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Contract Questions: Does Disney Buy Back DVC Contracts?

If you were to try to come up with a list of big companies with high loyalty rates, Disney is a name that would certainly come to mind. There are families who wouldn’t dream of going on vacation anywhere other than a resort with the name Disney on it. However, after the coronavirus pandemic rocked the world, a lot of Disney loyalists, including DVC members, are starting to put the House of Mouse lower on their priority list.

While the company’s new streaming service, Disney+ is doing well, the theme parks and resorts are struggling to get back to pre-pandemic levels. A lot of people aren’t so interested in going to Disney’s parks anymore. If you are a DVC member, you might be wondering if Disney buys back DVC contracts.

Luckily for you, you’ve come to the right place. So keep on reading and we will take you through everything that you will want to know!

What Is Disney Vacation Club

The Disney Vacation Club (DVC) is a timeshare program. It lets guests buy Disney Vacation Club points so that they can stay at Disney locations all over the world. Depending on what time of year a guest travels, and depending on where they want to stay, different areas are going to cost different amounts of points each night.

However, because of the Coronavirus pandemic, a lot of Disney Vacation Club members are not using their points as much as they used to.

Disney Buy Back

Some Disney Vacation Club members have been getting emails from Disney. In these emails, Disney is offering to buy back the points that the members have not used.

At first, the buybacks were only being offered for people who bought points for Walt Disney World’s Old Key West Resort. However, Disney is now also offering buybacks for points that were bought for Disney’s Animal Kingdom Villas and Saratoga Springs Resort & Spa.

Why This Is a Big Deal

This buyback is a fairly big deal for Disney Vacation Club members. Disney hasn’t bought back a contract for several months because of the pandemic. A lot of members were surprised when Disney announced they were bringing back buybacks considering the major hit that its parks were already taking.

What Is the Right of First Refusal (ROFR)?

If you are interested in selling your DVC membership, then you will need to know about the Right of First Refusal (ROFR). This means that Disney has the option to buy any resale contract after a sales price has been chosen and the contract has been executed.

Each contract needs to be sent to Disney Vacation Club for review.

The Disney Vacation Club usually takes around one month to review a contract. At the company’s discretion, it can step in and buy the property on its own at the terms that are agreed upon by the original buyer and the seller.

The Disney Vacation Club will then become the purchaser and they will buy the contract. After the DVC is the purchaser, there will not be a chance to come back with a better offer in hopes of still buying the contract.

Example

To better illustrate how all of this works, let’s look at an example of what could happen. Imagine that you were taking a tour of a Grand Villa at the Grand Floridian or Cascade Cabin at Copper Creek as your first time being exposed to Disney Vacation Club.

You’re then given another resort option to buy. However, you don’t like this new option as much and don’t necessarily want to take your family here for the next fifty years.

If this is the case, you will probably want to spend a few extra thousand dollars to get the sold-out resort that you truly want. This is the line of thinking that Disney wants people to have as the company moves forward.

Disney will still get a lot of people who choose to buy the brand new Riviera Resort. However, they also want to appeal to other people and make money off of the points that they can scoop up and resell for twice as much as they paid for them.

Criticism

Many current Disney Vacation Club members have criticized Disney’s new policy. They see it as a protectionist attempt to weaken the resale market and boost their declining direct sales. It’s motivated by a desire to provide a “premium advantage: to people who buy points straight from Disney.

The resale restriction can hurt current members because it lowers the value of their contracts. Disney stands to benefit from this. It’s another way to push future customers who are aware of the resale market towards a direct purchase.

The Importance of Knowing if Disney Buys Back DVC Contracts

Hopefully, after reading the above article, you now understand that Disney does buyback DVC contracts. As we can see, Disney can and does buy back some Disney Vacation Contracts. However, there is no guarantee which contract Disney is going to buy.

Because of this, you need to be ready to make a sale to Disney instead of a private buyer if you want to sell your Disney Vacation Club points. You can speak to a specialized broker if you’re still confused by the process.

Are you interested in reading other helpful and interesting articles like this one? If you are, then make sure that you check out the rest of our blog today for even more content!

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