New Policy Announced for Re-sale Purchases


#1

From DVCmember.com

Disney Vacation Club® has announced a new policy that limits access to certain Member Getaways exchanges for Ownership Interests purchased on the secondary market (also known as the re-sale market).

Under the new policy, Members who purchase from anyone other than Disney Vacation Development, Inc., on or after March 21, 2011, will not be eligible to use those Vacation Points to make reservations within the Concierge Collection, the Disney Collection or the Adventurer Collection. Those Vacation Points will instead be valid only for reservations at Disney Vacation Club resorts, as well as for RCI® exchanges, Club Cordial and Club Intrawest.

The affected collections are special Member benefits programs offered by Disney Vacation Development, Inc., and are not part of Members’ Ownership Interests. That said, Members who purchased on the secondary market prior to March 21, 2011, may use those Vacation Points for all Member Getaways.


#2

From the Orlando Sentinel:

In a bid to buttress its own sales, Disney’s time-share business said Tuesday it will impose new restrictions on buyers who purchase their time shares from existing owners — rather than directly from Disney.

A Disney Vacation Club spokeswoman said customers who bought their time shares directly from Disney have requested such a change.

“Our members just felt that that they should get more benefits when they purchase through Disney Vacation Club than those who purchase on the secondary market,” spokeswoman Diane Hancock said. She added that the change aligns Disney with other time-share operators who impose similar restrictions on resales.

But some company followers said Disney is trying to prop up its own direct sales, which stumbled during the global recession and credit freeze. Disney reported lower vacation-club sales during its 2010 fiscal year, which ended Oct. 2.


#3

I’ve heard all kinds of rumors that Disney was going to do something like this. I’m glad that it doesn’t affect actual Disney Vacation Club Resorts, because I think a huge uproar would occur if it did. I really only plan on using my points for Disney Vacation Club Resorts, so probably would still consider purchasing my extra 50 through resale one of these days.


#4

I think this is a STUPID move. It creates a “second class” of ownership, or I should say a third class. RCI members (including those who buy week resale for as low as $1 which I have done) can trade into DVC and I assume use their weeks toward DCL cruises through RCI.

And, don’t forget Disney Collection includes Disney Cruise Line and all non DVC resorts at every Disney theme park.

DVC needs to be ADDING value for direct purchases NOT taking away from members. One of the best reasons to buy DVC was that unlike most timeshares, DVC held much more of it’s value. Now, I think people who look at the fact that if they HAVE to sell will be sellgin at a much lower price - these will be restricted and worth less.

All of my purchases have been direct with sales concessions that made the purchase price nearly identical to resale without the hassles.

Not to mention, this is going to be a REAL nightmare for Member Services keeping track of which contracts can be used for what.

We need new leadership at DVC. Jim needs to go.

TELL DVC HOW YOU FEEL. We need to burn up the email.

dvcmembersatisfactionteam@disneyvacationclub.com

Here is the email that I have sent with a copy to my guide. I have sent MANY referrals and own a lot of points. This is NOT what my guide wants to hear…

[I]I am disturbed to read of the changes which creates a second class of ownership, And I am extremely upset as to what this will do to resale prices.

I have been in real estate for 35 years. As an certified real estate appraiser and real estate appraiser instructor, I know timeshares and I know timeshare resale values. The ONLY timeshare that I would buy from the developer was DVC because they held their value much better than most. I own over ____ points, and frankly I am extremely upset to see changes that will cause the value of my points to decline.

Already, my SSR points are selling at 1/2 to 2/3rds of what I paid for them. Now if I want to sell or worse, HAVE to sell, I see resale prices dropping even lower. DVC management has with one change, turned DVC into every other timeshare.

I have bought my last DVC points if this policy remains in effect.

I think this is a STUPID move. It creates a “second class” of ownership, or I should say a third class. RCI members (including those who buy week resale for as low as $1 which I have done) can trade into DVC and I assume use their weeks toward DCL cruises through RCI.

