Disney Vacation Club has recently begun exercising its Right of First Refusal buybacks, which they had paused for more than six months.
When an individual with a Disney Vacation Club (DVC) contract decides they want to sell their existing contract, their selling price is first offered to Disney before they are able to sell it to another individual. If they so choose, Disney can buy back the contract at the asking price before it goes into the general market or be sold to another buyer. Through this process, Disney can maintain the value of each DVC “point;” this Right of First Refusal is written into each Disney Vacation Club contract.
By buying back these contracts, Disney ensures that the market value does not fluctuate wildly and is more closely aligned to direct sale purchases. It can additionally impact the sale prices of resale contracts; as Disney exercises their right of first refusal, the resale market is less saturated. Fewer contracts available can increase the demand for resale contracts as well, which in turn can drive the price of resale contracts higher (and more closely aligned with the direct sale price).
In 2019, Disney DVC included additional restrictions for resale contracts, which also influenced the resale price and demand. Prior to this point, resale contracts enjoyed many of the same perks afforded to direct contract holders. Most notably, DVC owners have the flexibility to use their annual timeshare points allotment at any Disney Vacation Club property, but these newer DVC contracts eliminate that option upon resale. This effectively locks in a resale purchaser to the home resort purchased in their contract. Similar restrictions for resale contracts are in place with all new, direct sales, including at the upcoming Discovery Tower at Disneyland Hotel, which is nearing completion.
Disney recently reported that Disney Vacation Club had lower direct unit sales in their Q3 earnings report, which was partially offset by an increase at Disney Cruise Line.
Disney Vacation Club Details
The Disney Vacation Club is a timeshare program offered by Disney that allows members to purchase points that can be used to book accommodations at Disney resorts or other vacation destinations around the world. Members can use their points to book stays at DVC resorts or exchange them for stays at non-Disney properties through an exchange program.
DVC s designed to provide its members with a flexible and customizable way to plan their vacations and enjoy the magic of Disney.
DVC members also receive special merchandise and vacation discounts, events, and perks throughout the year.
More Disney Vacation Club News
We’ve been covering the ongoing construction of a new DVC wing at Disney’s Polynesian Village Resort, which is on the site of the former Spirit of Aloha Dinner Show.
The Villas at Disneyland Hotel Preview Center opened in May for the new DVC property at the hotel. Disney recently shared more information about the art, inspiration, and team of Imagineers driving the design of the new Discovery Tower with a sweepstakes to win a stay at The Disneyland Hotel.
Another great way to buy into DVC is by purchasing a DVC resale contract. This means that you can be a DVC member, but you don’t have to pay Disney’s high prices, which means you can save thousands. Our partners DVC Resale Market are currently offering Red Hot Deals, which means you can buy in for up to 10% lower than the current resale market price. Want to browse some contract prices? Click here.