DVC RESALES
DVC RESALES

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Old 11-13-2013, 08:57 AM   #1
dwight16
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Disney Direct Tricks?

So I was down last weekend for the marathon and I was sitting next to people on the backlot tour and they just bought into the DVC I told them I was an owner also they told me why they bought I mentioned I bought resale and they should look into it. They stopped me there and said that's going to end real soon. I said what?!? They said Disney told us they will be buying everything up on the resale market. So they had to buy direct. I did not want to argue with them bc they probably just spent 15k earlier that morning. Just made me feel bad for them.
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Old 11-13-2013, 09:26 AM   #2
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Originally Posted by dwight16 View Post
So I was down last weekend for the marathon and I was sitting next to people on the backlot tour and they just bought into the DVC I told them I was an owner also they told me why they bought I mentioned I bought resale and they should look into it. They stopped me there and said that's going to end real soon. I said what?!? They said Disney told us they will be buying everything up on the resale market. So they had to buy direct. I did not want to argue with them bc they probably just spent 15k earlier that morning. Just made me feel bad for them.
I certainly hope this is true though I highly doubt it.

I think it would help their direct sales. If resale prices are stable and reasonable, Disney can use that as a selling feature for diect. I guess time will tell.
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Old 11-13-2013, 10:16 AM   #3
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I have also heard this rumor. It makes sense though, if Disney buys all the resale contracts via ROFR, and then sells them higher....they make a nice profit. People will always want DVC.
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Old 11-13-2013, 10:20 AM   #4
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That'd be a lot of money and time expenditure for not a large profit margin.
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Old 11-13-2013, 10:40 AM   #5
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umm, no.

this is just one of the classic timeshare salesperson lies. it suckers some people into paying extra to buy direct...that's all it's supposed to do.
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Old 11-13-2013, 10:45 AM   #6
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Our guide told us in September that they were ROFRing everything (he said this with a straight face). We all know this is not true. We really like our guide and realize he's just trying to earn a paycheck so we said nothing.

I just wish they would stop with the scare tactics, it makes them look ridiculous.
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Old 11-13-2013, 10:47 AM   #7
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That'd be a lot of money and time expenditure for not a large profit margin.
Plus handing out a very nice liquid asset - cash - in exchange for timeshare leases they need to sell.

ROFR will continue to get exercised at the point at which they can protect their active sales and make money reselling those points as long as they don't need to tie up significant cash doing it.

A lot of big companies got burned big on not enough cash in 2008 - including Disney. Until the executives turn over, they won't forget those lost bonuses.
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Old 11-13-2013, 10:55 AM   #8
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That'd be a lot of money and time expenditure for not a large profit margin.
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Old 11-13-2013, 11:42 AM   #9
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Originally Posted by DizBub View Post
Our guide told us in September that they were ROFRing everything (he said this with a straight face). We all know this is not true. We really like our guide and realize he's just trying to earn a paycheck so we said nothing.

I just wish they would stop with the scare tactics, it makes them look ridiculous.
I was told the same thing when we first talked to a guide several years ago. I had been reading the DVC boards for a while by that point so I knew it wasn't true.

It wasn't true then, it isn't true now and, as you said, it just makes them look ridiculous, not to mention dishonest.
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Old 11-13-2013, 11:43 AM   #10
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Originally Posted by chalee94 View Post
this is just one of the classic timeshare salesperson lies. it suckers some people into paying extra to buy direct...that's all it's supposed to do.
I agree.

This is one of the lies that have been told since the 1990s. Before I owned, I was considering buying direct and must have heard this at least 5 times from different guides.
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Old 11-13-2013, 11:50 AM   #11
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That'd be a lot of money and time expenditure for not a large profit margin.
I agree. Margins are greater with new construction, while marketing costs are lower.

BLT cost somewhere around $25-$30/point to construct.

Buying BLT resale (especially if Disney was buying "everything") would easily cost Disney over $100/point.

In addition, new construction provides millions of points to sell. Buying points on the resale market piecemeal adds a lot of overhead for Disney.

Business is all about quantity and margins.

Disney will dabble in the resale market to keep some buyers happy (e.g. someone who only wants a "sold out" DVC) but volume and margins are too small on the resale market to feed Disney's enormous DVC machine.
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Old 11-13-2013, 12:02 PM   #12
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I agree. Margins are greater with new construction, while marketing costs are lower.

BLT cost somewhere around $25-$30/point to construct.

Buying BLT resale (especially if Disney was buying "everything") would easily cost Disney over $100/point.

In addition, new construction provides millions of points to sell. Buying points on the resale market piecemeal adds a lot of overhead for Disney.

Business is all about quantity and margins.

Disney will dabble in the resale market to keep some buyers happy (e.g. someone who only wants a "sold out" DVC) but volume and margins are too small on the resale market to feed Disney's enormous DVC machine.
Well put.

And don't forget they also acquire some points via bankruptcy to satisfy those on the direct purchase wait lists. Just costs them the overhead in those cases, I would think.
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Old 11-13-2013, 12:12 PM   #13
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Our guide told me the same thing when we purchased our first 50 points last January, and then again last April when we decided to make an offer on a resale contract.

I felt great when I left him a message telling him I closed on the resale and was removing my name from the add-on waitlist.
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Old 11-13-2013, 01:28 PM   #14
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This old chestnut
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Old 11-13-2013, 06:34 PM   #15
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It also was funny to see them claim you will make your investment back in 5-11 vacations if you pay rack rate at a dvc resort. I was like wow that's a big spread.
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