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 as those Members who already have a contract purchased 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?

**Update on 2/11/2018** 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.

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.  (**Update on 2/11/2018** 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.
  • 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.) ”

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Comments

  • Steve
    November 25, 2018

    Nick I am considering a DVC purchase and would like to hear more about the pros and cons of buying resale – Can you set me up with a good contact for this? Thanks in advance!

    • Nick Cotton
      November 26, 2018

      Steve, thank you for reaching out, and we would be happy to assist you. Below is a link to our contact page, anyone of our Team Members would be happy to lay out the pros and cons with you. We are open today from 9am to 9pm EST. Contact Page: https://www.dvcresalemarket.com/contact-us/

  • Theresa W
    October 2, 2018

    Do you loose the ability to use the DVC lounges?

    Thank you for all the great information!

    • Nick Cotton
      October 2, 2018

      Theresa, if you only have resale contracts, with none purchased prior to 4/4/16 you cannot access the Epcot Lounge, however, you can still access the BLT Lounge.

  • Johnny Davis
    September 4, 2018

    Do you know if the 75 points have to be purchased at once? I know you have to buy a minimum of 25 at a time, could I do 1 purchase of 25, pay it off, do a 2nd and pay it off and then do a 3rd?

    • Nick Cotton
      September 4, 2018

      Johnny, if you are adding-on you can purchase as few as 25 points at a time, however, you will not receive the incidental benefits until you reach the 75 point mark all purchased direct. And there is no rule they have to be purchased together.

  • Katie P.
    August 24, 2018

    My husband and I just bought 230 points resale, and although we plan to buy the 75 points direct at some point, we cannot do so right now. Although I know we have lost the incidental benefits, will we still qualify for discounts on rack rates to add additional nights onto a DVC point reservation or is that lost as well?

    • Nick Cotton
      August 24, 2018

      Katie, I’m not aware of any restriction impacting the ability to get a discount off rack rates when offered, however, all incidental benefits are subject to change at anytime and regardless of how you purchase direct or resale.

  • J Rodriguez
    August 19, 2018

    I’m curious, I originally bought a 220 point VB resale with a Feb. use year 3 years ago. I’m in the process of buying a 200 pt. SSR resale that I was told I could consolidate with my same membership number since it’s the same Feb. UY, so I could manage both with the same DVC login. So here’s my question.
    I was thinking about selling my VB contract in favor of a BLT resale, but if I sell it do I lose my incidental membership privileges, such as Free Member nights or do they go by my Membership number date (since it will stay the same for my SSR contract)?

    • Nick Cotton
      August 19, 2018

      Juan, great question. If you were to sell your VB contract you purchased 3 years ago, you would lose the incidental benefits. The only way to keep the incidental benefits and be able to sell your VB contract, would be to add-on 75 points direct.

  • Christina Swartwout
    August 18, 2018

    Can re-sale points be used for RCI?

    • Nick Cotton
      August 18, 2018

      Christina, yes, you can use resale points for RCI, also known as the World Collection.

  • Larry R
    June 29, 2018

    Nick, I want to be clear on what you have said about the use of resale points by folks who also have at least 75 points purchased directly from Disney. Are you saying that as long as you qualify for “incidental benefits’ through such a direct purchase, any additional points purchased through resale may also be used for “incidental benefits”? Specifically, may resale points they be used for Disney Resort Hotels or the Concierge Collection Hotels? Thanks!

    • Nick Cotton
      June 29, 2018

      Larry, thank you for reaching out. To be clear, adding the 75 points direct would provide you with the “incidental benefits” that Members receive (i.e., discounts where applicable, certain events, etc.), but it would not allow any resale points to be used on collections outside of DVC Villas or the World Collection.

  • Kathleen Wolfe
    June 27, 2018

    I have a question. When we bought 200 points at AK (in 2009) it was in my husband’s name as the purchaser, I’m listed as the associate. We’re getting ready to go through a divorce, with me receiving our DVC membership. Would I lose out all the membership “perks” if he just did a quit claim deed to me, or does he need to add me as a member first, then we go throu the process of removing him via wit claim deed??

    • Nick Cotton
      June 28, 2018

      Kathleen, since it will be a gratuitous transfer, I would likely assume you would still retain the perks just like when someone passes it to their children, however, I would double check with Member Administration first to be 100% sure.

  • Kimberly
    April 2, 2018

    I was looking for some clarification for the “add-on points” directly purchased through Disney. I have read that in order to receive full membership benefits, you need to purchase 25 points and 75 points. That’s obviously a big difference. Wondering which amount it is? Thanks!

  • Jon
    January 8, 2018

    I have a 200 Point contract that I purchased resale in 2014 so I was grandfathered in to the current only minimal restrictions. I am looking to add 250 more on the resale market, does this purchase negate my grandfathered status? Thanks for your help!
    -Jon

    • Nick Cotton
      January 8, 2018

      Jon, a purchase of points in the resale market would not negate your grandfathered in status of receiving the “incidental benefits”.

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