Any benefit to signing up while there?

[act1980]

I've heard people say that they have signed up to DVC while on holiday and it was such a special experience and have said that they couldn't imagine doing it all from the UK. They didn't elaborate on what was so special about it though.

We signed up when we were home and just received documents in the mail and sent them back once signed etc.

Are there any additional benefits to signing up while there apart from perhaps the process being quicker due to not having to wait for post to arrive? We're going next month so wondering whether to bite the bullet now or wait until we get there.

[dippiedawnie]

We got drinks and got snacks and got a ride to wherever we wanted after but other than that I think it was just knowing it was done rather than having to post stuff. TBH it wasn't something we thought about at the time- we wanted in, we had the money, the exchange rate was good, we wanted and got the Boardwalk so signed.

[YorkshireT]

No benefits to signing up there, unless you want finance (interest rate very high). I recommend people where possible come home and research it first. Timeshares rely on people signing in situ. I suspect they make most of their sales this way.
You can just as easily buy from home. If you chose to buy direct after research, they'll more than happily sell to you. You can pay on credit card and your account is set up.
They are so keen to have you sign on the dotted line that within days they will have couriered the paperwork to you, and you just ring a number and the courier comes and picks it up. A backpack and big welcome pack also quickly arrives.
DVC is a very, very slick sales operation. People think it is low pressure, but the psychological sales techniques in use at the sales centre and before are top of the game.
The only thing I'd add is if you have researched and expect to buy direct, prices will likely go up January- as long as sales are still strong. They have announced Copper Creek going up already and they'll put the rest up as Riviera soon going on sale at a suspected $200 ish a point. It makes DVC hard to recommend at those prices on an economic basis.

[act1980]

Originally Posted by YorkshireT

No benefits to signing up there, unless you want finance (interest rate very high). I recommend people where possible come home and research it first. Timeshares rely on people signing in situ. I suspect they make most of their sales this way.
You can just as easily buy from home. If you chose to buy direct after research, they'll more than happily sell to you. You can pay on credit card and your account is set up.
They are so keen to have you sign on the dotted line that within days they will have couriered the paperwork to you, and you just ring a number and the courier comes and picks it up. A backpack and big welcome pack also quickly arrives.
DVC is a very, very slick sales operation. People think it is low pressure, but the psychological sales techniques in use at the sales centre and before are top of the game.
The only thing I'd add is if you have researched and expect to buy direct, prices will likely go up January- as long as sales are still strong. They have announced Copper Creek going up already and they'll put the rest up as Riviera soon going on sale at a suspected $200 ish a point. It makes DVC hard to recommend at those prices on an economic basis.

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I remember the process being very quick and easy when we signed up from home. We’ll probably do the same again with CC if we actually bite the bullet

Prices are definitely going up in January which is why we’re keen to buy sooner.

One thing I found out that I didn’t know is that you can buy any resort direct with Disney. Someone I know is buying SSR at $151pp. That sounds expensive to me but perhaps the contracts are longer than resale?

[YorkshireT]

Originally Posted by act1980

I remember the process being very quick and easy when we signed up from home. We’ll probably do the same again with CC if we actually bite the bullet

Prices are definitely going up in January which is why we’re keen to buy sooner.

One thing I found out that I didn’t know is that you can buy any resort direct with Disney. Someone I know is buying SSR at $151pp. That sounds expensive to me but perhaps the contracts are longer than resale?

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Yes you can buy any resort, they are not always that keen to sell and for some such as VGF it's difficult to get on a wait list.
Yes SSR is 151 at the moment direct.
Personally I cannot see (apart from small contracts, see below) why anyone would buy anything but the latest resorts direct. The latest resorts don't generally go down in value for a while and with incentives they are a reasonable option direct. That could change drastically though if the economy plummets and resale goes down in value. Many are still forecasting a recession in USA next year but I take it with a pinch of salt until it happens.
It used to be a good deal to buy 25 points direct to get non contractual benefits. I did that myself. Well that's not entirely correct I wanted 25 more points to top up at the time and the benefits were a bonus. However benefits are not worth the additional points value of 75 points you now have to buy to get non contractual benefits.
The exception to this is if you only want 50 or less additional points anyway, then it is hardly worth the additional effort for the savings, which are very modest on those small contracts. If you only wanted 75 anyway I'd rather get 120 resale for the same price.

