Magical Beginnings Returns

[DVCNews]

In the late-90s and early-00s, Disney Vacation Club operated an incentive program called Magical Beginnings.* Magical Beginnings enabled buyers to trade in their first year's DVC points in exchange for a purchase discount of $8-10 per point.* Now it appears Magical Beginnings is poised to make a comeback.

Original Article

[RoccoP72]

Let me know if I got this right, you give up your first year of points in order to get a discount on the points you are buying in for? To me this doesn't sound like a good deal considering I received a $$ discount off our points without having to forfeit my first year's points and on top of that they gave us a Disney gift card for something like $300 and a free 4 night cruise. Those incentives really pushed us over the edge to buy in. Are they not also raising the prices for BLT? To me this doesn't sound like they are going to have people knocking down the door to buy into DVC .

[DisneyGeek]

I'm guessing this might be in addition to other discounts, likely not the ONLY one.

I wonder if it has anything to do with loans being defaulted in and going back to Disney as stripped contracts...

[MatterhornMiss]

The article posted makes it sound like this is an extra discount: "in return for the additional $15 discount at the time of purchase." Plus, it's just selling back 2009's points--if you had a use year early in the year, your 2010 points would be available to borrow now, or to use pretty soon.

[TimK]

Yes, this is in addition to the base discounts. I'm still trying to confirm if the incentives have changed recently. Up until now AKV has been $112 per point less a $13 discount. That discount (or whatever has replaced it) should still be available. But if you sell back the first year's points they would deduct ANOTHER $15 per point.

I'm not sure if it has to do with defaults. My source specifically mentioned AKV and with all of Kidani open but only 50% sold, DVC should be flush with excess points.

(And while foreclosures have risen, the numbers still aren't Earth-shattering. DVC foreclosed on something like 400 contracts YTD across all of its properties. Those foreclosures would first go up for auction at the Orange County courthouse with DVC only getting them back if there was no bidder.)

The first thought that entered my mind was that perhaps DVC is trying to make a purchase more palatable to folks who fall into the "I'm not coming back until next year so why buy now" camp. With 'free dining' and all of the other cash incentives available, many folks may not want to take the plunge since they wouldn't be using the points until sometime in 2010. This offer would give them a nice extra discount in return for forfeiting those points.

Going back about 7-8 years, Magical Beginnings was typically the ONLY discount offered by DVC. The published price was around $84 per point and there were no discounts. Take it or leave it. But with Magical Beginnings they would deduct $8-10 per point for forfeiting that first year's set of points. Then around 2003 they started building discounts into the price (i.e. $112 per point less $13) and did away with Magical Beginnings.

[mwehttam]

Okay, I am probably being dense but looking at the promo page it says that for existing members, an add on at AKV of 125+ pts will get you a $21 price discount off of the $112 price. Do you then include the $15 more off? If so then the price is $76. Where to I sign?

[TimK]

There's also a note on that page which says that I'm still trying to track down current pricing. But if you can get your Guide to agree to that, go for it.

[MatterhornMiss]

Is this exclusively for first-time buyers?

[Colorado Belle]

Matt if you get your guide to honor that $76, give me a caII wiII ya?

[TimK]

Still gathering info on this. There are so many resorts available and (seemingly) constantly-changing offers for both current and new members. Even the Guides can't keep it all straight.

Right now it appears the base discounts are $5 off for BLT and $10 off for AKV and SSR. Not sure about VGC. That's for both new purchases and add-ons.

Magical Beginnings only nets you an extra $5 discount at AKV. So the $15 discount cited in the story is the total reduction with the points sold back to DVC.

No particularly good offers compared to the last 6 months. Guess sales must be improving...