Am I missing something?

[mrudman]

I have been researching DVC for about 18 months now.. am pretty well convinced we're going to buy resale as soon as the right contract comes up (and we come up with the money, because I refuse to finance). But I had a couple questions, because it almost seems too good to be true.

We have been to Disney only twice.. once for our honeymoon 11 yrs ago, and once in December of 2008 (1st time for dd's)... we are all in love with it, and dd's cannot wait to go back.

At this point we're really hoping to get back there next summer, if everything works out ok.. if not, then it'll be summer of 2012 for sure. We had a separate family reunion trip planned this summer, otherwise we would've definitely been back down there this year.

As far as I can tell at this point, we'd all love to go at least every 3rd year, if not every other year.

Both times we've been, we've stayed at POR (prefer moderate resorts)... I priced out 10 nights for the summer of 2011 just now, and for room only, it would cost $2115.

Having researched all the DVC resorts, we're still a little undecided about where we'd buy in.. we're the type of people that use resorts/hotels mainly just to sleep (and occasional swim), otherwise we're out and about.

Had been looking at OKW, because we both like the theming there, we like being away from the hubbub, and a nice perk is that it has 2 queen beds instead of a sleeper sofa.

Having said that, I've been looking at resales very frequently for over a year now, and just saw that a 50-pt OKW loaded contract sold for $3550. If we ended up taking a trip every 3 yrs, that 50-pts would get us 10 nights in a studio every 3 yrs.

If we took 2 trips in the next 6 yrs, at POR we'd be paying $4230, whereas at OKW, we'd be paying $5011 (which includes the 6 yrs of maintenance fees). (Not including rise in maintenance fees, or rise in POR costs since guessing they'd probably be somewhat equal).

So for paying $781 more in the next 6 yrs, from then on out, we'd be paying only maintenance dues for all our trips for the next 25 yrs (assuming 2042 expiration).

So am I missing something here, or is it that after just 2 trips, we'd be saving 65% over the rack rate of a moderate hotel to stay in a dvc hotel? (and if look at rack rate of OKW, we'd be saving 81%).

 

[Swayhoover90]

Doesn't all this "figuring" make your head hurt? When we were considering buying in I ran every scenario through over and over.

You are correct in that once you pay off your initial buy-in you'll only be paying MF for the rest of your trips. Of course the MF will increase over time but so will the rack rates at POR.

I take a more emotional than rational approach to owning DVC than many others. Once our initial buy-in is paid off I will choose to pretend that it financial never happened. I won't calculate what my actual cost will be for the life of the ownership. I will just say that I am going to WDW and my accommodations are only costing me about $400 (100 pts at BLT).

 

[Orsino]

I think the best way to look at it is it is a volume discount. You are guaranteeing to vacation at WDW for the forseeable future. That commands a discount.

Also, I wouldn't compare to rack rates. It is unlikely that you would need to pay rack rates at the hotel.

 

[Swayhoover90]

I think the best way to look at it is it is a volume discount. You are guaranteeing to vacation at WDW for the forseeable future. That commands a discount.

Also, I wouldn't compare to rack rates. It is unlikely that you would need to pay rack rates at the hotel.

I agree. With minimal planning and a little flexibility in travel dates you will probably be able to find a discount off of rack rate.

On the lighter side...I used to have to convince my wife that we needed to go to WDW again (she has almost been converted). Now instead of saying "I'd like for us to go" I can now say "We have to go or lose the points".

 

[joandegennaro]

Just did a similar comparission with DH. Yes I used posted rack rates (which I most likely wouldn't pay) Used the amount of days I plan on using my points in the 2011 year and found that if I stayed at CRB(our pre DVC resort) it would cost over $4000 just for the room....OKW(our new home) over $7200 room only. While it doesn't really compare apples to apples since I wouldn't have to pay full rack rates it does show me the real value in DVC. Within about 3 years I will get more vacation time in an upgraded accomodation (comparing CBR to OKW) for the cost of my inital buy in. I look at MF's just like my property taxes I used to pay on my cottage. A tax on a second property.

We chose OKW for the extra beds with having 2 DD's in tow. As teens we needs the extra queen vs. the pull out couch. Our plan is to explore the other resorts once we become empty nesters. If we can't get a different resort at the 7 month mark we will be more than happy going home to OKW.

