Direct Purchase benefits announced!

[cel_disney]

Wow! I am really pleased as I think this is way better than some of the Tiered point ideas that were floating around the Dis!!

We have 160 direct and I dont expect to use them for most of the restricted options. We may purchase an extra 50 points sometime but I'd have no issue doing that resale if it was cost effective as most - if not all - of our trips will be to the DVC properties!

I think DVC did a good job with this!!!

 

[perfectparanoia]

I think it is pretty bizarre myself. Who are they trying to attract from not using resale? Most of us know what are a 'good' use of our points (and the limitations are the typical 'bad' use).

So, they are trying to give a reason for people to buy through them the first time around? Because this will not have a big effect on those of us with addonitis (who I suspect buy most of the resale contracts as it is).

 

[palaemon]

It will be a consideration for us if we decide to add on. Not so much for the loss in places to go but if it effects the resale value if we needed to sell the points.

This is my thought EXACTLY. It will not affect me while using my points, but it will if I have to sell.

 

[palaemon]

When someone finds out if/how this affects member point transfers, let me know. I don't ever plan on using points that I have transfered in for anything excepy WDW/DL/AHV stays, but some people might.

 

[Dizny Dad]

Can't help but reflect on the comment by JimMIA, here and on a few other threads - Perks come and go!

This also begins the separation of members with "those points" and the Direct Buy Members. Too bad.

This is just the beginning; once recognized as "those points", slowly things change and we begin to accept it in small bites.

To paraphrase Pastor Martin Niemoller, First they came for my cruise perks, but I didn't speak up because my family doesn't cruise . . . .

 

[OldsDr]

I sold my contract a couple of years ago and have been looking at buying back in, both direct and on resale.

People are saying this really doesn’t affect me and all of that, but some day it might. If I remember correctly the only thing really guaranteed is the right to use your points at your home resort. In other words being able to use your VWL points at BWV is a perk that can be taken away.

So although this change may not affect many, It would not affect me because I only stay at WDW, what’s to say this is not just the first step. If they ever start making deep cuts into the re-sale value, such as having to stay at your home resort it will significantly affect resale values, and affect anyone who has an unforeseen circumstance that forces them to look at selling, both in money recouped and speed of the sale.

When I bought I never intended to sell, but when I had to I was glad the value was still there. I hope this is not just the first step. I am seriously concerned about buying new or resale, because if they keep taking away from the value of re-sales a big part of what I liked about DVC is gone.

 

[tjkraz]

I think it is pretty bizarre myself. Who are they trying to attract from not using resale? Most of us know what are a 'good' use of our points (and the limitations are the typical 'bad' use).

So, they are trying to give a reason for people to buy through them the first time around? Because this will not have a big effect on those of us with addonitis (who I suspect buy most of the resale contracts as it is).

Consider the prospective members touring at one of the sales centers. You can break them down into three categories:

1. Those who buy immediately. Having fun on their trip...want to come back over and over...they can afford DVC so they immediately buy.

2. Those who conclude the tour with no interest in buying.

3. Those who are intrigued but want to do more research.

This move is about going after #3 more aggressively. As soon as one begins researching DVC, one of the first things to come out is the resale market. Many will still buy direct because of the immediacy, easy financing or narrow margin in cost differential. But certainly DVC is losing some sales to resale. And it's undoubtedly gotten worse since resale prices dropped dramatically about 2 years ago.

When asked by a prospect "why should I buy direct instead of resale", this policy change gives the DVC salesperson another "because..."

I don't think it will have a dramatic impact on resale values or the attitudes of buyers. But it's a policy change which costs DVC virtually nothing to implement. Even if it drives up sales 3-4%, it will have done its job.

Telling a buyer that they would completely lose access to things like DCL or international hotels is a pretty big carrot to dangle. Common thinking on the forums is that DCL and others are not good values. But there certainly is demand for these destinations on points. Back in August DVC was forced to impose a 13 month moratorium on DCL bookings due to excess demand. So at the very least, those interested in using points for destinations in the Disney Collection and Concierge Collection will have less competition to worry about.

 

[FindingFigment]

The thing I'm confused about is this seems to be the opposite of what was reported after the member meeting in December. I thought it was reported that Jim Lewis was asked directly if there would be a change to distinguish between direct vs. resale and his response was they were not, but that they were working on some kind of tiered benefit for members with larger contracts?

Can someone please clarify? I'm just going on memory and didn't take the time to look it up since there are so many threads on that topic and I'm unable to go through them all right now.

Seems everyone has decided they did this instead of the tiered whereas it sounds like they were misleading about direct vs. resale but could very well STILL be working on the other.

Just curious.

