# Disney Vacation Club feeling the pinch in this economy



## TUGBrian (Dec 15, 2009)

http://thedailydisney.com/blog/2009...mpact-on-disneys-time-share-business-in-2009/


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## timeos2 (Dec 15, 2009)

*Selling means saying how low can it go*

There isn't a single timeshare for sale today worth developer price. Not one. Not even the hallowed Disney. Plus reading way down that article there is a fair warning that even the ROFR which Disney is one of the few (only?) one left using that gives the appearance of (but not the actual) support of resale pricing may be ended as they are suffering too many defaults to take them all back as they cannot get securitization of the money going out for sales, construction or buy backs.  

It is a great time to be a timeshare resale buyer IF you know what you want and can get the value out of the annual fees. There has never been a worse time to be a seller of ANY timeshare as 10% of purchase price has to be seen as a GREAT sale price!   Most can't sell for that. 

Even the former stars such as Starwood, Marriott, Hilton, DVC and others that had done a little to at least make it appear they had some resale value (dubious as it was) are now on the skids.  Those who paid the big resale prices thinking they would be protected are now finding out that there is no such thing in timeshare.


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## logan115 (Dec 15, 2009)

For once procrastination saved me money.  TUG and Mouseowners.com also deserve some credit for those savings.  Thought about buying DVC in 2007/08 after renting points for trips before finally biting the bullet and taking the plunge in 2009.  

I know we didn't buy the bottom when we bought in March of this year, but we bought at a pretty good price (IMO) for the size of our contract, 160 SSR points for $68.  Also had a years worth of banked points which I rented out for $11 so our net cost is closer to $57 which was nice.

Can/will prices go down from here ? Who knows.  To be honest I have no intention of selling for at least 10 years, and need a few more points to accomodate us as the kids grow up.  So call me selfish, but as a buyer (not owner) I wouldn't be upset to see prices decline a bit more  

Chris

Chris


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## littlestar (Dec 15, 2009)

It's a great time to pick up some resale DVC points at a bargain. We added 100 more SSR points last spring for $71 a point. That sure beat BLT at $115 a point direct from Disney.  I've heard that some people have even squeaked through resale SSR points at $65 to $68 a point - but Disney has been busy buying some of those back here lately according to the ROFR thread over on the Dis boards. I consider resale SSR points with the 2054 ending date to be the best bargain out there for DVC points.

It sounds like DVC is not making the money upfront on selling those mortgages like they once did. That's got to be true for the whole industry, though. It makes you wonder what that will mean for new resort development. 

We recently got brave enough to purchase some Wyndham points resale since the prices have basically went to nothing. A few years ago I would have probably paid $2,500 for the Wyndham points I just recently picked up resale. My only fear is that the fees from non-paying owners will mean skyrocketing maintenance fees. I wish our present administration in Washington would concentrate more on getting people back to work and put some of this other potential job killing stuff on the back burner for right now (healthcare reform, cap and trade).  

When we received our Marriott dues statement, our home resort HOA had a note with the dues statement asking us to pay by direct debit or check to save our HOA a little more. Even if it only saves $15.00 dollars, when you multiply that by many owners it should help.


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## Carl D (Dec 15, 2009)

Yes, the economy affects everything, including Disney/DVC.
I just find it hard to believe that some pounce on that as a way to bash DVC.


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## tlwmkw (Dec 16, 2009)

Carl D,

Who's bashing Disney?  It's just part of the current financial reality that they are also suffering, which has allowed some people to buy points at lower prices.

tlwmkw


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## ERNIE111 (Mar 16, 2010)

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## icydog (Mar 16, 2010)

I love DVC and pretty much everything Disney but the fact is the company is not insulated from our failing economy.  I think a lot of you missed something though-- since Disney is holding the mortgages themselves they stand to make more in the long run rather than packaging them for resale.  It'll take a few years but at 12% for a 10 year mortgage they will make a ton of money.  They still have NOT stopped development and that's the best sign of all.


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## Twinkstarr (Mar 17, 2010)

Well I just got my 2nd thank you note from Disney for renewing our annual passes back in November.


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## toontoy (Mar 17, 2010)

I would say that Disney's sales are higher than the traditional systems even in this economy. Disney is still using the ROFR and most others are not. This is in part due to the resorts locations  and to not devalue central reservations I am sure. 

Even in this economy Bay Lake tower is selling well and its costly, its more than a Marriott 2 bedroom and Hilton. I priced them both out and noticed Disney doesn't even really give that good of an incentive, with hilton you get bonuses to equal free nights and HHonors and things. (they tried to get me to upgrade and purchase more but like everyone else right now I am holding off and waiting.) 