 

[mrudman]

Thanks for all the replies everyone,

I understand I probably won't have to ever pay full rack rate.. guess I'm just trying to convince myself (and dh), lol!

But it still seems really good to me that we'll be saving 65% after the initial buy-in... when any discounts I've ever seen offered are for a maximum of 40% off.

Guess I now just have to decide if we'd be happy with taking only WDW vacations or whether we'd rather explore other places.

 

[Sandisw]

Thanks for all the replies everyone,

I understand I probably won't have to ever pay full rack rate.. guess I'm just trying to convince myself (and dh), lol!

But it still seems really good to me that we'll be saving 65% after the initial buy-in... when any discounts I've ever seen offered are for a maximum of 40% off.

Guess I now just have to decide if we'd be happy with taking only WDW vacations or whether we'd rather explore other places.

And, I think that using rack rates is one way that it can be done. Basically, you buy DVC and agree to pay "rack rate" for two trips in exchange for locking in a 65% discount from then on.

Just as valid, IMO, as comparing to discount rates and spreading out the length of time it takes to start "saving".

 

[kristie03]

I take a more emotional than rational approach to owning DVC than many others. Once our initial buy-in is paid off I will choose to pretend that it financial never happened. I won't calculate what my actual cost will be for the life of the ownership. I will just say that I am going to WDW and my accommodations are only costing me about $400 (100 pts at BLT).

I love this rationale, its very similar to my own

For me, I think you can do this calculation any way you wish, but I prefer to do it they way that justifies the decision best to myself , because to me this is a very emotional decision.

It seems to me that you are great candidate!

The thing that pushed me over the edge was I can 100% see my husband and I still going to Disney alone when our kids are in that in between age and I'll love to be going with my adult children and their families (but btw, my DH thinks I'm overthinking when I say that!)

You and I are the same in that I honeymooned at the World......so I say go for it and enjoy!

 

[friends with mickey]

Thanks for all the replies everyone,

I understand I probably won't have to ever pay full rack rate.. guess I'm just trying to convince myself (and dh), lol!

But it still seems really good to me that we'll be saving 65% after the initial buy-in... when any discounts I've ever seen offered are for a maximum of 40% off.

Guess I now just have to decide if we'd be happy with taking only WDW vacations or whether we'd rather explore other places.

Actually you do not have to decide if you want only Disney WDW vacations or explore other places. One of the best parts of being a DVC owner is the ability to use your points on the Concierge Collection and RCI International to visit and stay in deluxe accomadations around the world. We have been to Washington DC, San Francisco, Maui, Chicago, Disneyland, Paris Disney, Sonoma, Berkely all using our DVC points. Those trips were great and the accomadations were all Dsney quality. We have not used any of the 500+ locations through RCI and we are taking our first Disney Cruise in October using our DVC points. Joining DVC opens the world for you to explore plus great trips to WDW as well. We have been members since the club started and it has gotten better every year. We think of our points like casino chips in Vegas, they have a monetary value, but you forget about that when you are there playing with them. To us DVC points mean great places to stay whether at WDW or any place else we use them. With DVC you can explore the Disney World as well as the rest of the world.

 

[mrudman]

Actually you do not have to decide if you want only Disney WDW vacations or explore other places. One of the best parts of being a DVC owner is the ability to use your points on the Concierge Collection and RCI International to visit and stay in deluxe accomadations around the world. We have been to Washington DC, San Francisco, Maui, Chicago, Disneyland, Paris Disney, Sonoma, Berkely all using our DVC points. Those trips were great and the accomadations were all Dsney quality. We have not used any of the 500+ locations through RCI and we are taking our first Disney Cruise in October using our DVC points. Joining DVC opens the world for you to explore plus great trips to WDW as well. We have been members since the club started and it has gotten better every year. We think of our points like casino chips in Vegas, they have a monetary value, but you forget about that when you are there playing with them. To us DVC points mean great places to stay whether at WDW or any place else we use them. With DVC you can explore the Disney World as well as the rest of the world.

Yea, I'll have to keep researching this aspect of it. Had heard about the exchanging, etc.. but it looks to be that you need 160 pts for a week whenever you do exchanges? and if we start out small as I'm planning on doing with a 50-pt contract, we would not have the pts even with banking and borrowing. Also, not real familiar with how the whole thing works with putting your pts into the RCI system, and how easy it is to make a reservation. Had read that you need to make them a couple yrs in advance sometimes? (not sure we'd be able to do that).

