What happens at the end of the contract?

[Lollipop's Mom]

Assuming it s 2042 right now and contract is complete.
What happens - will they offer current owners to renew?
Start reselling that resort with high point value like a new listing?
or?

 

[kes601]

Nobody knows, but your points will expire on January 31, 2042. Best guess is they flip the resorts and start selling over again with higher point charts (at least for BCV / BWV).

 

[wnielsen1]

The math is too easy on BCV/BWV to do anything besides resell at a higher cost with a higher point chart (assuming the buildings are in good shape). I'm most curious about BRV. Will they want to lineup the BRV and CCV expiration dates?

 

[CarolynFH]

I agree - they'll do some refurbishment to bring those buildings up to whatever the standards are in 2042, create a new points chart that's similar to other DVC resorts at the time, and sell them as new resorts. Maybe they'll even tear down BCV and build a big shiny new tower, taking advantage of the location to include Theme Park (Fireworks) View villas.

I think the chance that they'll extend anyone's ownership, as they did with OKW, is slim to none. The best owners could hope for is a little discount on the new points.

 

[Sprinkles&Sprints]

Nobody knows, but your points will expire on January 31, 2042. Best guess is they flip the resorts and start selling over again with higher point charts (at least for BCV / BWV).

Was just thinking about this. While I know this wasn’t an option at 2042 resorts, what happens with Fixed Week contracts? So - as an example - say I have a Dec UY with Week 20 as a FW at RIV. Do I not get that last year’s Week 20?

 

[Sandisw]

Was just thinking about this. While I know this wasn’t an option at 2042 resorts, what happens with Fixed Week contracts? So - as an example - say I have a Dec UY with Week 20 as a FW at RIV. Do I not get that last year’s Week 20?

Let’s take RIV. The contract ends January 31st, 2070. The last FW 20 will be in 2069 as the resort will no longer exist in 2070 when 2070 rolls around.

 

[Jwaire]

I'll probably be dead when my RIV contract ends, so not sure I'll ever find out.

 

[Genie+]

We have Sept UY and I plan to borrow that last year of 2041 points for a trip prior to that Sept.

I could see them maybe offering people to flip the last years of their 2042 into a new contract. But who knows? Depends on what happens between now and then. What other DVC resorts get added. Park expansions. Transportation changes. How saturated is DVC leading up and then predicted to be directly after all the 2042 points go dark. That’s going to play into their strategies.

 

[_auroraborealis_]

They may restrict bank and borrow late in the contracts. Be prepared for that.

 

[tjkraz]

Assuming it s 2042 right now and contract is complete.
What happens - will they offer current owners to renew?
Start reselling that resort with high point value like a new listing?
or?

It hasn't happened yet--and won't happen for another ~17 years--so nobody knows for certain.

Don't expect any massive discount for current owners. Maybe something in line with today's direct purchase promotions. I don't see any benefit for Disney to offer even more aggressive promos. Especially not on resorts like BoardWalk and Beach Club which will be very popular when Disney looks to re-sell.

 

[maospt2]

They will want them to expire and whatever they do, they will want to sell them new, so they can then be offered with restrictions, leaving less original places for resale to stay in. This is a discussion my husband and I have had as we only have resale.

 

[zackiedawg]

My best guess would be to raise the point charts for new sales, and offer first right of purchase to existing owners...probably not at any discount - or minimal. One would think the least they could do is try to keep current owners in the game but get more money out of them...no reason to burn all bridges to current owners and just let them start over again from scratch. Just a simple notice that the contracts are coming to an end with early opportunity to buy back in (at the new point rates) before it opens to prospective new owners, also allowing a fairly seamless transition with banking and borrowing and keeping the same member and contract numbers.

 

[thanxfornoticin]

It'll be interesting to see what they decide. As mentioned, some of the 'sister' resorts also have different expirations, which could be very interesting - or OKW, which has some of the contracts 2042 and some 2057! They seem to have created a mess there! Fortunately, for us, by 2042 we won't be traveling to Disney as much due to age!!!

