DVC - is it worth it?

[Dizneefamily+4]

So we're heading back to the magic this August. I realized that we've suddenly become "those people" who just can't seem to get enough of Disney! Could we take other family trips for less money? Sure! But we just LOVE Disney and LOVE being inside the Disney bubble when we go.

Sooo, I've convinced my dh that we should talk to the DVC people when we're there.

What can you tell me about DVC and whether or not it's worth it for a family of 4 who can't seem to plan their annual family vacation anywhere but on Disney property?!!

 

[Missytara]

You may want to go over to the DVC board; this is more for the regular resorts.

 

[n2mm]

I agree, the DVC board folks will be more than helpful answering any of your questions and we will tell you pros and cons. Of course what you'll hear the most is that alot of us wish we had done it sooner. It is perfect for our family. We love it. The hard part is deciding now on buying directly from Disney at the higher price with more perks, or resale at great prices, but less perks.

 

[RumpleMom]

We have been DVC members for 11 years. Our only regret is that we didn't join when the kids were younger. They are now twentysomethings, and one is married. Our love for Disney has only grown stronger over the years. And they still want to go to Disney. DD and DSIL joined shortly after they got engaged. Thankfully he saw the value in DVC because they were planning their honeymoon there.

DVC keeps our family together. Everyone is busy with their careers, but we make plans to meet at Disney for some family time. We have done trips with 3 generations because Disney is a destination for everyone.

We started with the minimum contract and added on over the years, as we realized how much we loved it.

 

[larryz]

The hard part is deciding now on buying directly from Disney at the higher price with more perks, or resale at great prices, but less perks.

Or go hybrid, buy the minimum from Disney and stock up on other peoples' resale points...

Or are they discriminating against add-on points?

Wait - don't answer that! -- I'll go on over to the DVC board and look...

 

[momof2disprincesses]

We bought into DVC in 2008 and LOVE it. We have never regretted the decision. I love having our trips "paid for" in advance. Plus, I love the DVC annual pass discount.

We have used our DVC to treat friends. We have rented out our points. Plus of course, we have been on dozens of trips to the happiest place on earth with our points.

As others have said, it really has been an investment in family time for us.

PM me or others if you have specific questions. I know the DVC members on these boards have been very helpful to me and I'm sure you will find the same helpfulness.

Wishing you pixie dust in your decision.

 

[Havana]

To us it did make sense and we are so happy with our purchase.
Do you stay deluxe? That is where it comes out with the dollar value for us. Would you like to have a kitchen, a bedroom (or two), and in some resorts two bathrooms! It really adds a new level to visiting Disney.
Owning DVC means I know I will be back.

 

[chalee94]

here's the basic scoop: DVC works best for people who:

1) go to disney at least every other year
2) prefer to stay onsite at deluxes (or at least moderates)
3) can plan their vacations 10 or 11 months in advance
4) can limit Fri-Sat stays since weekend point costs are a little higher
5) intend to use DVC primarily for staying at a DVC resort at disney (rather than trading out for other timeshares or cruises, etc.)
6) need or prefer larger accommodations than a basic hotel room

OTOH, there are lots of good reasons to balk at buying DVC:

1) thousands of $ upfront plus annual fees require a certain level of financial ability and commitment (and you still need to pay for tickets and travel, etc.)
2) commitment to wdw/fear of wdw burnout (sorta - while you can trade out if you buy direct, the best value is staying at the DVC resorts)
3) DVC not as deluxe as deluxe hotels in some senses (limited housekeeping, sofabeds, no room service at some DVC resorts)
4) you prefer stays on weekends as weekend point costs are higher
5) financing a depreciating (sooner or later) luxury purchase is generally a poor idea
6) you are happy with value hotels/offsite
7) amenities like a kitchen and washer/dryer have no value for you
8) you don't/can't plan vacations 6+ months in advance
9) you enjoy hunting for deals/bargains for each trip

If you’ll be upset when other people can pay cash for a room and get a discount or get “free” dining thrown in, then DVC is not for you.

also be aware that if you think you might keep DVC for 6-8 years and then sell it down the road, it may have little to no value as DVC has begun cutting perks that transfer when you sell your contract. resale contracts no longer qualify to trade for cruises and wdw hotels like the GF...(but those trades tend to be a poor value anyway.)

remember that it's not a "membership" so much as a long-term real estate lease commitment with continuing costs. while you can stay in studios that are similar to hotel rooms (only OKW has 2 queen beds, though, and all the rest have 1 queen + 1 pullout sofabed), DVC is a better value if you want to spread out and get a 1BR villa or larger...

