why is dvc worth it in the long run?

Discussion in 'Purchasing DVC' started by monica9, Dec 2, 2012.

  1. monica9

    monica9 DIS Veteran

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    Does dvc save you money in the long run if you are a family that goes once a year and only stays deluxe, has only one child and has to fly to get to Disney? Why did you choose dvc over RCI or other timeshares?
    We realized we spend on average 3800 for a week and that includes base tickets and free dining at deluxe for a week while we will be paying $260 a month and almost $900 in fees that's about 4200 a year. Is there something I'm missing? Also, after the 10 years are up and we only have to pay fees, whos to say the prices on fees won't double? Then having to pay $400 a ticket for 3 people annually plus food. I can't see how this would save us money. Any help with making the decision? Unfortunately we purchased it yesterday and obviously didn't think it through too well. We have 10 days to cancel but not sure if we will lose out on our down payment either. Please no rude comments but friendly advice will be much appreciated!
     
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  3. Missyrose

    Missyrose DIS Veteran

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    The first thing to remember is that DVC only applies to the lodging portion of your trip -- tickets, airfare and food will still all have to be bought on top of your DVC purchase.

    If you tend to go at the same time every year, see if you can't schedule two trips within 12 months of each other so you could buy an annual pass instead of two sets of tickets.

    But to the more fundamental question of whether DVC is worth it for you, you have to figure out how you plan your trips (do you typically plan far in advance? Do you usually book using discounts? Is staying on-property an absolute must?).

    Rack rates for Disney resorts will continue to go up, but so will DVC MFs. Have you looked into renting DVC points for vacations, that would allow you to save the upfront cost?
     
  4. ethanash1

    ethanash1 A little bit of Pixie Dust can fix almost anything

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    Hi! Unless the policy has changed since we purchased in 2009, you do not lose your deposit. As far as saving money, would you be taking other vacations in the future? Also, is there family that you would like to take along on future trips? Would you be able to pay out of pocket for this? We wouldn't..... And DVC has allowed us to take other family members on trips with us, and instead of buying tickets every year, why not consider buying the 10 day with no expiration date? You can use it for a couple of years, or a couple of trips.
    We have personally found that its worth it for us, and in the long run as well! Good luck with whatever you decide....
     
  5. z28wiz

    z28wiz DIS Veteran DVC Gold

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    It also looks like you are financing which can almost double your cost as well. Financing a timeshare is almost always bad financially if not paid off in a year or so. If you didn't have the monthly payment for financing you would have broke even after about 5-7 trips. With financing it can take almost up to twenty years to break even. Also you won't lose your deposit unless you booked on a cruise and received an inboard credit.
     
  6. DougEMG

    DougEMG DIS Veteran

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    If you are paying $4200 a year for the next 10 years, how does that $4200 a year compare to what you currently spend on accommodations only? Is that more, less or the same.

    At the end of those 10 years you'll be down to only paying your maintenance fees of around $900 a year. At that point it is pretty easy to say that you will be paying less and saving money. So how much extra is it costing you in those first 10 years and is that worth it for the savings you get after the 10 years.

    We live on the west coast, have 1 child, typically got a moderate and went once a year. We bought DVC, but bought resale. I looked at what the break even point was for us, ie how many years would it take comparing how much we would normally spend on the room as compared to what it would take to buy and pay MF to stay at the dvc room. For us that was 7 years, so that means after 7 years, the savings kick in.

    Now we've got 3 trips planned in the next 10 months for a total of 53 days which I would never have taken if I was paying cash for a room. So I'm actually spending more in total because I'm going more, but I like that. What is happening is that my average cost per day is less, but since I'm going more, I'm spending more in total.


    If you are having the slightest doubt you should cancel and take more time. DVC will still be ther when you are comfortable with your decision.
     
  7. monica9

    monica9 DIS Veteran

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    Thanks everyone. Looks like we will be cancelling but looking into resale. No nothing about it so if anyone has a link with good info, that would be great! Thanks again!
     
  8. Brian Noble

    Brian Noble His Curmudgeonly Highness

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    Chances are good that yes, you will save money on the lodging costs of your vacations if you are in this pattern, and would stay in DVC studios instead. If you buy resale rather than direct, you will do even better.

    Well, I for one *did not* choose DVC, because I was not sure that we would always enjoy going to WDW as often as we did when the kids were younger. In hindsight, that has turned out to be the right decision for our family. We can still sometimes exchange in via RCI if we are flexible (and a little bit lucky) but we also stay many other places at a much lower effective cost than if we used DVC points to do so.

    DVC is really only a good value for staying at DVC properties. Any other use is very inefficient---even purchased resale.
     
  9. Deb & Bill

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

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    RCI hasn't always been the trading company. It was at first, then the trading company was changed to II, then a few years ago, back to RCI. So buying RCI won't guarantee you an opportunity to stay in a DVC resort using your RCI trade.
     
  10. Jasonkat

    Jasonkat Mouseketeer

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    Can a DVC purchase be a good move financially? Yes
    Can a DVC purchase be a bad move financially? Yes

    Like everything you need more details. I have run the numbers (as most people on here have) and depending on the discount rate you use (a finance term for calculating cash flows at different time periods, not the discount on rack rates) DVC will break even between 6-12 years IF YOU BUY IT WITH CASH UP FRONT. This appears to be relatively similar to what other people say the break-even is.