[act1980]

Originally Posted by YorkshireT

Yes you can buy any resort, they are not always that keen to sell and for some such as VGF it's difficult to get on a wait list.
Yes SSR is 151 at the moment direct.
Personally I cannot see (apart from small contracts, see below) why anyone would buy anything but the latest resorts direct. The latest resorts don't generally go down in value for a while and with incentives they are a reasonable option direct. That could change drastically though if the economy plummets and resale goes down in value. Many are still forecasting a recession in USA next year but I take it with a pinch of salt until it happens.
It used to be a good deal to buy 25 points direct to get non contractual benefits. I did that myself. Well that's not entirely correct I wanted 25 more points to top up at the time and the benefits were a bonus. However benefits are not worth the additional points value of 75 points you now have to buy to get non contractual benefits.
The exception to this is if you only want 50 or less additional points anyway, then it is hardly worth the additional effort for the savings, which are very modest on those small contracts. If you only wanted 75 anyway I'd rather get 120 resale for the same price.

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I can't get my head around that either. $50 extra pp to buy direct makes no sense to me. You've already then bought at a loss As you say, buying a new resort direct is a different story as you do get the incentives which usually work out better value for money. We bought Poly direct in the end as we got good incentives and couldn't make the resale option work for us. We will do the same with CC if and when we buy.

If the US does have a recession next year then sales will no doubt slow. Do you think existing contracts will lose value, just like house prices drop?

[YorkshireT]

Originally Posted by act1980

I can't get my head around that either. $50 extra pp to buy direct makes no sense to me. You've already then bought at a loss As you say, buying a new resort direct is a different story as you do get the incentives which usually work out better value for money. We bought Poly direct in the end as we got good incentives and couldn't make the resale option work for us. We will do the same with CC if and when we buy.

If the US does have a recession next year then sales will no doubt slow. Do you think existing contracts will lose value, just like house prices drop?

See more...

This is my take from an amateur bloke on the internet so take with a pinch of salt.

Probably. Historically DVD has not lowered their prices in a downturn but if it happens incentives may increase and price rises not continue. Resale market could depress.

Up until recently, DVC particularly resale was a 'no brainer' if you liked to go regularly and stay in deluxe. Thus it could weather the storm in a financial crisis as it was almost too good a deal when you could buy points for $70 each.

However, prices have gone up like no other time, particularly the last few years.

I believe therefore we now have a bit of a bubble situation. It is ripe for a crash when (not if) a recession comes. Whether that is next year or in 10 years we do not know.

I look at it this way. The real reason DVC maintains its value is because it is pegged as a saving against ever increasing hotel prices, which have 95%+ occupancy rates even with significant price increases.

It is an absolutely essential part of the business model of WDW that they get those rooms filled. Essential. They capture the guest who then spend most of not all of their money on 'overpriced' park tickets, food and merchandise. That is where they make real money.

Given its essential those rooms are filled, if there is a downturn and people stop coming, they will absolutely lower prices and offer better incentives to get people to come.

At current DVC prices and with dues increasing double inflation, it could quite easily reach the point where the value of DVC disappears against those hotel rooms- particularly given people are being asked to shell out tens of thousands upfront.

If it reaches tipping point on value v cash rates, DVD are relying on people not doing the maths and doing impulse purchases in the parks to keep selling.

At that point resale value potentially decreases, not only to account for less demand generally and probably more supply (financially stressed people don't want to be paying dues), but also because the value against the very thing that keeps prices high ( Vs hotel cash price) is no longer there.

Another factor is also how long a downturn lasts. It can weather a storm, but a long recession is a different story.

So whilst effectively pegging (and marketing ) the price against room rates is one of DVC's great strengths that makes its price go up in unprecedented ways for timeshare, if they have to bring room rates down, it becomes a weakness.

Look at it this way. Disney have been converting cash rooms to DVC. Said to be a main driver of this is to hedge against occupancy plummeting in a recession. When they sell a DVC room they guarantee it will be occupied come what may. If true, Disney know that the good times on hotel rates will possibly not last forever.

Another big issue I've talked about on here before is compound dues increases. If they continue at the current rate above inflation they will likely in my view affect contract prices eventually because that important factor - DVC price Vs room rate- again goes bad. People say room rates rise, which they have done, but recent rises appear unprecedented and again it can only rise so fast for so long, and I doubt it will average now 5%+ (or 8% given the dues increase next year) over the next 10 years as people just cannot afford it. Particularly in a downturn.

