Bought into DVC on my cruise last week, did I make a mistake?

[klepton]

Hey guys. I just got off the Disney Magic on Saturday, and on Friday bought into DVC after talking to many very happy DVC members. I bought 320 points at Aulani, in Hawaii (sorry, I don't know all the resort acronyms yet ). I paid about half down and financed the rest at 9%, thinking I'd find much cheaper financing once I got home and pay it off early with DVD.

All the math seemed to work out, and there were specials onboard ($7 pp discount + $1000 savings) which is why I bought into it there.

After reading the boards here, I'm starting to think I made a mistake for the following reasons:

1. I didn't buy a WDW resort (Could have bought Animal Kingdom for the same price)
2. I'm buying direct (didn't know resale was so much cheaper)
3. I was planning on using the points on a mixture of cruises, resorts, adventures, and RCI trades. From what I'm reading here DVC is only really beneficial if used at Disney Resorts.

I think I put a little too much stock in the dozen or so DVC members I talked to on the ship, who all raved about DVC as if it was the best thing in the world.

I am within my 7-day window of cancelling. Should I do it? Will I get a full refund of my deposit or am I already out some fees?

Should I have even bought Aulani?

Can you get a higher rental price on your points if they are direct (and unrestricted) than if they are resale?

Thanks for any info you can provide. And thanks for all who have commented previously on these boards and made it the wealth of knowledge it is today!

 

[Brian Noble]

Unless you know you didn't make a mistake, you should rescind. You will get a full refund.

Then, take your time and do some research about what resort, contract size, and use year might best fit your needs; whether resale or direct purchase is best for you; and whether or not DVC is really what you want. Then, you'll be armed to make an informed purchase. It might be the case that the contract you have now is exactly the right one for you, in which case you can buy it---possibly for a little more money, but with the peace of mind that you KNOW it was the right purchase. More likely, you will find that a resale purchase at a WDW resort is a better fit.

 

[DizBub]

1. I didn't buy a WDW resort (Could have bought Animal Kingdom for the same price)
2. I'm buying direct (didn't know resale was so much cheaper)
3. I was planning on using the points on a mixture of cruises, resorts, adventures, and RCI trades. From what I'm reading here DVC is only really beneficial if used at Disney Resorts.

I think I put a little too much stock in the dozen or so DVC members I talked to on the ship, who all raved about DVC as if it was the best thing in the world.

I am within my 7-day window of cancelling. Should I do it? Will I get a full refund of my deposit or am I already out some fees?

Should I have even bought Aulani?

Can you get a higher rental price on your points if they are direct (and unrestricted) than if they are resale?

Thanks for any info you can provide. And thanks for all who have commented previously on these boards and made it the wealth of knowledge it is today!

Well, we do think that DVC is the best thing in the world.

I believe you would get a full refund.

If you intend to go to Aulani regularly you probably want to own there. If you want to go to WDW more often then you should have bought there.

Direct vs resale points has nothing to do with rental pricing.

Good luck with your decision and please come back and let us know what happens.

 

[Breyean]

Hey guys.
Should I have even bought Aulani?

We bought Aulani on an Alaska cruise last year. Being in AZ we thought it might make sense. And, as you say, the incentives and hoopla on the cruise are attractive.

But then we got home and thought about where we would USE the points. We've owned at OKW since 1993, but after moving to the West (AZ) years go, we found ourselves going to WDW less and DLR more.

That convinced us. We go to DLR. So we sold the Aulani points back to Disney (long story - not within the 7 day period like yours w/b) and started looking for VGC points.

Now we own there, and in a resale contract to add more there. Plus we still own OKW. So we own two places we know we will visit regularly (DLR) and every few years (WDW).

Ask yourself - are you going to use the Aulani points AT Aulani all the time, or once in a while? If you answer the latter, you might want to cancel and look into a resale contract where you think you might be going more often.

And, as more and more people join DVC by buying Aulani points intending to use them at WDW DVC resorts, having the 11 month booking window advantage might become even more important in the future.

