Selling My DVC--Opinions on My Reasoning

[boxer]

We have decided to sell our DVC (actually already have an offer), and I wanted some opinions on my reasoning. We bought (270) points of BLT for a pretty good price on the resale market--and basically will make a couple dollars on the resale. After paying a couple years of MF (around $1300), I started looking around at places like David's Rentals and other places--where you can rent points for anywhere from $12/PP to $15/PP. We typically go on vacation once a year, for around (10) days.

A quick price check on David's (usually one of the highest PP) shows a (10) day stay at a Studio at BCV for around $2400. Taking into consideration that I'm usually paying $1300 in MF, that will be just around $1100 more to stay at a DVC--without the large chunk of money I put up for the actual DVC we owned.

When we sell our DVC, that large chunk of money will return to our savings account--and we can still stay at DVC-level resorts. I will buy an AP (Gold level) before we sell--which will allow us another (2) years of visits. My TIW card will also be re-purchased at our upcoming trip, so I will get (18) months out of that too.

Please critique my thinking, and let me know if I'm missing--or wrong on any information.

 

[mnra]

we bought dvc very early in the process and have enjoyed it for many years. When we purchase we viewed it as an item that we one day could give what was left of it to the kids for them to enjoy. We have had many great trips and memories but I am starting to think it might be time to unload it. With the latest annual pass increase and all the other price increases we are getting nervous that Disney will just run up the cost of maintenance to have excess cash. In addition early on rentals where someone limited I believe but now it seems like everyone just talks about rentals as the way to go. IF I can rent then why own.

 

[boxer]

That is my fear too.......that $1300 will eventually turn into $2000, and make renting the points even closer to that cost. I know there is no price lock on renting, but I just can't justify having that much money out of our savings, when we can rent much easier. This is coming from a HUGE Disney fan too......might even look into Universal resorts too.

 

[mnra]

I know Disney is a premium place to visit but when they get huge price increases and they don't seem to stop any of the renting.. Might just be too much for us.

 

[LoveBWVVBR]

That is my fear too.......that $1300 will eventually turn into $2000, and make renting the points even closer to that cost. I know there is no price lock on renting, but I just can't justify having that much money out of our savings, when we can rent much easier. This is coming from a HUGE Disney fan too......might even look into Universal resorts too.

Same here...we called The Timeshare Store today and we're selling our DVC also. We can always rent points if we really want to stay, or we can trade in very cheaply through RCI (albeit only to SSR right now, but that's fine). We just can't justify paying the AP costs anymore. We are also looking at Universal Passes, and we always buy Sea World APs. Looking forward to seeing the $$ back in our savings account honestly.

 

[davper]

If you are still saying you will go every year, then I don't see why you would sell. You are willing to rent at twice the cost of MF which will eventually eat up the money you put into savings. And renting points is only going to get more expensive as MFs increase.

Plus the act of selling is going to cost you 10% of your equity.

Seems like a bad financial move to me unless this is cash you need now for something important.

 

[Stacy's a freak]

As soon as I heard about the most recent increases, I wondered how many people will second guess their DVC memberships and sell. Forgive me for being an opportunist, but for those in the market to buy a resale, things are looking up. It is possible that these ticket and parking increases and potential maintenance fees increases might be a flood of inventory into the resale market and drive down prices. I bet Disney sees a drop in their sales also. Mind you, it's still out of reach for my budget but now seems like a good time for a buyer. And may drive down the prices for a seller .

 

[DVCjj]

In my mind, the huge damper over renting vs owning (I've only been an owner for a year+) is cancellation.
Even though I don't have little kids that can get sick anymore, I have an elderly parent so cancellation is always on my mind when I think of renting.

Just a thought....

 

[davper]

As soon as I heard about the most recent increases, I wondered how many people will second guess their DVC memberships and sell. Forgive me for being an opportunist, but for those in the market to buy a resale, things are looking up. It is possible that these ticket and parking increases and potential maintenance fees increases might be a flood of inventory into the resale market and drive down prices. I bet Disney sees a drop in their sales also. Mind you, it's still out of reach for my budget but now seems like a good time for a buyer. And may drive down the prices for a seller .