 

[DVC SSR Owner]

I wonder if DVD will send out 2 different member planning books from now on.

 

[Davids-Coco]

My question is what will happen when VGC is fully booked? Currently we can use our points at Disneyland hotel, etc. But it appears that this option will only be reserved for direct-buy customers. Without multiple DVC choices available, I'm not sure what this means for us. (We have been considering a resale add on for a while)

 

[LouisianaDisneyFan]

The thing I'm confused about is this seems to be the opposite of what was reported after the member meeting in December. I thought it was reported that Jim Lewis was asked directly if there would be a change to distinguish between direct vs. resale and his response was they were not, but that they were working on some kind of tiered benefit for members with larger contracts?

Are the minutes of this meeting posted somewhere on DVCMember.com? I would think all members would have access to them, but I'm not sure where to look.

Thanks for any info!
Evey =)

 

[Alabare88]

I agree with Davids-Coco, what would happen when VGC is booked up, the other hotels in Disneyland are part of the collection that you lose when you buy Resale.

Coming from Asia originally, I would also like to visit Disneyland in Hong Kong, the new one being built in Shanghai, not to mention DisneySea in Japan.

 

[JWG]

I really see this as trying to protect these perks for members more than anything. Look at the Cruise debacle this summer as an example as well as the escalating and outlandish costs to trade for Concierge, AbD and such. I think too many people were accumulating too many points with a willingness to trade out causing stress on the system, preventing other groups from wanting to make perks availabe (at mildly reasonable rates) to DVC.

I know we say this won't impact most of us here and that we know the value of a point and not to use it for these purposes anyway, etc., etc. But, remember how many pages that DCL thread was? It started a a cosmic shift around here.

So, while it will likely help drive up direct purchases some, I think more importantly, it was the reaction and solution to the speed and volume at which people were trading out.

 

[tjkraz]

The thing I'm confused about is this seems to be the opposite of what was reported after the member meeting in December. I thought it was reported that Jim Lewis was asked directly if there would be a change to distinguish between direct vs. resale and his response was they were not, but that they were working on some kind of tiered benefit for members with larger contracts?

I don't believe any questions were asked about a direct/resale differentiation. One member asked about additional benefits for those who own a lot of points and that's what lead to Lewis' comments. He did claim that they are working on some sort of benefit package for those who own a lot of points, so it must be a separate offering.

My question is what will happen when VGC is fully booked? Currently we can use our points at Disneyland hotel, etc. But it appears that this option will only be reserved for direct-buy customers. Without multiple DVC choices available, I'm not sure what this means for us. (We have been considering a resale add on for a while)

If VGC is full, resale buyers (after 3/20) simply won't be able to book at DL on points. Same is true of Walt Disney World, even though there are more destinations available. Currently members can choose to bite the proverbial bullet and spend points on a Moderate, Poly or Grand Flo if all of the DVCs are full. It does happen. Going forward that won't be an option for impacted resale buyers.

 

[LouisianaDisneyFan]

Coming from Asia originally, I would also like to visit Disneyland in Hong Kong, the new one being built in Shanghai, not to mention DisneySea in Japan.

One day, we would also like to go to one of the Asian resorts... though I can't see that dream being realized anytime soon. Luckily, we do have two direct contracts that we could bank and borrow with for a trip like that, and then use our resale points for a Disney trip during that period.

This will make the transfer process a bit more complicated if you are looking for enough direct points for one of these trips. I suppose the safest way to verify you will be able to use the points as you wish once they are transferred is to look up the deed of the owner on the OCC site to verify that it was direct (DVD as the grantee) or closed on or before March 20, 2011. One more snafu to avoid!

 

[Davids-Coco]

Well, trades carry their own weight too... transfers will assumably carry their own restrictions based on how the owner acquired the points. I'm not sure if it will make an impact specific travelers.

 

[KAT4DISNEY]

A testing of the waters.........

 

[Caren]

I just made an offer, and I did knock it down a few dollars a point based on this info. I also am going to buy more points than I originally intended (150 instead of 100).

Funny, we were on the verge of buying resale, too, but decided on this information to buy fewer points, thinking that we'll probably get a much better deal next year.

 

[Havana]

We just signed our contracts Monday for a resale. I wonder how this will play out now ... if we will make it by March 20th.

 

[LouisianaDisneyFan]

A testing of the waters.........

Probably. I'm sure Disney monitors these boards as well as others, and they are aware that many owners already know the mantra: "Buy where you want to stay." I've seen this advice given on countless occasions when someone asked a question about "Which resort?" We're one step closer to that having been the best advice I ever received! BTW, thank you to all of you long-time DISboard members who consistently post this advice to newbies. When you point out the caveats, you're truly helping us all!!!