 

[lodge]

Here's one GIANT advantage you DO have... anyone wanting to go to Aulani (like us) WANT your 11 month booking window to secure what they want, when they want it. There is a place here on DIS where you can trade your highly valued (to those wanting to go to Aulani) points for some you can use at WDW or anywhere else for that matter. Keep in mind too, that you vacation on DCL and can use your direct purchase points for that too (some say not good to use for DCL, but it's a personal choice what works for some does not work for others). The discounts you received are valuable in that you have a location that SO SO many others would have to wait until the "7 month" window to book, and when east-coasters want to travel to Hawai'i, it generally takes MORE than 7 months to secure some decent airfare. If I could've afforded Aulani (especially at a discount) I would've jumped on it too! You have SO MANY points to play with.... use some yourself, trade with other owners for the resort you DO want (at that 11 month window)... there are MANY options (the least of which being your points are wanted for rentals at your home resort and you can get a better price there than likely anywhere else, just due to the cost of staying on the island in general). Don't jump ship yet... look around at options! I'll edit and give you some DIS sites that'll help:

http://www.disboards.com/forumdisplay.php?f=29 for renting/trading/selling your points.... AWESOME DIS service!!!

http://www.disboards.com/showthread.php?t=1255828 rental point "primer"

http://www.dvcrequest.com/?oid=29_1 "DAVE" that will rent your points to others (for a fee of points). He is approved by DIS and would LOVE your points to let Aulani renters get the trip they want.

I added that last one because some people purchase more points than they need in order to defer their maintenance costs by renting out their "extra" points each year. Think of it this way, those points are always there for you if you want them (until 2062, another HUGE advantage to owning Aulani), and if not, can get you some money to bring the owning cost down each year.

As you can see there is more to owning than just the initial cost up front. Think it all through then keep us updated!!

 

[ToddyLu]

DVC is an expensive timeshare. We purchased direct from Disney and have loved every second of our vacations. I would only purchase Aulani, VB or HHI if I wanted to stay at those resorts. Generally Aulani owners will be able to get in at SSR, OKW or AKV at WDW at the 7 month mark. But the experts on here say you are ONLY gauranteed booking at your home resort at 11 months. The changing at 7 months can be taken away..folks are doubtful it will happen....but we purchased at WDW to stay at WDW. That way I know my annual trip to Disney is going to happen at 11 months out...

It has been beneficial to own at AKV to secure value studios and concierge rooms. I have been able to book 2 value staudios for our last trip and the one this Nov becasue as an owner there I am getting in before others.

You can purchase any resort direct from Disney. You may have to wait a while but they will eventually sell you any resort as they gather points back by default, ROFR, etc.

 

[GOOFY D]

We purchased on a cruise as well (AKV). Once we discovered the resale market and other options upon returning, we cancelled our purchase. We received a full refund. It sounded great to us on the cruise, but when we found out how many points it would take to use our points to book a cruise and how many more points we could buy resale, we decided to back off and research. We later purchased BLT and are now buying BWV. We will get about 1/3 more points for 15%-18% less than we were paying on the cruise (and two slightly more desirable locations for us personally).

 

[kerickson]

Where do you live and where do you plan to vacation the most (or have the most restrictive times, location requests, etc)? That's where you should buy.

There are ongoing debates about using point for cruises and other options outside DVC. The points for those alternatives seem to keep going up (vs points remaining relatively stable at the DVC resorts), so you might find your self priced out of those options in 5-10 years.

We cruised on points 5 yrs ago, but used bonus points we received as part of our purchase incentive. Points to cruise have significantly gone up and you don't have as much flexibility as cash (dates, incentives), so I think we'd only use them to cruise in the future if we need to use up an excess of points or to supplement a cash purchase.

We live in California and own 225 pts at SSR and and 100pts at VGC (both purchased direct). We purchased the SSR contract to allow us first option to purchase VGC since it was so small. We are now happy with what we have, although I wish it was more of a 50/50 split. The VGC points are much more expensive though, so we probably would have ended up with less points overall. We now use our VGC points to stay there (they are like gold!) and our SSR points to supplement our VGC stays at 7mo and less frequent Aulani and WDW stays.

My recommendation would be to start with a smaller contract, or if you do want the full 320, I'd recommend splitting your purchase into multiple smaller contracts, either at different resorts or the same one. We didn't know we could do that when we bought SSR and wish we had split that purchase like we did our VCG contracts. Smaller contracts seem to resell quicker and at a higher price and give you more flexibility if you want to downsize in the future.

