TUG MEMBERS: Joining TUG does not automatically register you as a user of the TUG Bulletin Board. You must register yourself.


*ads are disabled when logged in as a member*
  1. This site uses cookies. By continuing to use this site, you are agreeing to our use of cookies. Learn More.
  2. The TUGBBS forums are completely free and open to the public and exist as the absolute best place for owners to get help and advice about their timeshares for more than 25 years!

    Join tens of thousands of other owners just like you here to get any and all Timeshare questions answered!
    Dismiss Notice
  3. TUG has now saved timeshare owners more than $11,000,000 dollars just by finding us in time to rescind a new Timeshare purchase! A truly incredible milestone!

    Read more here: TUG saves owners more than $11Million dollars
    Dismiss Notice
  4. Sign up to get the TUG Newsletter for free! Join tens of thousands of other owners who get this every week! Latest resort reviews and the most important topics discussed by owners during the week!
    Dismiss Notice
  5. TUG is trying out a new program that will trade you a TUG membership for a Timeshare resort review if you are an expired member, or even just a guest here on the forums!

    Read more here
    Dismiss Notice
  6. Our official "end my sales presentation early" T-shirts are available again! Also come with the option for a free membership extension with purchase to offset the cost!

    Read more Here
    Dismiss Notice
  7. Follow the TUG Member Banner as it travels the world on vacation with Timeshare owners! Also sign up to get the banner sent to you so you can submit a photo of your vacation with the banner to share with TUG! Banner Thread
    Dismiss Notice
  8. TUG has now joined Priceline.com as an affiliate!

    Members and guests who book air travel, rental cars and even Cruise Vacations thru TUG's priceline links will now support TUG in the process!

    Read more here
  9. A few of the most common links here on the forums for newbies and guests!
    Dismiss Notice

New Resale Restrictions - now confirmed by DVC

Discussion in 'Disney Vacation Club - DVC' started by ljmiii, Jan 6, 2019.

  1. ljmiii

    ljmiii TUG Member

    Joined:
    Mar 25, 2008
    Messages:
    595
    Likes Received:
    180
    Trophy Points:
    253
    Location:
    NY, NY
    Unconfirmed by DVC as of yet...but the Disney rumor mill is abuzz.

    Basically, the claim is that as of January 19th new resale contract buyers will not be able to use their points to stay at the Riviera Resort and any future DVC resorts.

    However, the news is far worse for prospective Riviera buyers. If they try to sell their contract the resale buyers will be unable to use their points to stay at ANY of the 14 existing resorts.

    I was playing with the idea of adding on at Riviera to own an EPCOT/HS resort that didn't expire in 2042. But no way would I drive that dog off the lot knowing its value would plummet so drastically.

    https://www.dvcresalemarket.com/blog/new-dvc-resale-restrictions-and-who-is-most-impacted/
     
    Last edited: Jan 6, 2019
  2. TheHolleys87

    TheHolleys87 TUG Member

    Joined:
    May 7, 2015
    Messages:
    91
    Likes Received:
    54
    Trophy Points:
    78
    Location:
    Texas
    Resorts Owned:
    DVC Boardwalk Villas, Shell Hawaii Club, Kona Coast II
    Yes, it will be interesting to see how this plays out. I’m wondering whether DVD is creating a DVC II for Riviera, Reflections and future resorts, with DVC II having an exchange agreement with DVC I that allows only direct buyers and grandfathered resale buyers of DVC I to exchange into DVC II and only direct DVC II buyers to exchange in to DVC I. I don’t think they have to do so, because each DVC resort is an independent condominium association which I would assume could establish its own exchange criteria, but it seems it would be easier if the new resorts were part of the same larger association going forward. A DVC II might also allow for resale buyers of DVC II resorts to exchange into future DVC II resorts as that system grows, even though they can’t exchange into DVC I.

    I feel that DH and I are fortunate to have owned and enjoyed DVC for 20+ years. We’re not in the market for more points, and we’re happy to stay at our home resort, so we can just sit back and watch what develops. I’m so glad we’re not making a decision about buying now!
     
  3. elaine

    elaine TUG Member

    Joined:
    Jun 8, 2005
    Messages:
    3,240
    Likes Received:
    177
    Trophy Points:
    298
    Location:
    DC
    based upon the new restrictions, I'd much rather have a resale "old" DVC resort that I can trade within the other 14 DVCs than Riviera, where resales are limited to R. I'm just fine with 14 "old" flavors. Plus, I can only imagine the points structure for R.
    I think most DVC direct purchasers will gloss over the resale restrictions, as they are dreaming of DVC vacations and not a exit strategy. Kinda sad, bc DVC held or increased value, so exit was not a financial hit--unlike most other TS. Likely no so anymore with that big restriction.
     