 

[icc2515]

Disney can't wait for these to expire. They will refurb the rooms at a quarter of the cost to build new and sell them for whatever the current going rate for points is. They keep these buildings in very good shape and why not, it doesn't cost them a penny to do so. I do think that they will sell off Vero and Hilton Head and pocket the money. I think that when SSR is up they will bulldoze the whole thing and expand Disney Springs, which is way too small for how crowded it gets. I think that they will also bulldoze OKW and build a new DVC resort tower. OKW and SSR use too much valuable land that can be put to better revenue making efforts. I think that they will keep Aulani and maybe make the whole thing a cash hotel. I doubt it will even be sold out by then.

On this same topic, when I read people question if the new Poly tower will be part of the old association I always think, of course it will be. It's not even a question in my mind. If they make it part of the original they get an expiration date 8 years earlier than a new association. That's huge and most will not even give it a second thought that they are paying full price for something that they get what 15% less time on.

 

[tom1944]

They may restrict bank and borrow late in the contracts. Be prepared for that.

I wonder if you could prepay dues and then be able to borrow.

 

[Genie+]

I wonder if you could prepay dues and then be able to borrow.

Without opening some other option, they’d have a hard time restricting borrowing at the end. Could they legally do it? Sure.

But the timing is bad to do something that so negatively impacts owners at that stage. Likely they’d have ambitions to capture new sales when 2042 points end. They’d seem like real jerks to tell Dec UY, “Yeah, you can’t have those points unless you all use them in these 2 very specific months.” The ramifications are many.

 

[aammtt20]

I would think for the last year of any resort, all owners would get their points on the same day to make it fair. That way everyone has an equal amount of time to use those points. So basically everyone becomes a February use year for that final year

 

[Rex1993]

It hasn't happened yet--and won't happen for another ~17 years--so nobody knows for certain.

Don't expect any massive discount for current owners. Maybe something in line with today's direct purchase promotions. I don't see any benefit for Disney to offer even more aggressive promos. Especially not on resorts like BoardWalk and Beach Club which will be very popular when Disney looks to re-sell.

The benefit is that Disney gets easy sales up front. If discounts are offered to existing owners, they feel special and fall into an urgency mindset prompting them to buy before the discount goes away. For DVD, it's basic finance: money today is worth more than money years from now.

 

[tjkraz]

The benefit is that Disney gets easy sales up front. If discounts are offered to existing owners, they feel special and fall into an urgency mindset prompting them to buy before the discount goes away. For DVD, it's basic finance: money today is worth more than money years from now.

Yet that's not how DVC has operated for the past decade or more. Aulani is the most obvious example. It has been selling for 14 years, yet a purchase of 150-200 points still costs over $200 each on a base price of $225. Even at other resorts, seemingly modest sales volumes have resulted in DVC most often taking a slow and steady sales approach. The primary reason is likely because those rooms have value as cash accommodations, and DVC isn't interested in accepting low profit margins on a one-time point purchase in exchange for volume. Cash guests paying for unsold Riviera rooms and FTW cabins is also "money today."

I have no doubt DVC will reach out to every single 2042 owner and make them some offer to buy into the program again. I don't think it will happen more than a year or so before expiration because Disney will go through some process of renovating / rebuilding most resorts, altering point charts, etc. Some resorts may not even return, or if they do, it will be with significant alterations. I also don't think it will be a massive discount--especially for resorts like BoardWalk, Beach Club and Boulder Ridge which will have an audience waiting to buy. Given the ages of some owners, I suspect DVC will offer to sell them a shorter term contract like SSR (12 years remaining), AKV or OKW (15 years left.)

 

[Sandisw]

Without opening some other option, they’d have a hard time restricting borrowing at the end. Could they legally do it? Sure.

But the timing is bad to do something that so negatively impacts owners at that stage. Likely they’d have ambitions to capture new sales when 2042 points end. They’d seem like real jerks to tell Dec UY, “Yeah, you can’t have those points unless you all use them in these 2 very specific months.” The ramifications are many.

Except, they have an obligation to balance against the actual rooms available for the points..,so that alone would require them to make it.

There is only one years worth of rooms available in a calendar year. Banking and borrowing works now because it’s a give in take. But, if all owners want to borrow in the last few years, it would create a big imbalance in thr points to rooom ratio.

One option that they might be able to do is make everyone’s last UY the Feb UY? That makes all points eligible for the year and could match?

The other option could be to increase home resort booking period to allow owners more time to book their resort…lots of other options too thst csn be done.