DVC RESALES
DVC RESALES

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Old 12-05-2012, 05:56 AM   #61
bighoo93
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From Disney's standpoint they don't want you to be able to sell no matter the reason behind it, they want a one way street only.
Why not? They sold the points in the first place. Why should Disney feel entitled to get to sell them again, rather than allow the owner to sell them? This is very strange. And maybe it's true. But that kind of thinking is a big part of what gives timeshares such a bad name.
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Old 12-05-2012, 07:23 AM   #62
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Originally Posted by bighoo93 View Post
Why not? They sold the points in the first place. Why should Disney feel entitled to get to sell them again, rather than allow the owner to sell them? This is very strange. And maybe it's true. But that kind of thinking is a big part of what gives timeshares such a bad name.
Because Disney is in the business of selling points, that's the only way DVD makes its money. They want you to buy MORE points from them. But like Dean points out, once you sell your contract on the resale market:

A) Disney loses out on a potential sale from the person who bought that resale contract, plus very likely a few other referrals because that person will tell their friends and family what a great deal they got via resale.

B) The original owner will no longer be a potential add-on customer for Disney.
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Old 12-05-2012, 12:38 PM   #63
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Originally Posted by bighoo93 View Post
Does Disney have a problem with languishing points that they can't sell in their inventory?
The fact that DVC started offering one-time-use points for sale suggests they have a lot of inventory. I've never read any reports of people wanting to purchase these OTU points and being told they were "sold out" so I'm assuming they have a lot available. Then again, it's not clear how many people purchase them.

They also have a couple of resorts that have been slow to sell. AKV first went on sale in February 2007. It is about 80% declared now after nearly six years. There was a period of time when sales were so slow that many months would pass between declarations of additional inventory. When it takes that long to sell out a resort prices on the resale market for that same resort will be well below the direct sale price, especially since Disney keeps increasing their price in the meantime.

I don't think Aulani is selling very quickly either.
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Old 12-05-2012, 01:06 PM   #64
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Every single resale is a lost retail sale. If they were handling all they could under optimal circumstances, it wouldn't matter but if that were the case, it means they underpriced their product as well. Sales need a pace to be optimal but every resale purchase, and every person that doesn't buy retail because of the resale market, is a lost potential sale they can't get back plus possibly any acquaintances of that person as well.

From Disney's standpoint they don't want you to be able to sell no matter the reason behind it, they want a one way street only. IF they could sell more points and faster at a level that generated the desired profit or more, they'd generate the points to do so. They'd get some from ROFR, raise prices faster for more profit per point, build more resorts, maybe charge more per villa, and many other similar examples.
Every single resale is not a lost retail sale. I originally looked at direct (didn't know about resale) and didn't buy because of the price. It was only years later that I found out about resale and purchased. So Disney was never ever going to get my money with a direct purchase. The music industry thinks the same way and counts every pirated song as a lost sale, but it isn't.

Even if there were no resale market at all, as direct prices increase, Disney is eliminating potential buyers who can't or don't want to pay the direct price. They are effectively shrinking their potential client base.

I'm betting more and more people are going online within the 10 days of signing their contract and finding out more about what they have just purchased. How often is the advice we give here "if you aren't sure cancel your purchase and do some more research into DVC and make sure you look at resale". I wonder how their cancellation rates are trending.

What they could do though is sell small exclusive resorts (GF & POLY) for high prices while driving down the resale price of everything else ($1/point) and then ROFR whenever they needed points for a cheap direct sale ($80-100 point).

If I was a greedy evil coporate type, this would be my plan to squeeze every dime I could out of my customers.
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Old 12-05-2012, 06:25 PM   #65
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Originally Posted by DougEMG

Every single resale is not a lost retail sale. I originally looked at direct (didn't know about resale) and didn't buy because of the price. It was only years later that I found out about resale and purchased. So Disney was never ever going to get my money with a direct purchase. The music industry thinks the same way and counts every pirated song as a lost sale, but it isn't.

Even if there were no resale market at all, as direct prices increase, Disney is eliminating potential buyers who can't or don't want to pay the direct price. They are effectively shrinking their potential client base.

I'm betting more and more people are going online within the 10 days of signing their contract and finding out more about what they have just purchased. How often is the advice we give here "if you aren't sure cancel your purchase and do some more research into DVC and make sure you look at resale". I wonder how their cancellation rates are trending.

What they could do though is sell small exclusive resorts (GF & POLY) for high prices while driving down the resale price of everything else ($1/point) and then ROFR whenever they needed points for a cheap direct sale ($80-100 point).

