Are DVC members dumping contracts?

Disney Vacation Club
#1

I was listening to the My DVC Points Podcast this morning and they were talking about the stats for Jan and Feb with regard to average sales prices, ROFR, and the like. Jodi (was that her name?) mentioned that they had well over 600 available DVC contracts listed at this time which is more than they’ve had for a while.

Do you think people are dumping their contracts in response to the changes, price increases, and general degrading of the brand that has been happening?

I just took a peek at the listings and I am floored by how many there are! For a while I was looking regularly and there was often not a lot available, especially at my home resort and use year. But there is no shortage of anything right now.

What are your thoughts?

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#2

Yes.

(How’s that for a simple answer?)

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#3

Concise, for sure!

Great talk :wink:

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#4

I’m thinking about taking it to TED.

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#5

People don’t have that kind of time, @ryan1 You won’t get a lot of plays.

Try shortening it up some.

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#6

I’d pay.

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#7

I’m currently on hold with DLR reservations who had me checking in to DGC yesterday.

But that reservation number doesn’t match the reservation (or dates) for the reservation number I have in an email.

And that reservation I had changed to my current one (that I an going to use) which is the only one I have on DLR’s site.

So they have 2 numbers, neither of which are valid, and the one I have that is on their actual hotel/DLR site, they have no record of.

I’m getting pretty tired of Disney’s IT.

#8

That’s awful

But I’m confused - can you link this experience with my question of dumping contracts? Was/is this a DVC stay?

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#9

To be even MORE concise…

When Disney recently announced the increased pricing on a couple of the DVCs (forget…AKL, maybe?), I could see that Disney is trying to drive up the price overall. In doing so, the price differential between direct and resale grows…but this ultimately is to Disney’s advantage, because as more people sell, thinking that the resale market will do well for them as people will NOT want to pay the newer, higher direct price. Trouble is, in doing so, Disney is more likely/willing to exercise ROFR. If the point difference was $60/pp before, and now it is $80+/pp, if Disney buys up the resale contracts, they can resell them at a larger profit.

I kind of think if you want to get the most out of your DVC through resale, it might be better to wait a bit, when there becomes a bit more scarcity (maybe) in the resale market and you can have a higher asking price.

One concern I have, though, particularly for resorts with a 2042 year, is at what point will the overall value of a resale contract actually start to diminish because people won’t be able to hold onto the contract long enough to make it worthwhile? Not sure on that one.

I also wonder if the raising of the prices and, perhaps, eventually exercising of ROFR on Disney’s part will be because they are preparing to (in a few years time) to extend the date, which will make buying direct more attractive and therefore more profitable.

#10

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I’m not looking to buy or sell. I was just being nosey (see other post about bored at work today)

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#11

Oh…sorry. Didn’t mean it to read that way. I was speaking more hypothetically!

#12

Oh gotcha.

#13

I’ve been toying with the idea of buying resale. Now that we have a little one around again, I am sure WDW visits will resume and become a yearly or every other year thing. I really need to sit down and do the math on it though. Deluxe will not always be a necessity as we could be happy with a mod stay now and than and the occasional value stay. But it would definitely be nice and value isn’t always measured in dollars. Direct isn’t worth it to us for sure but resale has an appeal. Wonder if the surplus in listings, if maintained over a longer period, could result in more competitive pricing? Or is pricing as low as it has typically been? And what would be the bottom price Disney would step in and buy the contract back? It looks like a few resorts are getting bought back by Disney more often lately(can’t remember off hand which ones). Not sure if this is strictly due to pricing or if their are other dynamics in play…

#14

I have read a lot of “I am sick of……. how do I sell” posts recently.

I also think many people can sell for a profit.

I was shocked to see my CC contract is worth more than I paid for it. I love my DVC and I might stay there and drive to Universal (with a premier AP in my hand) but I am not selling.

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#15

I think pricing for resale is very currently going through some adjustment because they have set the pricing for direct GFV so very low that it doesn’t much make sense to buy resale at the prices they were at previously.

In terms of what they are buying back, it seems almost indescriminate. They bought back one (was it BCV?) at $176/pt IIRC (if not exact it was a ridiculously high price they would have balked at in the past).

Yes there’s a plan at work by Disney, we are just not sure what that plan is… It seems their current MO is to add on to existing and/or flip rooms from hotel side to DVC side to expand selling while minimizing the necessary investment to do so. That seems to be one part of it. the rest is anyone’s guess

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#16

I wouldn’t be the least bit surprised if that is driving a majority of this!!!

That’s kind of what we were thinking…that even if we don’t go to Disney parks, using it as a base for Universal might still be a great use.

We are looking at doing a cruise/4 night stay at SSR in January 2024…and we are possibly not buying any park tickets, but just doing 4 days of no-park things like Hoop Dee Doo, etc.

#17

My first OKW is FAR outpriced by now and I could sell and make a nice profit (if I wanted to which I don’t)
My second OKW, bought direct just last summer, has appreciated on the direct market and the resale market is not that far behind (given 2057 expiry)

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#18

Just take a look at the Disney stock price today. In the last 2 years it has dropped over 50%. Time for a new CEO? He just doesn’t feel the Disney magic but rater greed. No wonder people are bailing.

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#19

Sorry, my experience is more closely related to my frustrations with Disney as a whole and the never ending IT issues.

Because of that, I’m dangerously close to being open to the discussion of selling my own points and just renting from here on out if and when things settle down.

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#20

I will say it has stopped me from adding points. I decided to just mentally put that small contract money aside. I will rent 2-3 times to stretch what I have.

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