DVC Value

[pgowder]

We've looked into DVC a couple of times. But the thing that stops us each time is the yearly regime fee.

We were looking at AKL for about 200 points. That had a yearly fee of about $1100.

For that amount alone we can get a descent room for 7 days.

To me that just doesn't seem to be a good value.

What am I missing?

 

[vicki_c]

You cannot get a room at AKL for 7 days for $1100 at any time of the year. The lowest price at AKL is $265 during value season (rack rate without a discount, if you have a 40% discount then I guess you could hit that $1100 - not very likely).

If you are content with staying @ values or moderates where that statement might be true, then DVC is most likely not a good choice for you.

DVC works for those who like staying deluxe, plan on going to WDW every year or every other year, want a bigger room than what they could afford (or want to pay) through Disney.

Over the life of the contract, you would save money against booking a comparable room with Disney.

 

[chalee94]

We've looked into DVC a couple of times. But the thing that stops us each time is the yearly regime fee.

We were looking at AKL for about 200 points. That had a yearly fee of about $1100.

For that amount alone we can get a descent room for 7 days.

To me that just doesn't seem to be a good value.

What am I missing?

you can get a hotel room equivalent for 7 nights in a DVC for only 80 to 120 pts. for 200 pts, you'd have a 1BR unit: separate sleeping areas, full kitchen, washer/dryer and 2 bathrooms at kidani. either way, you'd be at a deluxe resort with giraffes on the grounds.

if you're happy as a "the room is just for sleeping" park commando, then DVC has nothing for you (or if it does, then just look at the studios to keep the comparisons valid.) if you are happy at a value or moderate, DVC probably isn't for you. don't get hung up on feeling like you need to "be a member."

also, the "annual dues" or "maintenance fees" are what pay for the rooms to be cleaned, the furniture to be replaced and the grounds to be maintained (including animal care at AKV). that seems pretty essential to me.

but DVC is not for everyone and the yearly fees do need to be taken into account.

 

[pgowder]

You cannot get a room at AKL for 7 days for $1100 at any time of the year. The lowest price at AKL is $265 during value season (rack rate without a discount, if you have a 40% discount then I guess you could hit that $1100 - not very likely).

If you are content with staying @ values or moderates where that statement might be true, then DVC is most likely not a good choice for you.

DVC works for those who like staying deluxe, plan on going to WDW every year or every other year, want a bigger room than what they could afford (or want to pay) through Disney.

Over the life of the contract, you would save money against booking a comparable room with Disney.

We enjoy Deluxe rooms, but don't stay there every time.

I know you can't stay at AKL for that, but you could stay at POFQ.

 

[jarestel]

To me that just doesn't seem to be a good value.

What am I missing?

You're right, DVC is definitely not the cheapest WDW vacation option. I think, as you are doing, each potential DVC member needs to evaluate DVC based on individual vacationing habits to see whether it makes sense or not. I agree with the previous posters, DVC will not necessarily be the best choice for everyone.

Good luck!

 

[fmer55]

DVC is a LUXURY resorts destination. The less you value your accomadations the less DVC is for you. Now i know to each there own, but i still cannot figure how leaving your own spacious home and staying in a single hotel room for a week is a vaction

 

[Lucia_27]

DVC is a LUXURY resorts destination. The less you value your accomadations the less DVC is for you. Now i know to each there own, but i still cannot figure how leaving your own spacious home and staying in a single hotel room for a week is a vaction

I totally agree! We've stayed at an OKW 1BR (cash) for 9 day trips (twice) and at the Poly for a 6 day trip. I love my DH and DD, but after 6 days in a hotel room, sleeping with my 6 y/o's feet in my back, I was more than ready to buy into DVC so we can have the extra space!!!

We did the math and pondered for 2 years before making an offer on an OKW contract. We love OKW and know we will be going to WDW at least once a year for many years (we are in FL so that helps!). When I could get 40% of rack rate, it wasn't too bad to pay cash, but this year with no PINs or discounts for when we wanted to travel, it made perfect financial sense for us. Can't wait to book our first trip as DVC members!

 

[Lynne M]

DVC isn't about getting a decent place to stay, or a cheap place to stay; it's all about the villa accommodations. If the villas are something your family wants on a regular basis, then DVC is probably the most cost effective way to get them.

 

[chalee94]

I know you can't stay at AKL for that, but you could stay at POFQ.

a POFQ room is more like a studio, though, even discounting the deluxe aspects of staying at AKV and the giraffes. you can get a standard view 1BR in dream season for 200 pts for 7 nights or a standard view studio for 95 pts for 7 nights.

annual dues on 95 pts would be a little over $500 for the year. how many nights at POFQ will $500 get you?

there are other things to consider. you get 2 real beds at a mod (2 queens at some, 2 doubles at others) but 1 queen + 1 sofabed in most studios. you would also need to factor in the upfront cost of buying into DVC.

but if you are comparing apples-to-apples, a studio is a more realistic comparison on the financial side. DVC still may not be worth it to you, however, depending on how you value things like sofabeds (and giraffes. )

 

[juncker]

Also as DVC owners, we don't pay Florida Hotel tax. I don't know the actual rate, but it will add up on a 4-digit hotel bill.