Best of luck with your decisions and possible future purchase! I stressed about our purchase the first year after we bought with 'what ifs', but now we couldn't be happier that we took the plunge. Every trip my husband and I marvel at how DVC has made our family vacations more frequent and more enjoyable (love the 1BR!). I wouldn't say DVC is saving us money in the long run as we are vacationing more than we ever would have with out it, but we believe family vacations are a good thing and couldn't be happier with the quality/experiences at Disney.

 

[ELMC]

Hey guys. I just got off the Disney Magic on Saturday, and on Friday bought into DVC after talking to many very happy DVC members. I bought 320 points at Aulani, in Hawaii (sorry, I don't know all the resort acronyms yet ). I paid about half down and financed the rest at 9%, thinking I'd find much cheaper financing once I got home and pay it off early with DVD.

All the math seemed to work out, and there were specials onboard ($7 pp discount + $1000 savings) which is why I bought into it there.

If you have half to put down on a direct purchase, you have enough to pay in full on a resale purchase. No financing, no monthly payments. Something to think about.

After reading the boards here, I'm starting to think I made a mistake for the following reasons:

1. I didn't buy a WDW resort (Could have bought Animal Kingdom for the same price)
2. I'm buying direct (didn't know resale was so much cheaper)
3. I was planning on using the points on a mixture of cruises, resorts, adventures, and RCI trades. From what I'm reading here DVC is only really beneficial if used at Disney Resorts.

I think I put a little too much stock in the dozen or so DVC members I talked to on the ship, who all raved about DVC as if it was the best thing in the world.

I think you need to separate the two. Sure, people love DVC, that's why they own it. But I'm guessing that the people you talked to bought their contracts for much less than $130 a point. It's possible to love DVC and hate your payment, in which case you should be looking at resale.

I am within my 7-day window of cancelling. Should I do it? Will I get a full refund of my deposit or am I already out some fees?

Should I have even bought Aulani?

Can you get a higher rental price on your points if they are direct (and unrestricted) than if they are resale?

Thanks for any info you can provide. And thanks for all who have commented previously on these boards and made it the wealth of knowledge it is today!

Without a doubt, 100%, rescind. The fact that you're questioning yourself means that you're unsure, and this is too much money to spend and not be sure about it. If, after research, you find that you disagree with my position about resale, that's fine. But at this point you don't have enough information to make an informed decision. Good luck, please let us know what you decide.

 

[ELMC]

DVC is an expensive timeshare. We purchased direct from Disney and have loved every second of our vacations. I would only purchase Aulani, VB or HHI if I wanted to stay at those resorts. Generally Aulani owners will be able to get in at SSR, OKW or AKV at WDW at the 7 month mark. But the experts on here say you are ONLY gauranteed booking at your home resort at 11 months. The changing at 7 months can be taken away..folks are doubtful it will happen....but we purchased at WDW to stay at WDW. That way I know my annual trip to Disney is going to happen at 11 months out...

It has been beneficial to own at AKV to secure value studios and concierge rooms. I have been able to book 2 value staudios for our last trip and the one this Nov becasue as an owner there I am getting in before others.

You can purchase any resort direct from Disney. You may have to wait a while but they will eventually sell you any resort as they gather points back by default, ROFR, etc.

If you don't mind me asking, what did you pay for your AKV points? The reason I ask is because I think there is a huge difference between buying direct at $95 and buying direct at $140.

 

[paults]

Hey guys. I just got off the Disney Magic on Saturday, and on Friday bought into DVC after talking to many very happy DVC members. I bought 320 points at Aulani, in Hawaii (sorry, I don't know all the resort acronyms yet ). I paid about half down and financed the rest at 9%, thinking I'd find much cheaper financing once I got home and pay it off early with DVD.

All the math seemed to work out, and there were specials onboard ($7 pp discount + $1000 savings) which is why I bought into it there.

After reading the boards here, I'm starting to think I made a mistake for the following reasons:

1. I didn't buy a WDW resort (Could have bought Animal Kingdom for the same price)
2. I'm buying direct (didn't know resale was so much cheaper)
3. I was planning on using the points on a mixture of cruises, resorts, adventures, and RCI trades. From what I'm reading here DVC is only really beneficial if used at Disney Resorts.

I think I put a little too much stock in the dozen or so DVC members I talked to on the ship, who all raved about DVC as if it was the best thing in the world.

I am within my 7-day window of cancelling. Should I do it? Will I get a full refund of my deposit or am I already out some fees?

Should I have even bought Aulani?

