DVC Adopts Repugnant Timeshare Practice

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Originally Posted by Jerren

I wonder though, from the wording of the announcement it seems like it only impacts those who are not already DVC members. Meaning if I as a Member wanted to say buy A chunk of points from a 3rd party I may still be able to use them for the concierge collection, or at least bank/borrow enough points with mine and use the ones I got from the 3rd party for a room at WDW.

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If a current DVC member buys a resale contract on the secondary market (in other words, not directly from Disney), it's considered an entirely separate contract, not an "add on" to the member's existing contract.

So it's as if that DVC member were two different people, with two different DVC membership numbers. There is no such thing as "mixed points."

ALL timeshares are of little long-term value for most buyers. With the constant increasing of annual maintenance fees, there are probably few who actually get their money's worth. When people realize that they are losing value, they timeshare market will suffer.

There are already scams appearing that try to take advantage of those who are already in financial trouble (actually offering to take your timeshare off your hands for a small fee of a few thousand dollars).

There are some who are able to take full advantage of their timeshares, either by actually vacationing at them, or by some of the alternate uses such as depositing in timeshare swapping programs. But there are those who aren't as astute at managing their investment. And they are probably already looking for a way out.

Whatever your situation, beware of scams.

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Originally Posted by Orlando Sentinel

A Disney Vacation Club spokeswoman said customers who bought their time shares directly from Disney have requested such a change.

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Amazing, isn't it, how Disney justifies their little schemes by claiming the customers want it -- and the customers keep lining up, credit cards in hand, to buy whatever they're selling.

Makes you wonder who's conning whom.

DVC timeshares expire in 50 years or less. Whatever resale value will eventually reduce to nothing. At least you have the option of reselling your timeshare to Disney to get something back unlike other timeshare companies.

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Originally Posted by StevenW

DVC timeshares expire in 50 years or less. Whatever resale value will eventually reduce to nothing.

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Timeshares should sell on the secondary market (resale market) based on what buyers are willing to pay. Yes, it will typically be less than the seller paid to the developer (although I actually sold Old Key West DVC points at a profit around five years ago).

However, timeshare developers should not artificially decrease the value of a timeshare on the secondary market by reducing the usage options available to resale buyers. That hurts the good customer who bought from the developer — the very customer who is supposedly being rewarded by Disney's policy change.

Disney used to treat all DVC members exactly the same. It was one reason why DVC resale prices were among the highest in the industry. And it was one factor in how Disney led the industry in ethics and integrity.

Let's hope Disney doesn't slide more toward the dark side of the timeshare industry. Disney's recent policy change is minor compared to other practices that have given the timeshare industry a black eye.

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Originally Posted by StevenW

At least you have the option of reselling your timeshare to Disney to get something back unlike other timeshare companies.

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DVC members do not have the option of selling their "timeshare to Disney to get something back." DVC members can sell on the secondary market through timeshare resellers or on eBay. Then, once the seller has a firm offer from a buyer, Disney can grab the contract under right of first refusal (ROFR) if they want to. That's not any different than most other timeshare developers.

I stand corrected. I own a Hilton (HGVC) timeshare. I can sell it back to Hilton to get my money back. (You may wonder why. They are constantly selling to new and existing customers. They encourage upgrading to another property or increasing the weeks. They can do this when existing timeshares are back on the market and they get a cut on the sale. They usually buy at prices of the original sale, which are usually much less than current prices.) They don't have a ROFR. Disney's policies seem unnecessarily restrictive.

I guess all companies have different policies.

I can trade my week for a DVC week via RCI. I might have to do this someday although I've never been to the Orlando HGVC properties yet. I heard the newest DVC or HGVC properties are quite lush.

Certain benefits like trading for cruises or hotels can actual cost the member some substantial amount of money, which made me wonder why Disney is doing this. Converting timeshare days for hotel/cruises has a bad trading ratio. Unless you have lots of points, you'll have to fork over additional cost and fees. It is cheaper to just go to the timeshare or trade via RCI, and pay cash for hotels and cruises. There are plenty of discounts out there. The discounted prices are not considered when doing a timeshare conversion. They usually go by retail or rack rates.