Every action has a reaction. Thanks, Newton! In the case of DVC rumors, every one has a reason behind it. Over the 25+ years of being DVC members, we’ve learned that more often than not DVC rumors are all connected. At least in some way, shape, or form. Recently, a variety of rumors and adjustments to the DVC website have popped-up and it got us thinking. What’s the connection between them all. Alright, we got our pens in hand, let’s see if we can connect the dots between all these DVC rumors!
The Good To Know
Motivation. Every action has some type of motivation behind it. For our most recent DVC rumors, we believe the motivation behind them stems from the resale of DVC points. After speaking with a variety of current and former DVC agents we learned Disney Vacation Club is focused on minimizing one aspect of the DVC community, the reselling of points. Or otherwise known as the DVC resale market. A resale is when a DVC member decides to sell their allotment points and the remaining years of their DVC membership to someone else, through a broker. This can be done, as DVC points are recognized as real estate. Similar to selling your house.
Disney Vacation Club is looking at minimizing the resale market for a variety of reasons, but the main one is the devaluing of points. More often than not, points are sold at a lower price per point when compared to the retail market value. For example, Disney Vacation is currently selling points to Disney’s Copper Creek Villas for $220 per point. Whereas, you could buy resale Copper Creek points for about $145 per point within the resale community. Additionally, in Disney Vacation Club’s eye, the resale market is taking away from potential sales of the most current resorts.
The First Dot
New rules! On January 19, 2019, news broke on the new rules around purchasing resale contracts. The change centered around how DVC members who purchased resale points could book resorts. Basically, Disney Vacation Club drew a line in the sand and stated from this date forward anyone who purchased a resale contract would fall into one of the following categories:
- The original 14 DVC Resorts
- Anything new resorts added after and including Disney’s Riviera Resort
The category was determined by the home resort of the resale contract. For example, if you bought Boardwalk Resort points, then you would fall into the original 14 DVC resorts for booking options. There was one exception and that was if a member had already purchased a minimum of 100 points directly through Disney Vacation Club, then the rule did not apply.
The Second Dot
Website updates! On July 29, 2020, in the Disney Vacation Club newsletter members learned of a new way to buy points. For many years it was known that you could buy resale points directly through Disney Vacation Club, but it was never advertised or heavily promoted by the DVC agents. While this is no longer the case. The new way to buy points for previously sold-out resorts is front and center on the Disney Vacation Club website via their new tool. This tool shows members the price per point and allows them to request points at all of the previously sold resorts. Additionally, the points will have all the perks associated with buying directly through Disney. For more information on the DVC perks, please check out the following article.
The Third Dot
The return of the Right of First Refusal. Or, better known as RoFR. Every Disney Vacation Club contract includes language that allows Disney the ability to buy back your points if the member decides to sell their membership. Every time a resale purchase is made it is sent to Disney first and Disney has 30 days to decide if they want to buy back the points at the offered price or let the resale purchase go through. It’s an unwritten rule that if the resale is for a current member, Disney will most likely let the transaction happen. For non-members, it can a little bit more of a coin flip.
Rumor has it that recently Disney Vacation Club has been invoking their RoFR more often. That’s right, they are buying back contracts at a higher rate than previously.
Four And Final Dot
Upping the minimum! At the time of writing, it has not been confirmed by Disney Vacation Club, but one of the biggest DVC rumors is the minimum number of points to qualify for the membership benefits (like Moonlight Magic, discounts, etc.) will increase to 125 points. Over the last 5 years, we’ve seen the minimum quickly increase from 75 points to 100 points and now potentially 125 points. It should be noted that the minimum is not associated with any type of minimum purchase requirement, it is only associated with the membership benefit extras. And, only impacts new purchases going forward.
The writing is on the wall. At least that is what we’re thinking in the DVC Duo house. Disney Vacation Club seems to be making a concerted effort to bring the majority of the DVC resale market in house. With the launch of the website and the potential upping of the minimum, it is clear they are looking to deter people from the resale market option, especially potential new members. To us, it makes a lot of sense, especially since it looks like they will be slowing down the addition of new DVC resorts in the short term. Ultimately, time will tell how everything plays out. For now, we think we’re safe to say we’ve connected all the dots around the recent DVC rumors!
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