Less “Incidental Benefits” for New DVC Resale Members, But How Much Do These Incidentals Matter?

Filed in Disney Vacation Club, DVC, DVC Resale, Interval International, RCI, Timeshare, Walt Disney World

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Disney Vacation Club is doing a second iteration of DVC resale restrictions on “incidental benefits”, which will be effective April 4, 2016.  In summary, this change in incidental benefits states, “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, as well as Disney and Concierge Collection options, already restricted for secondary market purchasers as of March 21, 2011.”  It is important to note that access to Top of the World Lounge at Bay Lake Tower (for a Member staying at WDW), pool hopping privileges and no nightly rental fee for DVDs will still be accessible to all members.  In addition, core Disney Vacation Club Membership privileges such as Home Resort Priority and use of other Disney Vacation Club Resorts will remain unchanged.  All DVC Members will still be able to book stays through RCI and Buena Vista Trading Company.

The main impact of this will be for any new Member joining DVC via resale on or after April 4, 2016 (and for those whose only contract is through resale and was not closed and recorded prior to 4/4/2016) as those Members who already have a contract purchased, closed and recorded prior to April 4, 2016 whether direct or resale will still be unaffected.  However, will this negatively impact the value for all Members’ contracts?  This answer really depends on whether the buying public believe this restriction on “incidental benefits” makes a difference, and if so, how much of a difference?

To gain some perspective, consider the first round of resale restrictions that went into effect on March 21, 2011, which prevented Members buying on the secondary market the ability to use those points to book Disney Hotels (outside of the DVC Resorts), Disney Cruise Line, Adventures by Disney and the Concierge Collection.  To many Members these restrictions were not significant as the points needed for those vacations didn’t have nearly the same value as using points for the core of the Membership, which is Disney Vacation Club Resorts.  Moreover, many Members whether purchasing direct or resale found it financially better to rent their points and take those proceeds to pay for those types of vacations.  Also, those restricted options were and still are considered “incidental benefits”, which can be changed or taken away at anytime regardless of how the Membership is purchased.  What is being changed with this second round of iterations is another “incidental benefit” as defined by Disney Vacation Club.

Given that these restrictions are once again to “incidental benefits”, below are the reasons why the impact may be just as insignificant as before:

  • Incidental benefits can be changed or taken away at any time regardless of whether the contract is purchased direct or resale.  Use of the word “incidental” is significant as incidental is defined as “minor consequence” or “occurring merely by chance”, and history has shown this to be true.  For example, complimentary valet parking, once available to all DVC Members has now been removed.  Also, DVC has enforced cruise blocks in the past not allowing any Members to use points on DCL cruises regardless of how the points were purchased with the most recent block in 2012.
  • The discounts historically provided with being a DVC Member can pale in comparison to the savings when purchasing via resale.  For example, say that a family was considering purchasing 200 points at Disney’s Saratoga Springs.  Direct from Disney that would currently have a purchase price of $28,000.  The average listing price for a 200 point Saratoga Springs contract at DVC Resale Market is approximately $16,450.  This difference is $11,550.  At the current Member discount of 20% off, a Member would have to buy 1,925 t-shirts at $30 per t-shirt to break-even.  Next, lets consider what may be the biggest discount, the annual pass discount.  If you are a family of 4 and each year your family purchases annual passes with the DVC Member discount for all 4 family members, you would break-even on the $11,550 difference in over 28 years, which will exceed the expiration dates of nearly half of the DVC Resorts, and thus never actually realizing the break-even.  Of course, this break even assumes that the incidental benefit of the annual pass discount for DVC Members remains for the next 28 years, and that all 4 family members remain in the same household for 28 years or are otherwise added to the deed for a title fee later unless originally all 4 family members were 18 years or older at the time of joining.
  • Disney Vacation Club should be purchased for the core of what you are buying as that is what is guaranteed.  The core of the Membership includes the Disney Vacation Club network of resorts, and that is where the Membership is intended to save you money.  Although, RCI is included regardless of how you purchase, it should also not be considered a reason to purchase or not purchase as it could change.  For example, at one time Disney traded with Interval International and not RCI.  These trading companies use different resorts, and so when purchasing into DVC a buyer should not have reliance on any particular trading company Disney is using.  Further, these trading companies are not owned by Disney as for example, RCI is owned by Wyndham Worldwide, a competitor of Disney in timeshare development.  Perhaps the reason access to RCI continues to not be a restriction is that it could encumber on RCI Members’ ability to trade in with Disney, with less DVC Members being able to trade out.
  • There are many other ways to still get discounts.  Historically, the Disney Visa credit card as well as the annual pass have offered much of the same discounts DVC Members receive.  Moreover, if having the discounts and being eligible for all Member events is important, another option would be to purchase the majority of the points via resale to still receive the savings, and purchase 25 points directly through Disney Vacation Club.  If a DVC Member has at least one contract purchased directly through Disney, they will have access to Membership extras.
  • Member events can change with frequency, costs and availability.  Member events much like discounts are considered incidental benefits, which may or may not be continued in the future.  Moreover, there is no guarantee on availability and/or costs of future Member events, and Member events as with all incidental benefits should not be considered a deciding factor when joining Disney Vacation Club.  And if the eligibility to all Member events is a concern a new Member can always realize the savings of resale by purchasing the majority of their points on the secondary market and then adding on 25 points directly through Disney afterwards.