I am with you and hope to see a drop in BCV.

 

[MsTessP]

Keep in mind that many DVC owners, including myself, find that renewing an AP next year will only cost $17 something extra as we never plan on visiting at Christmas or Easter. I do not find that increase to be excessive. Additionally, DVC could have an additional promotion coming up (notice I did not say *will*). Perhaps the best thing to do is to take a deep breath, do the necessary math, and look at the whole picture before making any kind of rash decision that may not be right for your family. I'm sure you will still get a quick buyer 10-30 days from now.

 

[CarolMN]

In my mind, the huge damper over renting vs owning (I've only been an owner for a year+) is cancellation.
Even though I don't have little kids that can get sick anymore, I have an elderly parent so cancellation is always on my mind when I think of renting.

Just a thought....

I agree.

Boxer - If you really plan to go every year, you are trading control of the process for the return of a portion of your equity. To stay at BLT or any of the near park resorts, you are going to have to commit more than 7 months in advance. In fact, you'll probably have to commit closer to 11 months in advance to get a studio at a near park resort. After you commit, you can't make any changes to the dates or cancel if something unexpected comes up. You need to factor in trip insurance to the cost and then hope any cancellation is covered.

Unless you seriously need the money for something right now, or don't think you will be going once a year anymore, I'd keep the membership.

 

[jmkjr72]

Ok so your going to pay more to go every year then you did before
Did you ever think that as fees go up so will the cost of renting points
I know I wouldn't rent my points out for less then the fees to cover my dues
You also loose the ability to cancel or change your reservation

 

[eporter66]

I get your reasoning, and it does depend on how you vacation. We only have 150 points, so the maintenance fees are not huge. We still get a weeks vacation and it seems worth it to us. Things change, so who knows, but for now we are not thinking of selling

 

[boxer]

In my mind, the huge damper over renting vs owning (I've only been an owner for a year+) is cancellation.
Even though I don't have little kids that can get sick anymore, I have an elderly parent so cancellation is always on my mind when I think of renting.

Just a thought....

I don't disagree, but cancelling last-minute (as is the case with most cancellations) is also a pain with DVC too. We had a small trip booked a couple years ago that had to cancel at the last minute, and we ended up losing the points.

And I also don't disagree with our vacations costing about $1k more--but with that said, I will also have $30k back into my savings account though. I really love DVC (and Disney), but at this point I just feel it is easier to save-up the extra $1k (or more if price increases come) to stay in the same place that was costing me $30k of my savings. I really thought the DVC 'extras' would be worth it, but that really isn't the case. TIW was OK when it was $100--and now it is up to $150, so the savings is less. AP discounts at one time were awesome--but now that seems to have disappeared with the Gold level offering. With Free Dining, bouncebacks, and other discounts offered, I'm not so sure DVC is really any type of allure anymore (with the rental market being what it is now).

Glad to hear some of the other opinions, and it made me double-check to ensure I was doing the right thing.

 

[bpadair32]

If you are still saying you will go every year, then I don't see why you would sell. You are willing to rent at twice the cost of MF which will eventually eat up the money you put into savings. And renting points is only going to get more expensive as MFs increase.

Plus the act of selling is going to cost you 10% of your equity.

Seems like a bad financial move to me unless this is cash you need now for something important.

I agree with this 100%.

Renting points is going to get more expensive, and another thing to keep in mind is that while they have shown no sign of doing so thus far, Disney can pull the plug on the rentals anytime they want, and then you are really stuck if that is what you are relying on.

 

[granmanh603]

But this is the 2nd price increase this year......first March and now October. Non expiring tickets discontinued, and now adding black out dates. What's next......afraid to ask.

That is my fear too.......that $1300 will eventually turn into $2000, and make renting the points even closer to that cost. I know there is no price lock on renting, but I just can't justify having that much money out of our savings, when we can rent much easier. This is coming from a HUGE Disney fan too......might even look into Universal resorts too.

