Coronavirus and DVC prices

[Chuck S]

Prices (direct) didn't drop following 9/11/01. I doubt there will be any actual price drop due to corona virus. There maybe some better promotions, like if you're staying at a DIsney resort when you decide to purchase, the amount you spent on the cash room maybe applied as a credit to the purchase price. But they haven't used that promo in a LONG time. I'm pretty sure we won't see the free theme park tickets again, ever.

Remember, the travel ban is only temporary, as is the park closings, so they'll probably just carry on as usual after everything opens up again.

 

[Ms.Minnie]

Ditto to what Chuck said. This isn't going to last forever, things will return to normal hopefully sooner rather than later.

That being said I think the direct pp is too high, at least for me. The resort is nice but not nice enough for me to spend that much per point.

 

[Deploraboo]

Give it two months and resale prices will collapse. Weak hands will capitulate. Hard to justify carrying DVC points if your retirement account’s in the crapper and your savings, if any, is earning 50 bps.

 

[Future_WorldPhonencian]

How were prices affected during the downturn in 07-09? Thats the closest analogy that I can think of in recent memory... That being said, I hope this bump in the road doesn't become a full-on recession

 

[Coffee66]

Pre buying vacations thru a timeshare club makes no sense to me. That's the last thing I would ever do. Prices could drop if we hit a full blown recession.

 

[sethschroeder]

Prices (direct) didn't drop following 9/11/01.

9/11 was terrible but also completely different and the market is in a different place as well.

Only time will tell. There might be a short term reduction in value over the next 2 years but it will bounce back just like the market will at some point.

 

[SL6827]

How were prices affected during the downturn in 07-09? Thats the closest analogy that I can think of in recent memory... That being said, I hope this bump in the road doesn't become a full-on recession

It could. The markets are due for a correction, recession sometime soon regardless of the virus. Now the virus could very well jump start one, as to without it a correction still may have taken a bit to occur. I have always heard the saying that the longer amount of time between recessions the worse they are, not really sure. It is very worrisome.

 

[RanDIZ]

The thing is some owners look at their DVC as investment. If they were retired and just lost a bunch of money in the market, the might be looking to recoup that money by selling their DVC. The only problem with that is the market of buyers is going to dry up right now. If they want to sell their contract they are going to be getting substantially than they thought.

You’re right, many people think DVC is an investment. Those are the people who will get burned and maybe they’ll learn their lesson. I bought to save money on my vacation every year and enjoy it. So when the panicked “investors” start putting up lower priced resale contests, it’s bargain hunting for me to snatch up value and vacation more.

 

[Chuck S]

Pre buying vacations thru a timeshare club makes no sense to me. That's the last thing I would ever do. Prices could drop if we hit a full blown recession.

Maybe. But I doubt cash prices for the hotels will ever drop lower than what I paid for DVC in 1992.

 

[MICKIMINI]

Pre buying vacations thru a timeshare club makes no sense to me. That's the last thing I would ever do. Prices could drop if we hit a full blown recession.

Well, I'm glad for you and surprised you comment so often considering you have no interest in DVC. It's been great for us since 1996. If prices drop I'll buy more. Buy low, sell high and we've sold many contracts for great profits and had incredible vacations too. I'm happy to pay capital gains taxes to help support the economy...that is what will keep us OUT of a recession. Be well!

 

[Coffee66]

Well, I'm glad for you and surprised you comment so often considering you have no interest in DVC. It's been great for us since 1996. If prices drop I'll buy more. Buy low, sell high and we've sold many contracts for great profits and had incredible vacations too. I'm happy to pay capital gains taxes to help support the economy...that is what will keep us OUT of a recession. Be well!

Glad you do well with this type of investment. I do well with stocks but this type of investment baffles me. I truly don't see paying fees every year . very happy for you

 

[Chuck S]

Glad you do well with this type of investment. I do well with stocks but this type of investment baffles me. I truly don't see paying fees every year . very happy for you

Thing is, you'll "pay fees" where ever you travel and whatever hotel you stay in. They are simply rolled into the cash price of the room.

 

[Coffee66]

Thing is, you'll "pay fees" where ever you travel and whatever hotel you stay in. They are simply rolled into the cash price of the room.

Laugh out loud. Boy do I know that. Can you say ouch. Good point.