Can you get a higher rental price on your points if they are direct (and unrestricted) than if they are resale?

Thanks for any info you can provide. And thanks for all who have commented previously on these boards and made it the wealth of knowledge it is today!

I would cancel and do some research on the boards. If you do keep this contract the first thing I would do is call and get the 320 pts split into 2 (160 pt contracts). If you ever wanted to sell off some pts you could not break up that 320 pt contract but you could sell off one of the 160 pt contracts.
Buy where you want to stay.

 

[bumbershoot]

I was planning on using the points on a mixture of cruises, resorts, adventures, and RCI trades.

I don't know about RCI and Adventures, but if you do really want to use points on Disney cruises, you will have to buy direct; for those who bought resale after a point a year or two ago, you can't use resale points on cruises.

If you have half to put down on a direct purchase, you have enough to pay in full on a resale purchase. No financing, no monthly payments. Something to think about.

Such a good point.



I think you need to separate the two. Sure, people love DVC, that's why they own it. But I'm guessing that the people you talked to bought their contracts for much less than $130 a point. It's possible to love DVC and hate your payment, in which case you should be looking at resale.


Also a VERY good point. We financed it all in '09, and while it was more than when we first took the tour in '07 it certainly wasn't today's prices!



Without a doubt, 100%, rescind. The fact that you're questioning yourself means that you're unsure, and this is too much money to spend and not be sure about it. If, after research, you find that you disagree with my position about resale, that's fine. But at this point you don't have enough information to make an informed decision. Good luck, please let us know what you decide.

I agree with that, too.

 

[ToddyLu]

If you don't mind me asking, what did you pay for your AKV points? The reason I ask is because I think there is a huge difference between buying direct at $95 and buying direct at $140.

I agree, the price per point was over $100 in June of 2009. We got a discount for purchasing over 200 points and then a $7 or $8 discount for knowing a DVC member. We purchased our points at $93 pp. It isn't hard to say what I would do now. Buy resale. But at the time we purchased what we wanted and have been very happy.

It was hard to figure out how much DVC cost back then--I just could not find out an answer--often I break it down for those who purchase direct so they know what the cost is. I have even PM'd a couple of people who wanted more concrete info ont he monthly costs, etc. I remember the Guide being surprised I knew about the referral discount--thanks DIS.

In 2013 would I purchase AKV at $140---no.

 

[disneynutz]

Many DVC owners love the DVC because they have a vested interest, who wants to tell someone that the program isn't what thought but they stayed owners anyway.

Peel away the Disney magic and the emotion and look at a purchase as a business deal. All DVC does is offer you a discounted room and some other discounts as icing on the cake. The icing can and does change at Disney's discretion.

As a sales enticement they allow you to use points at other vacation destinations other than DVC resorts. Most of these have booking restrictions or availability issues. Most require a premium use of points and a $95 fee for each booking.

You can buy your contract from Disney and pay a premium price. Often they do not tell you that you can buy at any resort because they want to sell their active resorts that make them the most money.

Here are my recommendations:

Buy if you currently vacation at the resort that you are interested in at least every 2 years or plan to vacation there knowing that it will cost thousands of dollars each vacation.

You have checked out the resorts and maybe stayed there so you know what you are buying?

You can plan and book 11 months in advance to better your chances of getting the room you really want. If you book less than 11 months you may or may not be successful in getting your desired room category.

You understand that the DVC resorts do not have the same cleaning and maintenance schedule as the regular resorts, some may show wear.

You understand that Disney is in control, as members we really don't have any say in how our dues are spent, or what rules, policies, or discounts are
put in place.

If you have questions or need time to consider you decision, I would rescind the contract and learn more including the cost savings of resale.

Bill

 

[klepton]

Thanks so much for your thoughts guys! It really helps me in my thought process. To answer a few of your questions:

1) We would plan on visiting Aulani every 5 years or so, at most. It's very expensive for us to get to Hawaii, so it definitely wouldn't be an every year thing. When I made the decision to purchase, I was thinking that we'd stay at every DVC resort over the next 10-15 years. I chose Aulani because it has the longest life (49 years) and I assumed it would be the hardest to get in to at the 7 month mark. I was thinking that because there are 7 resorts at WDW, I could always get in at one of the resorts there.

