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Is DVC even worth it for us?

Discussion in 'Purchasing DVC' started by MishLosingIt, Aug 19, 2013.

  1. Bhoffm02

    Bhoffm02 Member

    Looks like the $5 was a very low estimate! MFs have increased, on average, 30 cents per year, so if you use an average MF of 10.80, then the price per night amounts to approximately $188. Quite different than the $101 previously thought. Sorry :0/
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  3. Deb & Bill

    Deb & Bill DVC-Trivia Contest, Apr-2006: Honorable Mention

    I looked for the information in the POS, but couldn't find it. I think it says annual fees can go up 15% each year. So for SSR, that gives you an average of $388/point over the life of the contract just for the member fees. That that doesn't take into account any special assessments if they are needed.
  4. Bhoffm02

    Bhoffm02 Member

    That comes pretty close to the $10 average MF per year I assumed above. It looks like with a $70 pp resale purchase you will end up with a price per night (for a studio) comperable to a moderate resort. However, many people say moderate is so much cheaper. Am I missing something?
  5. ajcatman

    ajcatman 1st Disney Visit 1976

    Other things to consider. Your kid(s) won't be young forever. You probably won't go to Disney every year but you still might want to vacation every year. DVC greatly. opens your vacation choices. (Hello Hawaii, RCI) I bought in when my youngest was 13. He's 23 now. We've been to SSR three times, two Keystone resort ski vacation, I'm going on an Alaska cruise next year and in 2 weeks I'm spending 6 nights at AKV for 70 points. The Keystone trips alone would have easily cost me $3000 each. Ski in/ski out accommodations. Two years ago I stayed at a SSR 1 bedroom unit for 7 nights.
    Sure, I probably could have stayed at a value resort for less, but I'm at the point in my life (60 yrs. old) where a little bit of luxury it well worth the $$ spent 10 years ago. And it's available for my family till 2054. $900/year dues (tax deductible I might add), is a fair price to pay for quality.
    I used to travel and look for the place where they leave the light on for you.... DVC has spoiled me.
  6. ToddyLu

    ToddyLu Welcome aboard explorers- I love Mr. Ray

    :) DH and I knew we were going to be annual visitors to WDW after our first trip in 2002. We purchased DVC in 2009. We decided that while we loved our stays at All Stars and Pop we wanted more "deluxe" vibes during vacation. DVC was where we decided to spend our extra fun money for vacations and general merriment. We do not golf, hunt, boat and while DH hates to travel he loves visiting Disney as much as I do.

    Since owning DVC our trips have completely changed. We are no longer commando troopers, we simply take our time. We relax in the room with snacks and a beverage and have been able to enjoy trips with our parents and love "giving" them a studio to use when they travel with us. DVC is our luxury. We know it is a luxury and we appreciate it as a luxury.

    My mantra is....owning DVC for a Disney trip is like owning a Corvette for the drive to work.

    It is necessary? no. Is it expensive to maintain? yes. Is it worth every penny, every second that you are in it? absolutely.
  7. Dean

    Dean DIS Veteran<br><a href="http://www.wdwinfo.com/dis

    The potential increase, as written in the POS, is 15% PER YEAR PLUS TAXES. Realistically this is unlikely.

    What I think you're missing is the time value of money for the upfront costs and the risk involved. For a moderate you should be about break even roughly. However, that compares a hotel room to a studio or a 2 BR to 2 studios. In the end few people end up using studios consistently so DVC is almost certain to cost much more. Plus it seems people often end up spending around the same they would on a given trip anyway so that adds to the cost over time.
  8. sonofanarchy

    sonofanarchy New Member


    I'm not opposed to DVC. If I had $30K in disposable income I could spend, I'd probably join. There are just so many questions you need to ask yourself:

    -Will you be financing? If so, DVC probably isn't a good idea.
    -Are you absolutely certain you'll be going to WDW every year for the next 40 years?
    -When do you typically go to WDW and how much more is it with points for your week of the year versus other times?

    I think a huge part of the DVC decision is one based on personal beliefs. Most people think I'm nuts going to Disney every year and paying to stay in Deluxe resorts. That's all fine. But my personal belief is if I can afford it, I'll do it. From year to year. Buying into DVC to me is exactly what it is - Paying for your vacations for the next 40-50 years in advance. I just don't agree with that. There are too many variables in life. I like knowing that if I can't afford to go one year, I don't have dues to pay for. Sure, you can always rent the points out, but that's just something else to deal with.