    Last edited: Jan 7, 2019
  4. TravelTime

    TravelTime TUG Member

    Joined:
    Mar 20, 2018
    Messages:
    2,120
    Likes Received:
    1,013
    Trophy Points:
    213
    I wonder if this will kill the resale prices for DVC. I would think it will now be a lot harder to sell DVC contracts and prices may plummet. I had been thinking of selling in a couple of years but now it is probably more valuable for me to keep my points and rent them out when I do not use them.

    According to DVC News:

    Effective January 19, 2019, new resale purchases for the fourteen current DVC properties can only be used at those 14 resorts. Resale points purchased after that date will not be eligible for reservations at Disney's Riviera Resort, Reflections, A Disney Lakeside Lodge or any other future Disney Vacation Club property.

    An official statement posted to DVCMember.com confirms this intent:

    Effective January 19, 2019, only Members who purchase directly from Disney will be able to use their Vacation Points at the 14 existing Disney Vacation Club Resorts or future Resorts—such as Disney’s Riviera Resort or Reflections – A Disney Lakeside Lodge. Resale contracts purchased for the existing 14 Disney Vacation Club Resorts will only be able to exchange Points into those 14 Resorts.

    This change does not apply to contracts purchased prior to January 19, 2019. Contracts gifted to family members will continue to have the same Resort access as before the ownership transfer.

    The eligibility rules for Membership Extras and RCI access remain unchanged.

    The Buena Vista Trading Company Disclosure Guide has been amended accordingly.

    https://dvcnews.com/index.php?optio...n-based-resale-restrictions&catid=29:policies
     
  5. TheHolleys87

    TheHolleys87 TUG Member

    Joined:
    May 7, 2015
    Messages:
    91
    Likes Received:
    54
    Trophy Points:
    78
    Location:
    Texas
    Resorts Owned:
    DVC Boardwalk Villas, Shell Hawaii Club, Kona Coast II
    It will be interesting to watch how this plays out, for sure. Since post-1/19/19 resale buyers will still be able to trade into the 14 existing resorts, I'm not sure how much of a detriment that will be to them.

    The big question in my mind is whether resale buyers at Riviera will be restricted to staying at Riviera, which is the current rumor but makes no sense in my mind because if Riviera owners can't trade out, then owners at other resorts can't trade in. So I'm wondering whether Riviera will be the first of the "DVC II" resorts which will trade among themselves (including those who buy resale at Riviera, Reflections and future resorts) and will also let direct and grandfathered DVC I owners trade in (allowing direct DVC II owners to trade into DVC I if they want to stay at one of the 14 original resorts). However, I have no idea what they're really going to do and am looking forward to finding out. And I am even more happy now that we have not been contemplating adding on anywhere!

    My big hope with Riviera is that our 300 BWV points will cover a couple or three nights in the rumored 2-person studios there!
     
    ljmiii likes this.
  6. TravelTime

    TravelTime TUG Member

    Joined:
    Mar 20, 2018
    Messages:
    2,120
    Likes Received:
    1,013
    Trophy Points:
    213
    As I read about the changes in the DVC model, I am thinking that this could be a model for what Marriott does when it integrates with Vistana.
     
  7. TravelTime

    TravelTime TUG Member

    Joined:
    Mar 20, 2018
    Messages:
    2,120
    Likes Received:
    1,013
    Trophy Points:
    213
    This is now confirmed. I logged into my DVC account and the message was posted there. The good thing is that resale purchasers of the original 14 resorts will still be able to internally exchange into those 14 resorts. Only the new resorts sold on the resale market will be limited to staying in their home resort. So I suspect this may make resales of the original 14 resorts more valuable than resales of the new resorts. This reminds me of the way Vistana distinguishes between mandatory and voluntary resorts. In effect, resales of the 14 original resorts would be “mandatory” resorts in the Vistana model.
     
    CalGalTraveler likes this.
  8. dioxide45

    dioxide45 TUG Review Crew: Veteran TUG Member

    Joined:
    May 20, 2006
    Messages:
    26,529
    Likes Received:
    1,874
    Trophy Points:
    649
    Location:
    Ohio
    Resorts Owned:
    Marriott's Grande Vista
    Marriott's Harbour Lake
    SVV - Bella
    SVV - Key West
    This kind of sounds like the Vistana mandatory vs voluntary model. The older Starwood built resorts are mandatory and must be in the VSN and can use StarOptions. Older Vistana built resorts are voluntary as are the newer built resorts. Seems that Riviera is going to be the equivalent to a voluntary resort in the Vistana model. Though somewhat different as future resale buyers at all the other resorts won't be able to exchange in. It seems like they are perhaps setting up a new exchange company/program to handle Riviera in order to lock out other resale buyers?