 

[scooter7487]

We were a lot like you. We went 4 years in a row at a cost of about 3500-4000 bucks as we liked the wilderness lodge and akl. When we finally took the tour and discussion with dvs (secret is not so much a secret anymore) my DW and I looked at eachother and said we could have already had this paid off with our first 4 trips! The one think that would be a concern of mine now is airfare and food but we would still do it. DVC is still selling BLT, AK and Aulani. I would talk and make an appointment next time down to talk to dvc. I would request to go to blt, ak and hawaii (just kidding) but blt and ak for sure. We purchased BLT thinking we would get the room overlooking MK but have not been able to get in and we had a really bad experience with the rooms at blt but everyone is different. It has been well worth our money. I think you would find it worth yours as well.

 

[chefmb]

challee94---Your list is great! I have looked into the DVC a couple of times over the last 7 or 8 years. The two things that have just held me back are #6 and #9 on your balk list-- my family loves POP, and I love to look for deals! I just have not reached a point where it looks like the value of the DVC will pay for itself. I must say, though, that as our financial situation improves and it is more possible for us to go to Disney more than just every 3-4 years, the benefits of the DVC might start to look better and better

 

[Dopey420]

We considered it, but then realized, "why buy when you can rent?" We found a great, reliable DVC owner who rents us points and makes all the reservations and arrangements for us every time we want to go.

 

[Lynne M]

This is a great question for the DVC-Mousecellaneous board; I'll move it over there.

 

[mjc2003]

also be aware that if you think you might keep DVC for 6-8 years and then sell it down the road, it may have little to no value as DVC has begun cutting perks that transfer when you sell your contract. resale contracts no longer qualify to trade for cruises and wdw hotels like the GF...(but those trades tend to be a poor value anyway.)

I would counter this and say that if you bought resale right now, this argument would not hold true. If I bought 200 BWV @ $50 right now, I would pay $10,000. In 8 years I could have 8 weeks in a 1BR, the rack rate would be $25k or more. I would have spent $18k on purchase and MF's, but could probably sell for $25-$30pp, bringing me back $5000-$6000. So I'd have spent $12,000-$13,000, or approx 50% or more off rack rate.

Very loose numbers (didn't include closing costs, selling commission...etc, but also didn't include tax on cash rooms). Point being, WDW is the best place to use the points anyway, so buying direct is a risky proposition that, to me, is hardly worth the cost difference.

To the OP, I would say that we just bought in and I would definitely refer to the rest of Chalee's list of pros/cons. We have two young girls, we found ourselves going repeatedly over the past few years and were spending $3000-$5000 on rooms alone.

If you buy resale, you can get a great deal right now and the "lost perks" have very little value anyway. If you want to take a cruise, put the thousands you save buying resale towards it.

 

[adminjedi]

We're happy we bought!

 

[chalee94]

"why buy when you can rent?"

to answer your (rhetorical, i know) question:

*because it's cheaper to own over the long term
*because you control the reservation as an owner but not as a renter

which is why i bought instead of renting. i didn't like the loss of control when i rented - 99% of all rentals go off without a hitch but all it takes is one reservation where you can't get in touch with the owner to adjust the reservation, or if you have trouble confirming that the reservation exists...there's a value in ownership there for some of us.

and even renting at $10 per pt, i could cover my $5 per pt annual dues + a proportion of my original upfront costs with room to spare. the owners who rent out points-based reservations aren't typically losing money on the deal.

but it's true that if you burn out on wdw as a renter, you can walk away with no further obligation...so in your situation, it certainly might be better to rent. it just depends...

 

[BWV Dreamin]

I would recommend renting. The economy is not stable. Inflation has already reared its head. There are many people who are trust worthy whom you can rent from year after year. By renting, you are saving an incredible amount of money over rack rates.

Yes, I purchased DVC. Knowing what I know now, not sure I would do it again.

