Change to Disney Vacation Club Membership Extras Eligibility and the Impact to You

Filed in Animal Kingdom, Disney Vacation Club, DVC, DVC Resale

39 Comments

Effective, February 25, 2018, for Members to be eligible for many of the “incidental benefits” or “extras” they must own and maintain a minimum of 75 points purchased directly from Disney Vacation Development, Inc.

It is important to note that all Members who are eligible for the incidental benefits as of February 24 will not be impacted by the 75 point requirement as long as they continue to meet the previously implemented requirements.

This change is a tweak to changes that came on April 4, 2016. Nearly two years ago, Disney Vacation Club made a change in which if you did not have any points purchased direct, you would not be eligible for many of the incidental benefits. Disney’s statement read, “new purchasers of Disney Vacation Club® ownership interests not purchased directly from Disney Vacation Development, Inc. will not have access to Membership Extras, including Member discounts on dining, shopping, Member-exclusive events, and certain special Membership offers.”  If you had joined prior to 4/4/16 you were grandfathered in to receiving the extras, and were not impacted.  For more information about those changes please see, “Less “Incidental Benefits” for New DVC Resale Members, But How Much Do These Incidentals Matter?”. 

How do the Incidental Benefits Changes Impact You?

Currently under contract with resale:  The most time sensitive impact is for anyone currently purchasing resale with plans to add-on 25 points or 50 points direct (if financing) to get all the incidental benefits.  For those individuals they may want to make a 50 point direct purchase prior to 2/25, if they do not want to purchase 75 points or more direct.

Thinking of joining soon and want the extras: For those thinking of eventually joining and wanting to purchase the majority of their points resale to get the savings and purchase 25-50 points to get all the incidental benefits, those individuals may want to consider purchasing 50 points direct first and do it prior to 2/25.  This is in contrast to what we typically recommend, which is purchasing resale first as it is easier to match up your use year when adding-on direct and the minimum add-on is 25 points for a cash purchase vs. a minimum of 50 points to join whether it be cash or finance.

Wanting to eventually join but not right away and you want the extras:  This change will impact you if you are joining after 2/25 by purchasing the majority of your points resale and getting the minimum amount direct for the extras.  For many, that were planning on financing their direct purchase, the change is fairly minimal, as the minimum to add-on for a finance purchase is 50 points.  So, going from 50 to 75 points is not a huge change.

For those that were planning on purchasing their direct add-on with cash, the change is a little more substantial, but not earth-shaking.  Lets say your plan is to join with around 200 points at Animal Kingdom, a very typical starting points package for many families and before to get the savings of resale and the extras of direct, you may have purchased 175 points resale and 25 points direct.  To accomplish the same task after 2/25, you could purchase 125 points resale and add-on 75 points direct.  While the savings may not be as strong as before, there are still significant savings to be realized as seen in the chart below:

Joining with 200 Points at Animal Kingdom with Receiving the Membership Extras:

Joining without Extras Joining Prior to 2/25 with Extras Joining After 2/25 with Extras Joining All Direct with Extras
Resale Price for Points Purchased* $21,600 $18,900 (175 pts.) $13,500 (125 pts.) $0
Direct Price Points Purchased** 0 $4,275 (25 pts.) $12,825 (75 pts.) $34,200
Total Price for 200 Points $21,600 $23,175 $26,325 $34,200
Savings  $12,600 $11,025 $7,875 $0

*Average resale listing price used for Animal Kingdom was $108/pt. obtained from disneydvcresale.com on 2/11/2018

**Direct price used for Animal Kingdom was $171/pt. Please see, Economics: Direct vs. Resale for a complete list of Disney direct prices

Disney's Animal Kingdom

Should I Purchase Disney Vacation Club with Reliance Upon Membership Extras?

The answer is no.  We’ve covered scenarios in this article about what to do based on an individual’s personal timeline for those that want the savings of resale and also want the incidental benefits.  Regardless of how important these extras are to anyone, they should keep in mind they are not guaranteed and Disney says it very clearly that a purchase should not be made with reliance on the continued availability of benefits. Additionally, over the years, various benefits have come and gone, one of most notable was complimentary valet parking for all DVC Members. This is an excerpt from the Membership Extras Acknowledgment and Disclosure Statement:

“The incidental benefits described in this Statement are offered to prospective purchasers of the vacation ownership plan. These benefits are available for your use a period of 3 years or less after the first date that the vacation ownership plan is available for your use. The availability of the incidental benefits may or may not be renewed or extended. You should not purchase an interest in the vacation ownership plan in reliance upon the continued availability or renewal or extension of these benefits.”

For many that were leaning towards adding-on direct to get the incidental benefits, this may give pause.  Certainly, Disney will increase direct sales for those that still add-on to get the extras, but many new Members that would have added-on direct may not, given the incidental benefits are not guaranteed, and effectively the price to get them has gone up.

Learn more about Buying and Selling DVC.

Comments

  • Jeanie
    May 20, 2018

    Hi!

    If I have to buy direct from Disney at least 75 points, and the only properties available are copper creek or Aulani, and then I buy the rest of my points resale at my preferred resort, which will be considered my home resort?
    The one with the most points (at resale) or the one with less points but bought directly from Disney?

    Thanks!

    • Nick Cotton
      May 20, 2018

      Jeanie, actually in this case you will have 2 Home Resorts. You would have 75 points of Home Resort Priority at Copper Creek or Aulani and you will have x amount of points of Home Resort of Priority at your preferred resort you purchase via resale.

      Also, keep in mind you can buy points at some other resorts direct too. This way, it may be possible to have all your points from the same resort buying both resale and direct. What is your preferred resort?

