading this wrong, but DVC is already selling for $140 a point.

 

[slappy magoo]

I might be reading this wrong, but DVC is already selling for $140 a point.

Just going on the dvc website where they explain "what membership costs." Their example is 19.2k for 160 points in Villas at Animal Kingdom, which works out to $120/pt. It's possible their info is either a: out of date, or b: pertinent to VAK, and maybe they're charging more for BLT and Aulani.

Upon further research I found out that when Old Key West was in presale, it was $48/pt, with (I think) 5 years' worth of park admission included. Under $65 when Boardwalk opened, 67 when Wilderness opened, 80 when Beach Club opened, and 95 when Saratoga opened, none of which includes any incentives offered at the time. And with the noticeable ( ) exception of Saratoga, resales seem to generally be no worse than $10 less a point, and many of the resort contracts sell for more than their original purchase price.

http://dvcbyresale.com/index.php?sort_column=resort

http://www.dvc-resales.com/dvclisting.cfm

 

[Pioneer Hall]

Just going on the dvc website where they explain "what membership costs." Their example is 19.2k for 160 points in Villas at Animal Kingdom, which works out to $120/pt. It's possible their info is either a: out of date, or b: pertinent to VAK, and maybe they're charging more for BLT and Aulani.

Upon further research I found out that when Old Key West was in presale, it was $48/pt, with (I think) 5 years' worth of park admission included. Under $65 when Boardwalk opened, 67 when Wilderness opened, 80 when Beach Club opened, and 95 when Saratoga opened, none of which includes any incentives offered at the time. And with the noticeable ( ) exception of Saratoga, resales seem to generally be no worse than $10 less a point, and many of the resort contracts sell for more than their original purchase price.

http://dvcbyresale.com/index.php?sort_column=resort

http://www.dvc-resales.com/dvclisting.cfm

I believe that BLT is selling for $150 a point and then incentives bring it to 140

 

[slappy magoo]

I believe that BLT is selling for $150 a point and then incentives bring it to 140

You may be right, prices were at $140/pt last year

http://dvcnews.com/index.php/dvc-program/financial/1547-130-blt-price-offered-until-june-7th

 

[Phonedave]

DVC has been known to offer to buy back without ROFR but their offers were so low that it wasn't even worth consideration.

About 3-4 years ago (pre-Bay Lake Tower, pre-recession) Beach Club points were selling for upward of $90 per point on the resale market. DVC's best offer to buy back was in the neighborhood of $50 per point.

So I wouldn't count on DVC providing you with a clear means of exit. But as long as Walt Disney World remains a popular vacation destination, there will be demand for DVC points. But it's impossible to predict how much you stand to recoup if you wish to sell at any point in the future.

Well, that may still be a good thing.

My friends own two timeshares in the Grand Caymans - a wonderful place to visit. However airfare gets pricey, and these are also week long timeshares - no save some points for next year etc. They get on week a year for each (you get your choice of weeks)

Anyway ..... Maintainance fees are going up a LOT, and there have been some special assesments for hurricane damage as well. The problem is, you can currently buy these timeshares on the ebay for a dollar - yes a dollar - and they are not selling all too well. The company will not take them back either. If you own one, you are legaly on the hook for the yearly expenses usless you can get somone to take it over for you. You cannot just walk away (without taking a hit to your credit).

Even if DVC offered you a lowball price, for somone in dire straits in a poor economy, it is at least a way to get out of your yearly costs.

-dave