    The cash-up-front part is key. If you finance your purchase you will never come out ahead and you will be better off just paying for the hotel.

    If you buy with cash and you stay at least every other year it will be a good purchase in the long run. In my opinion if you know you're going to WDW regularly for the next 15 years and you want to stay in Deluxe resorts, then it will be a good deal. If you aren't sure you want to go that frequently or you'd be happy at All Star or Pop Century then don't buy.

    I haven't bought in yet but I will in spring when I've saved enough to pay cash. The reason I'm buying is because I know I'm going to Disneyworld constantly for the next 20 years (I have a 1 year old and 3 year old, I hate the beach, I hate camping, and I love Mickey Mouse so WDW is the best fit). Also, if I don't buy into DVC I am too cheap to pay for a Deluxe resort and my poor wife will be stuck going to All Star Movies her whole life. If I buy DVC my wife can stay at a nice resort and I won't feel like I'm "wasting" money. Strangely I have more of a problem spending $300 for one night then spending $15,000 up front for a DVC contract.
     
  11. zavandor

    zavandor DIS Veteran

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    :rotfl2:
    Exactly as I feel! I thought to be the only one :)

    You are in the right place.
    I've found tons of information on this board. I've read for months before making my purchase.
     
  12. awilliams4

    awilliams4 DIS Veteran

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    Same here.
     
  13. RunnerMomO

    RunnerMomO DIS Veteran

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    We have looked at it a little different, but live closer by. We try to use our DVC points for multiple long weekends through out the year. We had found we were primarily stays at deluxe resorts and saw as our boys got older, it would be nice to have a little more room. Since joining in 2009, we have used our points in Florida, but also had opportunities at Hilton Head, California Grand Hotel and Disney Vero Beach. And then this year were so excited to stay at Aulani. Looking at the rack room rates for Aulani, we felt our points really did help us save a lot of money. And they do offer various savings at times for DVC members, such as tickets, etc. In fact, we just got an offer for a premium annual pass at $300 the base rate (non-Florida resident). Just some things to consider on how you can use DVC points. One thing we haven't done and probably won't is use points for a cruise...not as good of a deal in our mind, nor do we have enough points for the whole family.
     
  14. bakerworld

    bakerworld DIS Veteran

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    3 weeks at a premium venue in DVC studio costs us $5068 (financing + annual dues).
    3 weeks at the same premium venue at a 35% discounted room rate would cost $5776.

    I think that says it all. ;)
     
  15. Deb & Bill

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

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    But a studio doesn't really compare with a deluxe hotel room. The hotel room is better because it has real beds and sleeps five.

    I'd never pay cash to stay in a studio. Are you staying three consecutive weeks in a studio?? Or are you booking three trips? I can't imagine three weeks in a studio.
     
  16. super mike b

    super mike b DIS Veteran

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    Interesting thread.....
     
  17. amypetecar

    amypetecar DIS Veteran

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    I think resale makes alot of sense financially, direct not so much.


    Other posters did a great job comparing the financials vs. non dvc disney hotels.... Heres another way to look at in terms of what your points are worth. I always think of the purchase in terms of "how long until i reap the benefit of only paying dues?"

    Buy a 200 point resale contract at the boardwalk for $55 per point.
    Up front price is 11K (plus $500 closing costs)
    You could rent the points fairly easily for $11 per point even if you decided to never take a single vacation.
    You will pay roughly $6 per point in dues, netting a $5 per point profit.
    You have to rent 2300 points to break even on your principle, or 11.5 years worth of points, thus leaving you with almost 20 years of vacation points for only the dues.

    Run the same numbers vs. direct at $130 per point direct
    Principle is now 26k
    Youd have to rent 5200 points or 26 years worth until you break even.

    Am i suggesting you buy resale to make money off renting points? Of course not, but i think it does help to put in perspective what your break even point is.
     
  18. monica9

    monica9 DIS Veteran

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    Yes, now that I researched more, we realize paying resale or upfront is the way to go for us.
     
  19. BrerNashville

    BrerNashville DIS Veteran

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    What do you mean by "financing" -- are you buying over time and that includes your interest cost? Or is that simply the amortized amount applicable to a given year on what you originally paid?

    Disney won't always be on 35% off sale at the resorts. So two ways to look at that -- cash pay until those hefty discounts dry up and then buy DVC if you find that you are still interested in going regularly, or go ahead and buy today, using the dollars you would have spent on those 35% off cash pay rooms towards your purchase.
     
  20. ASchoolOfFish95

    ASchoolOfFish95 Earning My Ears

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    We have 3 children now in their teens. We bought DVC direct from Disney after spending a week in a regular hotel room. With a large family, we felt this was a cost effective way to travel. We always book a 1 or 2 bedroom villa (depends who comes with us), and cook many of our meals therefore saving on our restaurant bill. Do we save money overall? I think so.


    Posted from DISboards.com App for Android
     
  21. Caren90

    Caren90 DIS Veteran

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    Everything you have stated above describes us. The only exception is we bought resale instead of direct.

    Stephen
     

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