Ok Correct me if I'm wrong...

[your friend]

I'm just thinking about direct purchases and resales as a result of the fear of drastic changes to the resale buyer's rights. My questions is why would Disney care about resales enough to limit their use? Here's how I see it...people sell their purchases for many different reasons that we don't know, tired of it, regretting purchase, etc... If the initial purchase has been made and then resold Disney is still making money by DVC members visiting more often through perk tickets, dining, and merchandise purchases. Personally I am not looking at DVC as a savings but as a way to go to Disney with a touch of luxury that I have never experienced by staying at value resorts exclusively. So it brings me back to the question, why inflict restrictions? Disney is still selling direct and people are still buying through the resale market. To me I see it as a win win for them. People are still buying into ownership. I do understand that a direct purchase is a huge sell for them but I don't understand the fear of resale restrictions besides the ones they have already implemented.

[Sandisw]

Because, IMO, if they can make the uninformed buyer feel as though they are getting a superior product by buying direct over resale, then all the better for them in terms of selling the new resorts.


Even now, with the restrictions, those aren't guaranteed, even for those buying direct. Disney could eliminate them as options down the road for everyone which is why my advice to anyone buying is to buy for stay at your home resort only, because in the end, that is all you are really guaranteed.

[disneynutz]

Originally Posted by your friend

I'm just thinking about direct purchases and resales as a result of the fear of drastic changes to the resale buyer's rights. My questions is why would Disney care about resales enough to limit their use? Here's how I see it...people sell their purchases for many different reasons that we don't know, tired of it, regretting purchase, etc... If the initial purchase has been made and then resold Disney is still making money by DVC members visiting more often through perk tickets, dining, and merchandise purchases. Personally I am not looking at DVC as a savings but as a way to go to Disney with a touch of luxury that I have never experienced by staying at value resorts exclusively. So it brings me back to the question, why inflict restrictions? Disney is still selling direct and people are still buying through the resale market. To me I see it as a win win for them. People are still buying into ownership. I do understand that a direct purchase is a huge sell for them but I don't understand the fear of resale restrictions besides the ones they have already implemented.

Resale restrictions drive the uninformed to buy direct at any price.

People buying resale doesn't help DVD make their sales quota.

The DVC savings allows you to stay in a DVC room, paying rack rate for the same room is way too expensive.

Bill

[ELMC]

Disney only gets paid on the initial sale. The ongoing payment of maintenance fees simply cover expenses (aka no profit for Disney). And there really is no increase in other revenue streams if someone sells their contract to someone else. Instead of you going and spending money now I am. They would rather both of us go, which does not happen when one owner transfers ownership to another but it does happen if I were to buy direct.

Also, I would respectfully disagree with your statement that Disney made drastic changes to the resale buyer's rights. In my opinion all they took out were the expensive, elusive, non core options for DVC points. I would go so far as to say that they did resale buyers a favor by reducing demand and lowering resale prices.

[JimMIA]

Originally Posted by your friend

I'm just thinking about direct purchases and resales as a result of the fear of drastic changes to the resale buyer's rights.

First of all, I would get the highlighted word out of your vocabulary whenever you talk about DVC or any other timeshare.

Resale DVC purchasers "rights" are exactly the same as the "rights" of direct purchasers.

Both groups of owners are guaranteed the right to use their points at their home resort only (subject to availability) and as long as their home resort is a member of the "Club," they will enjoy at least a one-month booking advantage at their home resort over non-home DVC members.

That's it. Those are the "rights" of BOTH direct and resale purchasers. Nothing more, nothing less. There is NO DIFFERENCE at all in their "rights."

Direct purchasers currently receive some additional perks, but those can and do change from time to time, and any of them can be taken away from ANY owner with one swipe of the Mouse's pen.

[JimMIA]

The answer to the question: "Why?" is very simple. Because they can.

Disney perceives some sales benefit to applying some restrictions on resale points. It costs them nothing, but may persuade some uninformed prospects. What's not to like?

Whether we understand it or agree with it is completely irrelevant.

[Dean]

Originally Posted by your friend

I'm just thinking about direct purchases and resales as a result of the fear of drastic changes to the resale buyer's rights. My questions is why would Disney care about resales enough to limit their use? Here's how I see it...people sell their purchases for many different reasons that we don't know, tired of it, regretting purchase, etc... If the initial purchase has been made and then resold Disney is still making money by DVC members visiting more often through perk tickets, dining, and merchandise purchases. Personally I am not looking at DVC as a savings but as a way to go to Disney with a touch of luxury that I have never experienced by staying at value resorts exclusively. So it brings me back to the question, why inflict restrictions? Disney is still selling direct and people are still buying through the resale market. To me I see it as a win win for them. People are still buying into ownership. I do understand that a direct purchase is a huge sell for them but I don't understand the fear of resale restrictions besides the ones they have already implemented.

I generally agree with the above info. The reason is to simply attempt to sell more retail with the changes than without. That's not to say everyone will go that route or that everyone will buy retail instead of resale, they're just trying to shift the playing field in their favor. I think you can expect more changes but I don't believe there's anything they can do materially involving the current club resorts that will affect the true usage. The only rights are what's written into the POS and Fl statues (assuming FL DVC resorts) and even some of those can be changed unilaterally and all can be changed. Basically buy points to use at DVC resorts and pay cash for all else.

Ultimately DVD doesn't care your situation or that you need to sell because every resale is in direct competition with a retail purchase. They want you to cont to own and the potential buyer to buy resale. As noted, once they've made the sale, they're out of the loop until the next retail sale. Just like a publicly traded company is only as good as the last quarter's profits.

[Sammie]

Originally Posted by your friend

I'm just thinking about direct purchases and resales as a result of the fear of drastic changes to the resale buyer's rights. My questions is why would Disney care about resales enough to limit their use? Here's how I see it...people sell their purchases for many different reasons that we don't know, tired of it, regretting purchase, etc... If the initial purchase has been made and then resold Disney is still making money by DVC members visiting more often through perk tickets, dining, and merchandise purchases. Personally I am not looking at DVC as a savings but as a way to go to Disney with a touch of luxury that I have never experienced by staying at value resorts exclusively. So it brings me back to the question, why inflict restrictions? Disney is still selling direct and people are still buying through the resale market. To me I see it as a win win for them. People are still buying into ownership. I do understand that a direct purchase is a huge sell for them but I don't understand the fear of resale restrictions besides the ones they have already implemented.

Because DVC makes it's money off of Direct Sales not off of tickets, dining, etc. Think of it as two different companies, because they do.

They don't care about resales until resales begins to cut into their ability to Direct Sale.