Go to the Disney website and price out a cash stay at a DVC property for a week. For $1,100 it would be a deal. I realize that there are other offers (free dining plans, etc...), or ways to rent points that brings this down, but it ain't cheap to get a good place onsite at WDW.

As other said, if penny pinching is your primary goal, then DVC may not be for you. It is cheaper to stay in an old refrigerator box than at Bay Lake Towers, but it isn't as nice (it certainly would still be a memory that would hang with you though).

Good luck with whatever you decide.

 

[Deb & Bill]

We've looked into DVC a couple of times. But the thing that stops us each time is the yearly regime fee.

We were looking at AKL for about 200 points. That had a yearly fee of about $1100.

For that amount alone we can get a descent room for 7 days.

To me that just doesn't seem to be a good value.

What am I missing?

I think you are missing the fact that you may not be the ideal candidate to buy DVC. If you like to get deals and pay less that way, you don't get deals with DVC. You prepay your vacation through the purchase of a real estate interest (points) and then pay annual fees.

If you are satisfied with any hotel room, including value and moderates, then the "deluxe" aspects of DVC may not be important to you. I like my in room washer and dryer. I like my living room. I like my king sized bed. I like my standalone shower separate from the tub. I like my full sized refrigerator and kitchen.

 

[DougEMG]

I like playing with numbers and spreadsheets and one day when I was bored I went through each of the DVC resorts comparing the point cost of a studio against the cash cost of the equivalent room for the times of year I normally go. I also compared these numbers to a moderate hotel room at POR since I use to only stay at moderates. Note that the cash cost is paying full rack rate and one should really assume that you would be able to get at least some sort of discount.

For AKV though the numbers worked out to this:

Dec 09-23 (14 nights)
AKV studio standard view 170 points, renting at $10/point = $1700, My costs ($7/point) = $1,190, cash rate $6,503, 30% discount on cash rate = $4,552.

AKV studio savannah view 220 points, renting at $10/point = $2,200, My costs ($7/point) = $1,540, cash rate $7,740, 30% discount on cash rate = $5,418.

POR room cash rate $2,8643, 30% discount on cash rate = $2,005.
Pop Century cash rate $1,854, 30% discount on cash rate = $1,298.


Aug 12 - Aug 26(14 nights) - cash rates are based on current summer discounts of 20-25%

AKV studio standard view 202 points, renting at $10/point = $2,020, My costs ($7/point) = $1,414, cash rate $5,655

AKV studio savannah view 254 points, renting at $10/point = $2,540, My costs ($7/point) = $1,778, cash rate $6,933

POR room cash rate $2,769.
Pop Century cash rate $1,590.


Cash rates were based on going to the Disney site and booking a reservations for those dates. My costs is equal to my annual MF per point + my buyin cost per point (your costs could be significantly higher buying direct)

So there is no doubt in my mind that there is a huge saving with DVC when comparing the equalivalent room. Compared to a moderate room, there is still a savings. And there is no real savings when compared to a value room.

Run some numbers for yourself comparing the room you are getting for $1,100 against what you would be getting with DVC. If they don't work out for you, don't buy DVC.

I didn't buy DVC myself till the numbers made sense for me and for me that meant buying resale only.

 

[KAT4DISNEY]

It sounds like you're looking at too many points if you're looking for accommodations similar to POFQ for one week. I might compare that to OKW studio b/c it's similar surroundings and has 2 queen beds. One week there in the cheapest season is 76 points. MF's on OKW 76 points is $395.20. Or if you owned SSR points but stayed at OKW during the cheapest season it would be $359.50. In a Dream Season (middle of the charts) it would be 99 points so $515 or $468 with SSR points used at OKW. And in the most expensive season it's 152 points or $790/$718.

In general if you like value accommodations then DVC is not going to save. If you like moderate you can get accommodations with DVC at a deluxe resort for a similar cost. If you like deluxe you can save money until you start realizing you like the 1 and 2 BR villas then you might still be paying the same as if you paid cash at a deluxe but you can get larger accommodations.

 

[pgowder]

a POFQ room is more like a studio, though, even discounting the deluxe aspects of staying at AKV and the giraffes. you can get a standard view 1BR in dream season for 200 pts for 7 nights or a standard view studio for 95 pts for 7 nights.

annual dues on 95 pts would be a little over $500 for the year. how many nights at POFQ will $500 get you?

there are other things to consider. you get 2 real beds at a mod (2 queens at some, 2 doubles at others) but 1 queen + 1 sofabed in most studios. you would also need to factor in the upfront cost of buying into DVC.

but if you are comparing apples-to-apples, a studio is a more realistic comparison on the financial side. DVC still may not be worth it to you, however, depending on how you value things like sofabeds (and giraffes. )

That makes alot of sense! thanks!