  • Kris Reisner
    May 14, 2018

    Does the perk for tables in wonderland come with resale? I have gotten conflicting reports about this and even gotten different responses from cast members. Don’t want to plan on getting it this summer to use for our three trips in a rolling year and then be left holding the bag

  • Barry Hull
    April 7, 2018

    We originally purchased 230 points at Saratoga Springs through a resale site prior to April 2016 so we get most of the incidental benefits associated with DVC. However, we have found it difficult to get reservations at other resorts even during slow times. So, we’d like to sell some of our Saratoga Springs points but keep enough to continue receiving the incidental benefits and buy into the Boardwalk resort which we prefer over Saratoga Springs. How many Saratoga Springs points do we need to keep to continue receiving the other benefits?

    • Nick Cotton
      April 7, 2018

      Barry, you would need to maintain at least 75 points. If the 230 points is all in one contract though, you will not be able to retain just 75 points as contracts cannot be split. However, if your 230 points consist of multiple contracts you would be able to sell one contract while keeping the other or others.

  • Amy B Krajci
    April 5, 2018

    Hi we just closed with you in March. Any idea if we can purchase discounted annual passes? Or is that an incidental?

    • Nick Cotton
      April 6, 2018

      Amy, the current discount on annual passes is an incidental benefit, and you would not be eligible for that discount without owning 75 points purchased directly through Disney.

  • Beatrice
    March 20, 2018

    I purchased 210 OKW points through re-sale in 2000. As of 02/28/18, the rules have changed as far as perks, I’m no longer grandfathered in and will no longer be entitled to discounts etc.?

    • Nick Cotton
      March 20, 2018

      Beatrice, if you purchased in 2000, you are grandfathered in.

  • Raymond
    March 19, 2018

    Out of curiosity, as resale buyers, do you know if the money we are paying in annual dues are helping pay for benefits for which we are ineligible? I am completely OK with not getting “extras” for not buying direct, but I am not OK if I am expected to pay toward something they will restrict me from using. Any insight?

    • Nick Cotton
      March 19, 2018

      Raymond, annual dues do not go towards “incidental benefits”, but rather they go to the maintenance and property taxes of your home resort.

  • Becca
    March 14, 2018

    I just saw on WDW News Today that Disney will be implementing a new policy requiring guests to pay for overnight parking at resorts, but DVC guests will not have to pay for parking as part of a new membership “perk”. Assuming this will not apply to resale purchases? We are currently waiting to close on a resale purchase (passed ROFR last week) and this is an upsetting development for us.

    • Nick Cotton
      March 14, 2018

      Becca, thanks for reaching out about this. In reading the official statement from Disney, there is no distinction between resale and direct when it comes to being charged for overnight parking. Additionally, part of your annual dues as a Member goes to maintaining the parking lot, so when you are paying for something out of your dues that is not an incidental benefit.

      • Becca
        March 14, 2018

        Thank you for your response, Nick. Obviously this announcement is very new, but there seems to be a lot of confusion and differing opinions out there about how this will work. Hopefully in the coming weeks and months there will be some clarity, but for our family the timing of this change is unsettling.

  • Carl stuckey
    February 27, 2018

    So thankful for the great experience I had purchasing my DVC resale threw you guys I was able to beat the dead line I purchased 50 point directly from Disney at copper creek Friday 23rd just filled out all the papers for the closing and the points are in my account 50 from this year that I rushed to bank and 50 coming in March

    • Nick Cotton
      February 28, 2018

      Carl, pleasure assisting you, and happy to read everything has worked out!

  • Jay
    February 20, 2018

    Do you think there’s any chance Disney would extend the years on properties like BC, BW or OKW? I know they did offer for OKW about 10 years ago or so but if they did that again, that’d be a much better perk than these extras. I would think Disney doesn’t want to lose out on dues so you’d think they would want to offer the extension.

    • Nick Cotton
      February 20, 2018

      Jay, to be clear the OKW extension is still ongoing in that an OKW contract that ends in 2042 can still be extended to 2057 for $25/pt (originally, it was $15/pt.). Will they offer this to other resorts? I think it is possible, but percentage of Members that extended OKW initially was low. I think a big reason for that was you are paying for something in 2007 that you will see until 2042, that is a long time to wait on the benefits of a purchase. My guess is that future extensions may be offered to other resorts, but they would come much closer to the expiration dates, maybe within 5-10 years of those dates so that the conversion rate would be much stronger.

      • Jay
        February 20, 2018

        Did not know that. We’re in the process of purchasing OKW through you fine folks and assuming it gets approved by Disney, will we have the opportunity to extend it?

        • Nick Cotton
          February 20, 2018

          Jay, you will have the opportunity to extend it directly through Disney for $25/pt.

          • Jay
            February 28, 2018

            Nick, I read the other day on a Disney forum that the extension was suspended in August of ’17 for OKW. Any truth to that or is the extension still available as you had stated?

            Thanks

          • Nick Cotton
            February 28, 2018

            Jay, Last year when we last inquired, DVC did confirm they were still offering the extension. We have not heard anything to the contrary, so if it has been suspended it would be news to us.

          • Jay
            February 20, 2018

            That is a pleasant surprise. Awesome. Thanks for the clarification.

  • Dan
    February 20, 2018

    Hello, I currently have a contract that is going through ROFR review, will I be able to purchase just 25 point add now prior to the 25th without having a finalized re-sale contract, when the current minimum purchase is 100 points direct?

    • Nick Cotton
      February 20, 2018

      Dan, if you are now going through ROFR you will not be able to purchase a 25 point add-on prior to the 25th as to be a Member your contract would have to be closed and transferred.

      Traditionally, DVC has made exceptions to sell new Master contracts as low as 50 points. If you want the benefits, you may want to look into purchasing a 50 point Master prior to 2/25, otherwise as stated in the blog you will need 75 points purchased direct to receive the benefits.

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