IMPORTANT UPDATE FROM DISNEY as of 4:18 pm EST on 4/7/16:

“As you are aware, on April 4, 2016, we announced the following important  change to our incidental benefits policy:  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, Member­exclusive events, and certain special  Membership offers, as well as Disney and Concierge Collection options, already  restricted for secondary market purchasers as of March 21, 2011.   This note is to inform you that anyone with a contract that was received by  Disney Vacation Club by the end of the day on April 3, will be grandfathered in to  have the same access to Membership Extras that are available to others who  have purchased DVC memberships from sources other than Disney since March  21, 2011.  (Note: Those members who purchased from sources other than DVC  after March 21, 2011 may not use their points for the “Disney Collection” (select  Disney Resort Hotels, Disney Cruise Line and Adventures by Disney) and the  “Concierge Collection” resorts. As a reminder, the Membership Extras are  incidental benefits offered by DVC and are subject to change.) “

Comments

  • Mike
    March 23, 2017

    What other resorts or properties are allowed when using DVC resale points? Is it basically just Walt Disney World Properties in Orlando or does it include others?

    • Nick Cotton
      March 23, 2017

      Mike, you can use resale points on all 13 DVC properties (soon to be 14) including all the Walt Disney World properties, the Grand Californian in Disneyland, Vero Beach and Hilton Head on the Atlantic Coast and Aulani in Oahu. Also, you can use resale points at the thousands of options through the World Collection (RCI). For a directory of those locations please see: http://b2b.rci.com/resort-directory/DVC/landing

  • Izzy
    March 22, 2017

    As a recent resale buyer does the restriction also a0ply to purchasing the disney world annual gold pass?

    • Nick Cotton
      March 22, 2017

      Izzy, the restriction does apply to the discount DVC Members get on an Annual Pass. The discount is usually around $100 per person in the household.

  • Holi
    March 12, 2017

    Hi Nick! Wondering if we have any access to top of the world or any other place, with resale after the change last year? Thanks for you time!

    • Nick Cotton
      March 12, 2017

      Holi, DVC Administration Leadership did confirm for us at the time of this change in April of 2016 that resale Members would still have access to Top of the World Lounge, pool hopping and DVD rentals.

  • David Simpson
    March 7, 2017

    When we purchased DVC membership in 2009 the only resort available as a home resort was Animal Kingdom. We go to California more often than Florida and want to buy into the Grand Californian. My question is: If I purchase say, 50 points in the after market (while keeping my 250 Animal Kingdom points) could I book the Grand Californian 11 months out for my whole account or just the 50 points? For example I want to book 4 nights in a 3-bedroom grand villa the first week in November (526 points) , if I had 50 or 100 points in the Grand Californian could I book that stay today (March 7, 2017)?

    • Nick Cotton
      March 7, 2017

      David, you would just get the 11-month booking window at Grand Cal with the 50 points you own at Grand Cal. Now, you could use a current year’s points, bank and borrow and book up to 150 points 11 months out at Grand Cal with a 50 point Grand Cal contract.

  • Brandon
    February 16, 2017

    We have purchased DVC through DVC back in 2007 and have loved our membership. If we purchase through the resale, additional points, what will we be restricted on with these new points? We are wanting to use them for cruises in addition to our original membership from DVC.

    • Nick Cotton
      February 16, 2017

      Brandon, great to hear you guys are loving your DVC Membership! Since you guys are already Members you will still be eligible for the “incidental benefits” that were discussed in this blog. However, you cannot use resale points purchased after March 2011 for Disney Cruises. That being said, many Members find it more financially advantageous to rent their DVC Points out through a professional company such as DVC Rental Store and take those proceeds to pay for a Disney Cruise. By doing this Members nearly double the value they get, so nearly 2x the cruises!