    Honestly, I've found renting points from DVC members to be the best way to go for me. I love the 1 bedroom villas, and if I can rent points at $12 per point (just did for 2014), then that's great. I'm saving a bunch of money off of what Disney would charge me, but there's no long term obligation.

    Bottom line - There is no right or wrong answer. You shouldn't go into DVC thinking of it as an investment, because it most certainly isn't (unless you're in the real estate game). It's a lifestyle choice that you need to make and be comfortable with.

    That being said, one word of caution I would always give - NEVER buy into DVC while on vacation in WDW. 95% of those buys are bought because you're wrapped up in the magic of WDW. Take the material home, study it, crunch the numbers, THEN decide.
  9. gofish7490

    gofish7490 New Member

    Back in 1995, my family (lovely wife and 2 children) was faced with this same decision. However, we did not want to go to WDW every year. It just so happened, Disney was in the process of building the Hilton Head Island (HHI) resort. After our WDW trip in 1995, we drove by HHI on the way home and even though it was still under construction we loved the resort. We signed the dotted line and have never had any regrets. We have many cherished memories from our family vacations, including many at WDW. We used our points this year to stay at Disney in Hawaii (30th anniversary), what a great resort. We are using our points next year to take our extended family to HHI in a grand villa.

    I say all of this to point out, think long term and not just in the present. Your family will change as ours has. We are now empty nesters, but we still have no problem using our points every year. There is more to it than just the money, but I know the money part prevents some from buying in. If I were to buy more points today, I would probably go the resale route even with the new restrictions placed on them. So, check out the resale market as well.

    Have a Disney Day,
  10. crisi

    crisi New Member

    The other thing that is missing - harder to quantify - is risk.

    Say one year, toward the end of your use year, you plan a trip and need to cancel 25 days out because your father in law had a heart attack. You can't use those points - its a year worth of 'wasted' dues and points. With a CRO reservation, you cancel and get your money back - or most of it.

    The other risk has to do with reselling it if you need to - the first VGF contracts are up - whoever bought those contracts is out a bit of money on the sale - and they didn't buy them planning to resell them before the resort even opens - something happened.

    DVC CAN save you money, if you had certain travel patterns, retained those travel patterns, and are disciplined. But it isn't likely - Disney keeps building it out because its a much more efficient way to pull money from our wallets to their balance sheet - and the promise of a continual revenue stream for decades. The game is rigged to the house (or mouse, if you prefer).
  11. awilliams4

    awilliams4 New Member

    If the intent is to stay in at least a Moderate every other year, then the answer is yes assuming you do not finance your purchase.
  12. sonofanarchy

    sonofanarchy New Member

    A Moderate every other year = DVC making sense?

    Sorry, but in no way do I find that to be true, financing or not.
  13. bighoo93

    bighoo93 New Member

    I have to agree with the consensus here that the answer is probably no, for now. Keep in mind that you can stay in the exact same resorts if you want to without having to buy into DVC, either through renting points from current owners or directly through Disney. So what you are really looking for is cost savings if you are sure that you want to stay at one of the DVC resorts. As others have noted, there isn't necessarily a huge savings for DVC studio rooms, and there are a LOT of alternatives that don't require DVC membership. Given how you've described your situation, if I were you I wouldn't want to commit to DVC at this time. If your needs change in the future in a way that changes the equation (e.g., family gets larger and you know you will need 2 BR accommodations), I would revisit the idea then. DVC will still be here.
  14. Deb & Bill

    Deb & Bill DVC-Trivia Contest, Apr-2006: Honorable Mention

    No, the $388 is the average per year over the life of the contract. If member fees go up 15% each year, by 2054 you are paying over $1000 a point just for the fees.
  15. bighoo93

    bighoo93 New Member

    That may be, but you'll also be paying $900 for a Big Mac. Time and inflation combine to do crazy things. It is hard to keep things in perspective 40 years out.
  16. geraghty

    geraghty New Member

    This is impossible. Unless inflation goes up at a rate close to or more than 15%. To me, buying DVC is like buying gold. You are protecting yourself, not against inflation, but the mouses greed on hotel stays. Any increase in mfs have to be justified as necessary. However that does not protect us from the cost of food, tickets and travel.
  17. BeerMe

    BeerMe New Member

    In the early 70s the advertisement was buy a Big Mac, coke and fries and get change back from your dollar. The first McDonalds hamburg I bought in the early 60s was 15 cents.
  18. crisi

    crisi New Member

    I remember a promotion where if you spent $10 at McDonalds you got a ticket to a Louisville basketball game. The reason it sticks in my head is that it seemed IMPOSSIBLE for a family to spent a whole $10 at McDs.