DVC needs to be ADDING value for direct purchases NOT taking away from members. One of the best reasons to buy DVC was that unlike most timeshares, DVC held much more of it’s value. Now, I think people who look at the fact that if they HAVE to sell will be selling at a much lower price - these will be restricted and worth less.

Not to mention, this is going to be a REAL nightmare for Member Services keeping track of which contracts can be used for what.

If this is the best and brightest ideas they can come up with, them we need new leadership at DVC.

Richard Carmichael
Appraisal Supervisor
RL Carmichael & Assoc, Inc[/I]


#5

I think this is going to make people much more hesitant about buying into DVC if they know they might not be able to sell out if they don’t feel like it fits their lifestyle, anymore. The expiration date is what - 50 years from the opening of the DVC property. Wouldn’t this policy make the buyers feel trapped into a never-ending cycle of membership dues?

What are they going to do if DVC members purchase some points directly from DVC and others from a secondhand source?


#6

Maybe we can get them to give DVC owners free beer?


#7

“Their members felt they should get more benefits when they purchase through DVC…” Uh…no one asked me. Did they ask you? What a bunch of baloney. I would think that is an out and out lie. Why would ANYONE even care? Or want such a change, when it puts their resale options at serious risk.

Personally I would never use my points for anything other than DisneyWorld accomodations, but it is infuriating that Disney thinks they can “classify” DVC owners like this - actually, it sounds unethical and illegal. I don’t think I’ll let DH know about this - he was furious when they switched from Interval to RCI without informing members. This isn’t going to improve his opinion.

AND this might just backfire on Disney. I’m sure there are a lot of people, like us, that aren’t interested in using points for anything buy WDW accomodations. If we were to purchase more DVC points now, I don’t think I’d want to purchase from DVC.


#8

I’m not a DVC owner. However, I think it is wrong for Disney to change their DVC policy after the fact. A contract is a contract. Current owners should NOT be affected. This will probably stop many from buying a DVC which may end up costing Disney money.

In our state, we bought specialty tags for all our vehicles that needed tags. It was a one time, special charge. Well, this year they changed it. Now, we have to pay the special fee every year. It would end up costing us nearly $200.00 more. So, we opted out. We are paying less & the state is getting $0.
The tag office told us that the majority of the people here are doing the same thing.

I feel like that is what is going to happen to Disney over their new DVC policy.


#9

Benefits can and do change - that’s in writing - guess who’s favor! The ability to be able to do all of these extras like Disney collection were dangled as perks by salespeople - NOT IN WRITING. And if you bought resale, any promises weren’t made by DVC sales people.

The really ironic thing is that what they have done in my case is actually make it better for me to buy resale. Buy cheaper, rent points at DVC resorts for the same price as I rent my direct purchase points.

I’m amazed with the marketing of this enhancement of our membership. Especially when there are lots of ways that they could have come up with to reward direct purchases/larger contract owners.

This would be like airlines telling you that if you purchase your tickets on a non company site that you are limited when you can use your rewards miles.


#10

[QUOTE=llama;1063112]“Their members felt they should get more benefits when they purchase through DVC….” Uh…no one asked me. Did they ask you? What a bunch of baloney. I would think that is an out and out lie. Why would ANYONE even care? Or want such a change, when it puts their resale options at serious risk.

[/QUOTE]

That’s the part I like…aren’t ALL the changes because the members asked for them. Remember when the members asked to have disposable cups in the studios??? :glare:

Think we’ll ever see, “we are lowing the price because members have asked for it”.!!!


#11

I think that would be a change we could ALL agree on.:laugh:


#12

Wow this is bananas! I bought my points thru DVC, but I have considered resale for additional points. Well not anymore.


#13

Next, Disney will be taking away benefits like EMH and free transportation from guests who booked their rooms through external sites. :pinch::laugh:


#14

Let’s seriously hope not. But who knows given this new trend.:glare:


#15

Like Richard mentioned, prices for used contracts will drop unless you can sell them through Disney. And I stress the ‘unless’.