  • Matthew Engel
    February 12, 2017

    Hey Nick.

    My wife and are not Florida residents. If we purchased via resale would be inherit the current “incidental privilege” of access to the Gold Annual Pass? I’ve read that this pass is currently only available to FL residents and DVC members. Does this benefit apply to all members or simply Direct Disney purchases?

    • Nick Cotton
      February 12, 2017

      Matthew, thank you for your question. From my understanding, you would have to have at least one contract bought direct or a resale contract bought prior to 4/4/2016 to be eligible for the Gold Pass. Otherwise, you can purchase the Platinum Pass, which is $120 more, but doesn’t have any blockout dates where the Gold Pass does include 4 weeks of blockout dates for 2017.

  • mjsanutte
    February 9, 2017

    If I have a contact I bought through resale and bought a small direct contract will I get incidental benefits on all my points or only on my small contract. for example resale 100 points and small direct contract 25 points can i use the 125 points to book disney hotels?

    • Nick Cotton
      February 9, 2017

      Yes, you would receive the incidental benefits (i.e, discounts, access to certain Member Events). Keep in mind receiving the incidental benefits is an all or nothing, so you could have 2,000 points bought resale and 25 points bought direct and you will receive the incidental benefits. Now, the restrictions put into effect in 2011 such as not being able to use points on Disney Cruises and Disney Hotels is based on the amount of points you have purchased direct. In your example, you would have 25 points to use for those collections. However, keep in mind many Members find it a much value to rent their points when they want to do those collections, and take those rental proceeds to pay for Disney Cruises or Disney Hotels. Please see the following for more details: https://www.dvcresalemarket.com/blog/the-biggest-myth-about-dvc-resale/

      • Martin
        February 26, 2017

        Hi
        I thought the minimum amount of points to buy directly from Disney was 100. Was I misinformed? We saw a rep in December and this is what I was led to believe or understood. Thanks.

        • Nick Cotton
          February 26, 2017

          Martin,

          The minimum to join direct is 50 points and the minimum to add-on is 25 points. Often to join direct for under 100 points a Guide has to get an exception, so that is way they may not have proactively mentioned it.

  • John
    February 4, 2017

    We are looking to purchase resale but like the idea of buying extra direct so we don’t loose incidentals … If we buy resale at the Beach Club and wanna add 25 Pts extra per yr direct would we be able to? I thought Beach club would was ‘sold out’. So we would have to buy resale from like you … than buy a small contract direct … do they look down on this when you inquire about this when talking to the rep

    • Nick Cotton
      February 4, 2017

      John, Although Beach Club is considered a “sold-out” resort, DVC would likely still have some points available through buy backs, foreclosures, etc., especially if you are just looking for 25 points. For example, Disney just bought back a 200 point Beach Club we sold last month. I cannot speak to what a rep would look down on, but I was a DVC Guide for 6+ years, and I never looked down on any sale regardless of the size. You should never be made to feel uncomfortable, especially, when you are giving someone business, and I don’t think anyone at DVC would do that.

      • Teresa
        April 18, 2017

        Sad to say, but we just purchased a resale & when I called DVC to speak to a guide about purchasing a small 25 point contract direct, the second he realized I had already bought a resale, & knew what I was talking about, having been a previous direct DVC owner of two contracts, as well as worked as an Advanced Sales Associate (the people in the blue shirts trying to get you to do a DVC tour), the guide because very abrupt & condescending, & actually said to me in a snarky voice, “oh, you just want to add on to get the perks”. He basically didn’t want to talk to me after that. Rest assured if I do decide to purchase a direct 25 point contract, I won’t be using that guide!

  • Christina
    January 30, 2017

    If I buy 100 points through resale at the boardwalk will I be able to buy direct 25 more point for the same location to be able to receive the incidental benefits

    • Nick Cotton
      January 30, 2017

      Christina – yes, you could buy 100 points on resale at Boardwalk and then add-on 25 points direct at Boardwalk and then receive the incidental benefits.

  • Ken
    January 8, 2017

    Can someone maintain the Disney direct purchase perks if the points are passed on from a family member as opposed to buying resale?

    • Nick Cotton
      January 8, 2017

      Ken, yes, as long as the passing of the Membership is a gratuitous transfer, meaning free of any compensation.

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