I do think that they are doing pretty well. They haven't stopped building (like Marriott) and haven't let the floor go out with resales, all but Hilton head island & vero beach. I do have to wonder though about those 2 they are the least popular, as to not being on a Disney theme park area. How are the Hawaii sales going to be and how popular is the resort going to be, thats my wonder.

All in all I can see why disney's sales are down so much but see a higher ROFR still and them building resorts which is a plus to make the vacation club grow.


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## glypnirsgirl (Mar 22, 2010)

*still love me some DVC*

I love my DVC points. I never did anything with the except go to WDW. That is still all I do with them. I own at OKW and SSR. Love both of those resorts. Used my RCI points to trade into OKW (yes, I love it so much that I have used all of my points) and then saw on the sightings board that Beach Club Villas was available as a RCI weeks trade so traded in to BCV for a week. I had a few SSR points that I could borrow so wanted to add Friday and Saturday nights - it would use 100 of my DVC points for those two nights!!!

So now I am looking at more RCI contracts for trading into DVC!

And I am still glad I bought my points,  I have purchased all directly from DVC and I am still glad.

Elaine


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## martin1 (Mar 27, 2010)

i also love my DVC point but sometime it gives me irritation when i want to play it in one single player but its play in multi mode...i just hate this type of function..anyways hope i will soon its solution.
anyone knows about it then please share with us


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## icydog (Mar 27, 2010)

martin1 said:


> i also love my DVC point but sometime it gives me irritation when i want to play it in one single player but its play in multi mode...i just hate this type of function..anyways hope i will soon its solution.
> anyone knows about it then please share with us



HUH?  I don't understand what you are trying to say.


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## spiceycat (Mar 28, 2010)

definitely still love DVC.

Sold OKW to buy at BLT. any regrets not a single one.
the main reason I brought BLT was to walk to the MK. that is one of the reasons they are still selling.

it has done something I like - Westgate does not bother you every day several times a day. They actually leave you alone.

was one that was forced to take retirement. waiting until I move to Florida to get a another job. that say don't need as much money - because of my retirement and got a discount on health care.

w/o being retired could not move to Florida. Florida houses will never be this low again (my opinion). so despite me not working - this is a good time.

now one reason I sold OKW - was that DVC was not Rofr it like it did before. It let some get back at $68 - before last year think it was $72.

really don't think that will happen to BLT - but who knows what the future will be.


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## rickandcindy23 (Mar 28, 2010)

We were surprised to overhear a conversation between a salesperson at the booth in Downtown Disney and a potential customer this past February.  The woman was telling the salesman that she was considering resale, and he was so negative!  He told her that resale isn't the way to go, and that many people are sorry they buy that way, because they find out there are back fees owed, or that the loan wasn't paid off in full, so they pay more than they thought they would.  It was pure bunk!  

I guess DVC salespeople occasionally get negative, and maybe the economy is to blame.


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## Eric (Mar 28, 2010)

Lets see, can back fees be owed ? yes Could there be a lean , yes ?... are there ways to buy resale and get around that  ? , yes.. but the Disney person wasn't lying... You do know the purpose of a salesperson, don't you ?
telling someone why they shouldn't buy thier product is probably not good for advancement... you make your product sound better than another product and hoepfully don't lie about it. I would give this person a 10 !! negative ? geez..  grow up ... 



rickandcindy23 said:


> We were surprised to overhear a conversation between a salesperson at the booth in Downtown Disney and a potential customer this past February.  The woman was telling the salesman that she was considering resale, and he was so negative!  He told her that resale isn't the way to go, and that many people are sorry they buy that way, because they find out there are back fees owed, or that the loan wasn't paid off in full, so they pay more than they thought they would.  It was pure bunk!
> 
> I guess DVC salespeople occasionally get negative, and maybe the economy is to blame.


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## spiceycat (Mar 29, 2010)

the people at these booths are not sales guide. they are just to get you into see the sales guide. so yea, they are definitely against anything other than DVC selling to you.

if you buy resale from a good resalers - then you should have no worries. they make sure all that is taken care of - it is part of their job.

that say when sold my OKW made a profit - not a big one - but still a profit.

the best time to buy at DVC is when DVC first part selling. the only expection to this is SSR. the price has gone down on it.

you are too late for BLT or AKV - they have been out too long - and raised their prices several times. all the others even resale are selling more than when DVC started selling them.

don't think you can say that about any other timeshare.


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## JimIg23 (Mar 30, 2010)

tlwmkw said:


> Carl D,
> 
> Who's bashing Disney?  It's just part of the current financial reality that they are also suffering, which has allowed some people to buy points at lower prices.
> 
> tlwmkw



Every few months, I check to see what some of the resale prices are for disney.  I have not seen them go down very much.  Has there been sales on Ebay for $1 or $5 a point or something that extreme?  I dont see that much movement down.


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