Disney Discussions: Does Disney Buy Back DVC Contracts?

By admin / November 17, 2021
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Are you interested in buying a DVC? If you have kids, and Disney is close to your heart then a Disney Vacation Club timeshare can be an amazing investment.

Having access to the best Disney resorts can mean tons of memories for your family during the most important years in your children’s lives. But making a major purchase like a timeshare isn’t a decision to be taken lightly.

Before taking the plunge on the DVC program, you need to know what it takes to get in, as well as what it takes to get out of DVC contracts. While there are some diehard Disney fans out there, most won’t keep their Disney timeshare forever.

So before you buy, make sure you have an exit strategy for when that time comes. Keep reading below to learn what you can do with a DVC rental contract.

How the DVC Program Works

So why would you want to participate in the Disney Vacation Club in the first place? By buying into a timeshare, you get to share the time with some of the best Disney resorts in the world, not just in Florida or California.

The reason to do this is that by purchasing today, you lock in future vacations at today’s price, which will be much cheaper than next year’s price.

And rather than buying into a single resort, or a single property, you are buying into the entire program. With a DVC timeshare contract, you don’t just get time at one designated property. You get points each year, that can be redeemed at a variety of different properties around the globe.

For example, when you sign up and receive your first set of points, you can use those for a vacation to Walt Disney World in Florida. You can choose to stay at one of the 11 resorts here, such as the Animal Kingdom Villas or the Polynesian Villas and Bungalows.

Then next year, you want to explore Hawaii. So you use your points to stay at the Disney Resort in Oahu.

Maybe the following year, it’s time to go abroad. So you hop on a plane to Paris and use points at the Disneyland Resort in Paris. And all along, you know you are getting the same amazing service that you’d find at any other Disney Resort.

What Are DVC Contracts?

To participate in the DVC program and enjoy the cost savings and benefits of prepurchasing your Disney vacations, you purchase a DVC contract. The contract defines how many points you’ll receive per year and how long your contract lasts.

DVC contracting starts by selecting a “home resort” where you’ll be able to book your vacation 11 months in advance. To stay at any other property, you can book up to seven months in advance.

And while it’s called a timeshare program, you are not buying into a real estate investment of any kind. Rather, you are just prepurchasing a vacation. To maintain your contract, you’ll have to pay annual dues, which may increase each year.

DVC contract length depends on the home resort that you choose but can last multiple decades. Since not everyone plans to go to Disney World every year for 20 or 30 years, they need a way out. And luckily, with the Disney program, in particular, there is an easy way out.

This is better than traditional timeshare programs, as these are usually sold in perpetuity. That means there is no expiration date, and you are expected to have an interest forever.

Does Disney Buy Back DVC Contracts?

Most people will buy their DVC contract directly from Disney. This has some benefits, though you don’t have to buy directly from Disney.

But does Disney buy them back if clients want to sell and get out of the contract? Sometimes.

Disney retains the first right of refusal clause, which means that if you want to sell, Disney is given the option to buy it before anyone else can. Disney chooses which contracts it would like to buy back, and can sell those again for high prices.

Usually, Disney purchases about 10% of contracts sold in a given year. So if they sell 3,000 new DVC contracts in a calendar year, they might back around 300 DVC contracts.

So they aren’t interested in purchasing the vast majority of contracts. The biggest factor in determining if Disney will buy back a DVC is the contract location. Most of the contracts it buys back originate from the Old Key West, Bay Lake Tower, Saratoga Springs, and Animal Kingdom resorts.

Disney takes about 30 days to review new seller listings. If they choose not to buy your contract, you have to sell on the resell market.

How to Sell DVC Contracts

So if Disney won’t buy your contract, you have to find another seller. These are sellers looking to get into the DVC program at a discount.

As a seller, you likely won’t get the full price that the contract is worth, or what you paid for it. In order to entice buyers, you’ll have to choose a competitive price that will encourage a sale.

Because if it takes months for your membership to sell, that’s months of dues being paid and ultimately wasted.

If you don’t want to deal with the hassle of creating a listing and negotiating with a buyer, you can instantly sell DVC contracts on the DVC shop. To get a quote, you’ll include the home resort and the number of points you have for the upcoming years.

This can save weeks and weeks of hassle if you need to get out quickly. Though if you don’t mind holding it for a bit longer, then you’ll eventually find the right buyer and earn a better price on DVC resale contracts.

Is DVC Right for You?

So are DVC contracts a good investment? It all depends on your life circumstances. Those who plan to take a Disney vacation once a year for the next few years will benefit the most.

There are upfront costs associated with the contract, so it isn’t wise to buy and sell right away. But if you plan to use it for five years or more, it’s a great option to help you save money over the long term.

Looking for more information like this? Head over to our blog now to keep reading.

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