    Dues will increase. If they increase 15% a year for several years, the entire economy would be in hyperinflation and we'd have huge problems beyond paying our dues. But you should assume that they will increase - and probably increase more towards the end of the contracts as the resorts get older and require more maintenance. Of course, resort prices will increase too. The difference is that once you buy DVC, you are stuck with the dues - if resort prices go up - I know its a huge hardship - but people COULD stay offsite or they could skip a year.

    The long term commitment of cash needs to be taken into account.
  19. sonofanarchy

    sonofanarchy New Member

    I think another thing that's important to keep in mind is this:

    DVC locks you into a specific rate on the purchase price. While the dues increase, so do hotel rooms without DVC. However, here's the key that a lot of people leave out (especially DVC sales reps):

    For the past 3 years we have rented points to stay at a DVC Resort. Over those 3 years, we've paid no more than $12 per point, and as little as $9 per point. The standard going rate is about $12 per point. That price will no doubt increase over time, however, if you are dedicated and patient, you can definitely find deals through sellers. Another key point: Staying at a Disney Resort through Disney. Yes, the prices do increase every year, but when DVC tells you how much you'll be saving, they do not take into account discounts. I don't know about anyone else, but I have never paid rack rate at Disney. The smallest discount I got was 20% and the steepest was 40%. Staying at Wilderness Lodge next week and I got 30% off the room.

    It's impossible to calculate exactly what the break even point is when you take all these factors into consideration, but rest assured, DVC is making it sound a heck of a lot better than it is in reality.
  20. mrsmouse1960

    mrsmouse1960 New Member

    Way back in the 80s we did the tour, but at the time it appeared to not make financial sense to us so we did not do it. We went back again and did the tour in 2008 and bought in before we ended our vacation. Since that time we added on additional points. I wish we had bought in when we did the first tour. Even after we bought in we still didn't think we would get down as often as we had hoped. But, knowing that the room is technically paid for (since we are financing our DVC) the decision making process is much easier for us for us to go whenever we can. We also have annual passes - so the tickets are already paid for. So for us to randomly decide to go only involves air and food.

    Even if you cannot go for 7-10 day, you can still fit in a long weekend. You become very creative in how you can fit in a quickie. Because of my husbands employment in a school district, we are sometimes limited as to when we can go as well.

    Ask yourself too if your family will be expanding. For us we knew our family would not be expanding past our one daughter. But now that we have a son in law, a granddaughter, and a grandson, we are all able to go on vacation together and stay in a villa. We can cook in the kitchen and save $$$ and just have someplace to go other than the parks. DVC also allows you to start breaking out of the park scenario and do other things that you may not normally do because you felt you had to 'get out of the room' and get to the parks. To us, being in a villa we feel more relaxed when we go on vacation.

    It helps that our DVC is Bay Lake Tower and within walking distance to the Magic Kingdom. If the kids get cranky or someone doesn't feel good, etc. they can take a short walk back to the villa. DVC has also allowed us hop around and try different DVCs without worrying about the actual cost. The DVCs do vary in points needed per night based on the season, but for us it is easier to manage points than trying to come up with additional $$$ for a nicer room, or 2 rooms.

    Also keep in mind that the price of a point will only continue to go up. When I think back to the 80's when we could have purchased and the cost, and what we actually bought in at in 2008...ugh.

    Good luck in your decision making.
  21. crisi

    crisi New Member

    Maybe. We can't. Its $1600+ in airfare for us, a family of four - or a 24 hour drive each way. There are no "long weekends" to Disney for our family - if we go, travel is a commitment.

    I'm sort of jealous of anyone in the Atlanta area - where its possible to hop in a car after work on a Friday, take Monday off, and still manage to get in a nice vacation. Or anyone who lives in an area where fare sales and competition make a quickie affordable - but that isn't Minnesota.

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