 

[pgowder]

I like playing with numbers and spreadsheets and one day when I was bored I went through each of the DVC resorts comparing the point cost of a studio against the cash cost of the equivalent room for the times of year I normally go. I also compared these numbers to a moderate hotel room at POR since I use to only stay at moderates. Note that the cash cost is paying full rack rate and one should really assume that you would be able to get at least some sort of discount.

For AKV though the numbers worked out to this:

Dec 09-23 (14 nights)
AKV studio standard view 170 points, renting at $10/point = $1700, My costs ($7/point) = $1,190, cash rate $6,503, 30% discount on cash rate = $4,552.

AKV studio savannah view 220 points, renting at $10/point = $2,200, My costs ($7/point) = $1,540, cash rate $7,740, 30% discount on cash rate = $5,418.

POR room cash rate $2,8643, 30% discount on cash rate = $2,005.
Pop Century cash rate $1,854, 30% discount on cash rate = $1,298.


Aug 12 - Aug 26(14 nights) - cash rates are based on current summer discounts of 20-25%

AKV studio standard view 202 points, renting at $10/point = $2,020, My costs ($7/point) = $1,414, cash rate $5,655

AKV studio savannah view 254 points, renting at $10/point = $2,540, My costs ($7/point) = $1,778, cash rate $6,933

POR room cash rate $2,769.
Pop Century cash rate $1,590.


Cash rates were based on going to the Disney site and booking a reservations for those dates. My costs is equal to my annual MF per point + my buyin cost per point (your costs could be significantly higher buying direct)

So there is no doubt in my mind that there is a huge saving with DVC when comparing the equalivalent room. Compared to a moderate room, there is still a savings. And there is no real savings when compared to a value room.

Run some numbers for yourself comparing the room you are getting for $1,100 against what you would be getting with DVC. If they don't work out for you, don't buy DVC.

I didn't buy DVC myself till the numbers made sense for me and for me that meant buying resale only.

Does your math include total cost of ownership--the upfront costs and the yearly fees?

 

[pgowder]

It sounds like you're looking at too many points if you're looking for accommodations similar to POFQ for one week. I might compare that to OKW studio b/c it's similar surroundings and has 2 queen beds. One week there in the cheapest season is 76 points. MF's on OKW 76 points is $395.20. Or if you owned SSR points but stayed at OKW during the cheapest season it would be $359.50. In a Dream Season (middle of the charts) it would be 99 points so $515 or $468 with SSR points used at OKW. And in the most expensive season it's 152 points or $790/$718.

In general if you like value accommodations then DVC is not going to save. If you like moderate you can get accommodations with DVC at a deluxe resort for a similar cost. If you like deluxe you can save money until you start realizing you like the 1 and 2 BR villas then you might still be paying the same as if you paid cash at a deluxe but you can get larger accommodations.

Thanks!

 

[disneynutz]

DVC works for some and not for others. Each prospective buyer needs to work the numbers, visit the resorts, learn about the rules, policies, and restrictions, then decide if the money is worth it for the product received. Each person/family is different.

Bill

 

[chalee94]

Does your math include total cost of ownership--the upfront costs and the yearly fees?

he's including $5-ish per pt for annual dues + $2-ish per pt to account for upfront costs spread over 40-ish years = $7 per pt.

 

[sweetdana]

Some resorts are less resale too. IE to compare POR/FQ use SSR or OKW resale, cost is closer to 6$- 6.50$ a point, needing per night, close to same as AK.
Agree with all pp, 200 point is a lot, and not = to 7 days at a moderate.

 

[Dean]

Does your math include total cost of ownership--the upfront costs and the yearly fees?

It sounds like the calculations are omitting the time value of the up front money (or interest if financed).

In general terms and making reasonable assumptions, a DVC studio should be around the same cost as a moderate and more than a value. However there is a large difference depending on your home resort and buy in cost. Since you're moving up anyway, comparing to OKW or SSR would be a better comparison and if you go resale, you should be able to get in under $50 a point and if you're diligent, likely around $40 a point or maybe less. IF you can pay cash and plan to visit WDW and/or DVC resorts enough to use up an appropriate sized contract, the added value should be worth it even if the numbers aren't exact.

However, let me throw in another type of option. For pennies on the dollar and yearly fees around 70% of DVC, one should be able to get a 2 BR off property at a resort at least as nice as the DVC resorts. You'd pick up a better larger room and give up the on property location. Plus you'd pick up a lot more and better non DVC options for other locations. Here are a few examples. Bluegreen 20000 points for essentially free plus closing, likely under $500 total and yearly fees around $1200 would get you a 2 BR locally every year for 7-8 days. DVC dues for a 2 BR for a week would be in the range of $1500 a year. Wyndham could be had for around $1000-1500 at a lower fee resort and give you a 2 BR every year at Bonnet Creek, right by Caribbean Beach and yearly fees in the same $1200 range or just over. Both would give you free RCI with a lot less restrictions than DVC plus both give you a lot of internal exchange options directly for little or no fee. The other option is Marriott which is more of a full week (but not fixed) option. Marriott would be a little more up front and yearly but give you even better and higher end options and still cheaper yearly than DVC for a comparable situation.