Obviously they go up whether you stay in a room or own DVC. But my point was that if you're not an owner, you have the option to skip Disney or take a different vacation that better fits your budget that year. If you own points, you will inevitably feel compelled to use them and may be paying exorbitant prices in the ancillary costs that you're not comfortable with. You have more flexibility outside of ownership, which is just a point I was making for OP to consider. It's been a big consideration for us when thinking about pulling the DVC trigger.
While I will agree that if you don't want to go to Disney on a regular basis, it doesn't make sense to buy into DVC, And of course NOT buying DVC is more FLEXIBLE than buying DVC. I would argue against the fact that you don't have the option to "skip Disney" for any year. Unlike other timeshares, with DVC it is quite easy to rent out your timeshare points for double what your maintenance fees are annually. Admittedly this could be affected if the economy takes a drastic downturn, but as general rule, even in a down economy, the timeshare points will likely rent as people are trying to save money on their Disney vacation.
We are not DVC owerns and I've been somewhat on the fence re DVC for some time.
In our situation, the reasons to buy include:
1. We like to stay at deluxe resorts
2. We like to go to WDW at least once every 1-2 years
3. Prices just keep going up and up and it would be nice to be able to at least somewhat "lock in" some of that cost upfront
4. We have enough cash to not need to finance the purchase
Agree with what Dean said - these items do make you an really ideal candidate for DVC (resale - always resale) While I would re-iterate a lot of what he recommends, I would instead comment on your reasons NOT to buy:
But we also have some signficant reasons to be hesitant:
1. We strongly prefer going during off-seasons (i.e., when most kids are in school) and our oldest is now two years away from middle school (and when he finishes high school, our youngest will start middle school), so these types of trips may not be practical for much longer
2. While we're currently Disney addicts, we may not always be, especially as the kids get older, family tastes change, etc.
This is a very personal question of course, you need to look inside and decide if this is something you want to keep doing long-term. We only decided to buy when we basically decided that we loved going enough that we weren't going to stop even should our daughter out-grow it. If you really think you are going to stop going in the next 2-3 years, than would agree it's probably not for you. But being as you already stay deluxes, the break-even point (looking at resale) is only 5-7 years,
3. We like doing split stays at resorts closest to the parks, which would mean multiple contracts (we could try to book different resorts under the same contract, but I'm not keen on the idea of sweating out availablity at a popular resort at the 7 month mark, I'd want the peace of mind of being able to book at 11 months at each of my favorite resorts)
Well, that's a tough call. As Dean said, if you are set on that, two smaller contracts may be necessary. Smaller contracts have a higher upfront cost, but also retain their value stronger.
4. I worry about having difficulty selling the contract(s) if we suffer a signficant financial setback (especially if this occurs in the midst of a national recession)
Another "what if" scenario that's hard to predict. Again, this is where buying resale makes sense. You are letting someone else get the main hit on the depreciation. Could the vales drop if the economy goes sour, quite possibly, but the downside is maybe retaining 60-80 % of the value. The fact is that it's just as likely the value of the contract rises.
5. DW already thinks we spend way too much on Disney (of the two of us, I'm the bigger Disney addict) and would not be keen on us dropping big chunks of change for DVC contracts, even if convinced that it may save us money over the long term.
Honestly, if it wasn't for this last point, we'd probably lean towards buying (as I view purchasing DVC as something for which both spouses need to be totally on board).
Ironically, I'd probably be more open to buying DVC (and have better luck convincing DW) if we were financially independent, retired empty nesters with grandkids. We could go anytime we wanted and/or treat our adult children and grandchildren to fantastic vacations.
Well, what I would say here is that if you are already staying Deluxe on a regular basis, you will be dropping less money on Disney. What do you currently spend on a week at Deluxe resorts - $4000? $5000? Instead you end up spending $1000 a year. Sure the upfront is a big penny to spend, but again, look to the long-term benefit. Look to the rate at which room prices are increasing -> If you were paying $300 a night 10 years ago you are paying $500 a night now, and you will be paying $800 a night in 10 years. Maintenance fees will go up by a similar %, but the actual amounts won't be so steep, go from $1000 to $2000 in 10 years, instead of from $4000 to $6400 for the hotel room for eight nights.
You mention retirement, but that's one of the main reasons we bought into DVC NOW - i was looking at the numbers, and NOW is when I have the money to pay those up-front costs. In 15 years when I am (hopefully) retired, I won't be able to afford a week at Disney with current room inflation rates, but having put that money in now, I WILL be able to afford my maitenance fees. (I want to know what jobs you have that make you feel you will be better off financially in retirement than you are while working!)
Bill