 

[Sandisw]

Yea, I'll have to keep researching this aspect of it. Had heard about the exchanging, etc.. but it looks to be that you need 160 pts for a week whenever you do exchanges? and if we start out small as I'm planning on doing with a 50-pt contract, we would not have the pts even with banking and borrowing. Also, not real familiar with how the whole thing works with putting your pts into the RCI system, and how easy it is to make a reservation. Had read that you need to make them a couple yrs in advance sometimes? (not sure we'd be able to do that).

Plus, many will tell you that using DVC to exchange on a regular basis is not necessarily as cost effective as it would be to buy a smaller DVC contract to cover just the WDW trips and do something else to cover the other trips.

It does appear that the farther out you deposit your DVC points into RCI, the better chance you have of getting something to match your needs. I would think that those that want to take advantage of this option need to have flexibility in terms of dates, etc.

I have never done it as I have only been a member since 2009 and for the most part, don't plan to use my DVC points in this manner. However, if there ever comes a time when I want to travel elsewhere and have points available, then I would certainly consider it.

 

[Coach81]

Yes.. that's why we love our DVC!!!

 

[crisi]

There is another way this is a good deal for you and for Disney. Without these points your frequency of Disney vacations has benn once every ten years. With these points you intend to go every three years for ten days. Disney is pretty much guarenteeing revenue from you - even if you trade out, they still get your maintenance (and I don't think you'll be able to trade out if you find a 50 point resale).

Another thing is to beware the burnout. We leave next week. No one is really excited. We are nearly done with Disney, and we've only gone every other year. Even the kids list of things that they want to do is really short. We are going for the pool and the chance to be away from home - but with park tickets, food and entertainment, we could go somewhere cheaper and - at this point - with less bother. Or somewhere a little more expensive that would be far more exciting - like Europe.

 

[Swayhoover90]

There is another way this is a good deal for you and for Disney. Without these points your frequency of Disney vacations has benn once every ten years. With these points you intend to go every three years for ten days. Disney is pretty much guarenteeing revenue from you - even if you trade out, they still get your maintenance (and I don't think you'll be able to trade out if you find a 50 point resale).

Another thing is to beware the burnout. We leave next week. No one is really excited. We are nearly done with Disney, and we've only gone every other year. Even the kids list of things that they want to do is really short. We are going for the pool and the chance to be away from home - but with park tickets, food and entertainment, we could go somewhere cheaper and - at this point - with less bother. Or somewhere a little more expensive that would be far more exciting - like Europe.

Very true. For Disney DVC is a great deal. The revenue flow is locked in for many years to come.

We have friends that feel exactly as you do...not WDW again! We however have found the opposite. We are no longer theme park warriors. We are not in the parks when the rope drops. Now we enjoy a more leisurely WDW vacation and find that we can do WDW cheaper than most of the other places we would consider going. We know where the best food values are, we don't spend lots on souvenirs and we spend more time just relaxing.

 

[crisi]

Very true. For Disney DVC is a great deal. The revenue flow is locked in for many years to come.

We have friends that feel exactly as you do...not WDW again! We however have found the opposite. We are no longer theme park warriors. We are not in the parks when the rope drops. Now we enjoy a more leisurely WDW vacation and find that we can do WDW cheaper than most of the other places we would consider going. We know where the best food values are, we don't spend lots on souvenirs and we spend more time just relaxing.

I'd rather relax on a beach in Mexico with an inclusive bar than around a Disney pool at this point in my life. And the kids are almost to that point as well - my daughter not so much as my son - not the endless margaritas (though virgin daquiris are a hit with them) - but the more grown up experience than Disney provides. (Honestly, I really like to relax at home at this point in my life - if I'm going to relax without maid service, I like a staycation with my own bed, my own library of books to read, my own inventory of movies to watch, and dinner reservations).

I don't go to Disney for food values, and have stopped going to Disney for food - there are so many better places to travel where the food is wonderful - and not as expensive (spent a week in New Orleans last year). Food has become a big part of our vacations, and Disney just isn't living up there. Which is a shame - we really used to look forward to meals at Disney.