 

[dmband]

i still don't understand how it is cost effective for most people?

i just got a DVC flier with special discount in the mail yesterday
the cost is $19,200 and up for 160 points
even if i go every other yr - it takes close to 20 yrs to break even without member fees/dues based on the $1728 i am paying this yr to stay at CR
(sure i am "locking in" todays rates but the amount it goes up each yr is minimal compared to the money i can make by putting that into a cd or other interest account - from 2011 to 2012 the same room went up $19 for July 4th week)

in my case taking into account that the 160 points would no where near cover whats needed to stay that week it doesn't add up for me

ps - when looking at what you spend on a disney trip compared to buying you have to watch what you compare, the dvc cm even try and make it seem higher then it is
ie - this trip cost me $3000 - but the room only cost me $1728, people get drawn into the total cost and say wow i could own this after 5 trips, not really

EDIT - for those who did buy dvc, did you buy outright or finance??
imo that would be a big consideration too

 

[BEASLYBOO]

DVC has worked for me and my family. We love Disney and the Orlando area and DVC continues to meet my realistic expectations of what a time share should be. Yes, it may be Disney bit it's still a timeshare and as long as you can navigate within the rules/regulations then it will work for you:

For example:
1. Are you able to plan well ahead, 11 month or 7 month out?
2. Are you flexible in both accomodation requests, time frame of travel and resort selection?

If you are spontaneous/last minute vacationers, DVC may not be for you!

It works for me today as well as it did when I bought into it in 2000!

P.S. Saving money, not part of the equation! I rationalize the cost for the enjoyment of being on-site and of staying at all of the DVC resort! I don't use DVC to visit Europe or other states, in that respect DVC points are too expensive!

 

[Greysword]

i still don't understand how it is cost effective for most people?

i just got a DVC flier with special discount in the mail yesterday
the cost is $19,200 and up for 160 points
even if i go every other yr - it takes close to 20 yrs to break even without member fees/dues based on the $1728 i am paying this yr to stay at CR
(sure i am "locking in" todays rates but the amount it goes up each yr is minimal compared to the money i can make by putting that into a cd or other interest account - from 2011 to 2012 the same room went up $19 for July 4th week)

in my case taking into account that the 160 points would no where near cover whats needed to stay that week it doesn't add up for me

ps - when looking at what you spend on a disney trip compared to buying you have to watch what you compare, the dvc cm even try and make it seem higher then it is
ie - this trip cost me $3000 - but the room only cost me $1728, people get drawn into the total cost and say wow i could own this after 5 trips, not really

Looking at the DVC point chart for BLT (http://www.wdwinfo.com/disney-vacation-club/BLT-Points.htm), it would cost to stay a week in July:
- 153 points (studio with a Lake View)
- 139 points (studio with a standard view, equal to a garden wing view?)

At $10/point (the general rate), this equates to a rental cost of:
- $1,530 (Lake View)
- $1,390 (standard view)

In addition, I just ran some very quick numbers.

- Current BLT dues are $3.8943/point (up 3.14% from 2010 of $3.7756/point)
- $ 58,159.03 = Total annual dues over the life of a 160 point contract
(assuming a 3.14% annual increase in dues for 45 years)
- $ 77,359.03 = $19,200 buy in + $58,159.03 total dues

- $ 1,719.09 = Annual cost of ownership ($77k/45 yrs)

Conclusion: If a CR room is currently at $1,728 for 1 week (July 4th weekend), you'll save $9 as a DVC member staying in a Lake View studio for the same week this year. Since this CR room was likely at a discount and prices will likely rise for a CR room over the next 45 years, the discount amount will likely become greater.

This was really quick, so please let me know if I missed something.

If you buy resale, ...the "lost perks" have very little value anyway.

I would challenge this statement. My family made two trips to DLR since 2005, and we used our points to stay at DLR hotels (DLH and PP), since no rooms were available at VGC for our last minute trip.

While it is not as cost effective (from a point use/cost point of view), we have used the Disney Collection effectively when we wanted. In fact this last DLR trip (in May) was due to our points expiring at the end of July. Being able to use the 104 points for a weekend in the Disney Collection was better than having them expire.

Thus, having the capability does have some intrinsic value. The question is whether the value is worth the cost; would the extra cost of buying through Disney equal or exceed the cost of expiring points over the life of the contract? Hopefully, planning and point use is solid each year and the potential of point expiration does not come up. However, it may a few times in the next 3-4 decades

Luckily, we don't need to face this question as we bought from Disney and before the Mar 20th deadline.

- Chris

 

[DougEMG]

I bought a loaded OKW contract for $50/point. Rented the banked points out for $10/point which brought my real cost down to $40/point.

MF are $5/point. If I rented the points out every year for $10/point, I'd have a $5/point net income. So after 8 years I'd have my money back (less any opportunity costs) and still own the contract.