Change to Disney Vacation Club Membership Extras Eligibility and the Impact to You54 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|
*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
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.