If I was a greedy evil coporate type, this would be my plan to squeeze every dime I could out of my customers.
We are moving forward with a direct cash purchase even with knowledge of the resale market. Why? Because its a smaller contract and we can always add on with resale but at least we have a base of points with all the perks of direct vs resale. This means that disney can change/devalue the resale market and we will always have enough points for any type of trip we want, be it the concierge or adventure or whatever and cheaper point to extends the trips as resale allows.
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Old 12-05-2012, 06:37 PM   #66
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Originally Posted by CaptDadSparrow View Post
We are moving forward with a direct cash purchase even with knowledge of the resale market. Why? Because its a smaller contract and we can always add on with resale but at least we have a base of points with all the perks of direct vs resale. This means that disney can change/devalue the resale market and we will always have enough points for any type of trip we want, be it the concierge or adventure or whatever and cheaper point to extends the trips as resale allows.
as others have said, make sure you have looked at the point charts for cruises/concierge collection/adventures by disney first - a small contract won't get you squat.

but if it makes you happy to buy direct, suit yourself.
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Old 12-05-2012, 07:02 PM   #67
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Originally Posted by DougEMG View Post
Every single resale is not a lost retail sale. I originally looked at direct (didn't know about resale) and didn't buy because of the price. It was only years later that I found out about resale and purchased. So Disney was never ever going to get my money with a direct purchase. The music industry thinks the same way and counts every pirated song as a lost sale, but it isn't.

Even if there were no resale market at all, as direct prices increase, Disney is eliminating potential buyers who can't or don't want to pay the direct price. They are effectively shrinking their potential client base.

I'm betting more and more people are going online within the 10 days of signing their contract and finding out more about what they have just purchased. How often is the advice we give here "if you aren't sure cancel your purchase and do some more research into DVC and make sure you look at resale". I wonder how their cancellation rates are trending.

What they could do though is sell small exclusive resorts (GF & POLY) for high prices while driving down the resale price of everything else ($1/point) and then ROFR whenever they needed points for a cheap direct sale ($80-100 point).

If I was a greedy evil coporate type, this would be my plan to squeeze every dime I could out of my customers.
Sure there will be those that wouldn't buy in a given circumstance but you wanted to buy, it was the price that held you up I'm assuming. DVD can structure the retail in such a way as to add value to retail and remove value from resale far more than they have done so far. Even for those that end up not purchasing retail and buy resale, it's still a potential sale lost.

Quote:
Originally Posted by bighoo93 View Post
Why not? They sold the points in the first place. Why should Disney feel entitled to get to sell them again, rather than allow the owner to sell them? This is very strange. And maybe it's true. But that kind of thinking is a big part of what gives timeshares such a bad name.
What Missyrose said. Don't ever use fair and timeshare in the same paragraph.
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Old 12-05-2012, 07:07 PM   #68
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as others have said, make sure you have looked at the point charts for cruises/concierge collection/adventures by disney first - a small contract won't get you squat.

but if it makes you happy to buy direct, suit yourself.
Kind of OT, but those small contracts are really getting squeezed. Between points charts adjustments, inflated prices for cruises, new higher point requirements at the newer resorts, I am finding it hard to justify a small points contract anymore. Then when you plan on selling them, you have to pay an estoppel fee for each contract, regardless of the number of points. These are some of the main reasons I sold all of my small contracts.
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Old 12-05-2012, 08:46 PM   #69
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What Missyrose said. Don't ever use fair and timeshare in the same paragraph.
must have missed the original, but that made me laugh
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Old 12-10-2012, 03:41 PM   #70
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I bought direct initially and had a great experience, and added on via resale. No problems either way. I needed the financing the first time around, with small kids and lots of bills. I was willing to add a monthly payment so I could share the disney experience with the kids while they were younger. Later, had cash to add on via resale.

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Old 12-10-2012, 07:48 PM   #71
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I always get confused when people talk about buying DVC even though it was a stretch in order to have the "Disney experience.". It is wholly possible to enjoy Disney without ever owning or staying at a DVC resort. I guess people are eager to justify a purchase that might not be the best financial move. That being said, I think it is important for potential buyers to rub the pixie dust out of their eyes and do a hard analysis of whether or not buying DVC is a sound financial decision.
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Old 12-12-2012, 08:04 PM   #72
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We bought from Disney in 2004 at SSR for $70.00/point. was a good price even at resale prices at that time. When the sale was over and Disney raised the price we went resale at OKW.
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Old 12-18-2012, 05:54 AM   #73
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i have bought 3 contracts all thru resale it just works better for me.
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Old 12-19-2012, 08:17 PM   #74
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Did lots of research between direct and resale...did the dvc tour etc.

In the end, went with resale and haven't looked back.
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