    I think this will negatively impact resale value at Riviera, allowing DVC to snap them up cheap through ROFR.
     
    GregT, ljmiii and TravelTime like this.
  9. TravelTime

    TravelTime TUG Member

    Joined:
    Mar 20, 2018
    Messages:
    2,120
    Likes Received:
    1,013
    Trophy Points:
    213
    Owners at Riviera and new resorts will have full privileges at all current and future resorts. Otherwise, who would want to buy at a new resort? I think this new program will make the 14 original resorts more in demand and definitely make the new resorts unattractive on the resale market.
     
  10. TravelTime

    TravelTime TUG Member

    Joined:
    Mar 20, 2018
    Messages:
    2,120
    Likes Received:
    1,013
    Trophy Points:
    213
    Do you know the history of why Vistana has manadaory and voluntary resorts? Were the mandatory resorts in existence before the others?
     
  11. dioxide45

    dioxide45 TUG Review Crew: Veteran TUG Member

    Joined:
    May 20, 2006
    Messages:
    26,529
    Likes Received:
    1,874
    Trophy Points:
    649
    Location:
    Ohio
    Resorts Owned:
    Marriott's Grande Vista
    Marriott's Harbour Lake
    SVV - Bella
    SVV - Key West
    Sapper and TravelTime like this.
  12. ljmiii

    ljmiii TUG Member

    Joined:
    Mar 25, 2008
    Messages:
    595
    Likes Received:
    180
    Trophy Points:
    253
    Location:
    NY, NY
    For the original 14 I don't think it will be much of an issue - it isn't as if Riviera or Reflections have anything going for them other than a better RTU year. But I expect that in a few years you'll be able to buy a Riviera resale contract for a song - it would be awful to find no availability for DVC points that only work at your home resort.
     
    TravelTime likes this.
  13. TravelTime

    TravelTime TUG Member

    Joined:
    Mar 20, 2018
    Messages:
    2,120
    Likes Received:
    1,013
    Trophy Points:
    213
    As I have been thinking about this, I agree with your assessment. I was worried when I first heard this news that I would lose money if/when I am ready to sell but I think the fact that resale buyers can still exchange into 14 resorts will help maintain the resale value for the original 14 resorts.

    I agree that the resale market for the new resorts is at risk and would certainly cause knowledgeable people to question buying at one if resale is on their mind. However, some people will not care since I assume Riviera and the new resorts will have different benefits than the original resorts in order to make the new resorts attractive. If they make the new benefits good enough, and the people buying are planning to use their points and not sell quickly, then the new system may be okay.

    I am glad they grandfathered in existing DVC owners since we will have the best of all worlds.
     
  14. ljmiii

    ljmiii TUG Member

    Joined:
    Mar 25, 2008
    Messages:
    595
    Likes Received:
    180
    Trophy Points:
    253
    Location:
    NY, NY
    Since the news broke I've been thinking about what might tempt me into buying at a new resort (other than the price) even if a resale buyer could only book at that resort. And really it came down to the old favorites...location, location, and location. So...

    If the rumored hotel/resort at the front entrance to EPCOT was DVC I might buy there. Or if they built one with a 'back entrance' into AK. Or better yet a Star Wars themed one with a 'back entrance' into Galaxy's Edge at HS. But right now they have...

    Riviera - All the themeing of BLT without any of the convenience of walking to the Magic Kingdom. Or access to the Contemporary and the other Monorail resorts. But we do have an enclosed, non-A/C'd Skyride!

    Reflections - As you look over to the ghost of Discovery Island from the grave of River Country you can reflect on Disney's desperate need for a new theme park. But we built this instead - so enjoy our newest Lodge on Bay Lake. Kind of like the first one except farther away.
     
    Crafty71, TravelTime and amycurl like this.
  15. montygz

    montygz TUG Member

    Joined:
    Feb 27, 2012
    Messages:
    129
    Likes Received:
    49
    Trophy Points:
    138
    It could be the most profitable DVC resort ever for Disney. They will be able to flip points there via ROFR for years.
     
    ljmiii likes this.
  16. amycurl

    amycurl TUG Member

    Joined:
    Sep 26, 2011
    Messages:
    1,255
    Likes Received:
    361
    Trophy Points:
    194
    Location:
    Greensboro, NC
    “The grave of River Country...” HA!! I cannot love this post enough...


    Sent from my iPad using Tapatalk
     
  17. Dean

    Dean TUG Member

    Joined:
    Jun 7, 2005
    Messages:
    3,971
    Likes Received:
    418
    Trophy Points:
    318
    Unlikely, it might boost them temporarily but likely won't hurt them for some time. Eventually that may or may not change but I doubt it'll have much impact. Very few people even consider resale before buying and very few worry about an exist strategy (right or wrong).