Keep in mind that many DVC owners, including myself, find that renewing an AP next year will only cost $17 something extra as we never plan on visiting at Christmas or Easter. I do not find that increase to be excessive. Additionally, DVC could have an additional promotion coming up (notice I did not say *will*). Perhaps the best thing to do is to take a deep breath, do the necessary math, and look at the whole picture before making any kind of rash decision that may not be right for your family. I'm sure you will still get a quick buyer 10-30 days from now.

Prices go up on everything and this year was a big hit in my opionion with 2 increases in AP cost and less benefits When you have gone for 15 years you hardly care about more pictures that you can easily take yourself. And to the no price lock on renting there is a limited price lock on dues.. another reason I might be selling my BWV DVC soon too.

 

[disBOBney]

Your replacement vacation doesn't sound like it is using 270 points, that you already own. So What if you rent out your excess points which would net $11-13 pp, how does that compare to the interest you will earn on your $30k investment? And will you leave the 30k invested or use it on something else. Also, your avatar pic shows young boys, what about as they grow will you want larger accommodations than a studio?
As you already have an offer on your points it is too late anyhow for this discussion. If you are hoping to continue frequent vacations to dvc properties, you could buy a smaller contract that more closely matches your new stated accommodations, however keep in mind that BCV are the second most expensive points to own pp. Be warned, I had sold my first contract because I wasn't using that many points in a given year, and I bought a smaller contract, then I bought a second home resort, and then a third, and now I have more points than I started with. IMHO, if you already own DVC, the only reasons to sell is if you really need the cash immediately or you never plan to return to a DVC resort again.

 

[Dean]

We have decided to sell our DVC (actually already have an offer), and I wanted some opinions on my reasoning. We bought (270) points of BLT for a pretty good price on the resale market--and basically will make a couple dollars on the resale. After paying a couple years of MF (around $1300), I started looking around at places like David's Rentals and other places--where you can rent points for anywhere from $12/PP to $15/PP. We typically go on vacation once a year, for around (10) days.

A quick price check on David's (usually one of the highest PP) shows a (10) day stay at a Studio at BCV for around $2400. Taking into consideration that I'm usually paying $1300 in MF, that will be just around $1100 more to stay at a DVC--without the large chunk of money I put up for the actual DVC we owned.

When we sell our DVC, that large chunk of money will return to our savings account--and we can still stay at DVC-level resorts. I will buy an AP (Gold level) before we sell--which will allow us another (2) years of visits. My TIW card will also be re-purchased at our upcoming trip, so I will get (18) months out of that too.

Please critique my thinking, and let me know if I'm missing--or wrong on any information.

If one wants to go yearly in a studio for 10 days, to me it doesn't make sense not to own DVC. Figure the rental prices will increase to some degree along with the dues so there will cont to be a spread. Plus one will lose control and likely the option of some of the cheaper options. Plus some of the protections of changes and cancelations that come with owning over renting. Obviously one does lose the up front investment though some will pick up the option of 11 month reservations at multiple home resorts.

 

[McCrae]

I can fully understand after recent price hikes in passes that some people will have a think again about owning DVC and taking regular vacations at Disney. It's an expensive place to stay. We will have to wait and see if these changes will have a impact overall on demand for Disney.
My thoughts are that if you own DVC and think you may no longer visit on a regular basis that renting points is the best way ahead, especially if you have no financing charges. Your dues will easily be covered and the extra cash can be used to fund another vacation. You of course stil have the option to stay at DVC in the future if you want.

 

[Dean]

I can fully understand after recent price hikes in passes that some people will have a think again about owning DVC and taking regular vacations at Disney. It's an expensive place to stay. We will have to wait and see if these changes will have a impact overall on demand for Disney.
My thoughts are that if you own DVC and think you may no longer visit on a regular basis that renting points is the best way ahead, especially if you have no financing charges. Your dues will easily be covered and the extra cash can be used to fund another vacation. You of course stil have the option to stay at DVC in the future if you want.

There's no doubt that owning DVC adds risk and limits choices and in many cases is as or more expensive than not owning. For an occasional trip or if one's situation is more difficult to plan or predict, it's likely not a good choice to own. To a degree the option to sell is slightly different than to buy for those people though, just as it is if their home resort or contract size ends up not being a good fit where it's rarely reasonable to sell and rebuy but is in some situations.