Disney Vacation Club is pulling an old trick out of the vault by relaunching its “Magical Beginnings” point buyback campaign.
In its simplest terms, DVC is looking to “rent” current use year bonus points that new members receive when purchasing. New Members will receive a cash rebate of $10 per point when choosing to exchange their allotment of first-year points. This offer is valid for new member purchases at both Aulani, Disney Vacation Club Villas, Ko Olina, Hawai’i, and Disney’s Riviera Resort.
Here are the full terms of this offer:
“Offer requires eligible new purchasers and add-on Members to be a resident of one of the 50 U.S. states and participate in a Resort sales tour, either telephonically or in person (“Tour”), and buy an ownership interest directly from Disney Vacation Development, Inc. (“Developer”) with at least 150 Vacation Points in AULANI, Disney Vacation Club® Villas, Ko Olina, Hawai’i or Disney’s Riviera Resort. Eligible purchasers may exchange their full allotment of Vacation Points from the first Use Year for a cash rebate to be determined by Developer, currently $10 per point, subject to change. Amounts purchaser receives as part of this rebate may reduce the purchaser’s basis in the ownership interest for tax purposes. The TWDC Companies do not make any representations as to the income tax consequences of a rebate, sale, or resale of the purchaser’s ownership interest. Each purchaser should consult his or her own tax advisor as to these issues. Offer begins November 23, 2021. Purchasers must communicate their decision to participate in this offer to Developer at four (4) calendar days prior to the end of their first Use Year. Cash rebate cannot be applied toward any portion of the minimum 10% down payment required, depending on qualified financing, and is in the form of a check that will be mailed to purchaser approximately four (4) weeks after the deed has been recorded by the county. Offer cannot be combined with other select offers or discounts and may be extended, modified, or withdrawn at any time without notice. Void where prohibited.“
As CarolMN over on DISboards.com pointed out, this program has been offered multiple times since initially introduced in the 1990s. However, what is noticeable is that while the buyback price of $10 per point has remained the same, the cost of direct points has skyrocketed from $65 per point to $200+ per point.
While the program offers an easy way to exchange these points for cash, earnings would be classified as taxable income. Members could potentially receive a far greater payout of up to $16 per point if listing these same points with someone like our sponsor DVC Rental Store.
Let us know your thoughts on this offer in the comments! Would you take advantage of this exchange option? Why do you think DVC is reintroducing this program at this time?