I think DVC will continue to do well for the next 4 years if the economy remains reasonable due to the new attractions and the 50th. Assuming price rises continue, I'd be very nervous about buying in from 2021 onwards if a recession looks on the cards.

[PoohBears#1fan]

We got a backpack! Our main reason for doing it there was to save time as I wanted to make a booking against the points at a busy time 6 months out.

Other than that, no benefit at all, I begrudged the time out of my holiday in all honesty!

[Shooby doo]

The Direct contracts from Disney have the same contract length as "normal" Resale, so in the case of Saratoga you are paying $40 more per point to get some savings on shopping & dining & $100 odd dollars of an AP, which is only of use if you can get at least 2 holidays out of it.
Our guide was very keen to use the "points value" technique & including the current incentives in his calculations but to put it into perspective, using the incentive on a 125 point CC contract is £17.5k versus £18.1k & on the big scheme of things I think £600 is neither here nor there
SD

[act1980]

Originally Posted by YorkshireT

This is my take from an amateur bloke on the internet so take with a pinch of salt.

Probably. Historically DVD has not lowered their prices in a downturn but if it happens incentives may increase and price rises not continue. Resale market could depress.

Up until recently, DVC particularly resale was a 'no brainer' if you liked to go regularly and stay in deluxe. Thus it could weather the storm in a financial crisis as it was almost too good a deal when you could buy points for $70 each.

However, prices have gone up like no other time, particularly the last few years.

I believe therefore we now have a bit of a bubble situation. It is ripe for a crash when (not if) a recession comes. Whether that is next year or in 10 years we do not know.

I look at it this way. The real reason DVC maintains its value is because it is pegged as a saving against ever increasing hotel prices, which have 95%+ occupancy rates even with significant price increases.

It is an absolutely essential part of the business model of WDW that they get those rooms filled. Essential. They capture the guest who then spend most of not all of their money on 'overpriced' park tickets, food and merchandise. That is where they make real money.

Given its essential those rooms are filled, if there is a downturn and people stop coming, they will absolutely lower prices and offer better incentives to get people to come.

At current DVC prices and with dues increasing double inflation, it could quite easily reach the point where the value of DVC disappears against those hotel rooms- particularly given people are being asked to shell out tens of thousands upfront.

If it reaches tipping point on value v cash rates, DVD are relying on people not doing the maths and doing impulse purchases in the parks to keep selling.

At that point resale value potentially decreases, not only to account for less demand generally and probably more supply (financially stressed people don't want to be paying dues), but also because the value against the very thing that keeps prices high ( Vs hotel cash price) is no longer there.

Another factor is also how long a downturn lasts. It can weather a storm, but a long recession is a different story.

So whilst effectively pegging (and marketing ) the price against room rates is one of DVC's great strengths that makes its price go up in unprecedented ways for timeshare, if they have to bring room rates down, it becomes a weakness.

Look at it this way. Disney have been converting cash rooms to DVC. Said to be a main driver of this is to hedge against occupancy plummeting in a recession. When they sell a DVC room they guarantee it will be occupied come what may. If true, Disney know that the good times on hotel rates will possibly not last forever.

Another big issue I've talked about on here before is compound dues increases. If they continue at the current rate above inflation they will likely in my view affect contract prices eventually because that important factor - DVC price Vs room rate- again goes bad. People say room rates rise, which they have done, but recent rises appear unprecedented and again it can only rise so fast for so long, and I doubt it will average now 5%+ (or 8% given the dues increase next year) over the next 10 years as people just cannot afford it. Particularly in a downturn.

I think DVC will continue to do well for the next 4 years if the economy remains reasonable due to the new attractions and the 50th. Assuming price rises continue, I'd be very nervous about buying in from 2021 onwards if a recession looks on the cards.

See more...

Well lets hope he's right

I was looking at the historic data of the cost of DVC back in the day, if only the points were that cheap now, at and $2-£1 too. Crazy money! We are looking at paying $163 pp at CC down from $182 and that's with the incentives. I just don't know if we will go for it as the £ has lost so much value it just doesn't seem like a sensible decision. But then again, it could be years until be see an improvement so then how long do you wait? It's a tough one!

Although the dues are increasing, surely they won't increase at the same rate as the hotel rooms? They are just sill money now.

Where is your home resort? I'm sure you said but I can't remember, although I want to say SSR?