There are many contracts on the resale market from owners who just cannot afford the annual maintanence fee. And Disney is taking back contracts that have fallen into forclosure through their associated Palm Financial lending arm.

From a Commercial Realtor’s perspective, I look at this and wonder what they are thinking. Overall this is a stupid move by Disney, but an advantage for anyone who just wants points only for stays at the DVD resorts. If I have some extra $$$$ after the kids tuition bills are paid off this summer it be a great time to snatch up extra points.


#16

Although this is not a bright move on Disney’s part, I may benefit from this! We were looking at the resale market anyway, we won’t use the points for anywhere but WDW so now the price may be goind DOWN! Yea, for me, I thought I couldn’t buy in for a few more years but now if the price on the resale market really does go down then I may be in sooner than expected! However, what if they decide to add more limitations to resale later? Oh my!


#17

I don’t expect the drop to happen overnight. Only when people realize that the resale points will drift down. The real question is just how much, and how soon. (ALL of the DVC points will eventually loose value. They do have an expiration date after all.)

Many people are dead set against using points for anything BUT stays at DVC resorts. I am not in that group. It’s all in how you look at it. Some people look at DCL for example as rent the points and pay retail with some $$$ left over to spend on the cruise.

The other way to look at it is if you consider your cost of annual dues and purchase price, you are booking at a decent discount. You have the $$$$ difference between what you paid and retail to spend on the ship.

Is the glass half full or half empty? :laugh: You really have to look at what you want to buy the points for. Will they treat leaving the contracts to you kids as “resale?” Personally, I’m glad that when I purchased my points, that I put my sons on the deed.


#18

Just sent the following to the guide my wife and I WERE working with on a DVC contract. We were also exploring a resale that looked reasonably priced and terminated that, as well:


From: Brett Kriger
Sent: Thursday, January 20, 2011 5:14 PM
To: dvcmembersatisfactionteam@disneyvacationclub.com
Cc: jason.conolly@disney.com
Subject: Message to Guide Jason Conolly

Boy that was close!

We have been thinking about the DVC membership at Saratoga Springs for nearly a year and finally felt financially able to make the purchase.

When we talked to you on the 18th, we did not know that a new policy on resale’s went into effect that day.

Since decreasing the value of an emergency resale obviously makes our membership contract less valuable and harder for our children to sell as part of our estate, we have decided against making the purchase. We have friends who are members and we will continue to just rent their points for our travel.

Thanks for your time and all of the information you provided but you could have saved us a lot of time by telling us about this new wrinkle that makes anyone considering purchase of an existing contract a second class member. The change also showed us that Disney could change the rules at any other point in the future to diminish the value of our contract.

We have always avoided timeshare contracts because of these kinds of tricks but for some reason we thought that Disney would not operate like that. Lesson learned and the phrase “let the buyer beware” proves to be a rule to live by once again.

Cheers,
Brett


#19

I spoke with DH about this new policy and we have both agreed to just continue renting points for awhile. Just makes me leary of them changing the policy more in the future.


#20

I have been following threads on another board concerning the changes that DVC is making and I must say I am rather disheartened by it. I understand fiduciary responsibility to stockholders and that the company is in business to make money. That being said, this is one of the few companies that built a reputation on making people happy and make piles and piles of money doing it. It is a shame that now Disney is looking to be lumped in with other companies more and more now.

I would write an email to DVC, but being a member via resale and with a small contract at that, I have feeling my email will end up in the deleted items bin.

I am curious though as to how you all have your guides email addresses? The guide who was assigned to us when we first showed an interest in DVC (before I learned about resale) said they did not send out emails my guess at the time was so that the guide could not have anything he wrote used against him or DVC.

Now I realize we were prospective buyers and not already hooked and with us only having a small contract, we are still not worthy of it. :frowning:

Anyway, I hope that those who are direct members and do not like the way this is going will write to DVC and their guides and express their disappointment with all of this. I think you should all add that since they are apparently listening to member requests that they should lower their prices. I was thinking this year might finally be the year to add on to our 50 points with another 25-50 points but with this stuff now I am not so sure