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

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

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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.

Comments

  • 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 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.

  • Mark
    February 18, 2018

    Greatly appreciate you sharing your insight with us.

    • Nick Cotton
      February 18, 2018

      Mark, thank you for your feedback.

  • Vinny
    February 14, 2018

    Hi Nick- we purchased 300 pts resale 5/2017, then 25 add on direct from DVD in 10/2017. If I’m understanding correctly, we’re grandfathered in to the incidental benefits and need not purchase another 50? Thanks in advance!

    • Nick Cotton
      February 14, 2018

      Vinny, that is correct based on the statement from Disney.

  • Mark
    February 14, 2018

    I echo Becca’s curiosity . . . How will this change affect overall resale prices and inventory?

    • Nick Cotton
      February 14, 2018

      So far (which has only been a few days) it hasn’t had any negative affect on resale prices or demand, almost the opposite actually. The most common feedback we’ve had from clients is just dropping the idea of a direct add-on all together. At 25 points, some Members would justify it, but at 75 points it seems less are justifying it. But with more time, the market will certainly provide a much clearer answer.

  • Jay
    February 14, 2018

    Membership Extras would have been a nice to have but I don’t feel they take away from having a good DVC experience. We’re going with your resale options (just in the process now), and weighed getting the extra points direct but we felt the extra finances of it outweighed the benefits. Especially when the timing is off for us on getting 25 points so having to get 75 points makes it even more unattractive to us.

    As long as we can book any DVC property in FL and go to Hawaii, resale works for us. So it comes down to what’s important to the individual and what they can live without.

    Great blog btw.

    • Nick Cotton
      February 14, 2018

      Jay – I appreciate your thoughts. I always emphasize the key with deciding whether to join DVC or not, is the ability to book DVC Villas and save money on those stays. Anything outside of that should not be a deciding factor as it is not guaranteed. If you are making decisions based on things that can come and go you are potentially setting yourself up for disappointment later.

  • Kris
    February 13, 2018

    How likely is it though that Disney will sell 75 points at the resort you want to make you home? It’s a big risk to take and if they won’t do it then you are stuck

    • Nick Cotton
      February 14, 2018

      Kris, Disney will typically wait list you for many resorts if they don’t have it at the time you request it.

  • Eugenio Maqueo
    February 12, 2018

    Hi, we already owned a resales contract and were thinking of buying another one soon. the question i have since our original contract was on the books prior to these date. should we be able to still qualify for extras with a 25 point direct purchase after the 2/25 date? this will change our approach of what we want to buy.

    Thank you

    • Nick Cotton
      February 12, 2018

      Eugenio, if you do not own a direct contract and your resale purchase was not prior to 4/4/16, then if you purchase a direct contract after 2/25, it would need to be 75 points to qualify. Or, you could add-on 25 points now, prior to 2/25 to qualify. If you already own a direct contract or if your resale contract was purchased prior to 4/4/16 you are already grandfathered in to receiving the extras.

      • Eugenio
        February 12, 2018

        Thank you Nick

  • Becca
    February 11, 2018

    Thanks so much for this post! Lots to consider as we are contemplating our first DVC purchase. I’m curious about what impact this change will have overall to resale prices and inventory.

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