2) We actually don't have a favorite resort, we've never stayed at a single disney resort before, and last week was our first disney cruise. We love travelling, especially cruising, and I was attracted to DVC because of the flexibility it appeared to have. After all my reading, and some more looking at the hard numbers, I do think DVC really only makes sense for staying at Disney resorts.

At this point I'm leaning very strongly toward rescinding. I might look at buying resale as an alternative, but might also just look at renting points for a few stays to make sure Disney travel is really for us. We really like to get out and experience new places (hence me wanting to stay at every resort), and DVC doesn't afford the flexibility I first thought it did.

Thanks again everyone, you have no idea how much I appreciate your insights! I'll make a final decision soon and report back.

 

[JimMIA]

I would strongly recommend that you rescind. In any real estate transaction -- and especially with anybody's timeshare -- if you have even the slightest doubt, rescind.

Take a deep breath, and then go to school. Look at the concept of timeshares generally and how one would really work for your family. Look at how DVC works -- the nuts and bolts of making reservations, canceling, banking, borrowing, Use Year, etc, etc, etc. And you might also look at other timeshare systems; DVC is not the only excellent timeshare.

If after all that, you decide that DVC is for you, explore the resale opportunities.

If and when you finally make a decision, you will have much greater comfort than you have now.

 

[GOOFY D]

I think you are making the right decision to rescind. The option to purchase (resale or direct) will always be there once you have had enough time to research and make an informed decision.

 

[klepton]

I want to again thank everyone for their invaluable help and insight. The advice to take a step back and make sure it was right for us was well taken, which is what we've done. I sent in the rescission notice on Weds, and it should be processed today. Of course our DVC rep called and tried to convince me to go through with it, which I expected, but it's all done for now.

Our plan now is to take a 7-10 day trip to WDW (probably renting points) and spend a day looking at the different properties. If we really enjoy the stay at WDW, and find a property we really like, we'll look at buying that one resale, and possibly two different properties if we want to mix things up. We plan on buying enough points to easily split between two properties, especially with banking/borrowing ability. But first things first, we'll visit WDW and go from there.

Again, I thank everyone for their advice/suggestions. It's great having a board of knowledgeable people to bounce ideas off of and get honest feedback.

 

[ELMC]

I want to again thank everyone for their invaluable help and insight. The advice to take a step back and make sure it was right for us was well taken, which is what we've done. I sent in the rescission notice on Weds, and it should be processed today. Of course our DVC rep called and tried to convince me to go through with it, which I expected, but it's all done for now.

Our plan now is to take a 7-10 day trip to WDW (probably renting points) and spend a day looking at the different properties. If we really enjoy the stay at WDW, and find a property we really like, we'll look at buying that one resale, and possibly two different properties if we want to mix things up. We plan on buying enough points to easily split between two properties, especially with banking/borrowing ability. But first things first, we'll visit WDW and go from there.

Again, I thank everyone for their advice/suggestions. It's great having a board of knowledgeable people to bounce ideas off of and get honest feedback.

Thank you for taking the time to come back and update us, we appreciate it.

 

[Mississippian]

I want to again thank everyone for their invaluable help and insight. The advice to take a step back and make sure it was right for us was well taken, which is what we've done. I sent in the rescission notice on Weds, and it should be processed today. Of course our DVC rep called and tried to convince me to go through with it, which I expected, but it's all done for now.

Our plan now is to take a 7-10 day trip to WDW (probably renting points) and spend a day looking at the different properties. If we really enjoy the stay at WDW, and find a property we really like, we'll look at buying that one resale, and possibly two different properties if we want to mix things up. We plan on buying enough points to easily split between two properties, especially with banking/borrowing ability. But first things first, we'll visit WDW and go from there.

Again, I thank everyone for their advice/suggestions. It's great having a board of knowledgeable people to bounce ideas off of and get honest feedback.

You have made a wise decision. If you are thinking about staying for 10 days may I suggest that you rent points and stay at as many as four resorts. Yes, moving is a pain, but you are about to make a big investment. And Disney will move your luggage for you while you are at the parks.

This is just my personal opinion, but I would suggest BWV, BCV, OKW, and perhaps one other. These are three of the older resorts and in my opinion offer the best value. Yes, they expire sooner, but they will still last until you are an oldster. At BCV you get the best location at a good price. At BWV you just get the best of all worlds. At OKW you are stuck with a spread-out condo resort but the rooms are huge and dirt cheap.

Just try them and see.