 

[Sandisw]

Glad you do well with this type of investment. I do well with stocks but this type of investment baffles me. I truly don't see paying fees every year . very happy for you

DVC is not really an investment in the way that stock, etc. are. It’s, as you said, a prepayment of vacations

Yes, getting used to the idea of monthly fees doesn’t make sense to all, but if one wants to go to Disney regularly it can,

I have about $5k in fees right now for my 825 points. That gets me anyway from 40 to 50 nights a year in a studio depending on when I go. With average cash right around $400, I’m getting $16 to $20k worth of stays.

Now, I paid for those points too, so I have to consider that, but now that I have owned 11 years, I have gotten that back in savings Over cash stays,

So, I am spending $5k a year for my lodging. If I decide to go elsewhere, I have the points to rent to cover those trips. I just did this. Rented/transferred 186 points and it’s covering a 5 night cruise for my DD and I. and give us $300 to spend on board!

It’s a way to vacation less expensively than continuing to be a cash Disney guest.

 

[Coffee66]

DVC is not really an investment in the way that stock, etc. are. It’s, as you said, a prepayment of vacations

Yes, getting used to the idea of monthly fees doesn’t make sense to all, but if one wants to go to Disney regularly it can,

I have about $5k in fees right now for my 825 points. That gets me anyway from 40 to 50 nights a year in a studio depending on when I go. With average cash right around $400, I’m getting $16 to $20k worth of stays.

Now, I paid for those points too, so I have to consider that, but now that I have owned 11 years, I have gotten that back in savings Over cash stays,

So, I am spending $5k a year for my lodging. If I decide to go elsewhere, I have the points to rent to cover those trips. I just did this. Rented/transferred 186 points and it’s covering a 5 night cruise for my DD and I.

It’s a way to vacation less expensively than continuing to be a cash Disney guest.

Wow. Better than I thought. We have 2 trips planned this year. Cost at animal kingdom lodge for 3 with park tickets and free dinning. Oh that's 14 nights and cost $10,000 . only thing we got for free was our airfare for all . free points . your deal beats mine 6 ways to Sunday.

 

[CarolynFH]

How were prices affected during the downturn in 07-09? Thats the closest analogy that I can think of in recent memory... That being said, I hope this bump in the road doesn't become a full-on recession

Between 2007-11 direct prices didn't drop - in fact I think they may have risen - but DVD offered amazing incentives instead (such as a 7-night cruise on DCL). Resale prices took a beating, though, and didn't start to recover until 2012 or so.

 

[MICKIMINI]

Wow. Better than I thought. We have 2 trips planned this year. Cost at animal kingdom lodge for 3 with park tickets and free dinning. Oh that's 14 nights and cost $10,000 . only thing we got for free was our airfare for all . free points . your deal beats mine 6 ways to Sunday.

Last fall we stayed 10 nights in a 1 BR at OKW and our son and DIL spent 8 nights in a studio OKW...while not getting "into the weeds" that was about 9K (appx) worth of accommodations of which I paid, well ZERO...MF's were about 3K and I rented out excess points from a couple contracts I bought for 4K so actually, I made 1K - well, okay more than that because I negotiated hard on the excess points in which case some were free, others 50%, so maybe I actually made 2K which covered tix...we used free SW flights. Groceries were same as home. Meals probably cost $1500 which we covered because we love our son and DIL. They just returned last weekend from a four night Poly stay which we gifted - they had free SW flights and only paid for meals and tix about $1200. WDW is our happy place! Hang out here long enough and you'll get how this works...OBTW we have no mortgage or debt. Be well!

 

[jarestel]

I don't believe DVD has ever dropped the price per point for DVC sales. What they will do is offer short term incentives during slow periods, which does effectively lower the price per point, but those incentives disappear when sales pick up.

 

[Coffee66]

Last fall we stayed 10 nights in a 1 BR at OKW and our son and DIL spent 8 nights in a studio OKW...while not getting "into the weeds" that was about 9K (appx) worth of accommodations of which I paid, well ZERO...MF's were about 3K and I rented out excess points from a couple contracts I bought for 4K so actually, I made 1K - well, okay more than that because I negotiated hard on the excess points in which case some were free, others 50%, so maybe I actually made 2K which covered tix...we used free SW flights. Groceries were same as home. Meals probably cost $1500 which we covered because we love our son and DIL. They just returned last weekend from a four night Poly stay which we gifted - they had free SW flights and only paid for meals and tix about $1200. WDW is our happy place! Hang out here long enough and you'll get how this works...OBTW we have no mortgage or debt. Be well!

Pretty good deal. Hard to beat that. Congrats

 

[RoseGold]

Disney itself will hold the line, but who cares.

Winter is coming. Boomers seeing their 401Ks wiped out and going to be unloading these contracts. I'll be ready to buy.