    It's really similar in many ways to when Marriott started the Trust system.
     
    TheHolleys87 likes this.
  18. bogey21

    bogey21 TUG Member

    Joined:
    Jun 8, 2005
    Messages:
    6,457
    Likes Received:
    1,123
    Trophy Points:
    449
    Location:
    Fort Worth, Texas
    What I don't like is the way those who sell us Timeshare Weeks, entice us with airline miles, frequent stayer programs or whatever change the rules and devalue their product. When Marriott did this to me many, many years ago I sold my 4 Marriott Weeks. When Southwest Airlines switched from Segments to Miles, I stopped flying them. When Hilton devalued their frequent stayer program I stopped staying at Hilton hotels. I won't bore you with other examples. I know they don't care but I do...

    George
     
    ljmiii likes this.
  19. TravelTime

    TravelTime TUG Member

    Joined:
    Mar 20, 2018
    Messages:
    2,120
    Likes Received:
    1,013
    Trophy Points:
    213
    Pretty soon you will have no place to go...LOL (just kidding)
     
  20. RX8

    RX8 TUG Member

    Joined:
    May 5, 2011
    Messages:
    1,661
    Likes Received:
    478
    Trophy Points:
    193
    Two thoughts

    #1 did DVC swipe the Westgate handbook on how to devalue resale contracts? What’s next, hiding the documents in the seam of a binder?

    #2 this may make it more difficult to book all other resorts at the 7 month mark. While all Riviera DVC direct owners be able to use their points at the other resorts only select DVC owners will be able to use their points at Riviera. Therefore, more people competing for the other existing 14 resorts.
     
    Panina likes this.
  21. nomoretslt

    nomoretslt Guest

    Joined:
    Aug 2, 2017
    Messages:
    47
    Likes Received:
    60
    Trophy Points:
    28
    LOL...best thing I've read in a long time. Reflections looks hideous IMO....nothing like the lodge. River Country was so much fun, but then they had that amoeba problem. Discovery Island was such a gem...loved that place. Now its a haven for scary giant black bird creatures. I keep wondering when they will do something with that place. Would make a cool restaurant location.
     
  22. Panina

    Panina TUG Review Crew: Elite TUG Member

    Joined:
    Jul 13, 2015
    Messages:
    3,501
    Likes Received:
    3,622
    Trophy Points:
    298
    Location:
    USA
    Resorts Owned:
    Hgvc Eagles Nest, Hgvc Surf Club, Hgvc Indian River, Hgvc Anderson, Sunrise Bay & Club, Chetola, Gulf Tides, Jade Tree Cove, Banyan Resort, Blue Ridge Village
    I have been tempted to buy DVC, glad I didn’t. It’s a shame, they have overall been the best to their members. It does look like the start of devaluing resale contracts and booking will at some point be harder for some.
     
    alexadeparis likes this.
  23. TravelTime

    TravelTime TUG Member

    Joined:
    Mar 20, 2018
    Messages:
    2,120
    Likes Received:
    1,013
    Trophy Points:
    213
    I think Marriott started the devaluation trend in 2010. I imagine the next in line for devaluation will be Vistana and Hyatt.

    OTOH, maybe this is what happens when the resale market gets too strong. The developers find ways to kill it.

    However, this may present future resale buying opportunities for people who would not buy at current resale or developer prices.
     
  24. Jason245

    Jason245 TUG Review Crew: Veteran TUG Member

    Joined:
    Jul 14, 2014
    Messages:
    1,861
    Likes Received:
    80
    Trophy Points:
    108
    Personally I think this is just a function of expiration dates of contracts. If memory serves me.. arnt most of the original 14 over or nearly over the half way point?

    I am guessing/hoping that they are going to start letting the floor fall on resale prices on those since they are going to be getting them all back anyways within 25 years..

    At which point they can sell them brand new all over again as part of their new system for the resorts they chose

    I know that a number of the die hard original owners were opposed to Dvc locations outside of the vicinity of parks trading into park resorts... this is the "fix"

    Sent from my SM-N950U using Tapatalk
     
  25. RX8

    RX8 TUG Member

    Joined:
    May 5, 2011
    Messages:
    1,661
    Likes Received:
    478
    Trophy Points:
    193
    With a strong resale market leading to higher resale prices, the developer wins by happy customers and smaller spread between resale and retail prices. DVC likely has the highest number of experienced and knowledgeable timeshare owners who repeatedly buy direct from DVC. They don’t mind the “small” premium for the direct perks. These restrictions, along with the upcoming direct price increases, likely hurts the resale values and diminishes their direct customer base.
     
    Last edited: Jan 9, 2019

Share This Page